Menifee City Council
February 15, 2023

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A portion of the project is located within the Old Paloma Wash, which is listed as a “blue-line stream” and managed by the Army Corps of Engineers (ACOE). The Project proposes to re-align the stream to accommodate the roadway and bridge construction which requires specific permits as well as the purchase of environmental mitigation credits (credits). The ACOE section 404 permit letter and California Department of Fish and Wildlife (CDFW) section 1602 permit letter are attached for reference. Mitigation requirements from each of the following agencies are summarized in Table 1 on the following page: ACOE section 404; CDFW section 1602; and the Riverside Conservation Agency (RCA).

Table 1 – Agency Mitigation Requirements
Agency Description Acres Required for
Mitigation Credits
CDFW
(1602)

0.77 acres permanent impact of unvegetated
streambed restoration at 3:1 ratio 2.31 acres*
ACOE
(404)

0.31 acres non-wetland and 0.005 acres wetland
(sum = 0.315 acres) at 3:1 ratio 0.95 acres*
RCA
(MSHCP)

0.755 acres of riparian-riverine
restoration/enhancement at 1:1 ratio 0.755 acres
*The 2.31 acres required by the CDFW includes 1.36 acres of 1602 permit credits and 0.95 acres of 404 permit credits.

On December 7, 2022, City Council authorized the City Manager to execute necessary documents and issue payment in an amount not-to-exceed $300,000 to an environmental mitigation bank for the purpose of purchasing credits for the Project. At the time, the environmental consultant estimated the credit purchase would cost between $150,000 and $250,000, but staff had not determined final mitigation ratios or identified an environmental bank to purchase of these credits from. The initial cost estimates were from a local mitigation bank which does not currently have credits available. Therefore, a mitigation bank outside of the Riverside area must be used.

Credits are available through Soquel Canyon Mitigation Bank (SCMB) at a higher cost than initially anticipated because the bank is outside of the Riverside area.

Required mitigation ratios for the Project have now been finalized and on February 1, 2023, staff received two cost estimates from SCMB for the purchase of credits. The ACOE requires that the

0.95 acre credits be paid in advance of certain construction activities. The CDFW requires 2.31 total acre credits be purchased, of which 0.95 acres would also meet the ACOE credit requirement. In an effort to expedite the Project’s construction activities, staff has arranged to divide the 2.31 total acre credit purchase into two payments. Staff initiated the process to issue the initial payment for the purchase of 0.95 acre credits for $238,000, as this amount was within the purchasing authority previously delegated to the City Manager on December 7, 2022.

The second purchase for the remaining 1.36 acre credits is estimated to cost $340,000, which exceeds the current purchasing authority delegated to the City Manager. The City Manager’s purchasing authority must be increased from $300,000 to a total amount not-to-exceed $600,000 to issue payment for the purchase of all required credits from SCMB. The SCMB estimates are valid for a period of 30-days and may increase slightly until all required documents are fully executed and payment is issued. The increase in the City Manager’s purchasing authority to Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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City of Menifee Staff Report
CIP 13-03 Environmental Mitigation Credits
February 15, 2023

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$600,000 would allow for any slight increases in the final amount of the second SCMB purchase.

Funding for the identified credits is available in current project budget.

It is important to note that the purchase of the identified credits from SCMB would not cover all required credits for the Project. Staff continues to research alternatives and banks to mitigate for the 0.755 acres of riparian-riverine restoration/enhancement credits required by the RCA.

STRATEGIC PLAN OBJECTIVE
Accessible and Interconnected Community

FISCAL IMPACT
The payment for the environmental mitigation credits would not adjust the overall CIP 13-03 budget as funding is available through project contingencies for items such as this. Funding for the environmental mitigation payment in an amount not to exceed $600,000 has been identified in Fiscal Year 2022/2023, as outlined in Table 2 below.

Table 2 – Project Funding
Fund Project Account
Number
Available
Budget
DIF -
Circulation
Holland Road / I-
215 Overcrossing
526-4555-58021 $1,350,498.21 $600,000

ATTACHMENTS

1. Project Location Map

2. SCMB Estimate – 0.95 Acre Initial Credits

3. SCMB Estimate – 1.36 Acre Additional Credits

4. ACOE – Section 404 Permit Letter

5. CDFW - Section 1602 Letter
Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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215
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215
Haun Rd
Holland Rd
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Path: E:\Standard_Maps\Engineering_PW\Holland_Overpass_Location_Map\Holland_Overpass_Location_Map.aprx Date: 10/18/2021 Holland Rd & I-215 Overpass / Interchange (CIP 13-03)
Project Location Map
Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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Soquel Canyon Mitigation Bank
Estimate

February 1, 2023
Prepared for: Carlos Geronimo, City of Menifee

Project: Holland Road/Interstate 215 Overcrossing Project Mitigation Requested:

0.95 acres 404 stream system enhancement credits

Proposed Credits and Price Quote:

Credit Type Acreage
404 Intermittent Stream System Enhancement 0.95
Total Acres 0.95
Total Cost $238,000

These credits include within them 0.95 acres 1600 Ephemeral Riparian Enhancement credits.

The cost(s) presented in this quote are valid for 30 days; any change to the quantity or type of credits required may change the cost.

Please be advised that credit availability is not guaranteed until a deposit is made.

Land Veritas welcomes the opportunity to match or beat any other offers of comparable mitigation value.

Please contact Land Veritas with questions or to secure credits. [email protected] | 877.445.8699

Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
Page
181 of 644

Soquel Canyon Mitigation Bank
Estimate

February 1, 2023
Prepared for: Carlos Geronimo, City of Menifee

Project: Holland Road/Interstate 215 Overcrossing Project Mitigation Requested:

1.36 acres 1600 riparian enhancement credits

Proposed Credits and Price Quote:

Credit Type Acreage
1600 Ephemeral Riparian Enhancement 1.36
Total Acres 1.36
Total Cost $340,000

The cost(s) presented in this quote are valid for 30 days; any change to the quantity or type of credits required may change the cost.

Please be advised that credit availability is not guaranteed until a deposit is made.

Land Veritas welcomes the opportunity to match or beat any other offers of comparable mitigation value.

Please contact Land Veritas with questions or to secure credits. [email protected] | 877.445.8699

Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
Page
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DEPARTMENT OF THE ARMY
LOS ANGELES DISTRICT, U.S. ARMY CORPS OF ENGINEERS
915 WILSHIRE BLVD, SUITE 1109
LOS ANGELES, CA 90017
January 18, 2023
S
UBJECT: Nationwide Permit (NWP) Verification
M
r. Carlos Geronimo
City of Menifee
29844 Haun Road
Menifee, California 92586
D
ear Mr. Geronimo:

I
am responding to your request dated April 6, 2017 for a Department of the Army (DA) permit for your proposed project, Holland Road/Interstate 215 Overcrossing Project (File No. SPL-2017-00391-MY). The proposed project is located in the City of Menifee, Riverside County, California (Latitude 33.67070°, Longitude -117.17095°; Figures 1-2).

B
ecause this project would result in a discharge of fill material into waters of the U.S., a Department of the Army permit is required pursuant to Section 404 of the Clean Water Act (33 USC 1344; 33 CFR parts 323 and 330).

I
have determined construction of your proposed project, if constructed as described in your application, would comply with Nationwide Permit (NWP) 14, Linear Transportation Projects. Specifically, and as shown in the enclosed figures and plans, you are authorized to:

1. Permanently place up to 1,911 cubic yards (cy) of fill (1,546 cy of soil/sand/dirt and 365 cy of gravel) material into Feature 1 (Old Paloma Wash), Feature 2, Feature 3, Feature 4, and Feature 5 impacting 0.31 acre (1,865 linear feet) of non-wetland waters of the U.S. and 0.005 acre of wetland waters of the U.S.

2. Permanently impact 0.30 acre (1,826 linear feet) of non-wetland waters of the U.S. consisting of Feature 1, Feature 2 and Feature 5, for the purposes of constructing the western run-up ramp and a new cul-de-sac, south of Holland Road.

3. Permanently impact 0.01 acre (39 linear feet) of non-wetland waters of the U.S. and 0.005 acre of wetland waters of the U.S. consisting of Feature 3 and Feature 4 for the purposes of constructing the eastern run-up ramp and necessary underground utility connections at Hanover Lane.

4. Permanently realign Feature 1 (Old Paloma Wash) to the north of the western run- up ramp of Holland Road. The realigned Feature 1 would be a 4-foot deep trapezoidal channel with a bottom width of 4 feet and 4:1 side slopes. The Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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r
ealigned channel requires the relocation of an existing 36-inch corrugated metal pipe (CMP) currently located approximately 400-feet east of Huan Road. The culvert would be replaced with a 30-inch concrete pipe and would be relocated approximately 60-feet further west from its existing location.

F
or this NWP verification letter to be valid, you must comply with all of the terms and conditions in Enclosure 1. Furthermore, you must comply with the non-discretionary Special Conditions listed below:

1. P
rior to initiating work in waters of the U.S. the Permittee shall provide the U.S.

Army Corps of Engineers (Corps) proof of mitigation credit purchase of 0.95 acre of non-wetland waters of the U.S. intermittent stream enhancement credits from the Soquel Canyon Mitigation Bank. The Permittee shall not initiate work in waters of the U.S. prior to receiving written confirmation (by letter or email) from the Corps Regulatory Division as to compliance with this special condition. The permittee retains responsibility for providing the compensatory mitigation until the number and resource type of credits described above have been secured from the above-listed sponsor and the district engineer has received documentation that confirms that the sponsor has accepted the responsibility for providing the required compensatory mitigation. This documentation may consist of a letter or form signed by the sponsor, with the permit number and a statement indicating the number and resource type of credits that have been secured from the sponsor.

2. W
ithin 45 calendar days of completion of authorized work in waters of the United States, the Permittee shall submit to the Corps Regulatory Division a post-project implementation memorandum including the following information:

A. Date(s) work within waters of the U.S. was initiated and completed; B. Summary of compliance status with each special condition of this permit (including any noncompliance that previously occurred or is currently occurring and corrective actions taken or proposed to achieve compliance);
C. Color photographs (including map of photopoints) taken at the project site before and after construction for those aspects directly associated with permanent impacts to waters of the U.S. such that the extent of authorized fills can be verified;
D. One copy of "as built" drawings for the entire project. Electronic submittal (Adobe PDF format) is preferred. All sheets must be signed, dated, and to- scale. If submitting paper copies, sheets must be no larger than 11 x 17 inches; and
E. Signed Certification of Compliance (attached as part of this permit package).

Item Title: 10.9
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February 15, 2023
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- 3 -

3. Pursuant to 36 C.F.R. section 800.13, in the event of any discoveries during construction of either human remains, archaeological deposits, or any other type of historic property, the Permittee shall notify the Corps Regulatory Project Manager within 24 hours (Miriam Yemane at 213-452-3411) and Corps Archeologist (Julie Taomia, 213-310-2177). The Permittee shall immediately suspend all work in any area(s) where potential cultural resources are discovered. The Permittee shall not resume construction in the area surrounding the potential cultural resources until the Corps Regulatory Division re-authorizes project construction, per 36 C.F.R. section 800.13.

4. Within 30 days of completion of the authorized work, you must sign and return the enclosed Certificate of Compliance (in accordance with General Condition 30).

This verification is valid through March 14, 2026. If on March 14, 2026 you have commenced or are under contract to commence the permitted activity you will have an additional twelve (12) months to complete the activity under the present NWP terms and conditions. However, if I discover non-compliance or unauthorized activities associated with the permitted activity I may request the use of discretionary authority in accordance with procedures in 33 CFR part 330.4(e) and 33 CFR part 330.5(c) or (d) to modify, suspend, or revoke this specific verification at an earlier date. Additionally, at the national level the Chief of Engineers, any time prior to March 14, 2026, may choose to modify, suspend, or revoke the nationwide use of a NWP after following procedures set forth in 33 CFR part 330.5. It is incumbent upon you to comply with all of the terms and conditions of this NWP verification and to remain informed of any change to the NWPs.

A NWP does not grant any property rights or exclusive privileges. Additionally, it does not authorize any injury to the property, rights of others, nor does it authorize interference with any existing or proposed Federal project. Furthermore, it does not obviate the need to obtain other Federal, state, or local authorizations required by law.

Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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- 4 -

Thank you for participating in our regulatory program. If you have any questions, please contact Miriam Yemane at (213) 452-3411 or via email at [email protected]. Please help me to evaluate and improve the regulatory experience for others by completing the customer survey form at https://regulatory.ops.usace.army.mil/customer-service-survey/.

Sincerely,

James E. Mace
Lead, Orange & Riverside Counties Team
South Coast Branch
Regulatory Division

Enclosures
Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
Page
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LOS ANGELES DISTRICT
U.S. ARMY CORPS OF ENGINEERS

CERTIFICATE OF COMPLIANCE WITH

DEPARTMENT OF THE ARMY NATIONWIDE PERMIT

Permit Number: SPL-2017-00391-MY

Name of Permittee: Carlos Geronimo, City of Menifee

Date of Issuance: January 18, 2023

Upon completion of the activity authorized by this permit and the mitigation required by this permit, sign this certificate, and email it to [email protected] .

I hereby certify that the authorized work and any required compensatory mitigation has been completed in accordance with the NWP authorization, including all general, regional, or activity-specific conditions. Furthermore, if credits from a mitigation bank or in-lieu fee program were used to satisfy compensatory mitigation requirements I have attached the documentation required by 33 CFR 332.3(l)(3) to confirm that the appropriate number and resource type of credits have been secured.

___________________________________ ________________________________ Signature of Permittee Date

Item Title: 10.9
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February 15, 2023
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Kabian
County
Park
Double
Butte
Park
PerrisPerris
ValleyValley
AirportAirport
French ValleyFrench Valley
AirportAirport
FrenchFrench
ValleyValley
AirportAirport
SaltCreek
SlaughterhouseCanyon Creek
Salt Creek
San DiegoAqueduct
San
Diego
Canal
BundyCreek
SaltCreek
San Jacinto
River
French Valley
Stream
Murietta
Creek
Salt Creek
BundyCreek
M
urrieta
Creek
French Valley
Stream
San Jacinto River
Bundy
Creek
W
arm
Springs
Creek
French Valley
Stream
Murietta
Creek
Tucalota
Creek
Salt Creek
Cottonwood
Canyon Creek
Warm SpringsCreek
San Diego
Canal
SanDiego
Aqueduct
R i v e r s i d eR i v e r s i d e
C o u n t yC o u n t y
ST79
ST74
ST79
ST79
ST74
ST79
ST79
ST74
¨§¦15
¨§¦215
JuniperJuniper
SpringsSprings
CanyonCanyon
LakeLake
HomelandHomeland
MurrietaMurrieta
QuailQuail
ValleyValley
RomolandRomoland
Sun CitySun City
WinchesterWinchester
Figure 1
Regional Vicinity Map
Holland Road/I-215 Bridge Overcrossing
±
Source: ESRI StreetMap
North America (2010)
0 1 20.5
Miles
San Bernardino
Riverside
San Diego
Orange
Los Angeles
Kern
P a c i f i c
O c e a n
USA
MEXICO
K:\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\Fig01_Regional_Vicinity.mxd Date: 10/13/2016 35528 ^_
Project Site
Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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Figure 2
Project Location
Holland Road/I-215 Bridge Overcrossing
±
Source: USGS 7.5' Quad, CA:

Romoland (1980)
0 2,0001,000
Feet
K:\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\Fig02_Project_Location.mxd Date: 10/13/2016 35528 Legend
Proposed Project Area
Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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Paloma Wash Flood Control Channel
Old Paloma Wash Albion Rd
Sunwood Pl
Green
ForestDr
Aspenwood Way
Larchwood St
Hanover Ln
W
illowoodW
ay
Haun Rd
Antelope Rd
¨§¦215
Holland Rd
Figure 3
Proposed Project
Holland Road/I-215 Bridge Overcrossing
K:\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\Fig03_Build_Map.mxd Date: 10/13/2016 35528 ±
Source: ESRI World
Imagery (2010); SSURGO
Map Prepared: 10/13/2016
0 400200
Feet
Legend
Biological Study Area (100' Buffer)
Proposed Project Area
Permanent Impact
Temporary Impact
Striping Only
Curb/Gutter
Cut and Fill
Main Alignment
Soundwalls
1 in = 400 feet
Item Title: 10.9
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February 15, 2023
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Sheet 1
Sheet 2
¨§¦215
Glencoe Ln
Westwood WayE Pointe Ct
Sunwood Pl
Blossomwood Ct
Green
ForestDr
Albion Rd
Aspenwood Way
Larchwood St
Eastridge Ave
Northstar Ln
Hanover Ln
W
illowood
W
ay
Holland Rd
Haun
Rd
Antelope Rd
Figure 4 - Index Sheet
USACE/RWQCB Jurisdictional Delineation and Proposed Impacts Holland Road/I-215 Bridge Overcrossing
K:\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\Fig04_USACE_Index.mxd Date: 10/13/2016 35528 ±
Source: ESRI World
Imagery (2010)
Map Prepared: 10/13/2016
0 500250
Feet
Legend
Jurisdictional Delineation Study Area (100' Buffer)
Proposed Project Area
Map Sheet
1 in = 500 feet
Item Title: 10.9
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February 15, 2023
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15'
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12'
8'
5'
Feature 2
Feature 2Feature 1
Feature 1
Feature 5
Feature 6
2'
4'
2'
8'
12'
65'
1 Haun
Rd
Holland Rd 12
3 4
5 6
7 8
14 1516
19 20
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-117.171 dd,

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1 6
Figure 4 - Sheet 1
USACE/RWQCB Jurisdictional Delineation and Proposed Impacts Holland Road/I-215 Bridge Overcrossing
K:\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\Fig04_USACE.mxd Date: 4/26/2017 25119 ±
Source: ESRI World
Imagery (2010)
Map Prepared: 4/26/2017
0 200100
Feet
Legend
Jurisdictional Delineation
Study Area (100' Buffer)
Proposed Project Area
Permanent Impact
Temporary Impact
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& Photo Point
!( Sample Point
Feature Width
!( OHWM Point
Potential WoUS/WoS
Inferred - Nonwetland
(Permanent Impact = 0.003 ac)
Nonwetland
(Permanent Impact = 0.315 ac)
Wetland
(Permanent Impact = 0.005 ac)
1 in = 200 feet
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Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
Page
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!(!(
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&&
&&
&
&
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Feature 3
Feature 4
38'
83'
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Fruitwood Dr
Glencoe Ln
Green
ForestDr
Willowood Way
Hanover Ln
Albion Rd
Larchwood St
Holland Rd
Antelope
Rd
9 10
11 12
13 17
18 -117.165 dd,

33.669 dd
-117.170 dd,

33.671 dd
2 3
4 5
Figure 4 - Sheet 2
USACE/RWQCB Jurisdictional Delineation and Proposed Impacts Holland Road/I-215 Bridge Overcrossing
K:\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\Fig04_USACE.mxd Date: 4/26/2017 25119 ±
Source: ESRI World
Imagery (2010)
Map Prepared: 4/26/2017
0 200100
Feet
Legend
Jurisdictional Delineation
Study Area (100' Buffer)
Proposed Project Area
Permanent Impact
Temporary Impact
") Culvert
& Photo Point
!( Sample Point
Feature Width
!( OHWM Point
Potential WoUS/WoS
Inferred - Nonwetland
(Permanent Impact = 0.003 ac)
Nonwetland
(Permanent Impact = 0.315 ac)
Wetland
(Permanent Impact = 0.005 ac)
1 in = 200 feet
!(
!(
!(!(
INSET MAP 1" = 100'
Feature 3
2 3
4 5
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Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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7'
15'
5'
12'
8'
5'
Feature 6 Impacts:

0.0052 acres

4.53 linear ft
Feature 1 Impacts:

0.2306 acres
1436.55 linear ft
Feature 5 Impacts:

0.0033 acres

72.78 linear ft
Feature 2
Feature 2Feature 1
Feature 1
Feature 5
Feature 6
2'
4'
2'
8'
12'
65'
1 -117.177 dd,

33.671 dd
-117.171 dd,

33.669 dd
1 6
Figure 5 - Sheet 1
USACE/RWQCB Jurisdictional Delineation and Proposed Impacts Area of Potential Effect Holland Road/I-215 Bridge Overcrossing
\\PDCCITRDSGIS2\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\APE\Fig01_USACE_APE_v2.mxd Date: 5/10/2021 37937 Source: ESRI World
Imagery (2010)
Map Prepared: 5/10/2021
0 200100
Feet
Legend
Jurisdictional Delineation
Study Area (100' Buffer)
Proposed Project Area
Permanent Impact
Temporary Impact
Area of Potential Effect
Striping Only
Curb/Gutter
Cut and Fill
Main Alignment
Soundwalls
Culvert
Sample Point
Feature Width
OHWM Point
Potential WoUS/WoS
Inferred - Nonwetland
(Permanent Impact = 0.003 ac)
Nonwetland
(Permanent Impact = 0.315 ac)
Wetland
(Permanent Impact = 0.005 ac)
1 in = 200 feet
Item Title: 10.9
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February 15, 2023
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Feature 4 Impacts:

0.0016 acres

25.99 linear ft
Feature 3 Impacts:

0.0161 acres

74.21 linear ft
Feature 3
Feature 4
38'
83'
-117.165 dd,

33.669 dd
-117.170 dd,

33.671 dd
2 3
4 5
Figure 5 - Sheet 2
USACE/RWQCB Jurisdictional Delineation and Proposed Impacts Area of Potential Effect Holland Road/I-215 Bridge Overcrossing
\\PDCCITRDSGIS2\Irvine\GIS\Projects\TYLIN\00434_14\mapdoc\PermitApp\APE\Fig01_USACE_APE_v2.mxd Date: 5/10/2021 37937 Source: ESRI World
Imagery (2010)
Map Prepared: 5/10/2021
0 200100
Feet
Legend
Jurisdictional Delineation
Study Area (100' Buffer)
Proposed Project Area
Permanent Impact
Temporary Impact
Area of Potential Effect
Striping Only
Curb/Gutter
Cut and Fill
Main Alignment
Soundwalls
Culvert
Sample Point
Feature Width
OHWM Point
Potential WoUS/WoS
Inferred - Nonwetland
(Permanent Impact = 0.003 ac)
Nonwetland
(Permanent Impact = 0.315 ac)
Wetland
(Permanent Impact = 0.005 ac)
1 in = 200 feet
INSET MAP 1" = 100'
Feature 3
2 3
4 5
Item Title: 10.9
Menifee Mayor and City Council
February 15, 2023
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State of California – Natural Resources Agency GAVIN NEWSOM, Governor DEPARTMENT OF FISH AND WILDLIFE CHARLTON H. BONHAM, Director Inland Deserts Region
3602 Inland Empire Boulevard, Suite C-220
Ontario, CA 91764
www.wildlife.ca.gov

Conserving California’s Wildlife Since 1870
May 10, 2022
Carlos Geronimo
City of Menifee
29844 Haun Road
Menifee, CA 92586
Notification of Lake or Streambed Alteration, EPIMS Notification No. RIV-27016 R6, Holland Road/Interstate 215 Overcrossing Project. Riverside, APN 360-130-003.

Dear Mr. Geronimo:

The California Department of Fish and Wildlife (CDFW) had until May 5, 2022 to submit a draft Lake or Streambed Alteration Agreement (Agreement) to you or inform you that an Agreement is not required. CDFW did not meet that date. As a result, by law, you may now proceed with the project described in your notification without an Agreement.

Please note that pursuant to Fish and Game Code section 1602, subdivision (a)(4)(D), if you proceed with this project, it must be the same as described and conducted in the same manner as specified in the notification and any modifications to that notification received by CDFW prior to May 5, 2022. This includes completing the project within the proposed term and seasonal work period and implementing all avoidance and mitigation measures to protect fish and wildlife resources specified in the notification. If the term proposed in your notification has expired, you will need to re-notify CDFW before you may begin your project.

Beginning or completing a project that differs in any way from the one described in the notification may constitute a violation of Fish and Game Code section 1602.

Your project is located within Paloma Wash Flood Control Channel, tributary to Salt Creek, along Holland Road between Hanover Lane and Haun Road, in the City of Menifee, Riverside County, California; latitude 33.670703⁰ N, longitude 117.170952⁰ W. Your project proposes to construct a four-lane bridge to cross over the I-215 to connect Holland Road from the east and west sides of the I-215. Your project will also modify the surrounding roads in the following ways: Realigning Willowood Way, re-striping Hanover Lane and Albion Lane, and constructing an access road on the west side of I-215 and relocating associated utility infrastructure. A temporary construction laydown area will also be constructed on the north and south sides of the intersection of Holland Road and Haun Road. Additional project components include realigning the existing channel into a 4ft deep trapezoidal channel and discharging fill material into streambed and associated habitat as a result of the four-lane bridge crossing construction. The project will result in permanent impacts to 0.775 acres of streambed and associated riparian habitat. You have proposed the following avoidance and minimization measures: implementing sediment, waste management and material pollution, water pollution, and treatment control BMPs; demarcating construction area limits; and preparing a Stormwater Pollution Prevention Plan that specifies BMPs that will be used to minimize spills and prevent contaminated material from entering drainage waterways. To minimize stream impacts from potential streamflow Item Title: 10.9
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Carlos Geronimo, Principal Engineer
City of Menifee
May 10, 2022

diversions, sandbags would be placed, and silt fencing would be installed downstream to minimize transporting sediment offsite.

Your notification includes, but is not limited to, the following information:
 Impacts:
o Permanent impacts total at least 0.775 acres of stream and riparian habitat  Mitigation proposed:

1. Contribute funds to Riverside-Corona Resource Conservation District in- lieu fee program for 2.31 acres streambed restoration and 0.015 acres riparian habitat and

2. Hydroseeding all bare ground disturbed areas post-construction.  Term – May 5, 2022 to May 5, 2027:

Also note that while you are entitled to complete the project without an Agreement, you are still responsible for complying with other applicable local, state, and federal laws. These include, but are not limited to, Fish and Game Code sections 2080 et seq. (species listed as threatened or endangered, or a candidate for listing under the California Endangered Species Act); section 1908 (rare native plants); sections 3511, 4700, 5050, and 5515 (fully protected species); section 3503 (bird nests and eggs); section 3503.5 (birds of prey); section 5650 (water pollution); section 5652 (refuse disposal into water); section 5901 (fish passage); section 5937 (sufficient water for fish); and section 5948 (obstruction of stream).

Finally, if you decide to proceed with your project without an Agreement, you must have a copy of this letter and your notification with all attachments available at all times at the work site.

If you have questions regarding this letter, please contact John (Trey) Dempsey, Environmental Scientist, at (909) 549-8245 or by email at [email protected].

Sincerely,
Heather Pert
Senior Environmental Scientist (Supervisor)
ec: California Department of Fish and Wildlife
Trey Dempsey, Environmental Scientist
Inland Deserts Region
[email protected]
Item Title: 10.9
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CITY OF MENIFEE
SUBJECT: Agreement with K&A Engineering, Inc. for Design Services for the Goetz Road/Vista Way Traffic Signal Project
MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Luke Qu, Associate Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute a Professional Services Agreement with K&A Engineering, Inc. for civil design services for the Goetz Road/Vista Way Traffic Signal Project, Capital Improvement Project (CIP) No. 23-02 in an amount not-to-exceed $117,094.

DISCUSSION
The Goetz Road/Vista Way Traffic Signal Project, CIP No. 23-02 is located at the intersection of Goetz Road and Vista Way, with improvements extending north to Casa Bonita Avenue. The Project includes a new traffic signal at the intersection of Goetz Road and Vista Way, interim roadway design accommodating left turn pockets along Goetz Road at Vista Way and Casa Bonita Avenue, and minor shoulder widening and drainage improvements. The new traffic signal will also be coordinated with the new traffic signal located at the apparatus bay exit for the new Quail Valley Fire Station #5 located approximately 320 feet south of this new traffic signal.

On December 5, 2022, staff solicited quotes for design services from the City’s approved list of prequalified firms through a Request for Quotes (RFQ). The requested services include:
•Project Management & Coordination
•Environmental Analysis
•Utility Research & Coordination
•Geotechnical Evaluation Report
•Water Quality Management Planning
•Preparation of Plans, Specifications and Estimates
•Bidding, Project Schedule & Construction Support
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City of Menifee Staff Report
CIP 23-02 K&A Design Agreement
February 15, 2023

1 3
8 6
Requests for design services quotes were requested from the following firms:
•CivilPros
•Dokken Engineering, Inc.
•Engineering Resources of Southern California (ERSC)
•K&A Engineering, Inc. (K&A)
•Kimley-Horn and Associates, Inc.
•NV5, Inc.

The City received responses from all six firms by the submittal deadline, as summarized in Table 1 below.

Table 1- RFQ Response Summary
Firm Name Fee Proposal
CivilPros $148,691
Dokken Engineering, Inc. $272,490
ERSC $154,125
K&A $117,094
Kimley-Horn and Associates, Inc. $212,306
NV5, Inc. $157,500
The fee proposed by K&A is less than the City’s independent cost estimate of $159,000 and is reasonable for the scope of work. K&A’s proposal for design services satisfies the deliverables outlined within the RFQ.

City Council action is required for approval of the proposed Professional Services Agreement (PSA) for the design services with K&A Engineering, Inc. as the total amount of the agreement exceeds the City Manager’s signing authority.

STRATEGIC PLAN OBJECTIVE
Safe and Attractive Community

FISCAL IMPACT
The total anticipated cost for the PSA is $117,094. The proposed PSA is budgeted in Fiscal Year 2022/2023, as summarized in Table 2 below.

Table 2- Existing Project Funding
Fund Project Account
Number
Available
Balance
Cost of
Services
DIF Citywide -
Circulation
Goetz Rd./Vista Wy.

Traffic Signal 526-4555-58149 $121,400 $117,094

ATTACHMENTS

1. Project Location Map

2. PSA – CIP 23-02
Item Title: 10.10
Agreement with K&A Engineering, Inc. for Design Services for the Goetz Road/Vista Way Traffic Signal Project Item Page Number: 2
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Path: Z:\Project_Specific_Maps\Engineering_PublicWorks\GoetzRd_VistaWay_TS\GoetzRd_VistaWay_TS\GoetzRd_VistaWay_TS.aprx Date: 10/19/2022 Goetz Road - Vista Way Traffic Signal (CIP 23-02)
Project Location Map
Item Title: 10.10
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CITY OF MENIFEE

PROFESSIONAL SERVICES AGREEMENT
CIP 23-02 GOETZ ROAD/VISTA WAY TRAFFIC SIGNAL AND INTERSECTION

IMPROVEMENTS
(CIVIL DESIGN SERVICES)
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this _______ day of ______, 2023 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and K&A ENGINEERING, INC., a California Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.”
SECTION 1. SERVICES.

Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on February 15, 2023 and shall end on June 30, 2024 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8.

1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider of first class work and services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the sole satisfaction of the Contract Administrator.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder.

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1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

1.6 Covid-19 Safety. If Consultant enters City property or meets in person with City employees during the performance of the Services, Consultant shall comply with all State, County, and local emergency orders, directives, protocols, and best practices related to the COVID-19 pandemic, including, but not limited to: (A) wearing facial coverings, (B) maintaining adequate physical distancing when possible, (C) regular hand washing, and (D) regular hand sanitizing.

SECTION 2. COMPENSATION.

City hereby agrees to pay Consultant a sum not to exceed ONE HUNDRED SEVENTEEN THOUSAND NINETY FOUR DOLLARS AND ZERO CENTS ($117,094.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for the Services rendered pursuant to this Agreement.

Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.

2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense;
e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
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g. The Consultant Representative’s signature.

Invoices shall be submitted to:

City of Menifee
Attn: Accounts Payable
29844 Haun Road
Menifee, CA 92586

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

2.3 Final Payment. City shall pay the last ten percent (10%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed.

2.4 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.

2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A.

2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.

2.8 Payment upon Termination. In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.

SECTION 3. FACILITIES AND EQUIPMENT.

Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees Item Title: 10.10
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and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities.

SECTION 4. INSURANCE REQUIREMENTS.

Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement.

The cost of such insurance shall be included in Consultant’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds.

4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self- insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement.

4.2 Commercial General and Automobile Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection Item Title: 10.10
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against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles.
b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001.

Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage. c. Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.

4.3 Professional Liability Insurance.
a. General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions.

Any deductible or self-insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY-FIVE THOUSAND DOLLARS ($25,000), it must be approved by City.
b. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the Item Title: 10.10
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right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.

4.4 All Policies Requirements.
a. Acceptability of insurers. All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California. b. Verification of coverage. Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: CIP 23-02 GOETZ ROAD/VISTA WAY TRAFFIC SIGNAL AND INTERSECTION IMPROVEMENTS (CIVIL DESIGN SERVICES). The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant. c. Notice of Reduction in or Cancellation of Coverage. Consultant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self-insured retention is increased.
d. Additional insured; primary insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Consultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.

A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage.
e. Deductibles and Self-insured Retentions. Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services.

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During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self- insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.

4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.

SECTION 5. INDEMNIFICATION.

5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement.

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5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant.

5.3 Limitation of Indemnification for Design Professionals. Notwithstanding any provision of this Section 5 to the contrary, design professionals are required to defend and indemnify City only to the extent permitted by Civil Code Section 2782.8. The term “design professional” as defined in Section 2782.8, is limited to licensed architects, licensed landscape architects, registered professional engineers, professional land surveyors, and the business entities that offer such services in accordance with the applicable provisions of the California Business and Professions Code.

5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity.

SECTION 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

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SECTION 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors.

7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions.

Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

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SECTION 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant.

8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City.

8.3 Consequences of Termination. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement.

8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.

Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately.

8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement.

8.8 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
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c. Retain a different consultant to complete the Services described in Exhibit A; and/or
d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services.

SECTION 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law.

9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

9.3 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

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9.4 Inspection and Audit of Records. Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City.

Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

SECTION 10. MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.

10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.

10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.

10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by Xavier Pfister, Project Manager (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

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10.8 City Contract Administration. This Agreement shall be administered by a City employee, Jenny McConville, Management Analyst I (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee.

10.9 Notices. Any written notice to Consultant shall be sent to:

K&A Engineering, Inc.

Attn: Xavier Pfister, Project Manager
357 N. Sheridan Street, Suite 117
Corona, Ca 92880
Any written notice to City shall be sent to the Contract Administrator at:

City of Menifee
29844 Haun Road
Menifee, CA 92586
Attn: Jenny McConville, Management Analyst I
with a copy to:

City Clerk
City of Menifee
29844 Haun Road
Menifee, CA 92586

10.10 Professional Seal. Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example.
__________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Item Title: 10.10
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Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound.

10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

10.18 No Undue Influence. Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.

10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. [Signatures on Following Page]
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IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.

CITY OF MENIFEE
Armando G. Villa, City Manager
Attest:

Kay Vinson, Acting City Clerk
Approved as to Form:

Jeffrey T. Melching, City Attorney

CONSULTANT
Amir Fallahi, Principal
Keith G. Osborn, Principal
[Corporation must have two signatures]
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EXHIBIT A

SCOPE OF SERVICES
Services shall include CIP 23-02 Goetz Road/Vista Way Traffic Signal and Intersection Improvements (Civil Design Services) in the amount not to exceed ONE HUNDRED SEVENTEEN THOUSAND NINETY FOUR DOLLARS AND ZERO CENTS ($117,094.00) as further detailed in the following page(s).

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CITY OF MENIFEE
SUBJECT: Consultant Services Agreement with PlaceWorks for Housing Studies
MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Doug Darnell, Principal Planner
REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve a Professional Services Agreement with PlaceWorks for professional services to prepare a Housing Market Impact Study and an Inclusionary Housing Feasibility Study in the not-to-exceed amount of $84,988.

DISCUSSION
This Professional Services Agreement (PSA) is for consultant work to prepare a Menifee Housing Study (MHS) Project that includes two separate housing study components: 1) a Housing Market Impact Study, to implement Program Action No. 29 of the City’s adopted Housing Element; and 2) an Inclusionary Housing Feasibility Study to implement Program Action No. 30 of the Housing Element. This work effort for the housing studies is described further below:
•Housing Market Impact Study Component. This study will evaluate existing barriers to affordable housing and opportunities to reduce these barriers to create affordable housing.

The Study will include an assessment of a variety of housing options in the City to understand from a market perspective how to ensure options for all types of housing ranging from estate housing, townhomes, condominiums, apartments and to understand more about the build for rent market. The Study will include recommendations for sort-, mid- and long-term policies, strategies and programs for suitable housing which will be presented in an MHS report to stakeholders, Planning Commission and City Council as workshop/study sessions.
•Inclusionary Housing Feasibility Study Component. The Inclusionary Housing Feasibility Study will provide quantitative data for the City to determine the appropriate method or approach to consider related to inclusionary housing policies. The analysis will Item Title: 10.11
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7 7
assess and consider the feasibility of various levels of inclusionary requirements, success with inclusionary ordinances in other jurisdictions, and their housing market conditions compared to market conditions in Menifee. The Study will identify and evaluate three to five specific policy design alternatives. The goal of the inclusionary housing component is to help the City Council understand how potential inclusionary housing requirements would impact the feasibility of new residential development and will fulfill LEAP grant funding objectives to streamline and accelerate housing production.

Recommendations will be provided in an MHS report to stakeholders, Planning Commission and City Council as workshop/study sessions.

Procurement Method - Request for Proposal (RFP). On October 28, 2022, the City issued a RFP #2023-7 for the scope of work to prepare the Housing Market and Inclusionary Housing Feasibility studies. Proposal responses were due on November 30, 2022. A total of three proposals were received in response to the solicitation. An evaluation committee of key City staff members familiarized and experienced in the requirements of the RFP, evaluated the submittals based on specific criteria and scoring parameters stated in the solicitation. All proposals scored well enough to continue to the next stage of the evaluation process.

Subsequently, individual interviews were held with all three finalists: 1) ECONorthwest; 2) PlaceWorks; and 3) RSG.

An evaluation panel of three individuals representing the Community Development Department participated in the interviews to determine which firm’s team, approach and capabilities would best serve the City. The finalists were evaluated on the following components: Overall Project Presentation and project specific questions and answers.

Interview Evaluation Results:

Based on the compiled Interview evaluations, PlaceWorks received a 1st place ranking on the interview with a score of 85.33 points. Scores are provided in the table below.

Consulting
Firm
Proposal Score
(95 possible
points)
Interview Score
(100 possible
points)
Cost
Proposal
Top Proposal
Strengths
PlaceWorks 83.67 85.33 $84,988 - Extensive/broad expertise in housing/economic
studies.
- Strong understanding of
City/project needs and
objectives.
- Proactive problem-solving
approach to any project
issues.
- Good communication
strategy to ensure easy to
follow information and
outreach.

EcoNorthwest 76.67 80.67 $81,840
RSG 76.67 80.00 $84,940
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Throughout the evaluation process, initial and finalist interview phase, PlaceWorks was collectively identified as the most qualified proposal.

The fee proposed by PlaceWorks is less than the project budget/cost estimate of $85,000. Staff has reviewed and determined that the PlaceWorks cost proposal is reasonable for the scope of work to be performed and no further negotiations are necessary.

STRATEGIC PLAN OBJECTIVE
Livable and Economically Prosperous Community

FISCAL IMPACT
The fiscal impact of the proposed PSA with PlaceWorks for this project is $84,988. In March of 2021, HCD awarded $300,000 in LEAP Grant funds to the City for planning efforts to incentivize and accelerate housing production. Of this amount, $45,000 is budgeted to cover the cost of the Inclusionary Housing Feasibility Study and will be paid from Account #301-4330-52841 (LEAP - Inclusionary Housing Feasibility Study). In addition, $40,000 is budgeted to cover the cost of the Housing Market Study and will be paid from Professional Services Account #100-4330-52800.

ATTACHMENTS

1. PSA - Placeworks
Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 3
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CITY OF MENIFEE

PROFESSIONAL SERVICES AGREEMENT
CITY OF MENIFEE: INCLUSIONARY HOUSING FEASIBILITY STUDY AND

HOUSING MARKET STUDY
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and effective this ______ day of __________, 2023 (“Effective Date”) by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and PLACEWORKS INC., a California Corporation (“Consultant”). City and Consultant may sometimes herein be referred to individually as a “Party” and collectively as the “Parties.”
SECTION 1. SERVICES.

Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A and incorporated herein by this reference (the “Services”). Consultant will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on February 15, 2023 and shall end on December 31, 2023 unless the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to Consultant to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8.

1.2 Standard of Performance. Consultant represents and warrants that Consultant is a provider of first class work and services and Consultant is experienced in performing the Services contemplated herein and, in light of such status and experience, Consultant shall perform the Services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession and to the sole satisfaction of the Contract Administrator.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform the Services pursuant to Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time. Consultant shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Consultant’s obligations hereunder.

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1.5 Authorization to Perform Services. Consultant is not authorized to perform any of the Services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

1.6 Covid-19 Safety. If Consultant enters City property or meets in person with City employees during the performance of the Services, Consultant shall comply with all State, County, and local emergency orders, directives, protocols, and best practices related to the COVID-19 pandemic, including, but not limited to: (A) wearing facial coverings, (B) maintaining adequate physical distancing when possible, (C) regular hand washing, and (D) regular hand sanitizing.

SECTION 2. COMPENSATION.

City hereby agrees to pay Consultant a sum not to exceed EIGHTY FOUR THOUSAND NINE HUNDRED EIGHTY EIGHT DOLLARS AND ZERO CENTS ($84,988.00) notwithstanding any contrary indications that may be contained in Consultant’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay Consultant for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for the Services rendered pursuant to this Agreement.

Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, Consultant shall not bill City for duplicate services performed by more than one person.

2.1 Invoices. Consultant shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense;
e. The total number of hours of work performed under this Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
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g. The Consultant Representative’s signature.

Invoices shall be submitted to:

City of Menifee
Attn: Accounts Payable
29844 Haun Road
Menifee, CA 92586

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for the Services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have thirty (30) days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

2.3 Final Payment. City shall pay the last five percent (5%) of the total amount due pursuant to this Agreement within sixty (60) days after completion of the Services and submittal to City of a final invoice, if all of the Services required have been satisfactorily performed.

2.4 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.

2.5 Hourly Fees. Fees for the Services performed by Consultant on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit A.

2.6 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.

2.8 Payment upon Termination. In the event that City or Consultant terminates this Agreement pursuant to Section 8, City shall compensate Consultant for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.

SECTION 3. FACILITIES AND EQUIPMENT.

Except as otherwise provided, Consultant shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. City shall make available to Consultant only physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees Item Title: 10.11
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and reviewing records and the information in possession of City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be required to furnish any facility that may involve incurring any direct expense, including but not limited to computer, long-distance telephone or other communication charges, vehicles, and reproduction facilities.

SECTION 4. INSURANCE REQUIREMENTS.

Before beginning any work under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance checked below and provide Certificates of Insurance, indicating that Consultant has obtained or currently maintains insurance that meets the requirements of this section and which is satisfactory, in all respects, to City. Consultant shall maintain the insurance policies required by this section throughout the term of this Agreement.

The cost of such insurance shall be included in Consultant’s compensation. Consultant shall not allow any subcontractor, consultant or other agent to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Consultant acknowledges the insurance policy must cover inter-insured suits between City and other Insureds.

4.1 Workers’ Compensation. Consultant shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Consultant pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Consultant may rely on a self- insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Consultant, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement.

4.2 Commercial General and Automobile Liability Insurance. a. General requirements. Consultant, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection Item Title: 10.11
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against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, and non-owned automobiles.
b. Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001.

Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9. No endorsement shall be attached limiting the coverage. c. Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
b. Any failure of Consultant to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.

4.3 Professional Liability Insurance.
a. General requirements. Consultant, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing the Services pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) covering the licensed professionals’ errors and omissions.

Any deductible or self-insured retention shall be shown on the Certificate. If the deductible or self-insured retention exceeds TWENTY-FIVE THOUSAND DOLLARS ($25,000), it must be approved by City.
b. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after the expiration or termination of this Agreement or completion of the Services, so long as commercially available at reasonable rates.
c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Consultant must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the Item Title: 10.11
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right to exercise, at Consultant’s sole cost and expense, any extended reporting provisions of the policy, if Consultant cancels or does not renew the coverage. d. A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.

4.4 All Policies Requirements.
a. Acceptability of insurers. All insurance required by this Section is to be placed with insurers with a Bests’ rating of no less than A:VII and admitted in California. b. Verification of coverage. Prior to beginning the Services under this Agreement, Consultant shall furnish City with Certificates of Insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The Certificate of Insurance must include the following reference: CITY OF MENIFEE: INCLUSIONARY HOUSING FEASIBILITY STUDY AND HOUSING MARKET STUDY. The name and address for Additional Insured endorsements, Certificates of Insurance and Notice of Cancellation is: City of Menifee, 29844 Haun Road, Menifee, CA 92586.

City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Consultant.
c. Notice of Reduction in or Cancellation of Coverage. Consultant shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased.
d. Additional insured; primary insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Consultant, including the insured’s general supervision of Consultant; products and completed operations of Consultant, as applicable; premises owned, occupied, or used by Consultant; and automobiles owned, leased, or used by Consultant in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.

A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage.
e. Deductibles and Self-insured Retentions. Consultant shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services.

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During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Consultant may increase such deductibles or self- insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Consultant procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
f. Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
g. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.

4.5 Remedies. In addition to any other remedies at law or equity City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.

SECTION 5. INDEMNIFICATION.

5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Consultant fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Consultant, its officers, agents, employees, or subcontractors (or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this Agreement.

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5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subcontractors of Consultant.

5.3 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity.

SECTION 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes the Services rendered pursuant to this Agreement. The personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents is in any manner officers, officials, employees, or agents of City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Consultant as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

SECTION 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Consultant shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Any and all work subject to prevailing wages, as determined by the Director of Industrial Relations of the State Item Title: 10.11
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of California, will be the minimum paid to all laborers, including Consultant’s employee and subcontractors. It is understood that it is the responsibility of Consultant to determine the correct scale. The State Prevailing Wage Rates may be obtained from the California Department of Industrial Relations (“DIR”) pursuant to California Public Utilities Code, Sections 465, 466, and 467 by calling 415-703-4774. Appropriate records demonstrating compliance with such requirement shall be maintained in a safe and secure location at all times, and readily available at City’s request. Consultant shall indemnify, defend, and hold City and its elected and appointed boards, members, officials, officers, agents, representatives, employees, and volunteers harmless from and against any liability, loss, damage, cost or expenses (including but not limited to reasonable attorneys’ fees, expert witness fees, court costs, and costs incurred related to any inquiries or proceedings) arising from or related to (i) the noncompliance by Consultant or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of Section 1781 of the Labor Code, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Consultant or any party performing the Services to provide any required disclosure or identification as required by Labor Code Section 1781, as the same may be amended from time to time, or any other similar law. It is agreed by the Parties that, in connection with performance of the Services, including, without limitation, any and all public works (as defined by applicable law), Consultant shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law. Consultant acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Consultant shall require the same of all subcontractors.

7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions.

Consultant represents and warrants to City that Consultant and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

SECTION 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant.

8.2 Termination by Consultant. Consultant may cancel this Agreement upon 30 days’ written notice to City.

8.3 Consequences of Termination. In the event of termination, Consultant shall be entitled to compensation for the Services performed up to the date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or City in connection with this Agreement.

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8.4 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein. Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

8.6 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.

Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in Consultant’s proposal, without prior written approval of the Contract Administrator. In the event that key personnel leave Consultant’s employ, Consultant shall notify City immediately.

8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the expiration or termination of this Agreement.

8.8 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services described in Exhibit A; and/or
d. Charge Consultant the difference between the cost to complete the Services described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the Services.

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SECTION 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of City. Consultant hereby agrees to deliver those documents to City upon the expiration or termination of this Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for City and are not necessarily suitable for any future or other use. Any use of such documents for other projects by City shall be without liability to Consultant. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law.

9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium, which are prepared or caused to be prepared by Consultant under this Agreement (“Documents and Data”). Consultant shall require all subcontractors to agree in writing that City is granted a non- exclusive and perpetual license for any Documents and Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents and Data. Consultant makes no such representation and warranty in regard to Documents and Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

9.3 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for the Services or expenditures and disbursements charged to City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible.

9.4 Inspection and Audit of Records. Any records or documents that Section 9.3 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of City.

Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

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SECTION 10. MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Section shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Applicable Law; Venue. The internal laws of the State of California shall govern the interpretation and enforcement of this Agreement. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.

10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.

10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.

10.5 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.

10.7 Consultant Representative. All matters under this Agreement shall be handled for Consultant by Kim McCann (“Consultant’s Representative”). The Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

10.8 City Contract Administration. This Agreement shall be administered by a City employee, Doug Darnell, Principal Planner (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. The Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Consultant shall not accept direction or orders from any person other than the Contract Administrator or his designee.

10.9 Notices. Any written notice to Consultant shall be sent to:

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PLACEWORKS INC.

Attn: Kim McCann
3 MAC ARTHUR PLACE, SUITE 1100
SANTA ANA, CA 92707
Any written notice to City shall be sent to the Contract Administrator at:

City of Menifee
29844 Haun Road
Menifee, CA 92586
Attn: Doug Darnell, Principal Planner
with a copy to:

City Clerk
City of Menifee
29844 Haun Road
Menifee, CA 92586

10.10 Professional Seal. Where applicable in the determination of the Contract Administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility,” as in the following example.
__________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.11 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.

10.12 Integration. This Agreement, including the scope of services attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 16
Menifee Mayor and City Council
February 15, 2023
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247 of 644

2671/031858-0001
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10.14 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other Agreement to which said Party is bound.

10.15 Nondiscrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

10.16 No Third Party Beneficiaries. With the exception of the specific provisions set forth in this Agreement, there are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

10.17 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

10.18 No Undue Influence. Consultant declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Consultant, or from any officer, employee, or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.

10.19 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. [Signatures on Following Page]
Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 17
Menifee Mayor and City Council
February 15, 2023
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2671/031858-0001
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IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.

CITY OF MENIFEE
Armando G. Villa, City Manager
Attest:

Kay Vinson, Acting City Clerk
Approved as to Form:

Jeffrey T. Melching, City Attorney

CONSULTANT
Randal W. Jackson, President
Keith McCann, CEO/CFO

[Note: 2 officer’s signatures required if
Consultant is a corporation, unless provided
with a certificate of secretary in-lieu]
Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 18
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February 15, 2023
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2671/031858-0001
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EXHIBIT A.

EXHIBIT A

SCOPE OF SERVICES
Services shall include Inclusionary Housing Feasibility Study & Housing Market Study in the amount not to exceed EIGHTY FOUR THOUSAND NINE HUNDRED EIGHTY EIGHT DOLLARS AND ZERO CENTS ($84,988.00) as further detailed in the following page(s).

Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 19
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February 15, 2023
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2671/031858-0001
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Item Title: 10.11
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February 15, 2023
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Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 21
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February 15, 2023
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Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 22
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February 15, 2023
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Item Title: 10.11
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February 15, 2023
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Item Title: 10.11
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February 15, 2023
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Item Title: 10.11
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February 15, 2023
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Item Title: 10.11
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February 15, 2023
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Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 27
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February 15, 2023
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Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 28
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February 15, 2023
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Item Title: 10.11
Consultant Services Agreement with PlaceWorks for Housing Studies Item Page Number: 29
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE
SUBJECT: Approve a License Agreement with Mt. San Jacinto Community College District for Mutual PEG Channel Content Sharing and Broadcast.

MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Antonio Chavez, Management Analyst
REVIEWED BY: Ron Puccinelli, Chief Information Officer
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve a License Agreement with Mt. San Jacinto Community College District for mutual PEG channel content sharing and broadcast; and

2. Authorize the City Manager to execute implementing agreements with Mt. San Jacinto Community College District as necessary to implement Council direction.

DISCUSSION
The City of Menifee currently manages two government access channels on Frontier Channel 25 and Spectrum Channel 1301. Mt. San Jacinto College (MSJC) also produces content for their education access channel.

The proposed License Agreement authorizes both the City and MSJC to share up to 15 hours of their respective live broadcasts as well as other pre-recorded original content for broadcast on each entity’s cable television access channel(s).

The mutual sharing of live and pre-recorded original content assists both the City and MSJC with providing an initial target of eight (8) hours of fresh original content each day. Each entity remains responsible for content created by them and both entities retain the right to determine what programming is broadcast on their respective channels.

Additionally, the proposed License Agreement will provide MSJC Digital Media Departments’ students with real-world, hands-on experience programming and scheduling content on industry- standard equipment. The collaboration between the City and MSJC also facilitates additional opportunities for MSJC students such as internships and partnering for original content creation.

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 1
Menifee Mayor and City Council
February 15, 2023
Page
261 of 644

City of Menifee Staff Report
City of Menifee and Mt. San Jacinto College Partnership February 15, 2023

1 3
7 6
This License Agreement requires each entity to provide the necessary equipment to facilitate transmission of their content to the other. For the City, this will require an encoder stationed at the City and a decoder stationed at MSJC’s broadcasting head-end facility. The IncodeX One appliance will enable the live transmission of City programming to the MSJC head-end. Utilizing a separate appliance will ensure that there are enough resources and bandwidth on the City’s current broadcast server for City’s needs. The equipment will be purchased at a future date and is estimated to cost around $5,000.

There may be a need for an agreement between MSJC and the City for placing equipment at MSJC’s facilities, however this is not known for certain at this time. The recommended action seeks Council authorization for the City Manager to execute an equipment placement agreement in conjunction with this License Agreement should such be needed.

STRATEGIC PLAN OBJECTIVE
Accessible and Interconnected Community

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

ATTACHMENTS

1. License Agreement
Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 2
Menifee Mayor and City Council
February 15, 2023
Page
262 of 644

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LICENSE AGREEMENT BETWEEN
MT. SAN JACINTO COMMUNITY COLLEGE DISTRICT AND THE CITY OF MENIFEE FOR THE USE OF EACH ENTITY’S RESPECTIVE PUBLIC, EDUCATIONAL, AND

GOVERNMENTAL (PEG) PROGRAMMING CHANNEL

THIS AGREEMENT (“Agreement”) is made and entered into by and between the Mt. San Jacinto Community College District (“District”) and the City of Menifee (“City”) as of the later of the date upon which it is approved by the governing board and/or council of the District and the City, or the date upon which it is fully executed by the duly authorized representatives of the parties (the “Effective Date”). The District and City are each referred to individual as a “Party” and collectively referred to as “the Parties.”

RECITALS
WHEREAS, District is the operator of a Public, Educational, Governmental (PEG) Programming Channel; and
WHEREAS, City is also the owner and operator of its own Public, Educational, Governmental (PEG) Programming Channel; and
WHEREAS, the City desires to utilize the District’s PEG Programming Channel for purposes of (1) sharing City -generated pre -recorded content d uring District broadcasted programs and (2) live streaming City-related content (collectively “City Program”); and WHEREAS, the District desires to utilize the City’s PEG Programming Channel for purposes of (1) sharing District -generated pre -recorded cont ent during City broadcasted programs and (2) live streaming District-related content (collectively “District Program”); and WHEREAS, the District is willing to grant to the City a license for the non -exclusive use of the District’s PEG Programming Channel in accordance with the terms and conditions of this Agreement; and WHEREAS, the City is willing to grant to the District a license for the non -exclusive use of the City’s PEG Programming Channel in accordance with the terms and conditions of this Agreement; and WHEREAS, the Parties desire by this Agreement to provide for the terms and conditions for the access and use of each entity’s respective PEG Programming Channel.

AGREEMENT

NOW, THEREFORE, the Parties hereto for the consideration hereinafter expressed, covenant and agree as follows:

Section 1. Grant of License to City to Use District’s PEG Programming Channel. The District grants a non -exclusive license for the Term of this Agreement to the City to use the District’s PEG Programming Channel for the sole and limited purposes of broadcasting the City Program. The use of the District’s PEG Programming Channel is granted herein is on an “AS -IS” basis and the District makes no representation or warranty of any kind regarding the District’s PEG Programming Channel, the District’s PEG Programming equipment and/or the District’s PEG broadcasting system.

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 3
Menifee Mayor and City Council
February 15, 2023
Page
263 of 644

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Section 2. Grant of License to District to Use City’s PEG Programming Channel . The City grants a non -exclusive license for the Term of this Agreement to the District to use the City’s PEG Programming Channel for the sole and limited purposes of broadcasting the District Program. The use of the City’s PEG Programming Channel is granted herein is on an “AS -IS” basis and the City makes no representation or warranty of any kind regarding the City’s PEG Programming Channel, the City’s PEG Programming equipment and/or the City’s PEG broadcasting system.

Section 3. Conditions to Use District’s PEG Programming Channel for Broadcasting City Program. Failure to comply with any of the following conditions shall be considered a material breach of this Agreement.

A. Pre-Recorded Content . During District broadcasted programs on the District’s PEG Programming Channel, the District hereby agrees to share, within its sole discretion, no more than ten (10) hours of City-generated pre-recorded content per month. All pre-recorded content that the City generates and wishes the District to share must be submitted to the District’s Public Information Department at a minimum of twenty-four (24) hours before the timeslot in which the City wishes to have content shared and/or broadcasted.

B. Live-Streaming Content. As a pre -condition to City’s live -streaming rights under this Paragraph, the City must purchase and provide to t he District and all equipment necessary to enable the District to live-stream City-related content as provided herein. The District hereby agrees to provide City with no more than fifteen (15) hours of programming airtime per month on the District’s PEG Programming Channel to live stream City-related content, such as public meetings of the following: City Council, Planning Commission, Parks, Recreation, and Trails Commission, Senior Advisory Council, and any other City-related live stream content agreed to in writing by the Parties. Generally, these meetings are held Wednesdays and Thursdays, 4 weeks a month commencing at 6 PM PST and concluding around 9 PM PST; however, the City shall confirm and coordinate with the D istrict’s Public Information Office to confirm specified times for City live stream content. To ensure there is no dead air on the District’s PEG Programming Channel, the City shall provide live -stream and/or pre-recorded City-related content for the entire and complete time period agreed upon with the District for live -stream programming. The City may request additional live stream programming hours and the City and the District will meet and confer to determine if any ad ditional programming time can be accommodated. The District retains the right to make the final determination whether additional programming time can be accommodated.

C. Liability for Equipment-Related Damage. The District will not be liable for any damage caused to and/or caused by any equipment purchased and/or provided by the City under this Agreement, except to the extent that such damage is caused by the District’s willful misconduct, or negligence.

D. Programming. The District has first right of programming District content on the District’s PEG Programming Channel in time slots determined by the District. The District will make every attempt to share City Program content as requested on the District’s PEG Programming Channel , but it is understood that this is not guaranteed. The District shall have sole discretion regarding whether to share the any portion of the City Program . However, the District shall not share any particular portion of the City Program content outside of the corresponding timeslot requested by the City without the prior written consent of the City.

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 4
Menifee Mayor and City Council
February 15, 2023
Page
264 of 644

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E. Disclaimer. The City shall be solely responsible for determining whether the content that is part of the City Program is appropriate and meets federal, state, and local laws, guidelines, and regulations. The District maintains the right to refuse content deemed as inappropriate, in its sole discretion. Any and all shared Cit y Program content broadcasted on the District’s PEG Programming Channel shall specify the following disclaimer at the beginning and end of the programming: “ This program is brought to you by the City of Menifee. The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Mt. San Jacinto College or its representatives. The City of Menifee is solely responsible for any and all of this content.”

Section 4. Conditions to Use City’s PEG Programming Channel for Broadcasting District Program. Failure to comply with any of the following conditions shall be considered a material breach of this Agreement.

A. Pre-Recorded Content. During City broadcasted programs on the City’s PEG Programming Channel, the City hereby agrees to share, within its sole discretion, no more than ten (10) hours of District- generated pre-recorded content per month. All pre-recorded content that the District generates and wishes the City to share must be submitted to the City’s PEG Scheduling Coordinator ([email protected]) at a minimum of twenty -four (24) hours before the timeslot in which the District wishes to have content shared and/or broadcasted.

B. Live-Streaming Content. As a pre -condition to City’s live -streaming rights under this Paragraph, the City must purchase and provide to the District any and all equipment necessary to enable the City to live -stream District -related content as provided herein. The City hereby agrees to provide District with no more than fifteen (15) hours of programming airtime per month on the City’s PEG Programming Channel to live stream District -related content. The District shall confirm and coo rdinate with the City’s PEG Scheduling Coordinator ([email protected]) to confirm specified times. To ensure there is no dead air on the City’s PEG Programming Channel, the District shall provide live-stream and/or pre-recorded District-related content for the entire and complete time period agreed upon with the City for live-stream programming. The District may request additional live stream programming hours and the District and the City will meet and confer to determine if any additional programming time can be accommodated. The City retains the right to make the fin al determination whether additional programming time can be accommodated.

C. Liability for Equipment -Related Damage. The City will not be liable for any damage caused to and/or caused by any equipment purchased and/or provided by the District under this Agreement, except to the extent that such damage is caused by the City’s willful misconduct, or negligence.

D. Programming. The City has first right of programming City content on the City’s PEG Programming Channel in time slots determined by the City. The City will make every attempt to share District Program content as requested on the City’s PEG Programming Channel, but it is understood that this is not guaranteed. The City shall have sole discretion regarding whether to share the District Program content. However, the City shall not share any particular portion of the District Program content outside of the corresponding timeslot requested by the District without the prior written consent of the District.

E. Disclaimer. The District shall be solely responsible for determining whether the District- related content broadcasted pursuant to this Section 4 is appropriate and meets federal, state, and local Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 5
Menifee Mayor and City Council
February 15, 2023
Page
265 of 644

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laws, guidelines, and regulations. The City maintains the right to refuse content deemed as inappropriate, in its sole discretion. Any and all shared District gener ated pre-recorded and/or live -streamed District- related content broadcasted on the City’s PEG Programming Channel shall specify the following disclaimer at the beginning and end of the programming: “This program is brought to you by the Mt. San Jacinto Community College District. The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of the City of Menifee. The Mt. San Jacinto Community College District is solely responsible for any and all of this content.” Section 5. Term. The term of this Agreement (“Term”) shall commence on September 1, 2022 and shall conclude on August 31, 2023 unless this Agreement is terminated earlier as provided in this Agreement or mutually extended in writing by both parties.

Section 6. Independent Contractor Status. This Agreement is by and between two independent entities and is not intended to and shall not be construed to create the relationship o f agent, employee, partnership, joint venture, or association.

Section 7. Indemnification. To the fullest extent permitted by California law, the City shall indemnify, defend, and hold harmless the District, its directors, officers, agents, employees and volunteers from and against any and all claims, suits, actions, causes of action, losses, damages, or liabilities of any kind, nature or description, including payment of litigation costs and attorneys' fees, brought by any person or persons for or on account of any loss, damage, or injury to person, property, or any other interest, tangible or intangible, sustained by or accruing to any person or persons, directly or indirectly arising or resulting from any alleged acts or omissions of the C ity, its directors, officers, employees, agents, subcontractors, or volunteers in the performance of this Agreement. The City shall indemnify and hold harmless the District, its directors, officers, agents, employees, and volunteers from and against any and all claims or other injury, including costs of litigation and attorneys' fees, arising from or in connection with claims or loss or damage to person or property arising out of the failure to comply with any applicable laws, rules, regulations or other requirements of local, state, or federal authorities, for claims of libel, slander, invasions of privacy, or infringement of common law or statutory copyright, for breach of contract or other injury, or damage in law or at equity which, directly or indirectly, result from the City’s performance of this Agreement.

To the fullest extent permitted by California law, the District shall indemnify, defend, and hold harmless the City, its directors, officers, agents, employees and volunteers from and against any and all claims, suits, actions, causes of action, losses, damages, or liabilities of any kind, nature or description, including payment of litigation costs and attorneys ’ fees, brought by any person or persons for or on account of any loss, damage, or injury to person, property, or any other interest, tangible or intangible, sustained by or accruing to any person or persons, directly or indirectly arising or resulting from any alleged acts or omissions of the District, its directors, officers, employees, agents, subcontractors, or volunteers in the performance of this Agreement. The District shall indemnify and hold harmless the City, its directors, officers, agents, employees, and volunteers from and against any and all claims or other injury, including costs of litigation and attorneys ’ fees, arising from or in connection with claims or loss or damage to person or property arising out of the failure to comply with any applicable laws, rules, regulations or other requirements of local, state, or federal authorities, for claims of libel, slander, invasions of privacy, or infringement of common law or statutory copyright, for breach of contract or other injury, or damage in law or at equity which, directly or indirectly, result from the District’s performance of this Agreement.

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 6
Menifee Mayor and City Council
February 15, 2023
Page
266 of 644

5 | P a g e
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name.

Section 8. Insurance. The District and the City are authorized self -insured public entities for purposes of Professional Liability, Automobile Liability, General Liability, and Workers’ Compensation insurance and warrant that through their programs of self -insurance, they have adequate coverage or resources to protect against liabilities arising out of the District and the City’s performance of this Agreement.

Section 9. Termination.

A. Either Party may terminate this Agreement upon sixty (60) days written notice for material breach of any provision of this Agreement , or violation of any applicable law, rule, or regulation to the other Party. The breaching Party shall have thirty (30) days from receipt of the notice to correct such breach; provided, however, that if the nature of the breach is such that more than thirty (30) days are reasonably required for its cure, then the breaching Party shall have sufficient time to cure the breach if it has commenced, and is diligently prosecuting, such cure.

B. Either Party may terminate this Agreement at any time, for any reason, by providing written notice at least sixty (60) days in advance of the effective date of the termination.

Section 10. Notices.

All notices and other communications to be given by either Party must be in writing and may be effective by personal delivery, overnight courier, or first class or certified mail, return receipt request and addressed to the appropriate Party as follows:

To the District: To the City:

Mt. San Jacinto Community College District
1499 N. State St.

San Jacinto, CA
Attention: Risk Management

E-Mail: [email protected] and to
[email protected]
City of Menifee
29844 Haun Rd.

Menifee, CA 92584
Attention: Chief Information Officer

E-Mail: [email protected]

Notice shall be deemed received, three days after deposit in the mail or the date e-mailed. Notice provided by overnight delivery shall be deemed received on the next business day after delivery by the overnight delivery service. A Party may change its addressee by written notice to the other party at any time.

Section 11. Force Majeure. For the avoidance of doubt, neither Party shall incur any liability to the other Party for a failure to perform hereunder resulting, directly or indirectly, from fire, flood -war, strike, pandemic or epidemics, lock -out work stoppage or slow -down, labor disturbances, power failure, major equipment breakdowns, construction delays, accide nt, riots, acts of God, acts of United States’ enemies, laws, orders or at the insistence or result of any governmental authority or from any cause beyond the District and/or City’s reasonable control, including limitations upon the availability of broadcasting or communications facilities or failures of broadcasting and/or communications equipment.

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 7
Menifee Mayor and City Council
February 15, 2023
Page
267 of 644

6 | P a g e
Error! Unknown
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name.

Section 12. Subcontract and Assignment. Neither the City nor the District shall assign its rights, duties, or privileges under this Agreement, nor shall the City or District subcontract or attempt to confer any of its rights, duties, or privileges under this Agreement on any third party without the written consent of the other Party. Any such attempt without the other Party's written consent shall be void.

Section 13. Time. Time is of the essence in this Agreement and for the performance of this Agreement.

Section 14. Applicable Law. This Agreement shall be interpreted and enforced under the laws of the State of California In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.

Section 15. Attorneys' Fees . If any legal action is commen ced between the Parties to this Agreement, each Party shall bear its own costs of suit, including attorneys' fees.

Section 16. Severability. If any term, provision, covenant, or condition of this Agreement shall be determined to be invalid, void, or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall not be affected to the extent the remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement.

Section 17. Waiver. The waiver by either party of any breach of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, condition, or any subsequent breach of the same or any other term, covenant, or condition herein contained.

Section 18. Successors and Assigns . This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, legal representatives, successor, and assigns.

Section 19. No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.

Section 20. Contract Administration. The City Manager or designee shall have the authority to administer this Agreement on behalf of the District, including to effectuate any approvals necessary to the purposes of this Agreement. The City Manager or designee shall have the authority to administer this Agreement on behalf of the City, including to effectuate any approvals necessary to the purposes of this Agreement.

Section 21. Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties.

Section 22. Captions. The captions contained in this Agreement are for convenience only and shall not in any way affect the meaning or interpretation hereof or serve as evidence of the interpretation hereof, or of the intention of the Parties hereto.

Section 23. Entire Agreement . This Agreement is the entire agreement of the Parties and supersedes all prior negotiations and agreements whether written or oral. This Agreement may be amended only by written agreement and no purported oral amendment to this Agreement shall be valid.

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 8
Menifee Mayor and City Council
February 15, 2023
Page
268 of 644

7 | P a g e
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name.

Section 24. Counterparts. This Agreement and all amendments and supplements to it may be executed in counterparts, and all counterparts together shall be construed as one document.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date written below.

Mt. San Jacinto Community College District City of Menifee

Signed Signed

Printed Name Printed Name

Title Title

Date Date

Item Title: 10.12
Approve

a

License

Agreement

with

Mt.

San

Jacinto

Community

College

District

for

Mutual

PEG

Channel

Content

Sharing
and Broadcast.

Item Page Number: 9
Menifee Mayor and City Council
February 15, 2023
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269 of 644

CITY OF MENIFEE
SUBJECT: City Manager's Annual Performance Report for 2022 MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Rochelle Clayton, Assistant City Manager
REVIEWED BY: Armando G. Villa, City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION
Receive and file report.

DISCUSSION
The City Manager has compiled a report of the City’s accomplishments in an Annual Performance Report for 2022. The report is an overview of the programs and projects implemented to provide essential services that improve our community’s quality of life through teamwork and leadership.

This report encompasses the collaborative efforts and plans developed by City departments including our award-winning balanced budget, thoughtful Capital Improvement Program, and goal-oriented Strategic Plan.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

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

ATTACHMENTS

1. City Manager's Annual Performance Report for 2022
Item Title: 10.13
City Manager's Annual Performance Report for 2022
Item Page Number: 1
Menifee Mayor and City Council
February 15, 2023
Page
270 of 644

2022

ANNUAL PERFORMANCE
REPORT

CITY MANAGER'S
Item Title: 10.13
City Manager's Annual Performance Report for 2022
Item Page Number: 2
Menifee Mayor and City Council
February 15, 2023
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Item Title: 10.13
City Manager's Annual Performance Report for 2022
Item Page Number: 3
Menifee Mayor and City Council
February 15, 2023
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TABLE OF CONTENTS

SAFE, THRIVING, AND PREMIER PLACE TO BE
MISSION AND GOALS 5 EXECUTIVE SUMMARY 6
ORGANIZATION CHART 8
CITY EXECUTIVE OFFICE 10
CITY CLERK 11 COMMUNITY DEVELOPMENT 12
ECONOMIC DEVELOPMENT 14
COMMUNITY SERVICES 13
FINANCE 15 HUMAN RESOURCES 17 FIRE 16 INFORMATION TECHNOLOGY 18
POLICE 19 PUBLIC WORKS 20 AWARDS 21 Item Title: 10.13
City Manager's Annual Performance Report for 2022
Item Page Number: 4
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Item Title: 10.13
City Manager's Annual Performance Report for 2022
Item Page Number: 5
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Through teamwork and
leadership, the City of Menifee
provides essential services to
improve the quality of life of
our community.

OUR

MISSION

OUR GOALS
Safe & Attractive
Community
Livable & Economically
Prosperous Community
Responsive & Transparent
Government
Accessible & Interconnected
Community
"
"
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Imagine the City of Menifee as a finely-tuned clock, with three gears working together to ensure premier performance. These significant gears, which keep our organization thriving, are our and of programs and services. The City’s Mission is to provide essential services that improve our community’s quality of life through teamwork and leadership. The Mission is followed by our Strategy which stems from countless collaborative efforts and plans developed by City departments including our award-winning balanced budget, thoughtful Capital Improvement Program, and goal-oriented Strategic Plan.

These strategic efforts have resulted in the Implementation of supreme programs and services for our residents and businesses.

So, what keeps our gears turning? Menifee’s
Whether it be housing, commercial and industrial square footage, or recreation, development continues to drive our City and is the heart of this year’s Annual Report.

In 2022, our Economic Development Team continued to connect with developers, businesses, and investors which resulted in securing the largest land deal in Chick-Fil-A’s history to date, attracting four new hotels, and spurring over 12 million square feet of industrial development in the Northern Gateway. The Economic Development Team's notable connections fulfilled our strategic goal of a which kept the gears moving for our Community Development Department. Throughout the year, City staff processed 262 planning applications, 883 New Single-Family Residence permits, over 5,000 building permits, and conducted more than 28,000 inspections.

Development continued throughout the City with its Public Works Department completing multiple large-scale projects including the resurfacing of City streets, enhancements to the Paloma Wash Trail, and major renovations at the Lazy Creek Recreation Center. Working in collaboration with Congressmen Calvert’s office, the City’s Legislative Team was able to secure $5 million in federal funding to support the Bradley Bridge over Salt Creek project. These infrastructure projects achieved the strategic goal of an
Speaking of funding, our Finance Team completed an update to the Citywide User Fee Study and Development Impact Fee (DIF) Study adopting new fee schedules, which will capture additional revenue to continue to advance infrastructure. In addition, the team updated the City’s Business License Ordinance and issued 3,924 business licenses which included NEW businesses.

New city-wide programs were also launched this year including the Passport Program managed by the City Clerk’s Office which provides residents with local access to United States passport services. The Office of the City Clerk also completed over 600 public records requests and helped to manage the November 2022 General Municipal Election, further helping the City achieve its strategic goal to be a
In addition, the Community Services Department gathered public input for the City’s Parks Master

MISSION, STRATEGY, IMPLEMENTATION

EXECUTIVE SUMMARY
Residents and City Council,
BALANCED AND STEADY DEVELOPMENT!

LIVABLE AND ECONOMICALLY PROSPEROUS COMMUNITY,
ACCESSIBLE AND INTERCONNECTED COMMUNITY.

RESPONSIVE AND TRANSPARENT GOVERNMENT.
6 Item Title: 10.13
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Plan Update. The team also opened three new parks, totaling 11 acres, including the largest bike park in Southern California (Gale Webb Action Sports Park).

Public Safety continues to remain a high priority for the City. In December, the City broke ground on the new Quail Valley Fire Station #5, as well as expanded safety equipment and personnel with an additional medic squad, totaling two medic squad units.

Menifee's Police Department continued to work on the strategic goal of making Menifee a by hiring additional police personnel and
conducting community outreach efforts in multiple districts to enhance public safety.

These projects, programs, and services would not be possible without the internal gears that keep the City running. To effectively serve Menifee’s growing population which has reached over 106,000 residents, our workforce has grown to 319 employees thanks to the tireless recruiting efforts of our Human Resources Department. I had the privilege of recognizing our City’s efforts to strengthen employee retention first-hand at the International City/Council Management Association (ICMA) annual conference, where I presented an internal development tool “Menifee University: Attracting, Retaining, and Growing Employees”. This year has also shed light on the importance of cybersecurity. Our Information Technology Department held a citywide cybersecurity training to ensure our staff recognizes potential cyber threats. That effort has resulted in blocking and preventing over 154 million attacks in our City’s information technology system.
2022 was a year of growth and development, to say the least. I am proud to share that the year ended with many noteworthy accolades, including the Government Finance Officers Association’s (GFOA) Distinguished Budget Presentation Award, the 2022 Excellence Award from the International Economic Development Council (IEDC), and the Building Industry Association (BIA) - Riverside Chapter's Excellence in Government Service Award. Menifee was also named Best City by Inland Empire Magazine and voted Top Workplace by the Inland News Group for the fourth consecutive year. These would not be possible unless our most valued asset, "our City employees", gave their unwavering commitment and dedication to our organization.

As the City’s gears turn in unison and goals are accomplished, I'd like to thank you all for your continued trust and support. Your patience, understanding, and willingness to ask the hard questions, allow us to improve our community’s quality of life and provide a and place to be.

Respectfully,
Armando G. Villa
City Manager

SAFE AND ATTRACTIVE COMMUNITY

SAFE, THRIVING,
7 PREMIER
Item Title: 10.13
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2022 ORGANIZATIONAL CHART

MENIFEE RESIDENTS

CITY COUNCIL

CITY MANAGER COMMISSIONS & COMMITTEESCITY ATTORNEY

ASSISTANT CITY MANAGER

CITY CLERK

COMMUNICATIONS/LEGISLATIVE AFFAIRS

FINANCE

COMMUNITY SERVICES

HUMAN RESOURCES

INFORMATIONTECHNOLOGY

AUDIO VISUAL GEOGRAPHIC INFORMATION SYSTEMS (GIS)

RISK MANAGEMENT

FACILITIES MAINTENANCE PARKS & LANDSCAPE MAINTENANCE RECREATION

CITY EXECUTIVEOFFICE

ECONOMIC DEVELOPMENT POLICE

ANIMAL SERVICES(CONTRACT) CODEENFORCEMENT

COMMUNITY DEVELOPMENT

BUILDING & SAFETY HOUSING/ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PLANNING

CAPITAL IMPROVEMENT PROGRAM (CIP) FLEET LAND DEVELOPMENT/ ENGINEERING STREET MAINTENANCE

PUBLIC WORKS

FIRE (CONTRACT) FIRE PREVENTION
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OUR EXECUTIVE TEAM

REGINA FUNDERBURK RON PUCCINELLI SARAH MANWARING
Chief Financial Officer City ClerkChief Information Officer

CHERYL KITZEROW
Community Development
Director

JONATHAN NICKS

GINA GONZALEZ CHRIS KARRER
Community Services
Director
Interim Police ChiefEconomic Development
Director

NICK FIDLER
Public Works Director

ARMANDO VILLA ROCHELLE CLAYTON

JEFF MELCHING
City Manager
City Attorney
Assistant City Manager
LONNY OLSONFire Division Chief
NEW. BETTER. BEST. 9
Item Title: 10.13
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SOCIAL MEDIA FOLLOWING
19,290 12,691 4,322 27,5971,223

SUBMITTED

POSITION LETTERS
26 LEGISLATIVE

MET WITH

CITY EXECUTIVE OFFICE

INSTALLED

MILITARY BANNERS
64 Safe & Attractive
Community

AWARDED OVER
$10 MILLION
IN FUNDING FOR INFRASTRUCTURE PROJECTS:
$5 Million - Bradley Bridge over Salt Creek
$4 Million - Scott Road/Bundy Canyon Road
$2.5 Million* - Quail Valley Septic-to-Sewer Conversion *Assisted Eastern Municipal Water District (EMWD)
Livable & Economically
Prosperous Community
Responsive &
Transparent Government
GOVERNOR NEWSOM’S REGIONAL OFFICE STAFF

CONGRESSMAN KEN CALVERT
SENATOR ROSILICIE OCHOA BOGH (3 TIMES)

ASSEMBLYMEMBER KELLY SEYARTO

CITY MANAGER HOSTED
&
PRESENTED AT Temecula Valley Chamber of Commerce Annual Southwest Regional Economic Forecast International City/County Management Association (ICMA) Conference in Columbus, Ohio Municipal Management Association of Southern California (MMASC) Conference

NEWS FLASHES

CHAT WITH CITY MANAGER EVENTS
SHARED163
1,419 SOCIAL MEDIA POSTS
7 10
Item Title: 10.13
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396

PARTICIPANTS
660

BOXES SHRED

NEW PROGRAM

CITY CLERK
Safe & Attractive
Community
Responsive & Transparent
Government
32 CITY

COUNCIL
MEETINGS 38

COMMITTEE &

COMMISSION

MEETINGS

HOSTED TWO COMMUNITY SHREDDING

EVENTS IN THE SPRING AND FALL

LAUNCHED UNITED STATES PASSPORT SERVICES
PROGRAM IN OCTOBER 2022
& PROCESSED 18 PASSPORT APPLICATIONS
2022 GENERAL MUNICIPAL ELECTION &

BIENNIAL COMMISSION AND COMMITTEE

RECRUITMENT
Fair Political Practices Commission (FPPC) Filings:
41 Form 400 Series - Campaign Finance Disclosure
3 Form 500 Series - Statement of Organization
99 Form 700 Series - Statement of Economic Interest

PUBLIC RECORDS REQUESTS
669 OPENED 668 CLOSED
11 Item Title: 10.13
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PROCESSED 262
BUILDING PERMITS ISSUED5,294
883NEW SINGLE FAMILY RESIDENCE

PERMITS ISSUED
28,578
4,633

INSPECTIONS CONDUCTED

CUSTOMERS ASSISTED

PLANNING APPLICATIONS
& 33 ADMINISTRATION APPROVALS
5-YEAR CONSOLIDATED PLAN
ADOPTED WITH YEAR 1 ANNUAL ACTION PLAN

MENIFEE COMMMERCE CENTER

INDUSTRIAL PROJECT
Responsive &
Transparent Government

PERMIT-READY ACCESSORY DWELLING UNIT (ADU)

PLANS & HANDBOOK

COMPLETED

DEVELOPMENT CODE CLEAN-UP

SUN CITY TECHNICAL ASSISTANCE PANEL (TAP)
Safe & Attractive
Community
ADOPTED 2022

CALIFORNIA BUILDING & FIRE CODES

BUILDING PERMITS

COMMUNITY DEVELOPMENT
Livable & Economically
Prosperous Community
Launched the Permanent Local Housing Allocation (PLHA) Homeowner Down Payment Program Menifee's Rental/Mortgage Assistance Program funded 9 residents

HOUSING
Battery Energy Storage Ordinance
Economic Development Corridor Warehouse Code Amendment & Good Neighbor Policy
Electric Vehicle (EV) Charging Station Streamline Ordinance Housing Element (re-adopted and certified)
Industrial Parking Standards Ordinance
Objective Development Standards

ADOPTED

NEWPORT POINT

COMMERICAL CENTER

SCOTT COMMERCE
CENTER

GROUNDBREAKINGS
Legado Master Planned Community
Rockport Ranch Specific plan
Cimarron Ridge Specific Plan
Quartz Ranch
Sumac Ridge
12 Item Title: 10.13
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3NEWPARKS
Upgraded Lazy Creek Recreation Center
&
CONDUCTED4,341 PARK VISITS
HOSTED 10 COMMUNITY PROGRAMS

MENIFEE PARK RANGERS

PUBLIC STAKEHOLDER

MEETINGS

PUBLIC SURVEYS

RECEIVED

PARKS MASTER PLAN UPDATE

COMMUNITY SERVICES
Safe & Attractive
Community
Responsive &
Transparent Government
Accessible &
Interconnected Community
Remodeled Paloma Wash Trail
including Gale Webb Action Sports Park!
Livable & Economically
Prosperous Community

RECREATION PROGRAMS
Offered 370 Contract Classes in-person,
outdoors, and virtually with 2,777 registered
participants
Served 3,929 youth across 89 programs
ranging from Tiny Tots to Teens
495 participants across 158 Healthy Menifee
programs

PARK MAINTENANCE

SPECIAL EVENTS
Hosted 34 Special Events with 36,000
participants
Supported 58 City or Non-Profit
Organization events

SENIOR PROGRAMS
Distributed 18,800+ free meals
Offered 220+ FREE senior activities with
21,328 participants

SOLID WASTE & RECYCLING
Collected 10 tons of waste through Waste
Management Litter Abatement Partnership
Hosted 3 Bulky Item Drop-off events
Processed 2,634 Senior Bill Credit
applications to ease implementation of state
law (SB 1383)
Resolved 186 Illegal Bulky Item Dumping
work orders
Received $426,355 in grant funding
1 3 8 0 7
OPENED 3 NEW PARKS
Completed Plant and Tree Replacement Project
Received 1,539 maintenance requests and completed
1,483 requests
Upgraded Lazy Creek Park including turf irrigation,
volleyball court, and other park amenities
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ANNUAL COMPREHENSIVE ECONOMIC

DEVELOPMENT STUDY (CEDS)

SPURRED OVER 12 MILLION

SQUARE FEET OF INDUSTRIAL

DEVELOPMENT IN THE NORTHERN

GATEWAY
CREATED 500+ JOBS

WITH NEW

DEVELOPMENT

HOSTED MENIFEE'S
KEEPING. EXISITING. EMPLOYERS.

PROFITABLE. (K.E.E.P.)

BUSINESS WALK

FIRST CITIZENS ACADEMY

COMPLETED AND UPDATED

FAMILIARIZATION (FAM) SITE SELECTOR TOUR IN PARTNERSHIP WITH ECONOMIC DEVELOPMENT COALITION M.E.N.U. (MOM AND POPS, ENTERTAINMENT, NEW, UNIQUE) START-UP GRANT

PASSPORT TO MENIFEE PROGRAM (VIRTUAL)

TACO TRAIL PROGRAM (VIRTUAL)
LAUNCHED 4 NEW PROGRAMS

DEVELOPED HOSTED&

ECONOMIC DEVELOPMENT
Livable & Economically
Prosperous Community
Responsive &
Transparent Government

LARGEST STATE OF CITY TO DATE
HELD 3 MAYOR IDEA

EXCHANGES TIED TO THE CITY'S

COMPREHENSIVE ECONOMIC

DEVELOPMENT STUDY (CEDS)

FACILITATED LARGEST DEAL

IN CHICK-FIL-A'S HISTORY

THAT ALSO CLEANS UP

BLIGHT IN THE CITY

ATTRACTED
4 NEW HOTELS

DEVELOPED CITY

FILM SERVICES

PROGRAM

LAUNCHED EXPLORE

MENIFEE CAMPAIGN

AND PUBLICATION

DEVELOPED TECH

SOUTHWEST, MEDICAL,

AND MANUFACTURING

COUNCILS

VALUE ADDED - DEOMOGRAPHICS

AVERAGE
INCOME

EDUCATION

ATTAINMENT
2021 2022
$87,000 $109,395

30.1% 33.9%
(25% INCREASE)
(13% INCREASE)

JOBS BLUEPRINT PLAN

COMPLETED
14 Item Title: 10.13
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CALIFORNIA MUNICIPAL TREASURES

ASSOCIATION (CMTA)

INVESTMENT POLICY CERTIFICATION
&
ISSUED3,924 BUSINESS LICENSES
991 PURCHASE ORDERS

FINANCE
Responsive & Transparent
Government
Livable & Economically
Prosperous Community

ADOPTED
FISCAL YEAR 2022/2023 ANNUAL BUDGET

COMPLETED
FISCAL YEAR 2021/2022 ANNUAL

COMPREHENSIVE FINANCIAL REPORT
HOSTED

BUSINESS LICENSE REQUIREMENTS

VIRTUAL WORKSHOP

CITY WIDE

USER FEE
STUDY

ADOPTED NEW FEE SCHEDULES

DEVELOPMENT

IMPACT FEE (DIF)
STUDY

UPDATED BUSINESS LICENSE

ORDINANCE
15 Item Title: 10.13
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Menifee Mayor and City Council
February 15, 2023
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3,539 3,539

HIRED FIRE SAFETY SPECIALIST
& FIRE SYSTEMS INSPECTOR

INITIATED ANNUAL BUSINESS INSPECTION PROGRAM
WITH 257 BUSINESS INSPECTED

SECOND MEDIC SQUAD
STAFFED AND IN SERVICE AT FIRE STATION #7
IN SEPTEMBER 2022
FIRE
Responsive &
Transparent Government
Safe & Attractive
Community

PLANNING

APPLICATIONS

PLAN REVIEWS INCREASE IN FIRE

CALLS FOR SERVICE
237 893 3,915 7%

INSPECTIONS HELD GROUNDBREAKING OF

NEW QUAIL VALLEY FIRE
STATION #5
16 Item Title: 10.13
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Item Page Number: 17
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February 15, 2023
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EVACUATION PLAN

INTEGRATED PREPARDNESS PLAN

MASS NOTIFICATION SYSTEM PROPOSAL

SPECIAL EVENT INSURANCE PROCEDURE

COMPLETED
Evacuation Drill
Emergency Operations Center (EOC) Internal Tabletop Exercise Active Shooter Training with Menifee Police Department
Southern California Edison Public Safety Power Shutoffs (SCE PSPS) Exercise

TRAINING

HUMAN RESOURCES
Safe & Attractive
Community
CERT BASIC TRAININGSHELD 3

ATTENDED CERT FIELD DAY TRAINING

HOSTED FIRST

EMERGENCY

PREPAREDNESS FAIR
&

PERSONNEL

RECRUITMENTS
COMPLETED72
128
NEW

EMPLOYEES
2,006
3,867

PAYROLL BENEFIT

TRANSACTIONS

APPLICATIONS

RECEIVED

COMPLETED MENIFEE

CITY EMPLOYEE

ASSOCIATION (CEA)

LABOR NEGOTIATIONS

CONDUCTED BENEFIT

BROKERAGE SERVICES

REQUEST FOR

PROPOSAL (RFP)

FINALIZED CALPERS

UNUSED SICK LEAVE
AUDIT

IMPLEMENTED NEOGOV
LEARN
29 STAFF COMPLETED

MENIFEE'S LEADERSHIP

ACADEMY
IMPLEMENTED 457(B)

ROTH RETIREMENT

ACCOUNT OPTION &
SCHOLARSHARE 529 PLAN
17 Item Title: 10.13
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CITYWIDE CYBERSECURITY TRAINING
&
4,246

SUPPORT REQUESTS

COMPLETED

INFORMATION TECHNOLOGY
Responsive &
Transparent Government
Safe & Attractive
Community

POLICIES DEVELOPED
Cybersecurity Policy
Camera Security Policy (Draft)
Confidentiality Policy (Draft)
Information Technology Staff (Draft)
Information Technology Staff Standby Policy (Draft)
Project Prioritization Policy (Draft)
System Change Management Policy (Draft)
System Update & Patching Policy (Draft)
Technology Purchasing Policy (Draft)
Accela/GIS Integration
GIS Improvements in Data Accuracy, System Capabilities, and Multiple Applications Deployed
Land Development and Capital Improvement Program (CIP) GIS Dashboard
Master Drainage Plan Incorporation into GIS
Military Banner GIS Layer Map & Inventory Application
Street Sign Mobile GIS App

COMPLETED

GEOGRAPHIC INFORMATION SYSTEMS (GIS)

CONDUCTED

BLOCKED AND PREVENTED
OVER 154 MILLION CYBER ATTACKS
Established Menifee Police Department's
Computer Aided Dispatch System (CAD)
Data Access and Menifee Address
Update Process

EMPLOYEE ON-BOARDING PROCESS

AUTOMATED
IMPLEMENTED Menifee's Emergency Operations Center (EOC) Electric Utility Outage Dashboard

PUBLIC EDUCATION

GOVERNMENT (PEG) CHANNEL
Formalized Partnerships with Frontier and Spectrum
Completed Memorandum of Understanding (MOU) with
Mt. San Jacinto College (MSJC) for Content Sharing

INFORMATION TECHNOLOGY

DEPARTMENT STRATEGIC PLAN

DEVELOPED
FINALIZED Smart Cities Broadband Master Plan
(Pending Council Approval)
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NEW EQUIPMENT
Additional Fixed License Plate Readers
One Vehicle Outfitted with Mobile License Plate
New Computer and Cellphone Forensic Examination
Software
Virtual Reality Equipment for De-escalation Training
Reader Technology

TRAFFIC SAFETY OPERATIONS CONDUCTED
4 Driving Under the Influence (DUI) Checkpoints
12 Driving Under the Influence (DUI) Saturations
7 Traffic Enforcements Operations
4 Distracted Driver Operations
3 Pedestrian/Bicycle Safety Operations
2 Motorcycle Safety Operations
POLICE
Safe & Attractive
Community

ANNUAL WEED ABATEMENT PROGRAM

INITIAL/FOLLOW-UP INSPECTIONS
2,167
197

COURTESY NOTICES
797
20 CLOSED CASES

GRAFFITI LETTERS ISSUED
CASES PROCESSED 6,192
1,208 CASES SUBMITTED TO BE

FILED WITH DISTRICT

ATTORNEY
9,691 CALLS RECEIVED

RECORDS
ISSUED 4,417 TRAFFIC CITATIONS WITH A
TOTAL OF 6,012 VIOLATIONS
282 Deployments
K-9 UNIT
16 Searches for Suspects
1 Apprehension
41 Arrests/De-escalation
22 Detection Searches
4 Article/Dangerous
Weapons Located
14 Located Narcotics
Searches 19
75,116
22,569

DISPATCHED CALLS FOR SERVICE

OFFICER-INITIATED INCIDENTS
Item Title: 10.13
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3,539 3,53951

HELD GROUNDBREAKING

OF HOLLAND ROAD
OVERPASS!
Safe & Attractive
Community

GRADING PLAN

REVIEWS

IMPROVEMENT

PLANS APPROVED

IN FAIR SHARE

COLLECTION
81 38,206 $735k

CONSTRUCTION

INSPECTIONS

COMPLETED
7 SPECIAL

DISTRICTS

ESTABLISHED

PUBLIC WORKS
Accessible &
Interconnected Community

CAPITAL IMPROVEMENT PROGRAM (CIP)

PROJECTS COMPLETED
Lazy Creek Recreation Center Parking Lot Improvements - $1,879,175 McCall Boulevard Resurfacing - $1,238,394
Paloma Wash Trail - $1,628,312
Peacock Place Resurfacing - $965,731
Rancho LaVita Community Resurfacing - $813,974
Local Road and Safety Plan - $98,604
&
COMPLETED961 FLEET WORK ORDERS
OVER 3,000 FIELD SERVICE WORK ORDERS
6 PROJECTS INCLUDED

WORTH AN ESTIMATED
$6.6 MILLION COMPLETED
IN 2022

ADOPTED

MENIFEE'S FIVE-YEAR
CIP (2022 -2027)
20 Item Title: 10.13
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FOURTH

CONSECUTIVE
YEAR

FOR THE

BY THE INLAND NEWS GROUP

MENIFEE CARES SMALL BUSINESS RELIEF GRANT
Honored by the Inland Empire
Economic Partnership (IEEP) at the
10th Annual “Turning Red Tape into
Red Carpet" Awards for

AWARD WINNING CITY
TOP 10

B O O M T O W N

IN THE NATION

B Y S M A R T A S S E T

BEST CITY
by Inland Empire Magazine

N A M E D

IN INLAND EMPIRE
21 by the International Economic Development Council (IEDC) EXCELLENCE AWARD2022
MENIFEE’S ECONOMIC DEVELOPMENT

DEPARTMENT RECEIVED

FROM THE GOVERNMENT FINANCE

OFFICERS ASSOCIATION (GFOA)
Certificate of Achievement for Excellence in
Financial Reporting (AFCFR) for Fiscal Year 20/21
Distinguished Budget Presentation Award
for Fiscal Year 22/23

FINANCIAL AWARDS
&

BY BUILDING INDUSTRY ASSOCIATION (BIA) -

RIVERSIDE CHAPTER

EXCELLENCE IN GOVERNMENT

SERVICE AWARD
Item Title: 10.13
City Manager's Annual Performance Report for 2022
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February 15, 2023
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ANNUAL BUDGET
FY 2022/23

CAPITAL IMPROVEMENT

PROGRAM
FY 2022-2027

STRATEGIC

VISIONING PLAN
FY 2018-2023

ADDITIONAL RESOURCES
Item Title: 10.13
City Manager's Annual Performance Report for 2022
Item Page Number: 23
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CITY OF MENIFEE
SUBJECT: Continuance of Introduction and First Reading of an Ordinance Amending Title 14, to include Chapter 14.02 – Public Street Excavation Moratorium
MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Continue the public hearing to introduce an ordinance amending Title 14 of the City of Menifee Municipal code to include Chapter 14.02 entitled Public Street Excavation Moratorium implementing a public street excavation moratorium for all new, reconstructed, and resurfaced streets, to a date uncertain.

DISCUSSION
On December 7, 2022, the City Council opened a public hearing to introduce an ordinance amending Title 14 of the City of Menifee municipal code to include Chapter 14.02 – Public Street Excavation Moratorium. Following initial discussions, the public hearing was continued to January 18, 2023, to provide staff additional time to revisit the proposed amendment language with local utility agency stakeholders. At the January meeting, the public hearing was further continued to February 15, 2023.

Staff initially engaged in conversation with all utility agencies in mid-December and requested comments from the utilities on the proposed street excavation moratorium. As a result of this meeting, Southern California Gas and Southern California Edison provided written responses in mid-to-late January challenging the applicability of the proposed moratorium to utilities, given existing franchise agreement language.

On January 26, 2023, staff held a follow up meeting with the utility agencies above. At that meeting, the City and utility agencies concluded that additional time was needed for the written utility responses to be reviewed by the City and time was required to conduct individual field visits of utility trenching and roadway repairs throughout the City with each agency.

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City of Menifee Staff Report
Public Street Excavation Moratorium
February 15, 2023

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Staff continues to work with the utility agencies with the goal of partnering to develop repair standards that preserve and protect all public assets and meet various agency requirements. In the event a moratorium is determined to be necessary, a new public hearing will be noticed and scheduled for a future City Council meeting.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

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

ATTACHMENTS

1. Ordinance Draft

2. Original Public Hearing Notice – December 7, 2022

3. Notice of Continued of Public Hearing to January 18, 2023

4. Notice of Continued of Public Hearing to February 15, 2023 Item Title: 11.1
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1 ORDINANCE NO. Insert No.

AN ORDINANCE OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING TITLE 14 OF THE MENIFEE MUNICIPAL CODE AND ADOPTING CHAPTER

14.02, ENTITLED “PUBLIC STREET EXCAVATION MORATORIUM”
WHEREAS, the City of Menifee invests significant financial resources annually in the preservation and maintenance of the City’s street network; and WHEREAS, the City’s streets also serve as utility easements for many franchise utility owners who regularly perform maintenance and construction as part of new development, their own Capital Improvement Project program to expand/upgrade or reconstruct their facilities and services, and for emergency reasons; and WHEREAS, trenching on newly paved streets not only damages the work completed but also negatively affects the City’s investment in pavement preservation; and WHEREAS, a utility cut damages an area of pavement larger than the actual area of excavation; and
WHEREAS, the City of Menifee seeks to prolong pavement integrity, minimize pavement degradation, maintain a smooth riding surface for all modes of transportation, limit negative visual impacts, and limit public traffic inconveniences; and WHEREAS, establishing a Street Excavation Moratorium will limit developers, utility companies, and City crews from damaging newly paved or resurfaced streets; and WHEREAS, the City Council desires to amend Title 14 of the Municipal Code to ensure the City is able to effectively plan and coordinate improvements to the City’s growing infrastructure.

NOW, THEREFORE, the City Council of the City of Menifee, California does ordain as follows:

Section 1.The above recitals are true and correct and are incorporated herein.

Section 2.Chapter 14.02 entitled “Street Excavation Moratorium” is hereby added to Title 14 of the City of Menifee’s Municipal Code to read in its entirety as shown in Exhibit 1.

Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional, without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 4.Effective Date. This ordinance shall take effect 60 days from the date of its adoption.

Section 5.Notice of Adoption. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause to be published within fifteen (15) days after its passage Item Title: 11.1
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in a newspaper of general circulation and circulated within the City in accordance with Government Code Section 36933(a) or, cause this Ordinance to be published in a manner required by law using the alternative summary and posting procedure authorized under Government Code Section 36933(c).

This Ordinance was introduced and read on the ___ day of ___________, 2022 and APPROVED AND ADOPTED THIS _____ DAY of ________, ______. ___________________________
Bill Zimmerman, Mayor
Attest:
___________________________
Kay Vinson, Acting City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
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EXHIBIT 1
Chapter 14.02
Public Street Excavation Moratorium
Sections:

14.02.010 Purpose

14.02.020 Definitions

14.02.030 Moratorium Period

14.02.040 City Waivers

14.02.050 Procedures

14.02.060 Permits

14.02.070 Excavation Liability

14.02.080 Pavement Degradation Fees

14.02.090 Enforcement and Penalties

14.02.010 Purpose
The purpose of the street excavation moratorium is to protect the City’s investment in its infrastructure, to preserve the longevity of streets, to provide an improved and safe driving surface, to reduce pavement degradation, and to extend the life and structure of the pavement.

To achieve the purpose of this Chapter, the City of Menifee shall endeavor to coordinate its Capital Improvement Programs with those of utility owners and franchises with facilities in, on, under, or above the public right-of-way. Information about any planned work in the public right- of-way shall be shared at the earliest possible time. Utility owners and franchises are encouraged to coordinate their street excavations so that all work is done simultaneously, and if possible, in coordination with planned City Capital Improvement Projects to ensure the street is not excavated more than once in a short period of time.

14.02.020 Definitions
Bona Fide Emergency. A genuine emergency where no other alternative to mitigation exists under the circumstances.

Chip Seal. Resurfacing application that consists of eight-inch aggregates and emulsion.

Complete. Construction has concluded and pending recordation of a Notice of Completion.

Excavation. Any opening in the paved surface or subsurface of the public right-of-way.

Excavation Influence Area. The area impacted by the excavation as determined by the City Engineer.

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Excavator. A person or party with approved permit or City waiver excavating in the public right- of-way.

Moratorium Street. A newly constructed street, reconstructed street, or portion thereof, completed in the preceding five-year period, or a resurfaced street or portion thereof, completed in the preceding three-year period.

Municipal Improvement Project. Construction or major repair of City buildings, infrastructure, and facilities such as streets, roads, highways, bridges, curbs, gutters, sidewalks, storm drains, traffic signals, streetlights, gas and water distribution facilities, and parks.

Notice of Completion. The City of Menifee City Council approved document recorded with the Riverside County Recorder’s office after project acceptance.

Overlay. One or more courses of asphalt construction on an existing pavement.

Public right-of-way. Public easements or public property that are or may be used for streets, alleys, or other public purpose.

Reconstructed. A street or streets in which involve removal and replacement of pavement surface.

Rehabilitation. A street or streets receiving repairs of existing pavement to reset the deterioration process.

Slurry Seal. A mixture of polymer modified asphalt emulsion, mineral aggregate, mineral filler, water, and other additives, properly proportioned, mixed, and spread in accordance with local requirements.

14.02.030 Moratorium Period
Permission to excavate on newly constructed or reconstructed streets and streets receiving overlay and treatments of one-inch thickness or greater, will not be granted for a period of five (5) years after completion. Enforcement of the moratorium shall be effective upon final pavement cap, and the timed moratorium period shall begin upon recordation of a Notice of Completion.

Permission to excavate on streets receiving a seal coat, such as a slurry seal or chip seal, will not be granted for a period of three (3) years after completion. Enforcement of the moratorium shall be effective upon final street seal, and the timed moratorium period shall begin upon recordation of a Notice of Completion.

Streets that are constructed or rehabilitated and have a Notice of Completion on file on or after the Effective Date of this ordinance shall be subject to all provisions under this chapter. Streets that were constructed or rehabilitated prior to the Effective Date of this ordinance will also be subject to all provisions of this chapter. The moratorium period of these streets, however, will become effective from the date of recordation of the Notice of Completion throughout the applicable duration stated under the guidelines of this chapter.

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14.02.040 City Waivers
The Director of Public Works/City Engineer, or their designee, shall grant a waiver to the prohibition of excavation on a Moratorium Street when one or more of the following conditions are present:

1. A Bona Fide Emergency exists that:
a) Endangers the public’s health and safety or property, and b) Requires an excavation in order to remediate the emergency.

2. New service to a specific location cannot be provided:
a) Either through existing conduit, where trenchless technology is impractical due to soil conditions, proximity of facilities or economically impractical, and b) The public utility demonstrates to the Director of Public Works/City Engineer’s satisfaction that the service cannot be provided from another location.

3. The installation or relocation of facilities by a non-government owned public utility is both required by the City, County, State or Federal Government and not required as a result of an underground utility district.

4. Only a non-linear excavation or exploratory excavation will be made.

5. Work is initiated by municipal improvement projects.

6. Where geological conditions prohibit boring.

7. Where there is a lack of working space for bore pits at each end of the street crossing bore.

8. An open trench is required to expose existing distribution facilities in street to terminate or establish service lines, or to provide emergency repair of existing underground facilities.

9. Existing facilities in the street conflict with the proposed bore.

10.Joint trench use is required and if within 200 feet of an open sewer or water trench, consideration will be given to an open trench.

11.Unusual circumstances are present, and the Director of Public Works/City Engineer finds that the public interest is best served by allowing such a cut.

To request a waiver, a written request must be submitted to the Director of Public Works/City Engineer. The request must include:

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1. The location of the excavation.

2. A description of the work to be performed.

3. Construction plans and other supporting documents as deemed appropriate by Public Works Director/City Engineer.

4. The reason(s) the work was not performed prior to street paving.

5. The reason(s) the work cannot be deferred until after the prohibition period.

6. The reason(s) the work cannot be performed at another location.

7. The reason(s) it is justified to excavate the Prohibition Street

14.02.050 Procedures
A. Excavation Procedures
Excavations with a City waiver approved in writing by the Public Works Director/City Engineer under section §14.02.040 are subject to the following:

1. Where the excavation is in the direction of traffic (longitudinal trenches Exhibit A):
a) The approved Excavator must resurface the entire length of the excavation area, the excavation influence area on each end of the excavation area, and the entire lane or lanes.
i. Extend T-cut to one foot beyond the trench limits and replace the existing asphalt thickness plus one inch (4” minimum)
ii. If the asphalt depth is four (4) inches or deeper, the Excavator must grind two (2) inches minimum and place a minimum of two (2) inches overlay over the entire lane or lanes that are impacted regardless of street classification. iii. If the existing asphalt depth is less than four (4) inches, the Excavator must grind the full depth of asphalt and replace asphalt in-kind of a minimum of two (2) inches over the entire lane or lanes that are impacted regardless of street classification.

2. Where the excavation is perpendicular to the direction of traffic (lateral trenches Exhibit B)
a) The approved Excavator must resurface the length of excavation from lane to lane, or for the length of the excavation plus the excavation influence area extending on each end of the excavation, whichever is less. This resurface includes the excavation area plus the excavation influence area on each side of the excavation.

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i. Extend T-cut to one foot beyond the trench limits and replace the existing asphalt thickness plus one inch (4” minimum)
ii. If the asphalt depth is four (4) inches or deeper the Excavator must grind two (2) inches minimum. The Excavator must also place two (2) inch overlay to twenty-five (25) feet beyond each side of the trench and over the entire lane or lanes that is impacted regardless of street classification. Or as directed by the City Engineer in cases involving intersections.

iii. If the existing asphalt depth is less than four (4) inches, the Excavator must grind the full depth of the asphalt and replace asphalt in-kind of a minimum of two (2) inches over the entire lane or lanes (curb to curb or curb to median curb) that are impacted regardless of street classification. The Excavator must also place two (2) inch overlay to twenty-five (25) feet beyond each side of the trench and over the entire lane or lanes that is impacted regardless of street classification. Or as directed by the City Engineer in cases involving intersections.

3. All excavations must utilize the most current City Standard Drawings with the modifications required under this section for moratorium streets as depicted in Exhibit “C” and in a manner approved by the City Engineer.

4. Excavation of streets not under the Street Moratorium classification under this chapter are subject to the standards set forth in the most current City Standard Drawings.

B. Coordination of Excavation Procedures
Public utilities shall coordinate planned infrastructure projects to minimize damage to the City’s Street network caused by multiple excavations in the same area, by providing the City with a two (2) year plan for work anticipated in the public right-of-way.

On April 1, or on the first business day immediately thereafter, of each year, any public utility with anticipated work in the City shall prepare and submit to the City a plan that shows all major work anticipated to be done in the public right-of-way in the following twenty-four (24) months.

Any public utility that does not propose major work is anticipated shall submit a statement that no such major work is anticipated and shall immediately report any major work to the City as soon as it becomes foreseeable.

14.02.060 Permits
Any person needing to excavate on public right-of-way requires an encroachment permit pursuant to Ordinance 499 and shall be responsible for the full cost of plan preparation, plan review, construction inspection, material testing, bonding, and any other associated expenses relating to the work.

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14.02.070 Excavation Liability
The Excavator is responsible for the quality of the excavation performed in the public right-of- way and liable for the consequences of any conditions of such excavation and any facilities installed in the public-right-of-way. The issuance of any permit, inspection, repair or suggestion, approval, or acquiescence of any City Official shall not excuse any Excavator, or agent thereof, from such responsibility or liability.

14.020.080 Pavement Degradation Fees
All excavations approved by the Public Works Director/City Engineer during the Moratorium Period of a street shall be subject to a Pavement Degradation Fee. The Pavement Degradation Fee recovers the increased repaving and reconstruction costs incurred by the City that are reasonably attributable to the impact of the excavation to the public right-of-way.

The Pavement Degradation Fee shall not exceed an amount reasonably necessary to recover the estimated costs, including all administration, investigation, inspection, monitoring, reconstruction, slurry seal, and resurfacing necessary to fully mitigate the damage and degradation caused by the excavation.

Each Excavator shall pay to the City a Pavement Degradation Fee in addition to the fee required by the encroachment permit or other administrative fees under this Title. The fee shall be established by resolution of the Menifee City Council.

14.02.090 Enforcement and Penalties
Violation under this chapter can result in enforcement and corrective actions by the City of Menifee which may result in fines in an amount set forth in a schedule adopted by resolution of the City Council. Fines incurred for violations under this chapter shall be subject to the requirements set forth in Title 1 Chapter 1.03 of the City of Menifee Municipal Code.

Types of Violations

1. Performing work without a permit.

2. Performing operations that are not included in the approved permit.

3. Failure to comply with permit requirements.

4. Failure to comply with requirements set forth under this chapter.

In addition to any penalties assessed for violation of this chapter, any person in violation must remedy any damage caused to the public right-of-way, all costs incurred for repairs are the sole responsibility of the violator of this chapter. Persons in violation of this chapter shall make repairs and restorations in the manner, and within the time period, specified by the Director of Public Works/City Engineer or their designee.

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NOTICE OF PUBLIC HEARING

TIME OF HEARING: 6:00 p.m. or as soon as possible thereafter.

DATE OF HEARING: December 7, 2022
PLACE OF HEARING: MENIFEE CITY COUNCIL CHAMBERS
29844 HAUN ROAD
MENIFEE, CA 92586

NOTICE IS HERE BY GIVEN that A PUBLIC HEARING has been scheduled, pursuant to the Menifee Municipal Code, before the CITY OF MENIFEE CITY COUNCIL to introduce an ordinance amending Title 14 of the City of Menifee Municipal code to include Chapter 14.02 entitled “Public Street Exc avation Moratorium” implementing a public street excavation moratorium for all newly reconstructed and resurfaced streets.

Project Title: Public Street Excavation Moratorium

Project Location: The Public Street Excavation Moratorium would be applicable citywide to all areas within the City of Menifee, County of Riverside, State of California.

The City Council will consider the following at a public hearing: Annually, the City invests significant resources towards the maintenance and reconstruction of public infrastructure as part of its annual Capital Improvement Program. Improvement projects consisting of roadway resurfacing or reconstruction are implemented to prolong the life of local streets and roads in an effort to enhance the quality of life for residents and visitors of the City. In an effort to proactively coordinate City improvements with external agency improvements, the City will require all public utilities to provide , at minimum, a two year plan outlining all planned work within the City. This enables all necessary excavations to occur prior to any planned City improvements to minimize and eliminate the possibility of excavations following completion of a City initiated project. In the event an excavation is necessary, the entity requesting to excavate on a street, or streets, under moratorium must receive approval from the Public Works Director, or designee. If approved, excavation would be conducted in accordance with the procedures outlined in the proposed public street excavation moratorium and in a manner acceptable to the Public Works Director or designee. Any approved excavations would also be subject to pavement degradation fees and encroachment permit fees . Implementation of a street moratorium would require an amendment under Title 14, Streets and Sidewalks, of the Menifee Municipal Code to establish chapter 14.02 entitled “Public Street Excavation Moratorium.” This is the required first reading of the ordinance.

Any person wishing to comment on the proposal may do so in writing between the date of this notice and the public hearing or may appear and be heard at the time and place noted above. All comments must be received prior to the time of public hearing. All such comments will be submitted to the City Council, and the City Council will consider such comments, in addition to any oral test imony, before making a decision on the proposed application.

For further information regarding this proposal, please e- mail Nicolas Fidler , Public Works Director at [email protected] or call (95 1) 723 -3703 or go to the City of Menifee’s agenda web page at http://www.cityofmenifee.us.

Please send all written correspondence to:

CITY OF MENIFEE PUBLIC WORKS DEPARTMENT
Attn: Nicolas Fidler
29844 Haun Road
Menifee, CA 92586
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NOTICE OF CONTINUED PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the following City Council Agenda Item has been continued to 6:00 p.m. or as soon thereafter, on January 18, 2023, in the Council Chambers at Menifee City Hall, 29844 Haun Road, Menifee, CA.

11.1 Introduction and First Reading of an Ordinance Amending Title 14 to include Chapter 14.02 – Public Street Excavation Moratorium Recommended Action:

1. Introduce an ordinance amending Title 14 of the City of Menifee Municipal code to include Chapter 14.02 entitled “Public Street Excavation Moratorium” implementing a public street excavation moratorium for all newly reconstructed and resurfaced streets.

Posted: December 8, 2022
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City Clerk Department
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NOTICE OF CONTINUED PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the following City Council Agenda Item has been continued to 6:00 p.m. or as soon thereafter, on February 15, 2023, in the Council Chambers at Menifee City Hall, 29844 Haun Road, Menifee, CA.

11.1 Continuance of Introduction and First Reading of an Ordinance Amending Title 14 to include Chapter 14.02 – Public Street Excavation Moratorium Recommended Action:

1. Continue the public hearing to Introduce an ordinance amending Title 14 of the City of Menifee Municipal code to include Chapter 14.02 entitled “Public Street Excavation Moratorium” implementing a public street excavation moratorium for all newly reconstructed and resurfaced streets, to the regular meeting of the City Council on February 15, 2023.

Posted: January 19, 2023
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CITY OF MENIFEE
SUBJECT: Mobile Home Park Rent Stabilization Ordinance
MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Molly Binnall, Management Analyst
REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION

1. Repeal and replace Ordinance No. 760, as amended; and

2. Introduce an Ordinance amending the Menifee Municipal Code to include Chapter

5.80 “Mobile Home Park Rent Stabilization.”

DISCUSSION
At a previous City Council meeting held on April 21, 2021, Councilmember Karwin requested a future agenda item (seconded by Councilmember Deines) related to mobile home rent stabilization in response to a public comment from a resident. Staff returned on September 1, 2021, and presented the City Council with Mobile Home Park Rent Stabilization Ordinance No. 760, as amended, which the City had adopted from the County of Riverside upon incorporation.

Ordinance No. 760, as amended, was originally established by the County of Riverside to encourage fair bargaining between mobile home residents and mobile home park owners to preserve the value of the resident’s mobile homes and the park value as a whole. The City Council directed staff to present items for discussion to repeal and replace the existing Ordinance with one that would better serve the City.

On April 20, 2022, staff brought the item back to the City Council for discussion. Based on the community interest expressed at the April 2022 meeting, City Council directed staff to conduct additional community outreach, and provide comparisons of existing rent control ordinances in other local jurisdictions. Those efforts were completed in summer 2022 and presented to City Council at a workshop held on October 19, 2022. Upon conclusion of the workshop, City Council directed staff to draft an Ordinance to replace County Ordinance No. 760, as amended.

The proposed Ordinance provides a streamlined approach with a framework suitable for the City’s administration. A comprehensive comparison of the provisions in Ordinance No. 760, as amended, and the proposed Ordinance are listed in the following table with expanded details of the proposed Ordinance below:

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Mobile Home Park Rent Stabilization Ordinance
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City of Menifee Staff Report
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TABLE 1: Ordinance Comparison
Provision Existing Ordinance Proposed Ordinance
Permissive Annual
Increase 100% CPI 100% CPI or 5%, whichever
is less
Annual Registration Fee $12 $12
Petitioning Process Park Owners & Tenants Park Owners & Tenants Petition Reviewing Body County Board 3rd Party
Exemptions Per CA Civil Code Per CA Civil Code

1.Permissive Annual Increase: Mobile home park owners are allowed to increase rental rates annually up to 100% of the Consumer Price Index (CPI), or 5%, whichever is less.

2.Annual Registration and Fees: Each mobile home park owner is required to file an annual registration with the City on July 1 of each year, identifying all spaces subject to the Ordinance, including any exemption claims. The City will invoice the park owners a fee of $12 per unit space subject to the Ordinance per year to be remitted to the City for Ordinance administration and implementation.

3.Petitioning Process: The process allows mobile home park owners to petition for a rental increase if it is believed the Permissive Annual Increase does not provide a fair return. It also allows mobile home park tenants to dispute a rent increase that violates the Ordinance. Both types of petitions will require an initial processing fee of $1 per space of the affected park.

Additional fees may be invoiced to cover actual costs for the petition review by a 3rd party.

4.Petition Reviewing Body: Upon receipt of a petition, the City will utilize a third party to review the petition. The third party will provide all petition review and detailed cost analysis findings to a Hearing Officer for a ruling. The ruling cannot be appealed to City Council, however it may be appealed to a court pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6.

5.Exemptions: Pursuant to the Mobile Home Residency Law, this Ordinance does not pertain to any mobile home park space rented out for the first time after January 1, 1990, any rental agreement in excess of 12-months entered into prior to February 13, 2020, any mobile homes not used as a primary residence, any mutually agreed upon lease terms, or any increase that 2/3 of all tenants affected by the increase approve in writing.

STRATEGIC PLAN OBJECTIVE
Livable and Economically Prosperous Community

FISCAL IMPACT
Any fees collected will be recognized as revenue in a corresponding revenue account and used to cover staff time to process registration and third-party actual costs.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
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City of Menifee Staff Report
Mobile Home Park Rent Stabilization Ordinance
February 15, 2023

1 3
5 3

ATTACHMENTS

1. Mobile Home Rent Stabilization Ordinance

2. Exhibit A
Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 3
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ORDINANCE NO. 2023-

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

MENIFEE, CALIFORNIA REPEALING RIVERSIDE
COUNTY ORDINANCE NO. 760 AND ADDING CHAPTER

5.80 “MOBILE HOME PARK RENT STABILIZATION” TO
THE MENIFEE MUNICIPAL CODE.

WHEREAS, on February 20, 1996, the Riverside County Board of Supervisors adopted Ordinance No. 760 “An Ordinance of the County of Riverside Adopting a Mobile Home Park Rent Stabilization Ordinance” to encourage fair bargaining between mobile home park owners and tenants to preserve both the value of the park and the tenants’ mobile units; and
WHEREAS, on September 10, 1996, the Riverside County Board of Supervisors amended Ordinance No. 760 through Amendment No. 760.1.

WHEREAS, on September 17, 1996, the Riverside County Board of Supervisors amended Ordinance No. 760 through Amendment No. 760.2; and WHEREAS, on October 1, 2008, the City of Menifee incorporated from Riverside County and upon incorporation, the City of Menifee City Council adopted all established Ordinances and amendments from Riverside County, including Ordinance No. 760, as amended; and
WHEREAS, on April 21, 2021, the City of Menifee City Council requested a future agenda item in response to the receipt of a public comment relating to the effectiveness of Ordinance No. 760 as amended within the City; and
WHEREAS, on September 1, 2021, the City of Menifee City Council held a public discussion on Ordinance No. 760 as amended, considered all public testimony as well as materials in the staff report and presentation, and directed staff to provide further analysis of the Ordinance; and
WHEREAS, on April 20, 2022, the City of Menifee City Council held a public discussion on Ordinance 760 as amended, considered all public testimony as well as materials in the staff report and presentation, whereafter City Council directed staff to analyze and compare rent stabilization ordinances in surrounding jurisdictions; and WHEREAS, on October 19, 2022, the City of Menifee City Council held a public workshop, considered all public testimony as well as materials in the staff report and presentation, whereafter City Council directed staff to proceed with creating a replacement Mobile Home Park Rent Stabilization Ordinance to address the needs of the City and fit the City’s administrative framework; and
WHEREAS, on February 15, 2023, the City of Menifee City Council held a duly noticed public hearing concerning the Mobile Home Park Rent Stabilization Ordinance at Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
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which time members of the public had the opportunity to review the documents presented to the City Council and provide oral comments to the City Council regarding the proposed Ordinance; and
WHEREAS, the City now desires to repeal its adoption of Riverside County Ordinance No. 760 as amended and add a new Chapter 5.80 “Mobile Home Park Rent Stabilization” to the Menifee Municipal Code; and
WHEREAS, City staff have analyzed and determined that the proposed repeal of Ordinance No. 760 and addition of Menifee Municipal Code Chapter 5.80 is not considered a “project” pursuant to the California Environmental Quality Act (CEQA).

NOW, THEREFORE, the City Council of the City of Menifee hereby ordains as follows:

SECTION 1. RECITALS INCORPORTATED. The above recitals are true and correct and are incorporated herein.

SECTION 2. CEQA. The City Council finds that this Ordinance is exempt from CEQA pursuant to State CEQA Guidelines section 15060(c)(2) and 15061(b)(3) in that the proposed changes are not anticipated to result in a direct or reasonably foreseeable indirect physical change in the environment, nor will they have the potential of creating a significant effect on the environment.

SECTION 3. ADOPTION OF CHAPTER 5.80. Chapter 5.80: “Mobile Home Park Rent Stabilization” is hereby adopted and added to Title 5: Business Regulations of the Menifee Municipal Code as fully detailed in Exhibit A and incorporated herein by this reference.

SECTION 4. SEVERABILITY. This Ordinance and the various parts, sections, and clauses thereof, are hereby declared to be severable. If any part, sentence, paragraph, section, or clause is adjudged unconstitutional or invalid, the remainder of this Ordinance shall remain in effect. If any part, sentence, paragraph, section, or clause of this Ordinance, or its application to any person entity is adjudged unconstitutional or invalid, such unconstitutionality or invalidity shall affect only such part, sentence, paragraph, section, or clause of this Ordinance, or person or entity; and shall not affect or impair any of the remaining provision, parts, sentences, paragraphs, sections, or clauses of this Ordinance, or its application to other persons or entities. The City Council hereby declares that this Ordinance would have been adopted had such unconstitutional or invalid part, sentence, paragraph, section, or clause of this Ordinance not been included herein; or had such person or entity been expressly exempted from the application of this Ordinance.

SECTION 5. ORDINANCE SUPERSEDED AND REPEALED. Upon the effective date of this Ordinance, all former ordinances, or parts thereof conflicting or inconsistent with the provisions of this Ordinance, including Ordinance No. 760 as amended are hereby repealed and declared to be of no further force and effect. This Ordinance supersedes the provisions of Ordinance No. 760 as amended provided this Ordinance is not declared Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
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invalid or unenforceable by a court of competent jurisdiction. If, for whatever reason, this Ordinance is declared invalid or unenforceable by a court of competent jurisdiction, Ordinance No. 760 as amended and all other related ordinances and policies shall remain in full force and effect.

SECTION 6. MUNICIPAL CODE AMENDMENT. This Ordinance is consistent with the requirements of the City of Menifee Municipal Code regarding the process of amending the Municipal Code, and shall preserve the health, safety, and general welfare of the residents and visitors to the City of Menifee. Menifee Municipal Code Chapter 5.80, Mobile Home Park Rent Stabilization, is hereby enacted as set forth in full as Exhibit A hereto.

SECTION 7. EFFECTIVE DATE. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall within thirty (30) days of its adoption cause it, or a summary of it, to be published in the Southern California News Group, a newspaper published and circulated in the City of Menifee, and thereupon and thereafter this Ordinance shall take effect and be in force according to law.

SECTION 8. AUTHORITY. The City Manager or designee is directed to take all actions necessary to effectuate the provisions of this Ordinance.

This Ordinance was introduced and read on the 15th day of February 2023, and PASSED, APPROVED, AND ADOPTED, this day of March, 2023.

Bill Zimmerman, Mayor
ATTEST:

Kay Vinson, Acting City Clerk
Approved as to form:

Jeffrey T. Melching, City Attorney
Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 6
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February 15, 2023
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EXHIBIT A
Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 7
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February 15, 2023
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 1 Chapter 5.80 MOBILE HOME PARK RENT

STABILIZATION

SECTIONS

5.80.010 Purpose

5.80.020 Applicability

5.80.030 Exemptions

5.80.040 Definitions

5.80.050 Notice to Tenants and Tenants-To-Be

5.80.060 Annual Registration and Fee

5.80.070 Initial Rent

5.80.080 Permissive Annual Increase

5.80.090 Adjusted Space Rent Increase Petition

5.80.100 Space Rent Increase Disputes

5.80.110 Utility Service Billing

5.80.120 Rental Agreement Restrictions

5.80.130 Penalties and Remedies

5.80.140 Non-Waiver of Rights

5.80.150 Severability

5.80.010 Purpose
The purpose of this Chapter is as follows:

A.Mobile home owners have a substantial investment in their residences and appurtenances for which space is rented. Alternate sites for relocation of mobile homes are difficult to find due to restrictions of age, size, or style of mobile homes permitted in many mobile home parks, and related to the installation of mobile homes, including permits, landscaping and site preparation. Additionally, the cost of moving a mobile home may be substantial, and the risk of damage in moving is significant.

B.Mobile homes are often occupied by senior citizens, persons on fixed income and persons of low or moderate income, on whom extreme rent increases fall with particular harshness. Many mobile home owners have a substantial portion of their net asset worth invested in their mobile homes. The continuing possibility of unreasonable mobile home space rental increases threatens to diminish the value of that investment.

C.It is the goal of the City of Menifee’s Housing Element to conserve and improve existing affordable housing in the City, and to prohibit conversion of mobile home spaces available for rent or mobile home parks to other uses unless conditions exist to maintain existing affordability.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 8
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 2 D.The economic conditions and recognized housing shortage in Southern California has the potential to detrimentally impact a substantial number of residents in the City, and impose a particular hardship on senior citizens, persons living on fixed incomes, and other vulnerable persons living in mobile home parks in the City.

E. It is necessary to facilitate and encourage fair bargaining between tenants and mobile home park owners in order to achieve mutually satisfactory agreements regarding space rent which preserve the value of tenants’ mobile home and the value of the mobile home park itself.

It is also necessary to protect the tenants from unreasonable space rent increases while simultaneously recognizing and providing a fair return to mobile home park owners.

F.Riverside County Ordinance No. 760, as amended enacted in 1996, and adopted by the City in 2009 upon incorporation, has been reviewed and evaluated and found to be inadequate for the needs and purposes of the City as reflected in the above findings, and the City’s adoption thereof is therefore repealed with the adoption of this Chapter.

G.Administration of this Chapter shall be under the general direction of the Community Development Director with general oversight responsibility vested in the City Manager.

5.80.020 Applicability
The provisions of this Chapter shall apply to all mobile home parks located within the City unless otherwise exempt from the provisions of this Chapter. Nothing in this Chapter shall be deemed to supersede any provision of the California Civil Code Section 798 et seq., and as it may be amended.

5.80.030 Exemptions
Pursuant to the Mobile Home Residency Law, the provisions of this Chapter shall not apply to the following:

A.Rental agreements in excess of 12 months duration, entered into before February 13, 2020 for the personal and actual residence of the tenant which meet all of the criteria in Civil Code Section 798.17(b), as the same may be amended from time to time (Civ. Code, §798.17).

However, agreements entered into on or after February 13, 2020, including agreement or contract renewals, even when they meet these requirements, do not qualify for this exemption.

Upon expiration of or other termination of an exempt rental agreement pursuant to this Paragraph, this Chapter shall apply unless another exemption applies.

B. Spaces rented out for the first time after January 1, 1990. (Civ. Code § 798.45) C.Mobile homes not being used as a person’s primary residence that are not being leased to another person (Civ. Code § 798.21)
D.Any other provisions of the Mobile Home Residency Law or other applicable law Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 3 addressing exemptions, as applicable.

E.Any space rent increase or other action to which this Chapter would otherwise apply, whereby two-thirds (2/3) of all mobile home tenants affected by a space rent increase or other action give their approval in writing as evidenced by the signature of one tenant for each space or in an election called to consider the matter with each space casting one vote. These actions include, but are not limited to, capital improvement projects. The mobile home park owner shall supply satisfactory proof of such approval to the Director for verification prior to the date where such space rent increase shall become effective.

5.80.040 Definitions
As used in this Chapter, the following terms shall have the following meanings:

Base Year. The calendar year 1991; or the year established by the most recent (prior) hearing before a hearing officer; or, if necessary, the year established by the City Council in mobile home parks first operating after 1991.

Capital Improvements. Those improvements, not previously located in the mobile home park, that materially add to the value of the mobile home park property, appreciably prolong its useful life or adapt it to new uses, which are claimed by the mobile home park owner as capital expenses for Internal Revenue Code purposes and which are required to be amortized over the useful life of the improvement pursuant to the Internal Revenue Code and the regulations issued pursuant thereto; provided, this definition shall be limited to capital improvements approved by more the fifty percent (50%) of the tenants in the affected mobile home park.

City. The City of Menifee, California.

City Council. The City Council of the City of Menifee, California.

Consumer Price Index or “CPI”. The Index known as the “Consumer Price Index for All Urban Consumers, Riverside-San Bernadino-Ontario Area” (base year 1982-1984) published by the Bureau of Labor Statistics of the U.S. Department of Labor and thereafter, or any successor designation of that index which may replace this index if it is discontinued.

Director. The Community Development Director of the City of Menifee.

Hearing Officer. An official appointed by the City Manager, or the City Manager’s designee, to conduct investigations or administrative hearings pursuant to this Chapter.

Mobile Home. A “mobile home” as defined in California Civil Code Section 798.3, as it may be amended, or a successor code section.

Mobile Home Park. An area of land where two or more mobile home spaces are rented, or held out for rent, to accommodate mobile homes used for human habitation.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 10
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 4 Mobile Home Park Owner. Any owner, lessor, or sublessor or a mobile home park in the City of Menifee, and the representative, agent or successor of such owner, lessor or sublessor, who receives or is entitled to receive rent for the use or occupancy of any mobile home space thereof, and reports to the Internal Revenue Service any income received or loss of income resulting from such ownership or claims any expenses, credits or deductions because of such ownership.

Mobile Home Residency Law. California Civil Code Section 798 et seq., as the same may be amended.

Mobile Home Space or Space. The site within a mobile home park intended, designed, or used for the location or accommodation of a mobile home and any accessory structures or appurtenances attached thereto or used in conjunction therewith.

Rehabilitation Work. Any renovation or repair work completed on or in a mobile home park performed in order to comply with the direction or order of a public agency or public utility, or to maintain existing improvements in a safe and usable condition, or to repair damage resulting from fire, earthquake, or other casualty.

Rent Increase. Any space rent increase demanded of or paid by a tenant, including any reduction in housing services without a corresponding reduction in the monies demanded or paid for rent.

Rental Agreement. An agreement, whether written or oral, between a mobile home park owner and tenant establishing the terms and conditions of a tenancy in a mobile home park. A lease is a rental agreement.

Space Rent. The consideration, including any bonuses, benefits, deposits, or gratuities demanded or received for and in connection with the use or occupancy of a mobile home space, including for facilities, services, and amenities accruing to tenants, but exclusive of any amounts paid for the use of the mobile home as a dwelling unit. “Space rent” shall not include any separately billed utility fees and charges such as for natural gas or liquid propane gas, electricity, water, cable television, garbage service or sewer service. “Space rent” shall not include separate charges from the mobile home park owner to tenants for the governmental fees and assessments authorized by Civil Code Section 798.49.

Tenant. Any person entitled to occupy such mobile home space pursuant to a rental agreement, or other written or oral agreement.

Tenancy. The right of a tenant to use a mobile home space on which to locate, maintain and occupy a mobile home, site improvements and accessory structures; for human habitation, including the use of the services and facilities of the mobile home park.

Tenant-To-Be. Any person who is not currently a tenant in a mobile home park but is a prospective tenant and has presented himself/herself to the mobile home park owner as a prospective tenant, as well as a current tenant under a rental agreement of 12 months or less, who is being offered a rental agreement in excess of 12 months by the mobile home park owner.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 11
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February 15, 2023
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 5 5.80.050 Notice to Tenants and Tenants-To-Be
Every mobile home park owner shall provide each tenant and tenant-to-be with a written notification which shall state the following:
“PURSUANT TO CITY OF MENIFEE MUNICIPAL CODE SECTION 5.80.050 YOU ARE ADVISED THAT YOU ARE ENTITLED TO RENT STABILIZATION PROGRAM BENEFITS UNDER CHAPTER 5.80 IF YOU ELECT A RENTAL AGREEMENT OF LESS THAN 12 MONTHS IN DURATION, OR MORE THAN 12 MONTHS IN DURATION IF ENTERED INTO ON OR AFTER FEBRUARY 13, 2020, AND THAT RENTAL AGREEMENT MEETS THE REQUIREMENTS OF CALIFORNIA CIVIL CODE SECTION 798.17.” This written notification shall be typewritten in capital letters and in a minimum 12-point font.

Every mobile home park owner shall also provide each tenant and tenant-to-be a copy of Chapter

5.80 of the City of Menifee Municipal Code.

5.80.060 Annual Registration and Fee
All mobile home park owners shall complete and submit the following:

A. Registration. A mobile home park owner must file a registration form with the City within ninety (90) days of adoption of this Chapter, and annually thereafter before July 1 of each year.

The registration form shall include: the name(s), business address(es), business telephone number(s) of each person or legal entity possessing an ownership interest in the mobile home park, the total number of spaces in the mobile home park, and the number of spaces currently exempt from this Chapter.

B. Claims of Exemption. Any mobile home park owner claiming an exemption from this Chapter must provide a written declaration of such exemption with supporting documentation by July 1 of each year.

C. Registration Fee. As part of the registration process, each space in a mobile home park subject to this Chapter shall be invoiced by the City to pay a fee of twelve dollars ($12) per space per year to cover administrative costs directly related to implementation of this Chapter. The mobile home park owner shall be responsible for the collection and payment of this fee within thirty (30) days. This fee may at any time be amended by a resolution of the City Council.

5.80.070 Initial Rent
To the extent required by state law, mobile home park owners may set the initial space rent for new tenants at the market rate. After the mobile home park owner sets an initial space rent pursuant to this Section, the mobile home park owner may only increase the space rent in accordance with this Chapter. The mobile home park owner may not increase space rent based on banking, cost increases, capital improvements, or other circumstances that arose before the new tenancy began.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 12
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 6 5.80.080 Permissive Annual Increase
A. Permissive Annual Increase Permitted. A mobile home park owner may increase space rent for a tenant by the permissive annual increase amount no more than once per twelve (12) month period.

B. Permissive Annual Increase. The permissive annual increase shall be equal to one hundred percent (100%) of CPI, or five percent (5%) of the space rent for the previous twelve (12) month period, whichever is lower. In the event an applicable State law becomes effective which requires a lower or higher permissive annual increase, the State law requirement will prevail.

C. Notice of Rent Increase Required. The permissive annual increase shall become effective only after the mobile home park owner provides written notice to the tenant in the manner prescribed by law, with at least thirty (30) days’ advance written notice.

5.80.090 Adjusted Space Rent Increase Petition
A. Eligibility. A mobile home park owner may petition the City for an adjusted space rent increase in addition to the permissive annual increase set forth in Section 5.80.080 by following the procedures in this Section. A mobile home park owner shall be eligible for an adjusted space rent increase pursuant to this Section upon a showing by a preponderance of the evidence that the requested adjusted space rent increase is necessary to provide the mobile home park owner with a fair return.

B. Adjusted space rent increase Petition. A mobile home park owner shall submit a petition for a proposed adjusted increase in rent. Such petition for review shall be filed with the City Manager, or their designee. The petition shall include a detailed explanation of the need for the increase, the names and addresses of the tenants affected, and shall be under penalty of perjury.

The petition shall be accompanied by a processing deposit equal to one dollar ($1) per space to cover the cost of preparing the petition for review. Any actual cost of review in excess of the deposit shall be invoiced in advance by the City to the mobile home park owner and shall be paid within thirty (30) days. Until such invoice is paid, the processing of the petition will be paused. In the event the deposit fee exceeds the actual costs of review of the petition, the amount of the deposit in excess of the costs of review shall be returned to the mobile home park owner.

C. Notice of Hearing. The City Manager shall serve by mail notice of the date, time and place of hearing to the mobile home park owner and to each affected tenant.

D. Hearings. All hearings on petitions submitted pursuant to this Section shall be conducted by a hearing officer appointed by the City Manager in an informal manner consistent with due process of law. All parties to the hearing may have assistance in presenting evidence or in setting forth by argument their positions from an attorney or such other persons as may be designated by said party. The hearing may be continued by the hearing officer from time to time as may be reasonable and necessary. The hearing officer shall have the authority to administer oaths and Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 7 affirmations, and to render a final decision on the merits of the application, subject to the provisions of this Chapter.

E. Burden of Proof. The decision of the hearing officer must be supported by the evidence submitted at the hearing. The petitioning party shall have the burden of establishing its entitlement to the adjusted space rent increase sought by the petition by a preponderance of the evidence. It shall be presumed that the net operating income (NOI) produced during the base year provided a fair return. The petitioner may rebut such presumption by presenting evidence to the hearing officer that the base year’s operating expenses were unusually high or low, or that the NOI for that year did not provide a fair return.

F. Factors for Consideration. The hearing officer shall evaluate any request for an adjusted space rent increase based upon, but not limited to, the following factors:

1. Changes in the CPI, to the extent not already encompassed in the permissive annual increase set forth in Section 5.80.080.

2. The rent lawfully charged for comparable mobile home spaces in the City.

3. The length of time since the last ruling on a petition pursuant to this section or the last increase in space rent if no previous petition has been submitted.

4. The completion of any capital improvements or rehabilitation work related to the mobile home space or spaces identified in the petition and the cost thereof, including materials, labor, construction interest, permit fees, and other items the hearing officer deems appropriate.

5. Changes in property taxes or other taxes related to the mobile home park.

6. Changes in the rent paid by the petitioner for the lease of the land on which the mobile home park is located.

7. Changes in the utility charges for the mobile home park paid by the petitioner, and the extent, if any, of reimbursement from the tenants.

8. Changes in reasonable operating and maintenance expenses.

9. The need for repairs caused by circumstances other than ordinary wear and tear.

10. The amount and quality of services provided by the applicant to the affected tenant(s).

11. Any existing rental agreement lawfully entered into between the petitioner and the affected tenant(s).

12. The applicability of any State law requirement on allowable space rent increases, including but not limited to Civil Code Section 1947.12, as amended.

G. Decision. The decision of the hearing officer shall be given in writing to all parties. The findings and conclusions of the hearing officer shall be final and there shall be no right of appeal to the City Council.

H. Appeal to Court. An appeal of the findings and decision of the hearing officer may be made to a court of competent jurisdiction pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 14
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February 15, 2023
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 8 I. Collection Pending Hearing. Following a mobile home park owners’ submission of a petition, the mobile home park owner may collect the full amount of the adjusted space rent until the hearing officer makes a final decision on the merits, unless otherwise agreed by the affected tenants and mobile home park owner in writing. If the hearing officer denies the petition in whole or in part, any increased space rent collected from tenants in violation on this Chapter, in an amount determined by the hearing officer, shall be returned to the affected tenants along with the interest thereon computed at the current legal rate of interest on a judgement. This Paragraph does not authorize a mobile home park owner to collect retroactive increased space rent if a petition is granted.

5.80.100 Space Rent Increase Dispute Procedures
A. Dispute Petition. In the event any tenant contends that a space rent increase is unlawful pursuant to this Chapter, the tenant may file a dispute petition pursuant to this Section with the City Manager or their designee. The petition shall include a detailed explanation of the space rent increase, the name(s) and mailing address(es) of the mobile home park owner(s), and all other tenants affected by the increase as reasonably known to the petitioner. The petition shall be accompanied by a processing deposit equal to one dollar ($1) per space to cover the cost of preparing the petition for review. Any actual cost of review in excess of the deposit shall be invoiced in advance by the City to the petitioner and shall be paid within thirty (30) days. Until such invoice is paid, the processing of the petition will be paused. In the event the deposit fee exceeds the actual costs of review of the petition, the amount of the deposit in excess of the costs of review shall be returned to the petitioner.

B. Notice of Hearing. The City Manager shall serve by mail notice of the date, time and place of hearing to the petitioner and the mobile home park owner.

C. Hearings. All dispute petition hearings shall be conducted by a hearing officer appointed by the City Manager in an informal manner consistent with due process of law. All parties to the hearing may have assistance in presenting evidence or in setting forth by argument their positions from an attorney or such other persons as may be designated by said party. The hearing may be continued by the hearing officer from time to time as may be reasonable and necessary.

The hearing officer shall have the authority to administer oaths and affirmations, and to render a final decision on the merits of the application, subject to the provisions of this Chapter.

D. Burden of Proof. The decision of the hearing officer must be supported by the evidence submitted at the hearing. The petitioning party shall have the burden of establishing a space rent increase violates this Chapter by a preponderance of the evidence.

E. Decision. The decision of the hearing officer shall be given in writing to all parties. The findings and conclusions of the hearing officer shall be final and there shall be no right of appeal to the City Council. If the hearing officer determines that a space rent increase or any portion Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 9 thereof was unlawful pursuant to this Chapter, such space rent increase or portion thereof determined to be contrary to the provisions of this Chapter which have been collected by a mobile home park owner together with the interest thereon computed at the current legal rate of interest on a judgement shall be returned to the affected tenant(s) by the mobile home park owner, together with the cost of the processing fee paid to the City for filing the dispute petition.

F. Appeal to Court. An appeal of the findings and decision of the hearing officer may be made to a court of competent jurisdiction pursuant to Code of Civil Procedure Sections 1094.5 and 1094.6.

G. Collection Pending Hearing. When a dispute petition is pending, the mobile home park owner may collect the full amount of the increased space rent until the hearing officer makes a final decision on the merits, unless otherwise agreed by the affected tenants and mobile home park owner in writing.

5.80.110 Utility Service Billing
A. Utility Billing. If a mobile home park provides in the rent, without separate charge, utilities or similar services (including, but not limited to, natural gas, electricity, water, sewer, trash, and/or cable television) and converts to separate charge for such service by separate metering, separate charge or other lawful means of transferring to the tenant the obligation for payment for such services, the cost savings shall be passed through to tenants by an rent increase equal to the actual cost to the park of such transferred utility or similar service (less common area usage) based on costs for the 12-month period prior to notice to the tenants of the change.

No hearing shall be required for utility service billing complying with this Section. Where a rental agreement does not provide otherwise, a mobile home park may charge mobile home owners for utilities as provided in California Civil Code sections 798.40 and 798. 41.

B. Installation Costs. The cost of installation of separate utility meters, or similar costs shall not be considered for the purpose of separate utility billing space rent increases under California Code of Civil Procedure Section 798.41, provided that this Section shall not be construed to prohibit or prevent the consideration of inclusion of such costs as an increased operating expense for an adjusted space rent increase petition pursuant to Section 5.80.090.

5.80.120 Rental Agreement Restrictions
A. Long-Term Rental Agreements. It shall be unlawful for any mobile home park owner to directly or indirectly require any tenant or tenant-to-be to sign a rental agreement with a term in excess of 12 months as a condition of tenancy, or as a condition of approving the replacement of an existing mobile home.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 16
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City of Menifee Municipal Code
Title 5: Business Regulations
FINAL DRAFT January, 2023 Chapter 5.80 Mobile Home Park Rent Stabilization 10 B.Duress, Menace, Undue Influence. It shall be a violation of this Chapter for any person to perform any act of duress, menace, or undue influence with the intent of thereby obtaining the consent of any other person to enter into any rental agreement.

5.80.130 Penalties and Remedies
A. Misdemeanor. It shall be unlawful for any mobile home park owner to willfully and knowingly adjust any space rent in excess of that allowed under this Chapter or by order of the hearing officer. Any mobile home park owner who willfully and knowingly violates any of the provisions of this Chapter or the orders of the hearing officer shall be guilty of a misdemeanor.

B. Civil damages. Any mobile home park owner who demands, accepts, receives or retains money as space rent to which said mobile home park owner is not entitled under the provisions of this Chapter shall be liable in a civil action to the tenant from whom such payment is demanded, accepted or retained for damages in the sum of three (3) times the amount by which the payment or payments demanded, accepted or retained exceed the maximum rent which could lawfully be demanded, accepted or retained, together with reasonable attorney’s fees and costs as determined by the court. The tenant shall bear the burden of proving entitlement to these penalties.

C. Other remedies. The hearing officer, the Director, the City, and/or the tenants or mobile home park owners may seek relief from the appropriate court within the jurisdiction within which the mobile home park space is located to enforce any provision of this Chapter or its implementing regulations or to restrain or enjoin any violation of this Chapter and of the rules, regulations, orders and decisions of the hearing officer.

5.80.140 Non-Waiver of Rights
Any waiver or purported waiver by a tenant or tenant-to-be of rights granted under this Chapter prior to the time when such rights may be exercised, whether oral or written, shall be void as contrary to public policy.

5.80.150 Severability
If any section, subsection, sentence, clause or phrase in this Chapter is for any reason held to be invalid or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Chapter. The City Council hereby declares that it would have passed this Chapter and each section, subsection, clause or phrase thereof irrespective of the fact that any one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional.

Item Title: 11.2
Mobile Home Park Rent Stabilization Ordinance
Item Page Number: 17
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CITY OF MENIFEE
SUBJECT: Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022
MEETING DATE: February 15, 2023
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Regina Funderburk, Chief Financial Officer APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION

1. Receive and file the Annual Comprehensive Financial Report (ACFR) and other audit reports for the fiscal year end June 30, 2022.

DISCUSSION
Following the completion and receipt of the City’s annual financial audit, the Finance Department will present to the City Council the City’s annual financial statements and financial audit. The statements are referred to, collectively, as an ACFR. The format and content requirements for ACFRs are set forth in guidelines developed by the Government Finance Officers Associations of the United States and Canada and the California Society of Municipal Finance Officers.

The ACFR is divided into three major sections: the introductory section, the financial section, and the statistical section. The introductory section includes the letter of transmittal, a directory of City officials in office as of the report date and an organization chart. The financial section includes the independent auditors’ report, management’s discussion and analysis, and the financial statements, including notes to the financial statements. The statistical section includes financial trend information and demographic information about the City.

The financial statements were audited by the independent public accounting firm of Rogers, Anderson, Malody & Scott, LLP Certified Public Accountants, whose unmodified opinion is included within the financial section of the report. An unmodified opinion indicates that the financial statements present fairly the financial position of the City of Menifee as of June 30, 2022, and that the results of operations are in accordance with generally accepted accounting principles.

The audited financial statements are for the City of Menifee, which is the primary government.

The City does not have any component units, such as a Redevelopment Agency.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 1
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City of Menifee Staff Report
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 February 15, 2023

1 4
0 8
As part of the audit, the audit firm also reviewed and performed tests of the City’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, no material weaknesses were noted.

Two other reports are also included in the packet that support these findings: 1) the report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards; and 2) the Communication with those Charged with Governance (also referred to as the SAS-114 letter)
The City’s ACFR for the fiscal year end June 30, 2022 is attached to this staff report and is also available for review in the City Clerk’s Office and Finance Department. In addition, the ACFR will be distributed to the City Council, various federal and state government agencies, rating agencies and financial institutions, and will be made available on the City’s website for interested citizens.

STRATEGIC PLAN OBJECTIVE
Responsive and Transparent Community Government

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

ATTACHMENTS

1. 2022 ACFR

2. Independent Accountants Report

3. Report on Internal Controls

4. SAS-114 Letter
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AANNUAL COMPREHENSIVE

FINANCIAL REPORT

FISCAL YEAR ENDED JUNE 30, 2022

CITY OF MENIFEE

CALIFORNIA

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CITY OF MENIFEE, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED

JUNE 30, 2022

Prepared by:

Finance Department
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CITY OF MENIFEE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS

Page
Number

INTRODUCTORY SECTION

Letter of Transmittal ................................................................................................................................ i Listing of Elected Officials ..................................................................................................................... vi Organizational Chart ............................................................................................................................ vii GFOA Award of Financial Reporting Achievement ............................................................................... ix

FINANCIAL SECTION

INDEPENDENT AUDITOR’S REPORT ................................................................................................ 1

MANAGEMENT’S DISCUSSION AND ANALYSIS .............................................................................. 4

BASIC FINANCIAL STATEMENTS

Government - Wide Financial Statements

Statement of Net Position .......................................................................................................... 13

Statement of Activities .................................................................................................... ........... 14

Fund Financial Statements

Balance Sheet - Governmental Funds ...................................................................................... 15

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................................... 16

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................................................................................................... ........ 17

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .............................................................................................................. .................. 18

Statement of Fiduciary Net Position - Fiduciary Funds ............................................................. 19

Statement of Changes in Fiduciary Net Position - Fiduciary Funds .......................................... 20

Notes to Financial Statements ......................................................................................................... 21 Item Title: 12.1
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CITY OF MENIFEE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS
Page
Number

REQUIRED SUPPLEMENTARY INFORMATION

Budgetary Comparison Schedule - General Fund .......................................................................... 54

Budgetary Comparison Schedule - Development Impact Fees ...................................................... 55

Schedule of the City’s Proportionate Share of the Pension Plan’s Net Pension Liability and Related Ratios as of the Measurement Date .......................................................................... 56

Schedule of the Pension Plan’s Contributions ............................................................................... 57

Schedule of Changes in the Total OPEB Liability and Related Ratios .......................................... 58

Notes to the Required Supplementary Information ......................................................................... 59

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES

Non-major Governmental Funds Descriptions ................................................................................ 60

Combining Balance Sheet - Non-major Governmental Funds ....................................................... 64

Combining Statement of Revenues, Expenditures and Changes .... in Fund Balances - Non-major Governmental Funds ................................................................ 69

Budgetary Comparison Schedules - Special Revenue Funds
Gas Tax ..................................................................................................................................... 74 SB 1 ........................................................................................................................................... 75 Measure A ................................................................................................................................. 76 Air Quality Management District ................................................................................................ 77 Grants ........................................................................................................................................ 78 Landscape and Lighting Maintenance District .......................................................................... 79 Community Facilities District - Audie Murphy Ranch ................................................................ 80 Community Facilities District - Hidden Hills ............................................................................... 81 Community Facilities District - 2014-1 Town Center ................................................................. 82 TUMF Fees ................................................................................................................................ 83 Community Facilities District - 2014-2 Commerce Point ........................................................... 84 Community Facilities District - 2015-2 Citywide ........................................................................ 85 Community Facilities District - 2017-1 Maintenance Services .................................................. 86 Public Education and Governmental Access ............................................................................ 87 County Service Areas (CSA) ..................................................................................................... 88 Maintenance CFD ...................................................................................................................... 89

Budgetary Comparison Schedule - Debt Service Fund
Debt Service .............................................................................................................................. 90

Budgetary Comparison Schedule - Capital Projects Fund
Major Fund – Bonded CFDs....................................................................................................... 91 Capital Projects Fund ................................................................................................................ 92 Item Title: 12.1
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CITY OF MENIFEE

ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

TABLE OF CONTENTS

Page
Number

STATISTICAL SECTION

Statistical Section Descriptions ................................................................................................. 93 Net Position ............................................................................................................................... 94 Changes in Net Position ............................................................................................................ 96 Fund Balances of Governmental Funds .................................................................................... 98 Changes in Fund Balances of Governmental Funds .............................................................. 100 Major Revenues by Source - Governmental Funds ................................................................ 102 Assessed Value and Estimated Actual Value of Taxable Property ......................................... 103 Assessed Value and Estimated Actual Value of Taxable Property by Use Category ............. 104 Direct and Overlapping Property Tax Rates ........................................................................... 105 Principal Property Tax Payers ................................................................................................. 106 Property Tax Levies and Collections ....................................................................................... 107 Ratio of Outstanding Debt by Type ......................................................................................... 108 Ratio of General Bonded Debt Outstanding ............................................................................ 109 Direct and Overlapping Bonded Debt ..................................................................................... 110 Legal Debt Margin Information .................................. ..... ........................................................ 111 Demographic and Economic Statistics .................................................................................... 112 Principal Employers ................................................................................................................. 113 Full and Part-time City Employees by Program ...................................................................... 114 Capital Asset Statistics by Function/Program ......................................................................... 115 Operating Indicators by Function/Program ............................................................................. 116 Miscellaneous Statistics .......................................................................................................... 117 Taxable Sales by Category ..................................................................................................... 118 Top 25 Sales Tax Producers ................................................................................................... 119 Measure DD 1% Sales Tax – Revenues and Expenditures History …………………………... 120

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INTRODUCTORY SECTION

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December 15, 2022

Honorable Mayor, Members of the City Council & Citizens of the City of Menifee, California

It is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) for the City of Menifee (City) for the fiscal year ended June 30, 2022. The City annually issues a report on its financial position and activity, audited by an independent firm of certified public accountants. The City’s Finance Department prepared this report in accordance with generally accepted accounting principles (GAAP), as set forth by the Governmental Accounting Standards Board (GASB) and other sources. This CAFR also conforms to GASB Statement No. 34 financial report standards, providing the reader a dual-perspective financial report. The report contains a citywide view of all governmental activities, as well as a focus on the financial position and operating results of the City’s major funds.

Responsibility for the accuracy of the data, and the completeness and fairness of the presentations including disclosures, rests with the City. To provide a reasonable basis for making these presentations, management has established a comprehensive internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the presentation of the City’s financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, internal controls have been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. Also, all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities have been included.

Rogers, Anderson, Malody & Scott, LLP, Certified Public Accountants, have issued unmodified opinions on the City of Menifee’s financial statements for the year ended June 30, 2022. The independent auditor’s report is located at the front of the financial section of this report.

Generally accepted accounting principles requires that management provide a narrative introduction overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with the MD&A which can be found immediately following the report of the independent auditors.

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Profile of the City of Menifee

The City of Menifee is located approximately 80 miles southeast of Los Angeles in the southwestern portion of Riverside County. The City incorporated on October 1, 2008 as a general law City. The City has slightly more than 106,000 residents and covers an area of over 46 square miles. As a general law city, Menifee is governed by a five-member City Council operating under the Council/Manager form of government. Beginnin g with the November 2012 election, the Council consists of four Council Members elected by district who serve a four year term on a staggering basis, and a Mayor elected at large who serves a four year term. The City Council is responsible for passing City ordinances, resolutions, adopting the annual budget, appointing commissions and committees, and setting policy. The City Council appoints the City Attorney and City Manager who in turn appoints the heads of the various departments and other city staff.

The City provides a wide range of services including planning, building, public works, engineering, parks and recreation, police and general administrative activities. Services are also provided to the City and its citizens by contract and by the direct services of other government agencies and organizations. These services include animal control through Animal Friends of the Valley for animal field services and participation as a member of the Joint Powers Authority (JPA) for animal sheltering services. Fire protection and are provided through contract with the County of Riverside while water and sewer services are provided through the Eastern Municipal Water District (EMWD). Library services and public health services are provided by the County of Riverside. Franchise agreements for electricity services are provided through Southern California Edison (SCE), natural gas through Sempra Utilities (So. Cal. Gas), refuse collection through a franchise agreement with Waste Management, public transit through the Riverside Transit Agency (RTA), and cable service through state franchise agreements with Mediacom, Charter and Frontier.

Although the City is distinctively residential in character, the City has the potential for a strong economic base and staff is working diligently to enhance this opportunity. Currently the major commercial bases are anchored by the Countryside Marketplace, Center Pointe, Newport Towne Square, Menifee Plaza, Cherry Hills Plaza, and other key focal points near the I-215, Newport Road and McCall Blvd. Within the last fiscal year, the City welcomed several new businesses including Olive Garden, Luna Grill, Sprouts Farmers Market, Urbane Café, Crumbl Cookie, Dave’s Hot Chicken, The Joint Chiropractic, Western Dental and Clever Fox Escape Rooms. Expectations are high as the City looks to the future and anticipated new key retailers such as Chick-fil-A, Black Bear Diner, Hampton Inn & Suites, Café Mercato, Exquisites Tapas Lounge, Yoshiharu Ramen and oth ers. The addition of the Footb all Stadium and Kinesiology Building at MSJC and Family and Civic Courthouse completed in the upcoming year will also serve as additional amenities for the Menifee community. Other future development projects expected include amenities such as entertainment venues, restaurants and other retail, offices, and lodging.

Local Economy

Mirroring the national, state and regional economies, the City of Menifee’s economy has rebounded significantly from the initial negative impact from the Covid-19 pandemic. However, with national historic inflation, continued international supply chain issues, and rising interest rates, the impacts of these macroeconomic factors is reflected in the local economy. The unemployment rate has improved from the prior year, decreasing from 10.1% to 7.5%, as the impacts of Covid-19 on overall unemployment have began to subside. During the FY2021-22 Item Title: 12.1
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period the City and local region experienced a steady and consistent marked increase in new construction in addition to increases in single family home sale prices, which has led to increased assessed valuations. Locally, the number of building permits issued has experienced a decrease of 12% (from 6,778 to 5,959), while the number of planning applications increased by 2% (from 393 to 402).

Retail sales continued to experience strong growth through the entire fiscal year, as all four quarters saw an increase year-over-year from the prior fiscal year. Bradley Burns Sales tax collections increased from $10,751,434 in fiscal year 2020-21 to $12,089,533 in fiscal year 2021-22, a 12.45% increase primarily due to the Covid-19 pandemic restrictions being lifted and continued population growth in the area. Quality of Life (Measure DD) Sales Tax collections increased from $16,742,722 in fiscal year 2020-21 to $19,607,014 in fiscal year 2021-22, a

17.12% increase. This was the fifth full year of collection of this 1% additional sales tax that was passed by the voters in November 2016.

As part of the State of California’s Fiscal Year 11-12 Budget, the Governor signed Senate Bill 89 (SB 89), which shifted millions of Vehicle License Fee (VLF) revenues to fund state law enforcement grants. This legislation particularly impacted newly incorporated cities such as Menifee, which received a special allocation from VLF revenues. The impact due to SB 89 for the City of Menifee in Fiscal Year 16-17 was estimated to be a loss of approximately $4.3 million, which the City addressed through budgetary measures. In the State of California budget for fiscal year 2017-18 SB 130 was introduced, signed and made into law. With SB 130 the City of Menifee’s annual VLF revenues were restored. In fiscal year 2020-21 the City received $7,674,276, in fiscal year 2021-22 the City received $8,381,816 an increase of 9% .

Budget Process
The City’s operating budget and five-year capital improvement plan is adopted annually by the City Council no later than the close of the prior fiscal year and serves as the foundation for planning and controlling the City’s finances. The budget process begins early in spring and encompasses budget workshops with the public and City Council in order to promote transparency and to develop goals and objectives with the community’s best interest at heart.

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to be maintaining a good balance between augmenting City staff and services, and utilizing existing resources efficiently as well as minimizing costs as much as possible.

During the year, supplemental appropriations are made to the adopted budget and approved by City Council as necessary. The City Manager is authorized to approve operating transfers between departments within a fund without limits and may reduce expenditure appropriations within a fund as a method of fiscal control. The Finance Director may decrease revenue estimates to reflect changes in the economy within the fiscal year. Annually, staff prepares and presents mid-year budget adjustments to City Council for their approval. This process incorporates updating beginning fund balances per the annual audit report and adjusting the budget as dictated by changes in the City’s goals and objectives or due to economic or legislative changes.

Long-term Financial Planning

The City has adopted a fund balance policy in compliance with GASB Statement No. 54, which sets the goal of maintaining the General Fund unrestricted balance in an amount equal to thirty- five percent (35%) of general fu nd expenditures. 12.5% of these reserves ar e committed or set aside for use specifically in the case of the declaration of a state or federal emergency, or a local emergency as defined in Menifee Municipal Code 1.10.010. The City’s Finance Committee, made up of two City Councilmembers and Finance staff, has made it a priority to work with staff to develop necessary and appropriate fiscal policies to guide the City’s future operations. The Finance Committee and City staff will also be working together on the development of a long-term financial plan for the City.

Annually, during the City’s budget process, the City’s engineering staff takes a five-year capital project budget to City Council for adoption. For fiscal year 2021-22 in the five year capital project budget there were a total of 44 projects identified with requested funding totaling $44,287,929, from various sources. These 44 projects consist of seven transportation projects, five traffic signal projects, seven street improvement projects, seven pavement management projects, eleven facility projects and seven parks, trails and recreation projects . Other future projects of note are the Holland Road Overpass, the Bradley Road Bridge and the widening of Scott Road west to Bundy Canyon Road. As these three projects are vital to alleviate traffic congestion and improve safety, the City is aggressively seeking various methods of funding and is also looking into local, regional and state collaborations.

The City conducted a comprehensive citywide user fee study and development impact fee (DIF) study update during FY2021-22 which is anticipated to be adopted during the upcoming year, FY2022-23. The user fee study examined all existing fees for service, and will provide an updated fee schedule reflecting the costs to provide each service. The DIF study updated was conducted to review the existing impact fees to ensure that these are compatible to today’s construction costs and meet the future needs of the City. These fees will be imposed on new construction and will bring much needed financial relief to the City by expanding current and future roadways and constructing new public facilities. City Council adopted the current schedule of DIF fees on December 20, 2017 to be implemented with a two year phase-in beginning July 1, 2018. The implementation date of any new fees related to both the User Fee and DIF Study Update shall be presented for City Council consideration with the final reports and fee recommendation in the fall of 2023.

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In April 2015 the City adopted its first city-wide Community Facility District (CFD) for facility maintenance. This city-wide CFD provides maintenance services such as street lighting, street sweeping, landscape maintenance and storm drainage maintenance to those residential and commercial projects that annex into the maintenance CFD. This maintenance CFD will assess only new construction to help minimize the fiscal impact in which expanding development impose on the City. The formation of the new CFDs will allow the City to continue to provide quality services that our residents and community expect, and the level of services that make the City of Menifee one of the premier cities in Riverside County.

Awards and Acknowledgements
The Government Finance Officers Association (GFOA) of the United States and Canada awarded the City its Certificate of Achievement for Excellence in Financial Reporting for the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2021. Since incorporation, the City has been bestowed this prestigious award every year that has been submitted. In order to be awarded the Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. The City believes that the current ACFR continues to meet the high standards associated with the Certificate of Achievement Program and we are submitting it to the GFOA to determine its eligibility for another certificate.

The City's ACFR was prepared through the combined efforts of City staff. Special recognition is due to the Finance Department. With their support and coordination, the entire department assisted in closing the books for the year and ensuring timely and accurate reporting. Credit must also be given to the Mayor and City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City's finances Respectfully submitted,

Armando G. Villa Rochelle Clayton Regina Funderburk
City Manager Assistant City Manager Chief Financial Officer Item Title: 12.1
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CITY OF MENIFEE

Elected Officials

Bill Zimmerman – Mayor
Bob Karwin – Mayor Pro Tem
Ricky Estrada – Councilmember
Robert Karwin – Councilmember
Lisa A. Sobek – Councilmember
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ORGANIZATION CHART
FISCAL YEAR 2021/22
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CITY OF MENIFEE EXECUTIVE STAFF

CITY OF MENIFEE ACFR TEAM

Regina Funderburk, Chief Financial Officer (CFO) Colin O’Connell, Accountant Trainee Ann-Marie Etienne, Finance Manager Dominic Tartaglia, Principal Accountant Melissa Cortes, Senior Accountant Margarita Cornejo, Deputy Finance Director Item Title: 12.1
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FINANCIAL SECTION

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Independent Auditor’s Report

To the Honorable City Council
City of Menifee, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Menifee (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2022, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of a Matter

As discussed in Note 1 of the financial statements, the City adopted the provisions of Governmental Accounting Standards Board (GASB) Statement No. 87, Leases. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

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In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

x Exercise professional judgment and maintain professional skepticism throughout the audit. x Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
x Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
x Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The supplementary information, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining schedules and budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information included in the Annual Report

Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards , we have also issued our report dated December 15, 2022 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

San Bernardino, California
December 15, 2022

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CITY OF MENIFEE
MANAGEMENT’S DISCUSSION AND ANALYSIS

As management of the City of Menifee, California, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2022. We encourage readers to consider the information presented here in conjunction with additional information beyond what we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the City’s financial statements, which follow this discussion.

Financial Highlights

• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows or resources at June 30, 2022, by $432.8 million ( net position). Of this amount, $73 million is restricted for public works, future capital projects and debt service.

• As of June 30, 2022, the City’s governmental funds reported combined ending fund balances of $149.7 million.

• At June 30, 2022, the Unassigned Fund Balance for the General Fund was $51.1 million, $8.6 million was Committed for use in the event of an emergency as well as an additional $4.75 million for the construction of a future City Hall, $8.6 million was Assigned for economic uncertainty and $3.7 million for various assignments of fund balance. Council action in 2021 set fund balance requirements at Committed of 12.5%, Assigned of 12.5% and Unassigned Fund Balance of 10% for a total required Fund Balance of 35% of budgeted expenditures. The actual ending General Fund balance for fiscal year 21-22 is 89.8% of fiscal year 21-22 budgeted expenditures. The fund balance amounts are reviewed each year as part of the budget process.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City’s Basic Financial Statements. The City’s Basic Financial Statements consist of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements.

This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between them reported as net position. Over time increases in the net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.

The statement of activities presents information showing how the government’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

The government-wide financial statements present information about the functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) . The governmental activities of the City include general government, engineering and public works, public safety, and community services.

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The Government-wide Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The fund financial statements provide detailed information about the individual funds—not the City as a whole. Some funds are required to be established by State law. However, the City Council establishes many other funds to help it control and manage money for particular purposes or to show that it is meeting legal responsibilities for using certain taxes, grants, and other money. The City of Menifee uses primarily governmental funds and one fiduciary fund for accounting and reporting purposes.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds Balance Sheet and the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains various individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances. The General Fund, the Development Impact Fees Fund, and the Bonded CFDs Fund are considered to be major funds, and are presented in individual columns in the fund statements. Data from other non-major governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements elsewhere in this report. The Governmental Fund Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements.

Fiduciary Funds

Fiduciary funds are used to account for resources held for the benefit of parties outside the government.

Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Menifee’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one fiduciary fund – the Custodial Fund, which is used to hold deposits that the City holds on behalf of outside parties. The Fiduciary Funds Financial Statements can be found in the Table of Contents under the heading Basic Financial Statements.

Notes to the Basic Financial Statements

The Notes to the Basic Financial Statements provide additional information that is essential for a full understanding of the data provided in the government-wide and fund financial statements. The Notes to the Basic Financial Statements can be found in the Table of Contents under the heading Notes to Financial Statements.

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Government-wide Financial Analysis

The government-wide financial statements provide long-term and short-term information about the City’s overall financial condition. This analysis addresses the financial statements of the City as a whole.

For fiscal year ending June 30, 2022 the City of Menifee’s total net position increased 18.2 percent from $366 million for fiscal year ending 2021, to $432.8 million for fiscal year ending 2022. The largest portion of the City’s net position, $276.9 million or 64 percent, reflects its investment in capital assets (e.g. land, buildings, improvements other than buildings, equipment, infrastructure and construction in progress); less any related debt used to acquire those assets, which is still outstanding. The City uses these capital assets to provide services to citizens; consequently these assets are not available for future spending.

Although the city’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources since the capital assets themselves cannot be used to liquidate these liabilities. Of the remaining total, $73 million is restricted to specifically stipulated spending agreements originated by law, contract or other agreements with external parties.

Summary of Net Position
June 30, 2022 and 2021

2021 2022
Assets:

Current and other assets 147,600,290 $ 186,174,113 $
Restricted assets 100,170 95,443
Capital and intangible assets 275,976,379 305,094,731 Total assets 423,676,839 491,364,287
Deferred Outflows of Resources:

OPEB related 832,440 1,135,627
Pension related 3,729,865 6,886,044
Deferred charges on refunding 949,608 904,389 Total deferred outflows of resources 5,511,913 8,926,060 Liabilities:

Other liabilities 37,978,412 34,519,141
Long-term liabilities 24,921,628 32,564,521
Total liabilities 62,900,040 67,083,662
Deferred Inflows of Resources:

OPEB related - 11,878
Pension related 199,680 329,874
Total deferred inflows of resources 199,680 341,752 Net Position:

Net investment in capital assets 259,935,987 276,956,837 Restricted 54,935,538 73,165,620
Unrestricted 51,217,507 82,742,476
Total net position 366,089,032$ 432,864,933$
Activities
Governmental

As shown above, the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $432.8 million at June 30, 2022. Deferred outflows is defined as “a consumption of net assets by the government that is applicable to a future reporting period” and deferred inflows is defined as “an acquisition of net assets by the government that is applicable to a future reporting period”.

For further information on the deferred outflows and inflows, see Notes 8 and 9 in the Basic Financial Statements section of this report.

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Overall, Citywide governmental fund revenues for the fiscal year ending June 30. 2022, totaled $122.7 million. This figure compares with the prior year total of $131 million, a (6.4%) decrease.

Total program revenues of $63.5 million were 51.7 percent of total revenues Total general revenues of $59.2 million were 48.3 percent of total revenues.

Total related current year expenses accumulated to $56 million, compared with prior year expenses of $67.8 million. Public Safety expenses accounted for 56.5% of total current expenses. Engineering and Public Works expenses, which accounts for 5.8% of the total expenses, were used primarily for street maintenance costs and design costs. The next largest category, General Government, includes expenses related to the management and administration of the City, such as finances, management, and legal expense services, accounted for 22% of total expenses.

Summary of Changes in Net Position
For the Years Ended June 30, 2022 and 2021

2021 2022
Revenues
Program revenues:

Charges for services 30,631,445 $ 35,013,739 $
Operating grants and contributions 8,057,443 10,832,899 Capital grants and contributions 34,739,876 17,727,525 General revenues:

Property taxes 24,076,949 26,024,300
Sales taxes 27,476,156 31,684,459
Other taxes 5,286,956 6,108,371
Motor vehicle in-lieu (unrestricted) 73,963 115,162 Use of money & property 48,592 (4,886,350) Other revenues 665,758 185,488
Loss on disposal of asset - (30,628) Total revenues 131,057,138 122,774,965
Expenses
General government 14,183,374 12,323,993
Public safety 27,853,563 31,656,830
Community development 5,408,287 6,437,034
Recreation services 3,546,483 1,083,554
Engineering and public works 16,251,977 3,257,056 Interest expense 569,679 1,240,597
Total expenses 67,813,363 55,999,064
Change in Net Position 63,243,775 66,775,901
Net position, beginning of year, restated 302,845,257 366,089,032 Net position, end of year 366,089,032$ 432,864,933$
Activities
Governmental

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Financial Analysis of the Government’s Funds

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements.

Governmental Funds

The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information may be useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

Below, the Statement of Revenues, Expenditures, and Change in Fund Balances shows the governmental activities fund balances for the two fiscal years ending June 30, 2022 and 2021.

Governmental funds are divided into two categories consisting of major and non-major funds. During the year ending June 30, 2022, three funds were classified as major governmental funds, consisting of the General Fund, the Development Impact Fees Fund, and the Bonded CFDs Fund. All other funds were classified as non-major funds. A major fund is any individual fund that meets the criteria of the following combined two tests: 1) a fund is classified as a major fund if the corresponding total revenues, expenses or (expenditures), assets or liability for all funds of that category are at least 10 percent of total aggregate for all funds and; 2) at least 5 percent of the total aggregate for all funds combined. The General Fund is always classified as a major fund while all other funds must meet the qualifications to be a major fund.

Summary of Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Years Ended June 30, 2022 and 2021

Other Total
Development Grants Debt Service Governmental Governmental General Impact Fees Fund Fund Funds Funds
Total revenues: 72,714,713 $ 9,586,484 $ 3,984,548 $ 1,528 $ 13,298,365$ 99,585,638 $ Total expenditures: 55,895,128 4,832,565 3,476,273 3,540,396 9,521,057 77,265,419 Revenues over (under)
expenditures 16,819,585 4,753,919 508,275 (3,538,868) 3,777,308 22,320,219 Total other financing
sources (uses) (2,220,964) - (227,834) 2,522,623 439,168 512,993 Net Change in Fund Balances 14,598,621 4,753,919 280,441 (1,016,245) 4,216,476 22,833,212 Fund balances, beginning 41,714,740 31,434,726 291,293 1,572,272 12,955,676 87,968,707 Fund balances, ending 56,313,361$ 36,188,645$ 571,734$ 556,027$ 17,172,152$ 110,801,919$ Fiscal Year 2020-2021

Other Total
Development Bonded Governmental Governmental
General Impact Fees CFDs Funds Funds
Total revenues: 80,606,886 $ 8,494,707 $ 14,115,208 $ 20,178,603 $ 123,395,404 $ Total expenditures: 70,825,635 6,114,482 2,411,897 18,478,986 97,831,000 Revenues over (under)
expenditures 9,781,251 2,380,225 11,703,311 1,699,617 25,564,404 Total other financing
sources (uses) 10,811,095 - - 2,484,428 13,295,523 Net Change in Fund Balances 20,592,346 2,380,225 11,703,311 4,184,045 38,859,927 Fund balances, beginning 56,313,361 36,188,645 - 18,299,913 110,801,919 Fund balances, ending 76,905,707$ 38,568,870$ 11,703,311$ 22,483,958$ 149,661,846$ Fiscal Year 2021-2022

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As of fiscal year ending 2022, the City’s total governmental funds reported a combined ending fund balance of $149.6 million, an increase of $38,859,927 from the prior fiscal year. This increase is primarily due to the net increase of revenues over expenditures in the fiscal year. The General Fund, which is the chief operating fund of the City, had a fund balance of $76,905,707 million as of June 30, 2022. This is an increase of $20,592,346 million over the prior year. This increase is also due primarily as a result of an increase in Quality of Life (Measure DD) sales tax, increased property tax revenues, and the number of development activity underway during FY2021-22.

As mentioned earlier, the City’s total governmental funds ending fund balances, is $149.6 million of which $50.7 million represents unassigned fund balance, which is available for spending at the government’s discretion. The remainder of fund balance, $98.9 million, is either non-spendable, restricted (to indicate that it be spent only for the specific purposes stipulated by constitution, enabling legislation or external providers); committed (can be used only for specific purposes determined by formal action of a government’s legislative body); or assigned (intended to be used for specific purposes but does not meet the higher criteria of restricted or committed).

As of June 30, 2022, unassigned fund balance of the General Fund is $51.1 million, with an additional $8.6 million committed by Council action for emergencies and $4.7 million for a future City Hall; $8.6 million is assigned for economic uncertainty, $234,546 for fire safety, $75,000 for insurance deductibles, $1,092,314, for general plan update and $2,345,486 for capital projects.

Overall, General Fund revenues for the fiscal year ending June 30, 2022 totaled $80.6 million, compared to $72.7 million for the previous year. General Fund revenues can be broken down into six major categories shown below. By far, sales tax is the City’s single largest source of revenue. Sales tax revenues have increased 15.3% over prior year. Until fiscal year ending June 30, 2017 when the City’s 1% Quality of Life (Measure DD) sales tax initiative was passed by the voters, property taxes were the City’s largest source of revenue. Now property tax revenue is the City’s second largest source of revenue.

Property taxes have increased 8.21% from prior year. Both property and sales tax revenues combined represent 71.6% of the City’s total General Fund revenues and have increased as a result of the City’s Quality of Life (Measure DD) 1% sales tax increase and growth in local property values. Development related fees (building, planning, fire and engineering permits and fees) increased by 14.47% from the prior year as new construction saw a significant increase during fiscal year 2021-22.

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General Fund expenditures totaled $70.8 million for the fiscal year ending June 30, 2022, compared to $55.8 million for the previous year. This increase of $15 million was due primarily to increases in public safety costs and salaries and benefits with the addition of the Menifee Police Department going fully operational on July 1, 2020, and with the addition of 15 FTE’s sworn and non-sworn personnel added as part of the FY2021-22 mid-year budget process.

General Fund Budgetary Highlights

Total General Fund revenues, net of transfers, were $1.7 million greater than budgeted primarily due to the third year of collections of the City’s Quality of Life (Measure DD) 1% sales tax increase. Interest income was also higher due to higher investment interest rates. Total General Fund expenditures were approximately $39.9 million less than the budgeted amounts mostly due to unfilled authorized positions and multi-year capital projects that will be completed in future years.

The budget for capital items that were budgeted but incomplete at year end will be rolled into the subsequent year’s budget, along with any operating budget carryovers. Budget carryovers, with the exception of encumbrances, will require council approval for addition to the next budget.

Capital Asset and Debt Administration

Capital Assets

The City’s investment in capital assets for its governmental activities as of June 30, 2022, totals $299.4 million, net of accumulated depreciation. This investment in capital assets includes land, buildings, system improvements, machinery and equipment, park facilities, roads, highways, and bridges.

Summary of Changes in Capital and Intangible Right to Use Assets June 30, 2022

Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
Governmental activities:

Capital assets, not being depreciated:

Land 23,283,107 $ 1,756,000 $ - $ 25,039,107$ Right-of-way 415,800 - - 415,800 Construction in progress 29,616,165 12,955,812 (8,556,001) 34,015,976 Total capital assets, not being
depreciated 53,315,072 14,711,812 (8,556,001) 59,470,883 Capital assets,being depreciated:

Building and improvements 31,600,491 73,702 - 31,674,193 Equipment and furniture 3,081,618 777,748 - 3,859,366 Vehicles 6,412,729 820,056 (48,786) 7,183,999 Software and website design 772,239 - - 772,239 Infrastructure 280,415,607 30,348,241 (32,240) 310,731,608 Total capital assets, being
depreciated 322,282,684 32,019,747 (81,026) 354,221,405 Less accumulated depreciation (99,621,377) (14,690,534) 50,398 (114,261,513) Total capital assets, being
depreciated, net 222,661,307 17,329,213 (30,628) 239,959,892 Governmental Activities Capital
Assets, net 275,976,379$ 32,041,025 $ (8,586,629) $ 299,430,775 $

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Balance Balance
July 1, 2021 Additions Deletions June 30, 2022
Governmental activities:

Right to Use Asset:

Land - $ 175,347$ - $ 175,347$ Buildings - 6,412,676 - 6,412,676 Vehicles and equipment - 351,919 - 351,919 Total right to use asset - 6,939,942 - 6,939,942 Less accumulated amortization - (1,275,986) - (1,275,986) Total intangible assets, net - 5,663,956 - 5,663,956 Governmental Activities Intangible
Assets, net -$ 5,663,956$ - $ 5,663,956$

Total capital assets increased 8.5% from prior year. During the current fiscal year, the City accepted $21.7 million in infrastructure improvements from development projects and had an additional $12.9 million in construction in progress.

During the current year the City also acquired new city vehicles totaling $820,056 for the Administration, Public Works, Police, and Community Services departments.

Additional information on the City’s capital assets can be found within Note 4 – Capital Assets and Note 5 – Intangible Assets in the notes to the basic financial statements section of this report.

Long-term Liabilities

At the end of the current fiscal year, the City had total unsecured debt outstanding of $29.8 million. With the passing of SB 107 in September 2015, the County of Riverside and the City of Menifee were able to sign an agreement forgiving the debt the City of Menifee owed to the County of Riverside for cityhood startup costs. The total debt forgiveness was in the amount of $1,147,724, including accrued interest.

During Fiscal Year 2011-12, the City issued $20 million in Certificates of Participation through the California Communities Total Road Improvement Program (TRIP). The proceeds from this financing were used to fund various capital road improvements and are being repaid from a combination of future Gas Tax and Measure “A” revenues. This original TRIP debt was refinanced in 2020, resulting in anticipated savings exceeding $4 million for the balance of the debt. The current outstanding balance for this project is $16,315,000.

In June of 2019 the City entered into a financing agreement with Banc of America through the support and regional efforts of the Western Riverside Council of Governments (WRCOG) with Southern California Edison (SCE) to work with the City in the purchase and retrofit of approximately 6,300 streetlights from SCE, known as the Streetlight Retrofit Project. The initial debt for the Streetlight Retrofit Project was $6,550,000 and with financing period of fifteen years. In the fall of 2021, taking advantage of the lower interest rate market, the City refinanced the Streetlight Retrofit Project, resulting in anticipated savings of over $400k for the balance of the debt. The current outstanding balance for this project is $5,900,754.

Other debts include the City’s liabilities arising from employee’s accrued leave, or compensated absences of $1,730,179, and lease liabilities of $5,922,140, represented by various vehicle, real property, and equipment leases further detailed within Note 6- Long-Term Liabilities.

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Summary of Changes in Long-Term Liabilities
June 30, 2022

Balance Balance Long- Due Within
July 1, 2021 Increases Decreases June 30, 2022 Term One Year Transportation Revenues 16,990,000$ - $ (675,000)$ 16,315,000 $ 15,640,000 $ 675,000 $ COP, 2020
6,120,786 6,355,581 (6,575,613) 5,900,754 5,485,266 415,488 Lease Liabilities - 6,939,942 (1,017,802) 5,922,140 4,770,279 1,151,861 Compensated Absences 1,456,019 1,677,287 (1,403,127) 1,730,179 1,384,143 346,036 Long-Term Liabilities Total 24,566,805$ 14,972,810 $ (9,671,542) $ 29,868,073 $ 27,279,688 $ 2,588,385 $ Distribution Facilities Financing

Additional information on the City’s long-term liabilities can be found entitled Note 1 – Summary of Significant Accounting Policies, Note 6 – Long-Term Liabilities, Note 8 – Pension Plan, and Note 9 – Post Employment Benefits in the notes to the basic financial statements section of this report

Requests for Information

This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Margarita Cornejo, Deputy Finance Director, City of Menifee, 29844 Haun Road, Menifee, CA 92586 or by telephone to (951) 672-6777. The entire ACFR is also available on the City’s website: www.cityofmenifee.us.

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Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 38
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February 15, 2023
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Basic Financial Statements

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 39
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February 15, 2023
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Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 40
Menifee Mayor and City Council
February 15, 2023
Page
365 of 644

CITY OF MENIFEE

STATEMENT OF NET POSITION
JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -13-
Governmental
Activities
Assets:

Cash and investments 172,767,154$
Receivables:

Accounts 10,987,730
Accrued interest 114,508
Prepaid items 166,085
Restricted assets:

Cash with fiscal agent 95,443
Other current assets 5,345
Net pension asset 2,133,291
Intangible assets, net of amortization 5,663,956
Capital assets, not being depreciated 59,470,883
Capital assets, depreciated, net 239,959,892
Total Assets 491,364,287
Deferred Outflows of Resources:

OPEB related 1,135,627
Pension related 6,886,044
Deferred charge on refunding 904,389
Total Deferred Outflows of Resources 8,926,060
Liabilities:

Accounts payable 14,950,244
Accrued liabilities 1,699,967
Accrued interest 48,511
Deposits payable 15,002,162
Unearned revenue 2,818,257
Long-term liabilities, due within one year 2,588,385
Due beyond one year:

Total OPEB liability 2,696,448
Long-term liabilities, due beyond one year 27,279,688
Total Liabilities 67,083,662
Deferred Inflows of Resources:

OPEB related 11,878
Pension related 329,874
Total Deferred Inflows of Resources 341,752
Net Position:

Net investment in capital assets 276,956,837
Restricted for:

Community development projects 11,312,169
Public works 61,290,160
Debt service 563,291
Unrestricted 82,742,476
Total Net Position 432,864,933$
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 41
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -14-
Net
(Expenses)
Revenues and
Changes in
Net Position
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs
Governmental activities:

General government 12,323,993 $ 9,068,348 $ 3,727,067 $ - $ 471,422$ Public safety 31,656,830 2,549,040 796,781 - (28,311,009) Community development 6,437,034 13,160,812 1,041,937 - 7,765,715 Recreation services 1,083,554 52,082 - - (1,031,472) Engineering and public works 3,257,056 10,183,457 5,267,114 17,727,525 29,921,040 Interest on long-term debt 1,240,597 - - - (1,240,597) Total governmental activities 55,999,064$ 35,013,739 $ 10,832,899 $ 17,727,525 $ 7,575,099 General Revenues:

Taxes:

Property tax, levied for general purpose 26,024,300
Transient occupancy tax 529,006
Sales tax - Shared State revenue 31,684,459
Franchise taxes 4,055,791
Other taxes 1,523,574
Unrestricted:

Vehicle license fees 115,162
Use of money and property (4,886,350)
Other 185,488
Loss on disposal of asset (30,628)
Total General Revenues 59,200,802
Change in net position 66,775,901
Net Position, beginning of year 366,089,032
Net Position, end of year 432,864,933 $
Program Revenues

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 42
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

BALANCE SHEET – GOVERNMENTAL FUNDS
JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -15-
Special Revenue Capital
Fund Projects Fund
General
Development
Impact Fees Bonded CFDs
Total Non-
Major
Governmental
Funds
Total
Governmental
Funds
Assets
Cash and investments 95,558,987 $ 40,846,986 $ 11,703,311 $ 24,657,870 $ 172,767,154 $ Receivables:

Accounts, grants and taxes 8,351,836 - - 2,635,894 10,987,730 Accrued interest 74,579 22,809 - 17,120 114,508 Prepaid items - - - 166,085 166,085 Other current assets 5,345 - - - 5,345 Due from other funds 1,157,868 - - - 1,157,868 Restricted assets:

Cash and investments with fiscal agents - - - 95,443 95,443 Total Assets 105,148,615 $ 40,869,795 $ 11,703,311 $ 27,572,412 $ 185,294,133 $ Liabilities, Deferred Inflows of Resources,
and Fund Balances
Liabilities:

Accounts payable 11,616,484 $ 2,300,925 $ - $ 1,032,835$ 14,950,244 $ Accrued liabilities 1,620,473 - - 79,494 1,699,967 Deposits payable 15,002,162 - - - 15,002,162 Unearned revenue - - - 2,818,257 2,818,257 Due to other funds - - - 1,157,868 1,157,868 Total Liabilities 28,239,119 2,300,925 - 5,088,454 35,628,498 Deferred Inflows of Resources:

Unavailable revenues 3,789 - - - 3,789 Total Deferred Inflows of Resources 3,789 - - - 3,789 Fund Balances:

Nonspendable:

Prepaid items - - - 166,085 166,085 Restricted for:

Community development projects - - - 12,368,526 12,368,526 Engineering and public works - 38,568,870 11,703,311 9,964,849 60,237,030 Debt service - - - 397,206 397,206 Committed to:

Emergency contingency 8,615,638 - - - 8,615,638 City hall 4,750,000 - - - 4,750,000 Assigned to:

Economic uncertainty 8,615,638 - - - 8,615,638 Fire safety 234,546 - - - 234,546 Insurance 75,000 - - - 75,000 General plan update 1,092,314 - - - 1,092,314 Capital projects 2,345,486 - - - 2,345,486 Unassigned 51,177,085 - - (412,708) 50,764,377 Total Fund Balances 76,905,707 38,568,870 11,703,311 22,483,958 149,661,846 Total Liabilities, Deferred Inflows of
Resources and Fund Balances 105,148,615$ 40,869,795 $ 11,703,311 $ 27,572,412 $ 185,294,133 $

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 43
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS

TO THE STATEMENT OF NET POSITION
JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -16-
149,661,846$
299,430,775
5,663,956
2,133,291
Certificates of Participation (16,315,000) $
Debt Agreement 2019 (5,900,754)
Total OPEB liability (2,696,448)
Lease liabilities (5,922,140)
Compensated absences (1,730,179) (32,564,521)
(48,511)
6,886,044
1,135,627
904,389
(329,874)
(11,878)
3,789
432,864,933$
Intangible assets net of amortization have not been included as financial resources in governmental fund activity.

Net pension asset not been included as financial resources in governmental fund activity.

Deferred charge on refunding
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets net of depreciation have not been included as financial resources in governmental fund activity.

Revenues reported as unavailable and unearned in the governmental funds are recognized in the statement of activities.

Pension related deferred outflows of resources
OPEB related deferred inflows of resources
Fund balances of governmental funds
Net position of governmental activities
Long-term liabilities and compensated absences that have not been included in the governmental fund activity:

Accrued interest payable for the current portion of interest due on bonds has not been reported in the governmental funds.

Deferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, in the current period, are not reported in the funds:

OPEB related deferred outflows of resources
Pension related deferred inflows of resources

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 44
Menifee Mayor and City Council
February 15, 2023
Page
369 of 644

CITY OF MENIFEE

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES –

GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -17-
Special Revenue Capital
Fund Projects Fund
General
Development
Impact Fees Bonded CFDs
Total Non-
Major
Governmental
Funds
Total
Governmental
Funds
Revenues:

Taxes 56,042,702$ - $ - $ - $ 56,042,702$ Licenses and permits 13,343,572 - - - 13,343,572 Intergovernmental 8,916,620 - - 14,248,794 23,165,414 Charges for services 4,457,998 - - 6,345,625 10,803,623 Use of money and property (2,707,826) (1,595,371) 5,023 (588,184) (4,886,358) Fines and forfeitures 438,833 - - - 438,833 Developer participation - 10,090,078 - 172,368 10,262,446 Miscellaneous 114,987 - - - 114,987 Contributions from property owners - - 14,110,185 - 14,110,185 Total Revenues 80,606,886 8,494,707 14,115,208 20,178,603 123,395,404 Expenditures:

Current:

General government 17,709,756 49,996 53,500 875,575 18,688,827 Public safety 34,696,841 - - 253,631 34,950,472 Community development 6,602,904 - - 209,043 6,811,947 Parks and recreation 3,018,091 - - 2,734,209 5,752,300 Engineering and public works 3,712,814 - - 1,815,846 5,528,660 Capital outlay 5,085,229 6,064,486 1,898,455 4,557,257 17,605,427 Debt service:

Principal retirement - - - 7,250,613 7,250,613 Interest and fiscal charges - - 459,942 742,812 1,202,754 Bond issuance costs - - - 40,000 40,000 Total Expenditures 70,825,635 6,114,482 2,411,897 18,478,986 97,831,000 Excess of revenues over(under)
expenditures 9,781,251 2,380,225 11,703,311 1,699,617 25,564,404 Other Financing Sources (Uses):

Transfers in 3,871,153 - - 2,180,572 6,051,725 Transfers out - - - (6,051,725) (6,051,725) Proceeds from debt issuance - - - 6,355,581 6,355,581 Lease acquisition 6,939,942 - - - 6,939,942 Total Other Financing Sources
(Uses) 10,811,095 - - 2,484,428 13,295,523 Net Change in Fund Balances 20,592,346 2,380,225 11,703,311 4,184,045 38,859,927 Fund Balances, beginning of year 56,313,361 36,188,645 - 18,299,913 110,801,919 Fund Balances, end of year 76,905,707$ 38,568,870 $ 11,703,311 $ 22,483,958 $ 149,661,846 $ Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 45
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND

BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -18-
Net change in fund balances - total governmental funds 38,859,927$ Amounts reported for governmental activities in the statement of activities are different because:

Capital outlay 17,605,427
Additional costs capitalized 20,570,131
Loss on disposal of asset (30,628)
Intangible assets capitalized 6,939,942
Depreciation expense (14,690,534)
Amortization expense (1,275,986)
(13,295,523)
8,268,415$
(45,219) 8,223,196
7,376
(274,160)
(589,811)
5,415,984
(689,440)
Change in net position of governmental activities 66,775,901$ Cost of assets capitalized:

Amortization of deferred charges
Principal repayments
OPEB related net adjustment
Deferred inflows and outflows of resources not due and payable, or owed and receivable, respectively, in the current period, are not reported in the funds:

Pension related net adjustment
Govermental funds report proceeds from issuances of debt as other financing sources or uses, and do not report the respective long term liabilities. For the Statement of Acitivities these proceeds have been reclassified to long term debt in the Statement of Net Position. This is the amount of the debt procceds for the current year:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives and reported as depreciation and amortization expense or allocated to the appropriate functional expense. The capital and intangible asset activity is reconciled as follows:

Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position.

Accrued interest for long-term liabilities. This is the change in accrued interest for the current period.

Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This is the change in compensated absences for the current period.

Revenues reported as unavailable and unearned revenue in the governmental funds are recognized in the statement of activities. These are included in the intergovernmental revenues under the modified accrual basis of accounting in the governmental fund activity when they are measureable and available.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 46
Menifee Mayor and City Council
February 15, 2023
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371 of 644

CITY OF MENIFEE

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -19-
2019 Bonded
CFD Custodial
Fund
Assets:

Cash and investments 1,609,057$
Receivables:

Accounts 8,963
Total Assets 1,618,020
Total Liabilities -
Net Position:

Held in trust for other purposes 1,618,020
Total Net Position 1,618,020$

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 47
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

The accompanying notes are an integral part of these financial statements. -20-
2019 Bonded CFD
Custodial Fund
Additions:

Interest income 647$
Contributions from property owners 1,674,912
Total Additions 1,675,559
Deductions:

Administrative expenses 5,520
Interest paid to bondholders 52,019
Total Deductions 57,539
Change in Net Position 1,618,020
Net position, beginning of year -
Net position, end of year 1,618,020$

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 48
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-21-
I. SIGNIFICANT ACCOUNTING POLICIES

Note 1: Summary of Significant Accounting Policies

a. Description of the Reporting Entity

The City of Menifee, California (the City), was incorporated on October 1, 2008, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. The City is governed by an elected five-member board. As required by generally accepted accounting principles, these financial statements present the City (the primary government) and its component units. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the nature and significance of their relationship with a primary government are such that exclusion would cause the reporting entity's financial statements to be incomplete. Under this definition, it is determined that there are no component units for this reporting entity, and these financial statements present the financial reporting entity that consisted solely of the City as the primary government.

b. Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Interfund services provided and used are not eliminated in the process of consolidation. Governmental activities are normally supported by taxes and intergovernmental revenues.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements.

The fiduciary funds are reported on the accrual basis of accounting. Major individual governmental funds are reported as separate columns in the fund financial statements.

c. Measurement Focus, Basis of Accounting and Financial Statement Presentation

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 49
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-22-
Note 1: Summary of Significant Accounting Policies (continued)

c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. However, grant revenues are considered available within 6 months of the end of the current fiscal year. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

The City’s fiduciary fund financial statements report a custodial fund. The custodial fund is reported using the economic resources measurement focus and the accrual basis of accounting.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

Governmental funds with assets and deferred outflows, liabilities and deferred inflows, revenues, or expenditures equal to at least 10% of their fund-type total, and at least 5% of the combined total of governmental funds and enterprise fund, as applicable, are required to be reported as a major fund. A governmental fund may also be presented as a major fund in the basic financial statements, event if it does not meet the size criteria just described, if the City’s officials believe that the fund is particularly important to the financial statement users (because of public interest, reporting consistency, or
otherwise). The General Fund is always reported as a major fund.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. All general tax receipts and fee revenue not allocated by law, Council policy, or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities, which are not required to be accounted for or paid by another fund.

The Development Impact Fees (DIF) Fund – This fund is used to account for 9 separate DIF Funds. Fees are charged to new development to pay for future infrastructure costs such as roads, fire facilities, parks and libraries.

The Bonded CFDs Fund - This fund is used to account for 3 separate Bonded CFD funds (capital projects). Proceeds received by the issuance of bonds under the Mello-Roos Community Facilities Act of 1982, are accounted for under the respective Bonded CFD fund and used to pay for the specific eligible public facilities/improvements financed by the CFD.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 50
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-23-
Note 1: Summary of Significant Accounting Policies (continued)

c. Measurement Focus, Basis of Accounting and Financial Statement Presentation (continued)

Additionally, the City reports the following fund types:

The custodial fund is used to account for third party contributions received by the City for which the City’s responsibility is essentially custodial.

The 2019 Bonded CFD fund is used to account for contributions from property owners for payment on outstanding debt that the City is not directly liable for.

d. Assets, Liabilities and Net Position or Equity

Cash and Investments

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as both restricted and unrestricted cash and investments in the governmental funds.

Investments are reported at fair value. The City’s policy is generally to hold investments until maturity or until market values equal or exceed cost. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the pool shares.

Receivables and Payables

Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of an allowance for uncollectable.

Capital Assets

Capital assets are defined by the government as assets with an initial, individual cost of more than $5,000 ($50,000 for infrastructure) and an estimated useful life in excess of two or more years. Assets are generally capitalized as a whole unit or system and not by the individual units that comprise the system. For example, a phone system is capitalized as one entire system and not on the individual components such as the phones, phone server, installation costs, and wiring.

Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of acquisition.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 51
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-24-
Note 1: Summary of Significant Accounting Policies (continued)

d. Assets, Liabilities and Net Position or Equity (continued)

Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), are reported in the governmental activities column in the government-wide financial statements. In accordance with generally accepted accounting principles, the City has reported all general infrastructure assets.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant, equipment, and infrastructure of the primary government, as well as its component units, are depreciated using the straight-line method over the following estimated useful lives:

Assets Years $ Threshold
Equipment and furniture 2-10 5,000 $
Vehicles 2-10 5,000
Software 2-10 5,000
Infrastructure 20-50 50,000

Intangible Assets

Intangible Right to Use assets are related to equipment or real property that the City has obtained the right to utilize for a specified period of time through the use of a lease agreement. The lift of the right to use asset is for the same period as the lease and amortized on a straight-line basis over that period.

Compensated Absences

Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than his regular annual entitlement. Payment for vacation not taken is payable at the end of the cumulative time.

Sick leave is payable when an employee is unable to work because of illness.

Upon termination an employee will not be paid for any unused sick leave, with the exception for the City Manager pursuant to employment contract.

All unpaid vacation and sick leave, if applicable, is recorded as a liability in the government-wide financial statements. Compensated absence liabilities are expected to be liquidated by the General Fund in future periods.

Deferred Outflows/Inflows of Resources

In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 52
Menifee Mayor and City Council
February 15, 2023
Page
377 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-25-
Note 1: Summary of Significant Accounting Policies (continued)

d. Assets, Liabilities and Net Position or Equity (continued)

In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The government has only one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from taxes and intergovernmental revenues. These amounts are unavailable and recognized as an inflow of resources in the period that the amounts become available.

Net Position Flow Assumption

Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.

Fund Balance

In the fund financial statements, government funds report the following fund balance classification:

Nonspendable include amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted include amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws or regulations of other governments or (b) by law through constitutional provisions or enabling legislation.

Committed include amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.

Assigned include amounts that are constrained by the government’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager is authorized to assign amounts to a specific purpose, which was established by the governing body in Resolution No. 2011-226 approved on June 21, 2011.

Unassigned include the residual amounts that have not been restricted, committed, or assigned to specific purposes in the General Fund, and deficit fund balances in any other funds.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 53
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-26-
Note 1: Summary of Significant Accounting Policies (continued)

d. Assets, Liabilities and Net Position or Equity (continued)

An Emergency Contingency commitment of fund balance has been established through Resolution 21-1076. This reserve is set at a minimum of 12.5% of General Fund operating expenditures The specified uses include the declaration of a state or federal emergency or a local emergency as defined in Section

1.10.010 of the Menifee Municipal Code. City Council may, by majority vote of the members, change the amount of this commitment and/or the specific uses through adoption of resolution.

An individual governmental fund could include nonspendable resources and amounts that are restricted or unrestricted (committed, assigned, or unassigned) or any combination of those classifications. Restricted amounts are to be considered spent when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available and committed, assigned, then unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used.

The General Fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate. However, if expenditures incurred for a specific purpose exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

Fund Balance Flow Assumptions

Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.

Unassigned fund balance is applied last.

Property Taxes

Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available.

Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of Riverside collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 54
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 1: Summary of Significant Accounting Policies (continued)

d. Assets, Liabilities and Net Position or Equity (continued)

Unsecured personal property taxes become due on the first of March each year and are delinquent on August 31.

Functional Classifications

Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows:

x General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area.

x Public Safety includes those activities which involve police protection, fire protection and animal control services.

x Community Development includes those activities which involve planning, building and safety and code enforcement.

x Parks and Recreation includes activities which provide recreation, cultural and educational services.

x Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets and other public facilities.

e. Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

f. Pension Plans

For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.

Generally accepted accounting principles requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.

Valuation Date (VD) June 30, 2020
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 55
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 1: Summary of Significant Accounting Policies (continued)

g. Other Postemployment Benefits (OPEB)

For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis.

For this purpose, benefit payments are reported at fair value.

Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date (VD) June 30, 2021
Measurement Date (MD) June 30, 2021
Measurement Period (MP) July 1, 2020 to June 30, 2021

h. Implementation of New Pronouncement

Governmental Accounting Standards Board has issued Statement No. 87, Leases. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.

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Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 56
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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II. STEWARDSHIP

Note 2: Stewardship, Compliance and Accountability

a. Budgetary Data

General Budget Policies

The City Council approves each year's budget prior to the beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the City Council.

Supplemental appropriations, where required during the period, are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the function level. At fiscal year-end, all operating budget appropriations lapse.

Encumbrances

Encumbrances are estimations of costs related to unperformed contracts for goods and services. These commitments are recorded for budgetary control purposes in the General, Special Revenue and similar governmental funds.

Encumbrances represent the estimated amount of the expenditure ultimately to result if unperformed contracts in process at year-end are completed. They do not constitute expenditures or estimated liabilities.

Budget Basis of Accounting

Budgets for all governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP).

b. Deficit Fund Balances

The following funds present a fund balance deficit as of the year ended June 30, 2022:

Fund Fund Balance Deficit
TUMF Fees (412,708) $
c. Excess of Expenditures over Appropriations

In the fiscal year ended June 30, 2022, all expenditures were within appropriations

Variance with
Appropriations Expenditures Final Budget
Major Funds:

Bonded CFDs
Capital outlay - 1,898,455 (1,898,455) Nonmajor Funds:

Debt Service Fund
General government 86,909 94,649 (7,740)

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 57
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 3: Cash and Investments

As of June 30, 2022, cash and investments were reported in the accompanying financial statements as follows:

Governmental activities
Cash and investments 172,767,154 $
Cash with fiscal agent 95,443
Fiduciary funds
Cash and investment 1,609,057
Total Cash and Investments 174,471,654$

Cash and investments held by the City consist of the following:

Cash on hand 9,600 $
Deposits with financial institutions 48,632,652
Investments 125,829,402
Total Cash and Investments 174,471,654$

The City maintains a cash and investment pool that is available for use for all funds. Each fund type's position in the pool is reported on the combined balance sheet as cash and investments. The City has adopted an investment policy which authorizes it to invest in various investments. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances.

Deposits with financial institutions

The California Government Code requires California banks and savings and loan associations to secure a City’s deposits by pledging government securities with a value of 110% of a City’s deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City’s total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository.

These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency.

Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 58
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 3: Cash and Investments (continued)

Investments Authorized by the California Government Code and the Entity’s Investment Policy

The table below identifies the investment types that are authorized by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

*Maximum
*Maximum Investment
Investment Types *Maximum Percentage of In One
Authorized by State Law Maturity Portfolio Issuer
U.S. Treasury Bills 5 years 60% None
U.S. Treasury Notes 5 years 40% None
Federal Agency Securities 5 years 20% None
Certificates of Deposit 5 years 10% None
Commercial Paper 270 days 10% None
Bankers acceptance 180 days 10% None
Local Agency Investment Fund N/A None $75 million
Passbook savings demand deposits 5 years None None
Mutual funds that invest only in State of CA N/A 20% None SEC-registered money market mutual funds N/A 20% None

* Based on state law requirements or investment policy requirements, whichever is more restrictive

Investments Authorized by Debt Agreements

The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy.

Investments in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer’s Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares.

Fair Value

Generally Accepted Accounting Principles (GAAP), establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 59
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 3: Cash and Investments (continued)

Credit Risk

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy does not limit investments in Federal Agency Securities and Treasury Obligations to ratings issued by nationally recognized statistical rating organizations.

The City’s investment policy does restrict investments in Corporate Medium Term Notes (MTN’s) to those rated A or better by a nationally recognized statistical rating organization. Presented below are the City’s investments and the actual rating as of fiscal year end for each investment type:

Investment Type Amount
Minimum
legal rating Aaa Not rated
City investments:

State investment pool (LAIF) 60,372,324 $ N/A - $ 60,372,324$ Cash and money market funds 19,681 N/A - 19,681 U.S. Treasury Obligations 19,753,822 N/A 19,753,822 - Federal agency securities 43,909,356 N/A 43,909,356 - U.S. Corporate bonds 956,864 N/A 956,864 - CMO 223,052 N/A 223,052 -
Supranational 137,822 N/A 137,822 - Asset-backed securities 361,037 N/A 361,037 - Held by bond trustee and escrow agent:

Cash 95,444 N/A 95,444 -
125,829,402$ 65,437,397 $ 60,392,005 $
Rating at year end

Custodial Credit Risk

The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. The City’s investment in LAIF is unrated.

The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.

As of June 30, 2022, the City held deposits with financial institutions in excess of Federal Depository Insurance Corporation (FDIC) limits. These funds were held in collateralized accounts as required by the California Government Code as stated above.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 60
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 3: Cash and Investments (continued)

Concentration of Credit Risk

The City’s investment policy imposes restrictions on percentages that the City can invest in certain types of investments and with any one issuer for certain types of investments. Generally accepted accounting principles requires a separate disclosure if any single issuer comprises more than 5% of the total investment value. At June 30, 2022, the City’s had no single issuer of more than 5%. Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this requirement.

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

As of June 30, 2022, the City had the following investments and remaining maturities:

1 year 1 year 3 years Fair
or less to 3 years to 5 years Value
City investments:

State investment pool (LAIF) 60,372,324$ - $ - $ 60,372,324$ Cash and money market funds 19,681 - - 19,681 U.S. Treasury Obligations - 477,272 19,276,550 19,753,822 Federal agency securities - 815,115 43,094,241 43,909,356 U.S. Corporate bonds - 534,251 422,613 956,864 CMO - 178,698 44,354 223,052 Supranational - - 137,822 137,822 Asset-backed securities - 230,912 130,125 361,037 Held by bond trustee and escrow agent:

Cash 95,444 - - 95,444 Total investments 60,487,449$ 2,236,248$ 63,105,705$ 125,829,402$ Investments Maturities

Fair Value Measurements

Generally accepted accounting principles, establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy consists of three broad levels: Level 1 inputs consist of quoted prices (unadjusted) for identical assets and liabilities in active markets that a government can access at the measurement date, Level 2 inputs that are observable for an asset or liability, either directly or indirectly, and Level 3 inputs have the lowest priority and consist of unobservable inputs for an asset or liability.

The valuation technique used for level 2 investments include "inputs other than quoted prices included within Level I that are observable for the asset or liability, either directly or indirectly". Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; interest rates and yield curves observable at commonly quoted intervals; implied volatilities; credit spreads, and market-corroborated inputs.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 61
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 3: Cash and Investments (continued)

Fair Value Measurements (continued)

The following table presents the balances of the assets measured at fair value on a recurring basis as of June 30, 2022:

Investments by Fair Value Hierarchy Total Level 1 Level 2 Level 3 City investments:

U.S. Treasury Obligations 19,753,822 $ 18,970,340 $ 783,482 $ - $ Federal agency securities 43,909,356 - 43,909,356 - U.S. Corporate bonds 956,864 - 956,864 - CMO 223,052 - 223,052 - Supranational 137,822 - 137,822 - Asset-backed securities 361,037 - 361,037 - Total Investments by Fair Value Hierarchy 65,341,953 18,970,340 $ 46,371,613 $ - $ Investments outside the Fair Value Hierarchy
City investments:

State investment pool (LAIF) 60,372,324
Money market funds 19,681
Held by bond trustee and escrow agent:

Cash 95,444
Total Investments 125,829,402$

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Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 62
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 4: Capital Assets

Capital asset activity for the year ended June 30, 2022, was as follows:

Beginning Deletions/ Ending
Balance Additions Adjustments Balance
Governmental activities:

Capital assets, not being depreciated:

Land 23,283,107 $ 1,756,000 $ - $ 25,039,107$ Right-of-way 415,800 415,800
Construction in progress 29,616,165 12,955,812 (8,556,001) 34,015,976 Total Capital Assets, Not Being
Depreciated 53,315,072 14,711,812 (8,556,001) 59,470,883 Capital assets, being depreciated:

Building and improvements 31,600,491 73,702 - 31,674,193 Equipment and furniture 3,081,618 777,748 - 3,859,366 Vehicles 6,412,729 820,056 (48,786) 7,183,999 Software and website design 772,239 - 772,239 Infrastructure 280,415,607 30,348,241 (32,240) 310,731,608 Total Capital Assets, Being Depreciated 322,282,684 32,019,747 (81,026) 354,221,405 Less accumulated depreciation:

Building and improvements (4,877,952) (1,420,887) - (6,298,839) Equipment and furniture (1,515,445) (409,904) - (1,925,349) Vehicles (2,118,334) (898,736) 48,786 (2,968,284) Software and website design (467,918) (41,681) - (509,599) Infrastructure (90,641,728) (11,919,326) 1,612 (102,559,442) Total Accumulated Depreciation (99,621,377) (14,690,534) 50,398 (114,261,513) Total Capital Assets, Being Depreciated,
Net 222,661,307 17,329,213 (30,628) 239,959,892 Governmental Activities Capital Assets,
Net 275,976,379$ 32,041,025 $ (8,586,629) $ 299,430,775 $

Depreciation expense was charged to the following functions in the statement of activities:

Governmental Activities:

General government 171,303$
Public safety 1,103,338
Community development -
Recreation services 1,773,888
Engineering and public works 11,594,061
Building & Safety 22,743
Code Enforcement 25,201
Total Depreciation Expense - Governmental Activities 14,690,534 $

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 63
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 5: Intangible Assets

Intangible asset activity for the year ended June 30, 2022, was as follows:

Beginning Deletions/ Ending
Balance Additions Adjustments Balance
Governmental Activities:

Right to Use Asset:

Land - $ 175,347$ - $ 175,347$ Buildings - 6,412,676 - 6,412,676 Vehilces and equipment - 351,919 - 351,919 Total right to use asset - 6,939,942 - 6,939,942 Less Accumulated Amortization
Land - (58,449) - (58,449) Buildings - (1,135,633) - (1,135,633) Vehilces and equipment - (81,904) - (81,904) Total Accumulated Amortization - (1,275,986) - (1,275,986) Governmental Activities Intangible
Assets, Net -$ 5,663,956$ - $ 5,663,956$

Amortization expense was charged to the following functions in the statement of activities:

Governmental Activities:

General government 710,141$
Public safety 532,895
Parks and recreation 32,950
Total Amortization Expense - Governmental Activities 1,275,986 $

Note 6: Long-Term Liabilities

The following is a schedule of changes in long-term liabilities for the fiscal year ended June 30, 2022:

Beginning Ending Due Within
Balance Additions Deductions Balance One Year
Long-term liabilities
16,990,000$ - $ (675,000)$ 16,315,000 $ 675,000 $ Direct Borrowings:

Distribution Facilities Financing Agreement 6,120,786 6,355,581 (6,575,613) 5,900,754 415,488 Lease liabilities - 6,939,942 (1,017,802) 5,922,140 1,151,861 Other long-term liability:

Compensated absences 1,456,019 1,677,287 (1,403,127) 1,730,179 346,036 Total long-term debt 24,566,805 $ 14,972,810 $ (9,671,542) $ 29,868,073 $ 2,588,385 $ Certificates of Participation, Series 2020 (TRIP)

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 64
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 6: Long-Term Liabilities (continued)

Transportation Revenue Certificates of Participation Bonds, Series 2020

The 2020 Certificates of Participation Bonds were issued to refund the 2012B Certificate of Participation Bonds for $16,990,000. The bonds mature annually through 2042, in amounts ranging from $1,835,000 to $2,305,000. Interest rates vary from 0.435% to a maximum of

3.238% and are payable semiannually on December 1 and June 1. This transaction resulted in an economic gain of $1.8 million and a net savings in debt service costs of $4.3 million.

Assets irrevocably pledged as collateral for the bonded debt are all of the revenues and all money in the Pledged Tax Fund (the "Gas Tax Account" and the "Measure A Receipts Account”) and in the funds or accounts so specified and provided for in the 2020 Installment Sale Agreement.

In the event of default the Trustee may, by notice in writing to the City, declare the entire principal amount of the unpaid 2020 Installment Sale Payments and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.

At June 30, 2022, the outstanding balance of these bonds was $16,315,000.

The annual debt service requirements on these bonds are as follows:

Year Ending
June 30 Principal Interest Total
2023 675,000$ 401,754 $ 1,076,754 $
2024 680,000 397,022 1,077,022
2025 690,000 390,487 1,080,487
2026 700,000 383,166 1,083,166
2027 710,000 373,352 1,083,352
2028-2032 3,740,000 1,661,457 5,401,457 2033-2037 4,210,000 1,185,571 5,395,571 2038-2042 4,910,000 486,995 5,396,995 Totals 16,315,000$ 5,279,804 $ 21,594,804 $
Certificates of Participation, Series 2020 TRIP

Distribution Facilities Financing Agreement – Direct borrowing:

On July 6, 2018, the City entered into a financing agreement to purchase Certain Southern California Edison Company Street Light Facilities. The agreement calls for the conveyance and sale of 6,310 LS-1 electric streetlights facilities. The term of the agreement is 15 years, expiring on 2034. Interest rate is set at 4.30% and debt payments are payable semiannually on December 1 and June 1.

The agreement was refinanced on September 10, 2021 for $6,335,581 with an interest rate of

2.99% with payments due in December and June of every year. The refinancing did not extend the life of the agreement and will therefore continue to expire in 2034. The refinancing resulted in economic gain of approximately $400,738 over the term of the agreement with an annual average cash flow savings of approximately $30,826.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 65
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 6: Long-Term Liabilities (continued)

Distribution Facilities Financing Agreement – Direct borrowing (continued):

In the event of default the lessor may, by notice in writing to the City, declare the entire principal amount of the unpaid Agreement and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable.

At June 30, 2022, the outstanding balance of the agreement was $5,900,754.

The annual debt service requirements on these bonds are as follows:

Year Ending
June 30 Principal Interest Total
2023 415,488$ 173,350 $ 588,838 $
2024 428,004 160,834 588,838
2025 440,897 147,941 588,838
2026 454,178 134,660 588,838
2027 467,860 120,978 588,838
2028-2032 2,559,386 384,802 2,944,188 2033-2037 1,134,941 42,733 1,177,674 Totals 5,900,754$ 1,165,298 $ 7,066,052 $
Distribution Facilities Financing Agreement

Lease Liabilities

For the year ended June 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below.

On July 1, 2021, City of Menifee, CA entered into a 50-month lease as Lessee for the use of Vehicle - Unit # 23K5V8. An initial lease liability was recorded in the amount of $23,635. As of June 30, 2022, the value of the lease liability is $18,004. City of Menifee is required to make monthly fixed payments of $515. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 50 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $23,635 with accumulated amortization of $5,672 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $4,870.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 66
Menifee Mayor and City Council
February 15, 2023
Page
391 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-39-
Note 6: Long-Term Liabilities (continued)

Lease Liabilities (continued)

On August 18, 2021, City of Menifee, CA entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 2554ZP. An initial lease liability was recorded in the amount of $29,847. As of June 30, 2022, the value of the lease liability is $25,192. City of Menifee is required to make monthly fixed payments of $559. The lease has an interest rate of 0.6870%.

The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $29,847 with accumulated amortization of $5,153 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $5,276.

On August 16, 2021, City of Menifee, CA entered into a 60-month lease as Lessee for the use of Vehicle - Unit # 25552Z. An initial lease liability was recorded in the amount of $37,115. As of June 30, 2022, the value of the lease liability is $31,285. City of Menifee is required to make monthly fixed payments of $685. The lease has an interest rate of 0.6870%.

The Vehicles estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $37,115 with accumulated amortization of $6,441 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $6,496.

On July 1, 2021, City of Menifee, CA entered into a 49-month lease as Lessee for the use of Vehicle - Unit # 23LSC9. An initial lease liability was recorded in the amount of $18,826. As of June 30, 2022, the value of the lease liability is $13,934. City of Menifee is required to make monthly fixed payments of $426. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 49 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $18,826 with accumulated amortization of $4,509 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $3,743.

On July 1, 2022, City of Menifee, CA entered into a 48-month lease as Lessee for the use of Vehicle - Unit # 23L9ND. An initial lease liability was recorded in the amount of $28,766. As of June 30, 2022, the value of the lease liability is $21,155. City of Menifee is required to make monthly fixed payments of $640. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 48 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $28,766 with accumulated amortization of $7,035 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $5,963.

On July 1, 2022, City of Menifee, CA entered into a 49-month lease as Lessee for the use of Vehicle - Unit # 23K2W7. An initial lease liability was recorded in the amount of $27,314. As of June 30, 2022, the value of the lease liability is $20,228. City of Menifee is required to make monthly fixed payments of $602. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 49 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $27,314 with accumulated amortization of $6,545 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $5,372.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 67
Menifee Mayor and City Council
February 15, 2023
Page
392 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-40-
Note 6: Long-Term Liabilities (continued)

Lease Liabilities (continued)

On July 1, 2021, City of Menifee, CA entered into a 48-month lease as Lessee for the use of Vehicle - Unit # 23L9NJ. An initial lease liability was recorded in the amount of $18,540. As of June 30, 2022, the value of the lease liability is $13,622. City of Menifee is required to make monthly fixed payments of $429. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 48 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $18,540 with accumulated amortization of $4,530 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $3,815.

On July 1, 2021, City of Menifee, CA entered into a 58-month lease as Lessee for the use of Vehicle - Unit # 23TV6R. An initial lease liability was recorded in the amount of $30,340. As of June 30, 2022, the value of the lease liability is $23,684. City of Menifee is required to make monthly fixed payments of $562. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 58 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $30,340 with accumulated amortization of $6,164 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $5,393.

On July 1, 2021, City of Menifee, CA entered into a 56-month lease as Lessee for the use of Vehicle - Unit # 23TXCV. An initial lease liability was recorded in the amount of $29,015. As of June 30, 2022, the value of the lease liability is $22,431 City of Menifee is required to make monthly fixed payments of $565. The lease has an interest rate of 0.6870%. The Vehicles estimated useful life was 56 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $29,015 with accumulated amortization of $6,100 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $5,432.

On July 1, 2021, City of Menifee, CA entered into a 33-month lease as Lessee for the use of SendPro P Series. An initial lease liability was recorded in the amount of $37,615. As of June 30, 2022, the value of the lease liability is $25,533. City of Menifee is required to make monthly fixed payments of $1,220. The lease has an interest rate of 0.4110%. The Equipment estimated useful life was 33 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $37,615 with accumulated amortization of $13,678 is included with vehicles and equipment in Note 5.

On July 1, 2021, City of Menifee, CA entered into an 86 month lease as Lessee for the use of 29844 Haun Road. An initial lease liability was recorded in the amount of $4,964,514. As of June 30, 2022, the value of the lease liability is $4,522,623. City of Menifee is required to make monthly fixed payments of $35,760. The lease has an interest rate of 0.9470%. The Buildings estimated useful life was 86 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $4,964,514 with accumulated amortization of $692,723 is included with buildings in Note 5. The City has 1 extension option, each for 60 months.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 68
Menifee Mayor and City Council
February 15, 2023
Page
393 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-41-
Note 6: Long-Term Liabilities (continued)

Lease Liabilities (continued)

On June 1, 2022, City of Menifee, CA entered into a 60-month lease as Lessee for the use of 29826 Haun Road. An initial lease liability was recorded in the amount of $224,370. As of June 30, 2022, the value of the lease liability is $220,416. City of Menifee is required to make monthly fixed payments of $3,953. The lease has an interest rate of 2.2870%. The Buildings estimated useful life was 60 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $224,370 with accumulated amortization of $3,740 is included with buildings in Note 5. The City has 1 extension option, each for 60 months.

On July 1, 2021, City of Menifee, CA entered into a 33-month lease as Lessee for the use of 29714 Haun Road. An initial lease liability was recorded in the amount of $965,407. As of June 30, 2022, the value of the lease liability is $625,743. City of Menifee is required to make monthly variable principal and interest payments of $28,555 based on a CPI index of 0.00%.

The lease has an interest rate of 0.4110%. The Buildings estimated useful life was 33 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $965,407 with accumulated amortization of $347,895 is included with buildings in Note 5. The City has 4 extension options, each for 60 months.

On July 1, 2021, City of Menifee, CA entered into an 18-month lease as Lessee for the use of 28115 Bradley Road. An initial lease liability was recorded in the amount of $36,461. As of June 30, 2022, the value of the lease liability is $12,169. City of Menifee is required to make monthly fixed payments of $2,030. The lease has an interest rate of 0.3080%. The Buildings estimated useful life was 18 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $36,461 with accumulated amortization of $24,307 is included with buildings in Note 5. The City has 1 extension option, each for 60 months.

On July 1, 2021, City of Menifee, CA entered into a 36-month lease as Lessee for the use of Menifee PD Site. An initial lease liability was recorded in the amount of $175,347. As of June 30, 2022, the value of the lease liability is $118,165. City of Menifee is required to make monthly fixed payments of $4,900. The lease has an interest rate of 0.4110%. The Land estimated useful life was 36 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $175,347 with accumulated amortization of $58,449 is included with buildings in Note 5. The City has 2 extension options, each for 60 months.

On July 1, 2021, City of Menifee, CA entered into a 39-month lease as Lessee for the use of Pacific Mobile Unit. An initial lease liability was recorded in the amount of $221,925. As of June 30, 2022, the value of the lease liability is $153,944. City of Menifee is required to make monthly fixed payments of $5,729. The lease has an interest rate of 0.4110%. The Buildings estimated useful life was 39 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $221,925 with accumulated amortization of $66,968 is included with buildings in Note 5.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 69
Menifee Mayor and City Council
February 15, 2023
Page
394 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-42-
Note 6: Long-Term Liabilities (continued)

Lease Liabilities (continued)

On July 1, 2021, City of Menifee, CA entered into a 50-month lease as Lessee for the use of Vehicle - Unit # 23K5VF. An initial lease liability was recorded in the amount of $23,635. As of June 30, 2022, the value of the lease liability is $18,004. City of Menifee is required to make monthly fixed payments of $515. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 50 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $23,635 with accumulated amortization of $3,947 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $4,870.

On July 1, 2021, City of Menifee, CA entered into a 50-month lease as Lessee for the use of Vehicle - Unit # 23K5VM. An initial lease liability was recorded in the amount of $23,635. As of June 30, 2022, the value of the lease liability is $18,004. City of Menifee is required to make monthly fixed payments of $515. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 50 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $23,803 with accumulated amortization of $5,713 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $4,870.

On July 1, 2021, City of Menifee, CA entered into a 50-month lease as Lessee for the use of Vehicle - Unit # 23K5VN. An initial lease liability was recorded in the amount of $23,635. As of June 30, 2022, the value of the lease liability is $18,004. City of Menifee is required to make monthly fixed payments of $515. The lease has an interest rate of 0.5600%. The Vehicles estimated useful life was 50 months as of the contract commencement. The value of the right to use asset as of June 30, 2022 of $23,803 with accumulated amortization of $5,713 is included with vehicles and equipment in Note 5. The lease has a guaranteed residual value payment of $4,870.

Future payments on the total lease liabilities are as follows.

Year Ending
June 30 Principal Interest Total
2023 1,151,861$ 50,351 $ 1,202,212 $
2024 1,174,581 41,843 1,216,424
2025 835,975 33,314 869,289
2026 892,735 24,979 917,714
2027 962,828 15,755 978,583
2028-2029 904,160 6,640 910,800 Totals 5,922,140$ 172,882 $ 6,095,022 $
Leases

Compensated Absences

The City’s liability for vested and unpaid compensated absences (accrued vacation and sick pay) in the governmental activities has been accrued and amounts to $1,730,179 at June 30, 2022. These liabilities have been described in Note 1.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 70
Menifee Mayor and City Council
February 15, 2023
Page
395 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-43-
Note 7: Interfund Receivable, Payable and Transfers

Due to/from other funds balances at June 30, 2022 were as follows:

Nonmajor
Governmental
Funds Funds
Due From Other Funds:

General Fund 1,157,868 $

These represent borrowings from other governmental funds to cover temporary cash deficit.

Transfers in and out for the year ended June 30, 2022 were as follows:

Transfers in Transfers out Amount
General Fund Nonmajor Governmental Funds (a) 3,871,153 $ Nonmajor Governmental Funds Nonmajor Governmental Funds (b) 2,180,572 Total transfers 6,051,725$
(a)
(b) Transfers made between Nonmajor Funds for debt service and capital projects.

Transfers made from Nonmajor Governmental Funds to the General Fund were to fund frontline Police services form the COPS Grants, fleet support from various funds and from the ARPA fund for public safety expenditures.

Note 8: Pension Plan

A. General Information about the Pension Plan

Plan Description

All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under generally accepted accounting principles. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City participates in three rate plans (two miscellaneous and one safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS’ website, at www.calpers.ca.gov.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 71
Menifee Mayor and City Council
February 15, 2023
Page
396 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-44-
Note 8: Pension Plan (continued)

A. General Information about the Pension Plan (continued)

Benefits provided

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment.

Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The Plan operates under the provisions of the California Public Employees’ Retirement Law (PERL), the California Public Employees’ Pension Reform Act of 2013 (PEPRA), and the regulations, procedures and policies adopted by the CalPERS Board of Administration. The Plan’s authority to establish and amend the benefit terms are set by the PERL and PEPRA, and may be amended by the California state legislature and in some cases require approval by the CalPERS Board.

The Plans’ provisions and benefits in effect at June 30, 2022 are summarized as follows:

Safety
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2% @ 62 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 67 52 - 67 52 - 67
Monthly benefits, as a % of eligible compensations 2.0% to 2.7% 1.0% to 2.5% 2.0% to 2.7% Required employee contribution rates 7.960% 7.250% 13.750% Required employer contribution rates 14.870% 7.730% 13.980% Miscellaneous

Contributions

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. Employer Contributions to the Plan for the fiscal year ended June 30, 2022 were $2,881,799. The actual employer payments of $2,503,455 made to CalPERS by the City during the measurement period ended June 30, 2021 differed from the City’s proportionate share of the employer’s contributions of $638,253 by $1,865,202, which is being amortized over the expected average remaining service lifetime in the Public Agency Cost-Sharing Multiple Employer Plan.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 72
Menifee Mayor and City Council
February 15, 2023
Page
397 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-45-
Note 8: Pension Plan (continued)

B. Net Pension Liability (Asset)

The City’s net pension liability (asset) for the Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability (asset) of the Plan is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability (asset) is as follows.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability

All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website, at www.calpers.ca.gov.

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68
Asset Valuation Method Market Value of Assets
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Salary Increase Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds
Post Retirement Benefit Increase The lesser of contract COLA up to 2.5% until purchasing power protection allowance floor on
purchasing power applies, 2.5% thereafter
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the priod from 1997 to 2015. Pre-retirement and Post- retirement mortality rates include 15 years of projected morrtality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.

Long-term Expected Rate of Return

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11+ years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 73
Menifee Mayor and City Council
February 15, 2023
Page
398 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-46-
Note 8: Pension Plan (continued)

B. Net Pension Liability (Asset) (continued)

The expected real rates of return by asset class are as follows:

Asset Class1
New Strategic
Allocation
Real Return
Years 1 - 102
Real Return
Year 11+3
Global equity 50.0% 4.80% 5.98%
Fixed income 28.0% 1.00% 2.62%
Inflation assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Estate 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% (0.92%)
Total 100.0%
1 In the System's ACFR, fixed income is included in global debt securities; liquidity is included in short- term investments; inflation assets are inclued in both global equity securities and global debt securities. 2 An expected inflation of 2.00% used for this period
3 An expected inflation of 2.92% used for this period

Change of Assumptions

There were no change of assumptions for measurement date June 30, 2021.

Discount Rate

The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability (asset).

Subsequent Events

On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%.

Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 74
Menifee Mayor and City Council
February 15, 2023
Page
399 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-47-
Note 8: Pension Plan (continued)

B. Net Pension Liability (Asset) (continued)

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes.

This includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

Pension Plan Fiduciary Net Position

Information about the pension plan’s assets, deferred outflows of resources, liabilities, deferred inflows of resources, and fiduciary net position are presented in CalPERS’ audited financial statements, which are publicly available reports that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The plan’s fiduciary net position and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis used by the pension plan, which is the economic resources measurement focus and the accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. Investments are reported at fair value.

C. Proportionate Share of Net Pension Liability

The following table shows the Plan’s proportionate share of the net pension liability (asset) over the measurement period.

Plan Total
Pension Liability
(a)
Plan Fiduciary Net
Position
(b)
Plan Net Pension
Liability (Asset)
(c) = (a) - (b)
Balance at: 6/30/2020 (VD) 10,555,712$ 10,299,004 $ 256,708 $ Balance at: 6/30/2021 (MD) 13,970,552 16,103,843 (2,133,291) Net changes during 20-21 3,414,840 $ 5,804,839 $ (2,389,999) $ Increase (Decrease)

Valuation Date (VD), Measurement Date (MD).

The City’s proportion of the net pension liability was determined by CalPERS using the output from the Actuarial Valuation System and the fiduciary net position, as provided in the CalPERS Public Agency Cost-Sharing Allocation Methodology Report, which is a publicly available report that can be obtained at CalPERS’ website, at www.calpers.ca.gov. The Local Government’s proportionate share of the net pension liability for the Plan as of the June 30, 2020 and 2021 measurement dates was as follows:

Proportion - June 30, 2020 0.00236%
Proportion - June 30, 2021 (0.03945%)
Change - Increase (Decrease) (0.04180%)

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 75
Menifee Mayor and City Council
February 15, 2023
Page
400 of 644

CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-48-
Note 8: Pension Plan (continued)

C. Proportionate Share of Net Pension Liability (continued)

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate

The following presents the Local Government’s proportionate share of the net pension liability (asset) of the Plan as of the measurement date, calculated using the discount rate of

7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15 percent) or 1 percentage-point higher (8.15 percent) than the current rate:

Discount Rate - 1%
(6.15%)
Current Discount
Rate (7.15%)
Discount Rate + 1%
(8.15%)
Miscellaneous Plan's
Net Pension Liability
(Asset) (281,942)$ (2,087,036) $ (3,579,281) $ Safety Plan's Net
Pension Liability
(Asset) (6,034) (46,255) (79,292)

Amortization of Deferred Outflows and Deferred Inflows of Resources

Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time.

The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Difference between projected
and actual earnings
5 year straight-line amortization
All other amounts Straight-line amortization over the average expected remaining services lives of all members that are
provided with benefits (active, inactive and retired) as of the beginning of the measurement period

The expected average remaining service lifetime (EARSL) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the Public Agency Cost-Sharing Multiple-Employer Plan (PERF C).

The EARSL for PERF C for the measurement period ending June 30, 2021 is 3.7 years, which was obtained by dividing the total service years of 561,622 (the sum of remaining service lifetimes of the active employees) by 150,648 (the total number of participants: active, inactive, and retired) in PERF C. Inactive employees and retirees have remaining service lifetimes equal to 0. Total future service is based on the members’ probability of decrementing due to an event other than receiving a cash refund.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 76
Menifee Mayor and City Council
February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 8: Pension Plan (continued)

D. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions

As of the start of the measurement period (July 1, 2020), the City’s net pension liability was $256,708. For the measurement period ending June 30, 2021 (the measurement date), the City incurred a pension expense/(credit) of $(2,534,185).

As of June 30, 2022, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Deferred Outflows of
Resources
Deferred Inflows
of Resources
Differences between expected and actual experience - $ 241,941$ Differences between Projected and Actual Investment Earnings 1,849,403 - Differences between Employer's Contributions
and Proportionate Share of Contributions 1,875,305 - Change in Employer's Proportion 279,537 87,933 Pension Contributions Made Subsequent to
Measurement Date -
Total 6,886,044 $ 329,874 $
2,881,799
The amounts above are net of outflows and inflows recognized in the 2020-21 measurement period expense. Contributions subsequent to the measurement date of $2,881,799 reported with deferred outflows of resources will be recognized as a reduction of the net pension liability (asset) in the upcoming fiscal year. Other amounts reported as deferred outflows and deferred inflows of resources related to pensions will be recognized in future pension expense as follows:

Fiscal Year Ended
June 30:

Deferred
Outflows/(Inflows) of
Resources, Net
2023 1,250,162 $
2024 1,104,607
2025 808,554
2026 511,048
2027 -
Thereafter -

E. Payable to the Pension Plan

At June 30, 2022, the City reported a payable of $385,238 for the outstanding amount of contributions to the pension plan required for the year then ended.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 77
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 9: Other Post-Employment Benefits

Plan Description

The City has established a single-employer Retiree Healthcare Plan (HC Plan). This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 50 or older with at least five years of State or public agency service. The healthcare coverage provided by PERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement No. 45. Medical plan benefits are provided through PERS, as permitted by the Public Employees’ Medical and Hospital and Care Act (PEMHCA). A separate financial report is not prepared for the HC Plan.

Employees Covered

As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the HC Plan:

Active employees 196
Inactive employees or beneficiaries currently receiving benefits 4 Total 200

Contributions

The HC Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. For the fiscal year ended June 30, 2022, the City’s cash contributions were $5,975 in payments for benefits.

Total OPEB Liability

The City’s total OPEB liability was measured as of June 30, 2021 and was calculated based on the following actuarial methods and assumptions from the valuation dated June 30, 2021:

Discount Rate 2.16%
Inflation 2.50%
Salary Increases 2.75
Investment Rate of Return 3.50%
Mortality Rate 2017 CalPERS Mortality for Miscellaneous and Safety Employees, respectively
Pre-Retirement Turnover
Healthcare Trend Rate 4.0% per year
Actuarial Assumptions:

Discount Rate

The discount rate used to measure the total OPEB liability was 2.16% percent.

Change of Assumptions

The discount rate changed from 3.50% to 2.16% for the measurement date June 30, 2021.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 78
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 9: Other Post-Employment Benefits (continued)

Changes in OPEB Liability

The changes in the total OPEB liability for the HC Plan are as follows:

Total OPEB
Liability
Plan Fiduciary
Net Position
(B)
Net OPEB
Liability/(Asset)
(c)= (a) - (b)
Balance at June 30, 2021
(Valuation Date June 30, 2020) 1,715,699 $ - $ 1,715,699$ Changes recognized for the measurement period:

Service Cost 606,096 - 606,096 Interest 44,239 - 44,239 Changes of assumptions 32,710 - 32,710 Plan experience differences 313,441 - 313,441 Contributions - employer - 16,144 (16,144) Net investment income - - - Expected Minus Actual Benefit Payment 407 407 Benefit payments (16,144) (16,144) - Net Changes 980,749 - 980,749 Balance at June 30, 2022
(Measurement Date June 30, 2021) 2,696,448$ -$ 2,696,448$

Sensitivity of the Total OPEB Liability to Changes in the Discount Rate

The following presents the total OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

1% Decrease
(1.16%)
Current Discount
Rate (2.16%)
1% Increase
(3.16%)
Total OPEB Liability 3,218,735$ 2,696,448 $ 2,282,357 $

Sensitivity of the Total OPEB Liability to Changes in the Health Care Cost Trend Rates

The following presents the total OPEB liability of the Authority if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2021:

1% Decrease
Current Healthcare
Cost Trend Rates 1% Increase
Total OPEB Liability 2,135,336$ 2,696,448 $ 3,465,441 $

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 79
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 9: Other Post-Employment Benefits (continued)

OPEB Plan Fiduciary Net Position

The City is not prefunding with an OPEB trust. Plan Fiduciary Net Position was $0 at June 30, 2022. The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits.

Recognition of Deferred Outflows and Deferred Inflows of Resources

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time.

Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The City determined that it was not reasonable to rerun prior valuations under GASB 75. Therefore, the transition approach was used as provided in GASB 75, Paragraph 244. This means that there are no deferred inflows/outflows in the first year of implementation of GASB 75 with the exception of employer contributions after the measurement date.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB

For the fiscal year ended June 30, 2022, the City recognized OPEB expense of $708,652.

The City reported deferred outflows of resources related to OPEB from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
OPEB contributions subsequent to
measurement date 5,975$ - $
Changes of assumptions 752,804 10,760
Differences between expected 1,118
and actual experience 376,848 -
Total 1,135,627$ 11,878$

The $5,975 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2021 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows and deferred inflows of resources related to OPEB will be recognized in future OPEB expense as follows:

Fiscal Year Ended
June 30:

Deferred
Outflows/(Inflows) of
Resources
2023 58,317 $
2024 58,317
2025 58,317
2026 58,317
2027 58,317
Thereafter: 826,189
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 80
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February 15, 2023
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CITY OF MENIFEE

NOTES TO FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Note 10: Risk Management

The City of Menifee (“City”) is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member Entity obtains insurance coverage.

The City is a member of the Public Agency Risk Sharing Authority of California-PARSAC (Authority), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims. Under the program, the City has a $ 25,000 retention limit similar to a deductible with the Authority being responsible for losses above that amount up to $1 million. The Authority has additional coverage of $49 million in excess of its $1 million retention limit through affiliated risk management authorities. The Authority also provides one billion dollars aggregate per occurrence property coverage to its members with such coverage provided by purchased insurance.

Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are another component of the claims liability estimate.

The Authority covers workers’ compensation claims up to its self-insurance limit of $500,000.

The Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The City pays an annual premium to the Authority and may share in any surplus revenues or may be required to pay additional assessments based upon the Authority’s operating results. Financial statements of the Public Agency Risk Sharing Authority of California (PARSAC) may be obtained from its administrative office located at 1525 Response Road, Suite One, Sacramento, California, 95815; www.parsac.org or by calling (916) 927-7727.

Note 11: Commitments and Contingencies

Litigation

The City is involved as a defendant in various legal proceedings. While it is not feasible to predict or determine the outcome in these cases, it is the opinion of the City that the outcome will have no material adverse effect on the financial position of the City.

Grants

The City has received State and Federal funds for specific purposes that are subject to audit by the grantor agencies. Although such audits could generate expenditure disallowances under the terms of the grants, it is believed that any required reimbursements will not be material.

Construction Commitments

No material construction commitments existed at June 30, 2022.

Item Title: 12.1
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Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 82
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REQUIRED SUPPLEMENTARY INFORMATION

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Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 84
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CITY OF MENIFEE

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 56,313,361$ 56,313,361$ 56,313,361 $ - $ Resources (Inflows):

Taxes 46,830,726 52,113,583 56,042,702 3,929,119 Licenses and permits 11,026,993 10,607,002 13,343,572 2,736,570 Intergovernmental 8,454,500 8,831,827 8,916,620 84,793 Charges for services 4,038,210 6,751,761 4,457,998 (2,293,763) Use of money and property 290,000 306,904 (2,707,826) (3,014,730) Fines and forfeitures 322,071 304,052 438,833 134,781 Miscellaneous 82,136 100,623 114,987 14,364 Transfers in 10,683,969 10,683,969 3,871,153 (6,812,816) Lease acquisition - 6,939,942 6,939,942 - Amounts Available for Appropriation 138,041,966 152,953,024 147,731,342 (5,221,682) Charges for Appropriation (Outflows):

General government 15,306,963 21,277,134 17,709,756 3,567,378 Public safety 36,740,708 39,779,667 34,696,841 5,082,826 Community development 6,821,137 10,197,019 6,602,904 3,594,115 Parks and recreation 2,964,774 3,861,095 3,018,091 843,004 Engineering and public works 5,318,126 5,464,236 3,712,814 1,751,422 Capital outlay 8,517,158 30,237,480 5,085,229 25,152,251 Transfers out 6,939,185 6,939,185 - 6,939,185 Total Charges to Appropriations 82,608,051 117,755,816 70,825,635 46,930,181 Budgetary Fund Balance, June 30 55,433,915 $ 35,197,208 $ 76,905,707 $ 41,708,499 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 85
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CITY OF MENIFEE

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE
DEVELOPMENT IMPACT FEES – SPECIAL REVENUE FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

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Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 36,188,645$ 36,188,645$ 36,188,645 $ - $ Resources (Inflows):

Use of money and property 45,945 204,653 (1,595,371) (1,800,024) Developer participation 5,200,800 9,799,918 10,090,078 290,160 Amounts Available for Appropriation 41,435,390 46,193,216 44,683,352 (1,509,864) Charges for Appropriation (Outflows):

General government 50,000 50,000 49,996 4 Parks and recreation - 78 - 78 Capital outlay 7,262,353 33,795,704 6,064,486 27,731,218 Total Charges to Appropriations 7,312,353 33,845,782 6,114,482 27,731,300 Budgetary Fund Balance, June 30 34,123,037$ 12,347,434 $ 38,568,870 $ 26,221,436 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 86
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CITY OF MENIFEE

REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY’S PROPORTIONATE SHARE OF THE PENSION PLAN’S NET PENSION

LIABILITY AND RELATED RATIOS AS OF THE MEASUREMENT DATE LAST TEN YEARS*

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Measurement
Date
Employer's
Proportion of
the Collective
Net Pension
Liability1
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
Employer's
Covered Payroll
Employer's
Proportionate
Share of the
Collective Net
Pension Liability
as a Percentage
of the Employer's
Covered Payroll
Pension's Plans
Fiduciary Net
Position as a
Percentage of
the Total
Pension Liability
6/30/2014 0.00921% 288,345 $ 2,658,666 $ 10.85% 83.02% 6/30/2015 0.00368% 252,740 3,376,969 7.48% 89.51% 6/30/2016 0.00420% 363,319 4,222,698 8.60% 89.67% 6/30/2017 0.00556% 551,431 4,350,553 12.67% 88.92% 6/30/2018 0.00519% 499,769 5,130,794 9.74% 91.91% 6/30/2019 0.00023% 23,598 6,773,265 0.35% 99.71% 6/30/2020 0.00236% 256,708 10,202,569 2.52% 97.57% 6/30/2021 -0.03945% (2,133,291) 17,087,839 -12.48% 115.27% both the Miscellaneous and Safety Risk pools excluding the 1959 Survivors Risk Pool. * Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.
1 Proportion of the collective net pension liability represents the plan's proportion of PERF C, which includes

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Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 87
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CITY OF MENIFEE

REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE PENSION PLAN’S CONTRIBUTIONS
LAST TEN YEARS*

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Fiscal Year
Actuarially
Determined
Contributions
Contributions in
Relation to the
Actuarially
Determined
Contributions
Contribution
Deficiency
(Excess)
Employer's
Covered Payroll
Contributions as
a Percentage of
Covered Payroll
6/30/2015 525,168$ (525,168) $ - $ 3,376,969$ 15.55% 6/30/2016 447,484 (447,484) - 4,222,698 10.60% 6/30/2017 461,164 (461,164) - 4,350,553 10.60% 6/30/2018 524,088 (524,088) - 5,130,794 10.21% 6/30/2019 727,566 (1,360,520) (632,954) 6,773,265 20.09% 6/30/2020 1,089,277 (1,089,277) - 10,202,569 10.68% 6/30/2021 1,631,504 (2,053,455) (421,951) 17,087,839 12.02% 6/30/2022 2,881,799 (2,881,799) - 20,641,512 13.96% Notes to Schedule:
* Measurement date 6/30/2014 (fiscal year 2015) was the first year of implementation. Additional years will be presented as information becomes available.

Changes in Assumptions: There were no assumption changes for 2021. For 2020, the Plan adopted a new amortization policy effective with the 2019 actuarial valuation. The new amortization policy shortens the period over which actuarial gains and losses are amortized from 30 years to 20 years with the payments computed as a level dollar amount. In addition, the new policy does not utilize a five-year ramp-up and ramp-down on UAL bases attributable to assumption changes and non-investment gains/losses. The new policy also does not utilize a five- year ramp-down on investment gains/losses. These changes apply only to new UAL bases established on or after June 30, 2019. There were no changes in assumptions in 2019. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate in 2019. In 2017, the accounting discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes in the discount rate. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.

Changes in Benefit Terms: There were no changes to benefit terms that applied to all members of the Public Agency Pool. Additionally, the figures above do not include any liability impact that may have resulted from Golden Handshakes that occurred after the June 30, 2020 valuation date, unless the liability impact is deemed to be material to the Public Agency Pool.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 88
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CITY OF MENIFEE

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS LAST TEN YEARS*

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Measurement Period 2021 2020 2019 2018
Total OPEB Liability
Service Cost 606,096 $ 449,840 $ 71,218 $ 74,816 $ Interest on the Total OPEB Liability 44,239 38,328 10,868 8,305 Actual and expected experience difference 32,710 364,149 91,138 - Changes in assumptions 313,441 (1,232) 453,877 (13,488) Changes in benefit terms - - - Expected Minus Actual Benefit Payments 407
Benefit payments (16,144) (12,360) (775) (256) Net change in Total OPEB Liability 980,749 838,725 626,326 69,377 Total OPEB Liability - beginning 1,715,699 876,974 250,648 181,271 Total OPEB Liability - ending (a) 2,696,448$ 1,715,699 $ 876,974 $ 250,648 $ Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 0.00% 0.00% 0.00% Covered employee payroll 17,087,839 $ 10,202,569 $ 6,773,265 $ 5,130,794 $ Net OPEB liability as a percentage of covered employee payroll 15.78% 16.82% 12.95% 4.89% Notes to schedule:

The City does not have assets accumulated in a trust that meets the criteria of GASB 75 to pay related benefits Benefits are not based on a measure of pay, therefore covered employee payroll is used.

Changes Since the Prior Valuation:

Fiscal year 2017-18 was the first year of implementation. * Historical information is required only for measurement periods for which GASB 75 is applicable. Future years' information will be displayed up to 10 years as information becomes available.

The discount rate of 2.20% was used in the valuation. The interest rate used in the prior valuation was 2.16%.

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CITY OF MENIFEE

REQUIRED SUPPLEMENTARY INFORMATION
NOTES

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Notes to the Required Supplementary Information:

Budget Basis of Accounting

Budgets for all governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP), with the exception of the Veteran’s Memorial Fund which does not have an adopted budget.

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SUPPLEMENTAL SCHEDULES

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NON-MAJOR GOVERNMENTAL FUNDS DESCRIPTIONS

SPECIAL REVENUE FUNDS

Gas Tax

Used to account for revenue and expenditures of money apportioned under Street and Highways Code, Sections 2103, 2105, 2106, 2107 and 2107.5 of the State of California. These funds are earmarked for maintenance, rehabilitation or improvement of public streets. Section 2107.5 funds can be used for engineering and gas tax audit costs. In addition, beginning in FY 2010/11, the new excise tax on fuel, which took the place of Traffic Congestion Relief/Proposition 42 funds, is recorded in the Gas Tax Fund.

SB1

Used to account for revenue and expenditures of the Road Maintenance and Rehabilitation Account to address deferred maintenance on the State Highway System and the local streets and road system. A percentage of this new RMRA funding will be apportioned by formula to eligible cities and counties pursuant to Streets and Highways Code section 2032(h) for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system.

Measure A

Represents funds apportioned by the Riverside County Transportation Commission (RCTC) and received by the City as a result of the voter-approved initiative that increased sales tax by 1/2 percent in Riverside County to fund transportation projects. Measure "A" funds were originally approved by voters in 1988, and an extension was approved in 2002 which will fund projects through 2039.

Air Quality Management District

This fund was established to account for the City's share of vehicle registration fees collected under Assembly Bill 2766 passed during the 1990 State Legislative session. This fee was levied to fund programs to reduce air pollution from mobile sources such as cars, trucks and buses. Allocations to agencies are made through an apportionment basis and also through a competitive process. The South Coast Air Quality Management District distributes these funds to the City.

Grants

This fund accounts for all of the various miscellaneous grants, in order to properly segregate and track grant funding. Grants are budgeted upon being awarded by a third party agency and approved by the City Council. Only grants that are approved at the time of the adoption of this budget are listed in this budget document.

Landscape and Lighting Maintenance

Upon incorporation, the City acquired the responsibility of a portion of one LLMD which included both street lighting and traffic signals. In January 2015, the City requested from the County of Riverside to become solely responsible for all LLMDs located exclusively within the City jurisdiction. This resulted in the City acquiring 24 individual LLMD zones. These LLMDs had originally been established by Riverside County prior to the City's incorporation, and maintained responsibility for the maintenance of these zones until January 2015.

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CFD Audie Murphy Ranch

In January 2012 the Audie Murphy Ranch Community Facility District (CFD) was formed. This CFD encompasses approximately 1,059.3 gross acres and upon full build out will contain approximately 2,129 residential dwelling units. Each July 1, commencing on July 1, 2013, the maximum special tax for developed property shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per fiscal year. The assessed fees will be used towards street lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements.

CFD Hidden Hills

In June 2012 the Hidden Hills Community Facility District (CFD) was formed. This CFD boundary includes approximately 157 gross acres and upon full build out will contain 511 single family homes. Services provided by the CFD include landscape maintenance, park and trails maintenance, as well as incidental costs such as capital replacement and administrative costs. The maximum special tax for developed property shall be increased based on the percentage change in the Consumer Price Index, with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per fiscal year.

CFD 2014-1 Town Center

In August 2014 the Menifee Town Center Community Facility District (CFD) was formed. This CFD encompasses approximately 149 gross acres of mix use development consisting of retail, commercial and residential housing units Beginning July 1, 2015 and each year thereafter, the maximum special tax for developed property shall be increased based on the percentage change in the Consumer Price Index with a maximum annual increase of six percent (6%) and a minimum annual increase of two percent (2%) per fiscal year. The assessed fees will be used towards street lighting, landscaping, street sweeping, water quality basin improvements, parks, trails and recreation improvements.

TUMF Fees

This fund tracks revenues and expenditures associated with the regional transportation mitigation fee program. These funds are generated from impact fees assessed by Western Riverside Council of Governments (WRCOG) on all new residential and commercial development. These funds are later divided among the three (3) zones comprising of the Northern, Central and Southern zones. The City of Menifee is located within the Central zone along with the Cities of Perris, Moreno Valley and Riverside County. The City is eligible to receive TUMF funds on major road and bridge projects located within the City. These projects must first be approved by WRCOG and the Central zone Technical Advisory Committee (TAC). The City uses these funds to supplement capital projects relating to road and bridge improvements and they are treated as grant funding.

CFD 2014-2 Commerce Point

In August 2014 the Commerce Point Community Facility District (CFD) was formed. This CFD boundary includes approximately 46 taxable acres of commercial real estate. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2016, the maximum special tax for developed properly shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year.

Veteran’s Memorial

In August 2009, the City Council instructed staff to set up the fund to receive donations along with the Riverside County’s donation of $25,000 and the City’s match of $25,000 to construct a Veteran’s Memorial. Construction began in 2010 and the Memorial was completed in 2011. Citizens can purchase personalized bricks that are added to the Memorial.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 95
Menifee Mayor and City Council
February 15, 2023
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2015-2 Citywide CFD

In April 2015 the City-Wide Community Facility District (CFD) was formed under Resolution No. 15- 430.

CFD No. 2015-2 (Maintenance Services) currently consists of one Tax Zone consisting of one residential tract that will include 359 residential units. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, public street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2016, the maximum special tax for developed property shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year.

2017-1 Maintenance Services CFD

In December 2017 the Community Facilities District (CFD) 2017-1 was formed. This CFD boundary includes approximately 104 acres of vacant commercial and residential property within the City (TR 36299-1 and PM 9504). The improvements proposed to be maintained include items such as landscaping, lighting, storm drains, water quality improvements, graffiti, streets, streetlights, traffic signals, street sweeping, and trail maintenance. On July 1 of each year, and commencing July 1, 2019, the maximum special tax for developed property shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%), whichever is greater, per fiscal year.

Public Education and Government Access

This fund will be used to acquire equipment for and broadcasting on a future City cable channel. Used to account for revenue and expenditures of money pursuant to section 611 of the Communications Act.

Local Franchising authorities (The City) may require cable operations to remit funds and set aside channels for public, educational, or governmental use.

County Service Areas (CSA)

Upon incorporation, the City assumed responsibility for seven (7) County Service Area Districts within the City limits. These districts were established by the County of Riverside to provide a mechanism through special assessments to fund services such as street lighting, street sweeping, park maintenance, road maintenance, and law enforcement services to property owners within each district. Each CSA fund provides a unique set of services to the residents within that individual district.

Maintenance CFD

On September 18, 2019, the City Council adopted Resolution No. 19-830 declaring its intent to annex territory to CFD No. 2017-1 and commence the annexation proceedings for the territory to be annexed, also known as Annexation No. 1. Subsequently, the city has continued to annex additional zones into the Maintenance CFD. Services provided by the CFD include landscape maintenance, street lighting, water quality improvements, graffiti removal, public street sweeping, and park and trails maintenance. On July 1 of each year, and commencing July 1, 2019, the maximum special tax for developed property shall be the greater of the increased based on the percentage change in the Consumer Price Index or two percent (2%) per fiscal year. Specific improvements and applicable maximum special tax rates are established and applied per the corresponding Rate and Method of Apportionment (RMA) of the respective annexed tax zone.

CAPITAL PROJECTS FUND

Capital Projects Fund

This fund is used to account for the project completion of street and highways capital improvements financed through various sources including, but not limited to, developer contributions and grants.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 96
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February 15, 2023
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DEBT SERVICE FUND

Debt Service

Debt Service Funds are used to track revenues and expenditures related to repayment of principal and interest costs associated with borrowing money for long-term obligations. In May 2012 the City issued Certificates of Participation in the amount of $20.0 million under the Total Road Improvement Program (TRIP) financing. These proceeds were used for the construction of the Newport Road/I-215 interchange and will be paid back over a 30 year period. In 2020, the TRIP financing was refinanced in 2020 in a favorable low interest environment, resulting in anticipated interest savings exceeding $4 million of the balance of the debt service schedule. In June 2019, the City entered into a financing agreement for $6,550,000 with Banc of America to purchase and retrofit Certain Southern California Edison Company Street Light Facilities. In 2021, the City refinanced the Streetlight Retrofit Project in 2020 in a favorable low interest environment, resulting in anticipated interest savings exceeding $400k of the balance of the debt service schedule. Currently, the City has only the TRIP debt and Streetlight Retrofit Project outstanding debt accounted for in this fund.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 97
Menifee Mayor and City Council
February 15, 2023
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Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 98
Menifee Mayor and City Council
February 15, 2023
Page
423 of 644

CITY OF MENIFEE

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022

-64-
Gas Tax SB1 Measure A
Assets
Cash and investments 510,589 $ 2,035,279 $ 1,937,057 $ Receivables:

Accounts, grants and taxes 347,037 360,589 733,665
Accrued interest 290 1,873 1,467
Prepaid items - - - Restricted assets:

Cash and investments with fiscal agents - - - Total Assets 857,916 $ 2,397,741 $ 2,672,189 $ Liabilities, Deferred Inflows of Resources and Fund
Balances
Liabilities:

Accounts payable 141,272 $ 54,610 $ 71,546 $ Accrued liabilities 40,359 - - Unearned revenue - - - Due to other funds - - - Total Liabilities 181,631 54,610 71,546 Fund Balances:

Nonspendable:

Prepaid items - - - Restricted for:

Community development projects - - - Engineering and public works 676,285 2,343,131 2,600,643 Debt service - - - Unassigned (deficit) - - - Total Fund Balances 676,285 2,343,131 2,600,643 Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 857,916$ 2,397,741 $ 2,672,189 $ Special Revenue Funds

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 99
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2022

-65-
Air Quality
Management
District Grants
Landscape and
Lighting
Maintenance
CFD Audie Murphy
Ranch CFD Hidden Hills
104,329$ 2,981,656 $ 3,524,989 $ 2,727,289 $ 567,303 $ 32,786 984,782 31,738 17,461 891
41 - 3,231 2,395 855 - - - - - - - - - - 137,156$ 3,966,438 $ 3,559,958 $ 2,747,145 $ 569,049 $ -$ 128,374$ 74,173 $ 119,202 $ 18,370 $ - 2,711 4,919 9,699 1,766 - 2,818,257 - - - - 126,446 163,882 - - - 3,075,788 242,974 128,901 20,136 - - - - - - - - 2,618,244 548,913 137,156 890,650 3,316,984 - - - - - - - - - - - - 137,156 890,650 3,316,984 2,618,244 548,913 137,156$ 3,966,438 $ 3,559,958 $ 2,747,145 $ 569,049 $ Special Revenue Funds

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 100
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2022

-66-
CFD 2014-1 Town
Center TUMF Fees
CFD 2014-2
Commerce Point
Assets
Cash and investments 164,877 $ - $ 54,547 $ Receivables:

Accounts, grants and taxes - 11,897 - Accrued interest 66 - 5 Prepaid items - - - Restricted assets:

Cash and investments with fiscal agents - - - Total Assets 164,943 $ 11,897 $ 54,552 $ Liabilities, Deferred Inflows of Resources and Fund
Balances
Liabilities:

Accounts payable 228 $ 172,976$ 1,014 $ Accrued liabilities - - - Unearned revenue - - - Due to other funds - 251,629 - Total Liabilities 228 424,605 1,014 Fund Balances:

Nonspendable:

Prepaid items - - - Restricted for:

Community development projects 164,715 - 53,538 Engineering and public works - - - Debt service - - - Unassigned (deficit) - (412,708) - Total Fund Balances 164,715 (412,708) 53,538 Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 164,943$ 11,897 $ 54,552 $ Special Revenue Funds

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 101
Menifee Mayor and City Council
February 15, 2023
Page
426 of 644

CITY OF MENIFEE

COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2022

-67-
Veteran's Memorial
2015-2 Citywide
CFD
CFD 2017-1
Maintenance
Services
Public, Education
and Governmental
Access
County Service
Areas
3,604$ 2,264,205$ 469,024 $ 457,740 $ 1,739,421 $ - 9,347 686 38,512 63,950 3 1,379 - - 1,076 - - - - - - - - - - 3,607$ 2,274,931$ 469,710 $ 496,252 $ 1,804,447 $ 380$ 68,223 $ 6,488 $ - $ 122,351$ - 4,981 1,302 - 13,757 - - - - - - 702 - - 615,209 380 73,906 7,790 - 751,317 - - - - - 3,227 2,201,025 461,920 496,252 1,053,130 - - - - - - - - - - - - - - - 3,227 2,201,025 461,920 496,252 1,053,130 3,607$ 2,274,931$ 469,710 $ 496,252 $ 1,804,447 $ Special Revenue Funds

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 102
Menifee Mayor and City Council
February 15, 2023
Page
427 of 644

CITY OF MENIFEE

COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS (continued)
JUNE 30, 2022

-68-
Special Revenue
Funds
Capital Projects
Fund Debt Service Fund
Maintenance CFD Capital Projects Debt Service
Total
Non-Major
Governmental
Funds
Assets
Cash and investments 149,979 $ 4,664,790 $ 301,192 $ 24,657,870 $ Receivables:

Accounts, grants and taxes 2,553 - - 2,635,894 Accrued interest - 3,868 571 17,120 Prepaid items - - 166,085 166,085 Restricted assets:

Cash and investments with fiscal agents - - 95,443 95,443 Total Assets 152,532 $ 4,668,658 $ 563,291 $ 27,572,412 $ Liabilities, Deferred Inflows of Resources and Fund
Balances
Liabilities:

Accounts payable 1,583 $ 52,045 $ - $ 1,032,835$ Accrued liabilities - - - 79,494 Unearned revenue - - - 2,818,257 Due to other funds - - - 1,157,868 Total Liabilities 1,583 52,045 - 5,088,454 Fund Balances:

Nonspendable:

Prepaid items - - 166,085 166,085 Restricted for:

Community development projects 150,949 4,616,613 - 12,368,526 Engineering and public works - - - 9,964,849 Debt service - - 397,206 397,206 Unassigned (deficit) - - - (412,708) Total Fund Balances 150,949 4,616,613 563,291 22,483,958 Total Liabilities, Deferred Inflows of Resources,
and Fund Balances 152,532$ 4,668,658 $ 563,291 $ 27,572,412 $

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 103
Menifee Mayor and City Council
February 15, 2023
Page
428 of 644

CITY OF MENIFEE

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-69-
Gas Tax SB1 Measure A
Revenues
Taxes - $ - $ - $ Intergovernmental 2,363,599 2,028,480 2,899,174 Charges for services - - - Use of money and property (5,313) (35,278) (7,727) Developer participation - - - Total Revenues 2,358,286 1,993,202 2,891,447 Expenditures
Current:

General government - - - Public safety - - - Community development - - - Parks and recreation - - - Engineering and public works 1,347,664 - - Capital outlay 285,015 661,431 347,530 Debt service:

Principal retirement - - - Interest and fiscal charges - - - Bond issuance costs - - - Total Expenditures 1,632,679 661,431 347,530 Excess (Deficiency) of Revenues Over
(Under) Expenditures 725,607 1,331,771 2,543,917 Other Financing Sources (Uses)
Transfers in - - - Transfers out (429,558) - (1,080,703) Proceeds of long-term debt - - - Total Other Financing Sources (Uses) (429,558) - (1,080,703) Net Change in Fund Balances 296,049 1,331,771 1,463,214 Fund Balances, Beginning of Year 380,236 1,011,360 1,137,429 Fund Balances, End of Year 676,285 $ 2,343,131 $ 2,600,643 $ Special Revenue Funds
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 104
Menifee Mayor and City Council
February 15, 2023
Page
429 of 644

CITY OF MENIFEE

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-70-
Air Quality
Management
District Grants
Landscape and
Lighting
Maintenance
CFD Audie
Murphy Ranch CFD Hidden Hills
-$ - $ - $ - $ - $ 127,054 6,284,690 - - - - - 844,418 1,771,308 197,786 (203) (166,602) (15,967) (61,256) (4,451) - - - - - 126,851 6,118,088 828,451 1,710,052 193,335 - 700,191 35,888 11,206 - - 120,213 - - - - 209,043 - - - - - 554,750 985,980 145,503 - 11,365 77,300 36,804 - 171,330 1,042,037 - - - - - - - - - - - - - - - - - - 171,330 2,082,849 667,938 1,033,990 145,503 (44,479) 4,035,239 160,513 676,062 47,832 - - - - - - (3,716,323) (10,536) (33,667) - - - - - - - (3,716,323) (10,536) (33,667) - (44,479) 318,916 149,977 642,395 47,832 181,635 571,734 3,167,007 1,975,849 501,081 137,156$ 890,650 $ 3,316,984 $ 2,618,244 $ 548,913 $ Special Revenue Funds
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 105
Menifee Mayor and City Council
February 15, 2023
Page
430 of 644

CITY OF MENIFEE

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-71-
CFD 2014-1 Town
Center TUMF Fees
CFD 2014-2
Commerce Point
Revenues
Taxes - $ - $ - $ Intergovernmental - 545,797 - Charges for services 15,443 - 8,680 Use of money and property (327) - (24) Developer participation - - - Total Revenues 15,116 545,797 8,656 Expenditures
Current:

General government - - - Public safety - - - Community development - - - Parks and recreation 1,550 - 5,479 Engineering and public works - - 1,048 Capital outlay - 676,902 - Debt service:

Principal retirement - - - Interest and fiscal charges - - - Bond issuance costs - - - Total Expenditures 1,550 676,902 6,527 Excess (Deficiency) of Revenues Over
(Under) Expenditures 13,566 (131,105) 2,129 Other Financing Sources (Uses)
Transfers in - 165,377 - Transfers out - - (426) Proceeds of long-term debt - - - Total Other Financing Sources (Uses) - 165,377 (426) Net Change in Fund Balances 13,566 34,272 1,703 Fund Balances (Deficit), Beginning of Year 151,149 (446,980) 51,835 Fund Balances (Deficit), End of Year 164,715 $ (412,708) $ 53,538 $ Special Revenue Funds

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 106
Menifee Mayor and City Council
February 15, 2023
Page
431 of 644

CITY OF MENIFEE

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-72-
Veteran's
Memorial
2015-2 Citywide
CFD
CFD 2017-1
Maintenance Services
Public, Education and
Governmental Access
County Service
Areas
-$ - $ - $ - $ - $ - - - - - 1,350 1,062,110 215,987 137,644 1,905,417 (15) (7,475) (28,496) (21,273) (44,506) - - - - - 1,335 1,054,635 187,491 116,371 1,860,911 - - - - 23,794 - - - - 133,418 - - - - - 2,375 330,446 54,283 - 653,843 - 141,247 22,189 - 177,817 - - - 218,254 49,832 - - - - - - - - - - - - - - - 2,375 471,693 76,472 218,254 1,038,704 (1,040) 582,942 111,019 (101,883) 822,207 - 24,686 - - 208,319 - (10,646) (2,554) - (577,249) - - - - - - 14,040 (2,554) - (368,930) (1,040) 596,982 108,465 (101,883) 453,277 4,267 1,604,043 353,455 598,135 599,853 3,227$ 2,201,025$ 461,920 $ 496,252 $ 1,053,130 $ Special Revenue Funds
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 107
Menifee Mayor and City Council
February 15, 2023
Page
432 of 644

CITY OF MENIFEE

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-73-
Special
Revenue
Funds
Capital Projects
Fund
Debt Service
Fund
Maintenance
CFD Capital Projects Debt Service
Total
Non-Major
Governmental
Funds
Revenues
Taxes - $ - $ - $ - $ Intergovernmental - - - 14,248,794 Charges for services 185,482 - - 6,345,625 Use of money and property - (186,838) (2,433) (588,184) Developer participation - 172,368 - 172,368 Total Revenues 185,482 (14,470) (2,433) 20,178,603 Expenditures
Current:

General government 9,847 - 94,649 875,575 Public safety - - - 253,631 Community development - - - 209,043 Parks and recreation - - - 2,734,209 Engineering and public works - 412 - 1,815,846 Capital outlay - 1,104,926 - 4,557,257 Debt service:

Principal retirement - - 7,250,613 7,250,613 Interest and fiscal charges - - 742,812 742,812 Bond issuance costs - - 40,000 40,000 Total Expenditures 9,847 1,105,338 8,128,074 18,478,986 Excess (Deficiency) of Revenues Over
(Under) Expenditures 175,635 (1,119,808) (8,130,507) 1,699,617 Other Financing Sources (Uses)
Transfers in - - 1,782,190 2,180,572 Transfers out (24,686) (165,377) - (6,051,725) Proceeds of long-term debt - - 6,355,581 6,355,581 Total Other Financing Sources (Uses) (24,686) (165,377) 8,137,771 2,484,428 Net Change in Fund Balances 150,949 (1,285,185) 7,264 4,184,045 Fund Balances, Beginning of Year - 5,901,798 556,027 18,299,913 Fund Balances, End of Year 150,949 $ 4,616,613 $ 563,291 $ 22,483,958 $ Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 108
Menifee Mayor and City Council
February 15, 2023
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THIS PAGE INTENTIONALLY LEFT BLANK

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 109
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February 15, 2023
Page
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CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

GAS TAX
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-74-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 380,236$ 380,236$ 380,236 $ - $ Resources (Inflows):

Intergovernmental 2,385,327 2,603,207 2,363,599 (239,608) Use of money and property 8,000 858 (5,313) (6,171) Amounts Available for Appropriation 2,773,563 2,984,301 2,738,522 (245,779) Charges for Appropriation (Outflows):

Engineering and public works 2,172,088 2,026,244 1,347,664 678,580 Capital outlay - 614,470 285,015 329,455 Transfers out 221,239 429,558 429,558 - Total Charges to Appropriations 2,393,327 3,070,272 2,062,237 1,008,035 Budgetary Fund Balance, June 30 380,236 $ (85,971) $ 676,285 $ 762,256 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 110
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
SB1
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-75-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,011,360$ 1,011,360$ 1,011,360 $ - $ Resources (Inflows):

Intergovernmental 1,826,490 2,064,746 2,028,480 (36,266) Use of money and property 1,000 1,631 (35,278) (36,909) Amounts Available for Appropriation 2,838,850 3,077,737 3,004,562 (73,175) Charges for Appropriation (Outflows):

Capital outlay 2,015,366 2,640,885 661,431 1,979,454 Total Charges to Appropriations 2,015,366 2,640,885 661,431 1,979,454 Budgetary Fund Balance, June 30 823,484 $ 436,852 $ 2,343,131 $ 1,906,279 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 111
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February 15, 2023
Page
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CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

MEASURE A
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-76-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,137,429$ 1,137,429$ 1,137,429 $ - $ Resources (Inflows):

Intergovernmental 1,950,000 1,950,000 2,899,174 949,174 Use of money and property 2,000 1,014 (7,727) (8,741) Amounts Available for Appropriation 3,089,429 3,088,443 4,028,876 940,433 Charges for Appropriation (Outflows):

Capital outlay 871,297 1,607,937 347,530 1,260,407 Transfers out 1,080,703 1,080,703 1,080,703 - Total Charges to Appropriations 1,952,000 2,688,640 1,428,233 1,260,407 Budgetary Fund Balance, June 30 1,137,429 $ 399,803 $ 2,600,643 $ 2,200,840 $ Budgeted Amounts
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 112
Menifee Mayor and City Council
February 15, 2023
Page
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CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

AIR QUALITY MANAGEMENT DISTRICT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-77-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 181,635$ 181,635$ 181,635 $ - $ Resources (Inflows):

Intergovernmental 116,700 131,017 127,054 (3,963) Use of money and property - 27 (203) (230) Amounts Available for Appropriation 298,335 312,679 308,486 (4,193) Charges for Appropriation (Outflows):

Capital outlay 116,700 223,670 171,330 52,340 Total Charges to Appropriations 116,700 223,670 171,330 52,340 Budgetary Fund Balance, June 30 181,635 $ 89,009 $ 137,156 $ 48,147 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 113
Menifee Mayor and City Council
February 15, 2023
Page
438 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
GRANTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-78-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 571,734$ 571,734$ 571,734 $ - $ Resources (Inflows):

Intergovernmental 7,274,526 11,637,468 6,284,690 (5,352,778) Use of money and property - - (166,602) (166,602) Amounts Available for Appropriation 7,846,260 12,209,202 6,689,822 (5,519,380) Charges for Appropriation (Outflows):

General government 527,689.00 3,661,508 700,191 2,961,317 Public safety 70,815 311,337 120,213 191,124 Community development - 782,264 209,043 573,221 Parks and recreation - 143,689 - 143,689 Engineering and public works - 70,925 11,365 59,560 Capital outlay 69,185 1,873,214 1,042,037 831,177 Transfers out 3,616,644 3,616,644 3,716,323 (99,679) Total Charges to Appropriations 4,284,333 10,459,581 5,799,172 4,660,409 Budgetary Fund Balance, June 30 3,561,927 $ 1,749,621 $ 890,650 $ (858,971) $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 114
Menifee Mayor and City Council
February 15, 2023
Page
439 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-79-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 3,167,007$ 3,167,007$ 3,167,007 $ - $ Resources (Inflows):

Charges for services 840,062 795,681 844,418 48,737 Use of money and property - - (15,967) (15,967) Amounts Available for Appropriation 4,007,069 3,962,688 3,995,458 32,770 Charges for Appropriation (Outflows):

General government 36,852 36,789 35,888 901 Parks and recreation 593,138 648,066 554,750 93,316 Engineering and public works 195,741 195,765 77,300 118,465 Transfer out 10,536 10,536 10,536 - Total Charges to Appropriations 836,267 891,156 678,474 212,682 Budgetary Fund Balance, June 30 3,170,802 $ 3,071,532 $ 3,316,984 $ 245,452 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 115
Menifee Mayor and City Council
February 15, 2023
Page
440 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – AUDIE MURPHY RANCH
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-80-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,975,849$ 1,975,849$ 1,975,849 $ - $ Resources (Inflows):

Charges for services 1,710,709 1,772,511 1,771,308 (1,203) Use of money and property 10,000 10,000 (61,256) (71,256) Amounts Available for Appropriation 3,696,558 3,758,360 3,685,901 (72,459) Charges for Appropriation (Outflows):

General government 10,417 11,417 11,206 211 Parks and recreation 1,068,445 1,157,778 985,980 171,798 Engineering and public works 132,207 125,207 36,804 88,403 Capital outlay 650,000 666,649 - 666,649 Transfers out 33,667 33,667 33,667 -
Total Charges to Appropriations 1,894,736 1,994,718 1,067,657 927,061 Budgetary Fund Balance, June 30 1,801,822 $ 1,763,642 $ 2,618,244 $ 854,602 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 116
Menifee Mayor and City Council
February 15, 2023
Page
441 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – HIDDEN HILLS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-81-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 501,081$ 501,081$ 501,081 $ - $ Resources (Inflows):

Charges for services 197,019 197,019 197,786 767
Use of money and property - - (4,451) (4,451) Amounts Available for Appropriation 698,100 698,100 694,416 (3,684) Charges for Appropriation (Outflows):

Parks and recreation 197,019 197,019 145,503 51,516 Total Charges to Appropriations 197,019 197,019 145,503 51,516 Budgetary Fund Balance, June 30 501,081 $ 501,081 $ 548,913 $ 47,832 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 117
Menifee Mayor and City Council
February 15, 2023
Page
442 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
CFD 2014-1 Town Center
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-82-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 151,149$ 151,149$ 151,149 $ - $ Resources (Inflows):

Charges for services 15,443 15,443 15,443 -
Use of money and property - - (327) (327) Amounts Available for Appropriation
166,592 166,592 166,265 (327)
Charges for Appropriation (Outflows):

Parks and recreation 12,943 12,943 1,550 11,393 Engineering and public works 2,500 2,500 - 2,500 Total Charges to Appropriations 15,443 15,443 1,550 13,893 Budgetary Fund Balance, June 30 151,149 $ 151,149 $ 164,715 $ 13,566 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 118
Menifee Mayor and City Council
February 15, 2023
Page
443 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

TUMF FEES
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-83-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 (446,980)$ (446,980)$ (446,980) $ - $ Resources (Inflows):

Intergovernmental 14,762,046 19,160,188 545,797 (18,614,391) Use of money and property 1,000 1,000 - (1,000) Transfers in 165,377 165,377 165,377 - Amounts Available for Appropriation 14,481,443 18,879,585 264,194 (18,615,391) Charges for Appropriation (Outflows)
Capital outlay 13,385,958 17,332,672 676,902 16,655,770 Total Charges to Appropriations 13,385,958 17,332,672 676,902 16,655,770 Budgetary Fund Balance (Deficit), June 30 1,095,485$ 1,546,913 $ (412,708) $ (1,959,621) $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 119
Menifee Mayor and City Council
February 15, 2023
Page
444 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2014-2 COMMERCE POINT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-84-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 51,835$ 51,835$ 51,835 $ - $ Resources (Inflows):

Charges for services 8,680 8,680 8,680 -
Use of money and property - - (24) (24) Amounts Available for Appropriation 60,515 60,515 60,491 (24) Charges for Appropriation (Outflows):

Parks and recreation 5,790 5,790 5,479 311
Engineering and public works 3,035 3,035 1,048 1,987 Transfer out 426 426 426 - Total Charges to Appropriations 9,251 9,251 6,953 2,298 Budgetary Fund Balance, June 30 51,264 $ 51,264 $ 53,538 $ 2,274 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 120
Menifee Mayor and City Council
February 15, 2023
Page
445 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2015-2 CITYWIDE
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-85-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 1,604,043$ 1,604,043$ 1,604,043 $ - $ Resources (Inflows):

Charges for services 1,061,706 1,064,871 1,062,110 (2,761) Use of money and property 200 200 (7,475) (7,675) Transfers in 148,088 199,726 24,686 (175,040) Amounts Available for Appropriation 2,814,037 2,868,840 2,683,364 (185,476) Charges for Appropriation (Outflows):

Parks and recreation 471,478 508,976 330,446 178,530 Engineering and public works 347,352 350,855 141,247 209,608 Capital outlay 75,000 34,000 - 34,000 Transfers out 175,040 175,040 10,646 164,394
Total Charges to Appropriations 1,068,870 1,068,871 482,339 586,532 Budgetary Fund Balance, June 30 1,745,167 $ 1,799,969 $ 2,201,025 $ 401,056 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 121
Menifee Mayor and City Council
February 15, 2023
Page
446 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
COMMUNITY FACILITIES DISTRICT – 2017-1 MAINTENANCE SERVICES FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-86-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 353,455$ 353,455$ 353,455 $ - $ Resources (Inflows):

Charges for services 216,058 216,058 215,987 (71) Use of money and property - - (28,496) (28,496) Amounts Available for Appropriation 569,513 569,513 540,946 (28,567) Charges for Appropriation (Outflows):

Parks and recreation 85,512 92,012 54,283 37,729 Engineering and public works 114,427 107,927 22,189 85,738 Transfers out 2,554 2,554 2,554 -
Total Charges to Appropriations 202,493 202,493 79,026 123,467 Budgetary Fund Balance, June 30 367,020 $ 367,020 $ 461,920 $ 94,900 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 122
Menifee Mayor and City Council
February 15, 2023
Page
447 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

PUBLIC, EDUCATION AND GOVERNMENTAL ACCESS
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-87-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 598,135$ 598,135$ 598,135 $ - $ Resources (Inflows):

Charges for services 175,000 160,279 137,644 (22,635) Use of money and property - 6,338 (21,273) (27,611) Amounts Available for Appropriation 773,135 764,752 714,506 (50,246) Charges for Appropriation (Outflows):

Capital outlay 268,000 268,000 218,254 49,746 Total Charges to Appropriations 268,000 268,000 218,254 49,746 Budgetary Fund Balance, June 30 505,135 $ 496,752 $ 496,252 $ (500) $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 123
Menifee Mayor and City Council
February 15, 2023
Page
448 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

COUNTY SERVICE AREAS (CSA)
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-88-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 599,853$ 599,853$ 599,853 $ - $ Resources (Inflows):

Charges for services 1,875,820 1,876,159 1,905,417 29,258 Use of money and property - - (44,506) (44,506) Transfers in - - 208,319 208,319 Amounts Available for Appropriation 2,475,673 2,476,012 2,669,083 193,071 Charges for Appropriation (Outflows):

General government 25,501 25,501 23,794 1,707 Public safety 141,707 141,707 133,418 8,289 Parks and recreation 770,257 790,740 653,843 136,897 Engineering and public works 472,661 461,078 177,817 283,261 Capital outlay - 49,832 49,832 - Transfers out 577,249 577,249 577,249 - Total Charges to Appropriations 1,987,375 2,046,107 1,615,953 430,154 Budgetary Fund Balance, June 30 488,298 $ 429,905 $ 1,053,130 $ 623,225 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 124
Menifee Mayor and City Council
February 15, 2023
Page
449 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

MAINTENANCE CFD
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-89-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 -$ -$ - $ - $ Resources (Inflows):

Charges for services 181,238 184,753 185,482 729 Amounts Available for Appropriation 181,238 184,753 185,482 729 Charges for Appropriation (Outflows):

General government 40,200 40,200 9,847 30,353 Transfers out 24,686 24,686 24,686 - Total Charges to Appropriations 64,886 64,886 34,533 30,353 Budgetary Fund Balance, June 30 116,352 $ 119,867 $ 150,949 $ 31,082 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 125
Menifee Mayor and City Council
February 15, 2023
Page
450 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

DEBT SERVICE
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-90-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 556,027$ 556,027$ 556,027 $ - $ Resources (Inflows):

Use of money and property - - (2,433) (2,433) Transfers in 1,787,151 1,787,151 1,782,190 (4,961) Proceeds of long-term debt - 6,355,581 6,355,581 - Amounts Available for Appropriation 2,343,178 8,698,759 8,691,365 (7,394) Charges for Appropriation (Outflows):

General government 86,909 86,909 94,649 (7,740) Debt service:

Principal retirement 934,363 7,250,613 7,250,613 - Interest and fiscal charges 765,879 765,210 742,812 22,398 Bond issuance costs - 40,000 40,000 - Total Charges to Appropriations 1,787,151 8,142,732 8,128,074 14,658 Budgetary Fund Balance, June 30 556,027 $ 556,027 $ 563,291 $ 7,264 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 126
Menifee Mayor and City Council
February 15, 2023
Page
451 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE
MAJOR FUND – BONDED CFDs
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-91-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 -$ -$ - $ - $ Resources (Inflows):

Use of money and property - - 5,023 5,023 Contributions from property owners - 14,110,187 14,110,185 Amounts Available for Appropriation - 14,110,187 14,115,208 5,023 Charges for Appropriation (Outflows):

General government - 68,500 53,500 15,000 Capital outlay - - 1,898,455 (1,898,455) Debt service:

Interest and fiscal changes - 919,886 459,942 459,944 Total Charges to Appropriations - 988,386 2,411,897 (1,423,511) Budgetary Fund Balance, June 30 - $ 13,121,801$ 11,703,311 $ (1,418,488) $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 127
Menifee Mayor and City Council
February 15, 2023
Page
452 of 644

CITY OF MENIFEE

BUDGETARY COMPARISON SCHEDULE

CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2022

-92-
Actual Variance with
Original Final Amounts Final Budget
Budgetary Fund Balance, July 1 5,901,798$ 5,901,798$ 5,901,798 $ - $ Resources (Inflows):

Use of money and property 2,500 11,518 (186,838) (198,356) Developer participation - 60,000 172,368 112,368 Transfers in 112,368 112,368 - (112,368) Amounts Available for Appropriation 6,016,666 6,085,684 5,887,328 (198,356) Charges for Appropriation (Outflows):

Engineering and public works - 416 412 4 Capital outlay 112,368 3,366,851 1,104,926 2,261,925 Transfers out 165,377 165,377 165,377 - Total Charges to Appropriations 277,745 3,532,644 1,270,715 2,261,929 Budgetary Fund Balance, June 30 5,738,921 $ 2,553,040 $ 4,616,613 $ 2,063,573 $ Budgeted Amounts

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 128
Menifee Mayor and City Council
February 15, 2023
Page
453 of 644

THIS PAGE INTENTIONALLY LEFT BLANK

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 129
Menifee Mayor and City Council
February 15, 2023
Page
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-93-

STATISTICAL SECTION DESCRIPTIONS

This section of the City of Menifee’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Financial Trends Schedules – These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time. As a newly incorporated City, information relative to the exact City boundaries prior to incorporation is not readily available in most cases. Therefore, trend information will be developed over time and reported annually.

Net Position
Changes in Net Position
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
Major Revenues by Source – Governmental Funds

Revenue Capacity Schedules – These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property taxes.

Assessed Value and Estimated Actual Value of Taxable Property Direct and Overlapping Property Tax Rates
Principal Property Tax Payers
Property Tax Levies and Collections

Debt Capacity Schedules – These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Ratio of Outstanding Debt by Type
Ratio of General Bonded Debt Outstanding
Direct and Overlapping Bonded Debt
Legal Debt Margin

Demographic and Economic Information – These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.

Demographic and Economic Statistics
Principal Employers
Full-time and Part-time City Employees by Program

Operating Information – These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information related to the services the City provides and the activities it performs.

Capital Asset Statistics by Function/Program
Operating Indicators by Function/Program
Miscellaneous Statistics
Taxable Sales by Category
Top 25 Sales Tax Producers
Measure DD 1% Sales Tax – Revenues and Expenditures History

Sources: Unless otherwise noted, the information in these schedules is derived from various internal and other governmental and non-governmental sources where reliability of the data could be ascertained.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 130
Menifee Mayor and City Council
February 15, 2023
Page
455 of 644

CITY OF MENIFEE

NET POSITION

-94-
As of June 30, 2013 2014 2015 2016

GOVERNMENTAL ACTIVITIES
Net Investment in Capital Assets 18,660,912 $ 16,372,388 $ 25,425,778 $ 51,416,214 $ Restricted for:

Community Development Projects 52,861 785,619 1,182,477 4,448,198 Public Safety 520,300 166,413 (360,254) - Public Works 16,712,925 18,577,377 23,094,019 23,908,504 Capital Projects 1,305,962 23,541,211 20,022,031 9,619,732 Debt service 6,513,444 1,338,301 1,354,467 1,359,694 Unrestricted 6,523,468 8,301,753 12,103,855 10,903,072 Total Governmental Activities
Net Position 50,289,872$ 69,083,062$ 82,822,373$ 101,655,414$

PRIMARY GOVERNMENT
Net Investment in Capital Assets 18,660,912 $ 16,372,388 $ 25,425,778 $ 51,416,214 $ Restricted for:

Community Development Projects 52,861 785,619 1,182,477 4,448,198 Public Safety 520,300 166,413 (360,254) - Public Works 16,712,925 18,577,377 23,094,019 23,908,504 Capital Projects 1,305,962 23,541,211 20,022,031 9,619,732 Debt service 6,513,444 1,338,301 1,354,467 1,359,694 Unrestricted 6,523,468 8,301,753 12,103,855 10,903,072 Total Primary Government
Net Position 50,289,872$ 69,083,062$ 82,822,373$ 101,655,414$

Source: City Finance Department
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 131
Menifee Mayor and City Council
February 15, 2023
Page
456 of 644

(continued)

-95-
2017 2018 2019 2020 2021 2022
69,469,330$ 110,924,809 $ 156,771,192 $ 215,774,004 $ 259,935,987 $ 276,956,837 $ 4,660,916 5,363,977 6,373,715 4,569,409 5,239,814 11,312,169 - 12,472 191,737 - - - 20,471,018 32,360,079 44,929,363 40,108,013 49,139,697 61,290,160 4,772,166 - - - - - 1,358,034 1,371,931 7,884,527 1,572,272 556,027 563,291 14,504,934 26,052,076 30,064,613 36,384,684 51,217,507 82,742,476 115,236,398$ 176,085,344$ 246,215,147$ 298,408,382$ 366,089,032$ 432,864,933$ 69,469,330$ 110,924,809 $ 156,771,192 $ 215,774,004 $ 259,935,987 $ 276,956,837 $ 4,660,916 5,363,977 6,373,715 4,569,409 5,239,814 11,312,169 - 12,472 191,737 - - - 20,471,018 32,360,079 44,929,363 40,108,013 49,139,697 61,290,160 4,772,166 - - - - - 1,358,034 1,371,931 7,884,527 1,572,272 556,027 563,291 14,504,934 26,052,076 30,064,613 36,384,684 51,217,507 82,742,476 115,236,398$ 176,085,344$ 246,215,147$ 298,408,382$ 366,089,032$ 432,864,933$

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 132
Menifee Mayor and City Council
February 15, 2023
Page
457 of 644

CITY OF MENIFEE

CHANGES IN NET POSITION

-96-
For the Year Ended June 30, 2013 2014 2015 2016

EXPENSES
Governmental Activities:

General Government 2,966,563 $ 3,731,602 $ 4,160,012 $ 4,236,457 $ Public Safety 16,265,992 17,371,349 19,413,871 20,927,524 Community Development 2,514,802 3,161,672 3,091,768 3,255,560 Recreation Services 736,915 555,384 1,903,871 1,145,208 Engineering and Public Works 7,785,539 8,198,856 7,292,714 10,361,131 Interest on Long-term Debt 942,270 885,488 918,204 902,716 Total Governmental Activities Expenses 31,212,081 33,904,351 36,780,440 40,828,596

PROGRAM REVENUES
Governmental Activities:

Charges for Services 6,788,528 11,776,032 12,407,481 12,764,259 Operating Contributions and Grants 5,044,016 5,536,969 3,777,617 3,041,014 Capital Contributions and Grants 8,235,741 14,267,238 9,151,362 16,930,639 Total Governmental Activities Program Revenues 20,068,285 31,580,239 25,336,460 32,735,912 Total Net Revenues (Expenses) (11,143,796)$ (2,324,112)$ (11,443,980)$ (8,092,684)$

GENERAL REVENUES AND OTHER

CHANGES IN NET POSITION
Governmental Activities:

Taxes:

Property Tax 8,783,126 $ 11,945,065 $ 14,634,225 $ 14,577,983 $ Transient Occupancy Tax 151,151 166,958 190,972 217,122 Sales Taxes 4,892,206 5,386,619 5,924,347 7,137,168 Franchise Tax 2,921,048 2,967,476 3,586,271 3,084,175 Other Taxes 346,972 387,364 409,003 460,751 Motor Vehicle in-lieu tax, unrestricted 45,443 34,912 34,308 34,451 Use of Money and Property 127,399 154,230 151,450 253,336 Other 64,956 (36,693) 84,370 94,005 Loss on Disposal of Asset - - - - Total Governmental Activities 17,332,301 21,005,931 25,014,946 25,858,991 Special item - - - 1,066,734 Restatement (381,010) 111,371 168,345 - Change in Net Position 6,188,505$ 18,681,819$ 13,570,966$ 17,766,307$

Source: City Finance Department

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 133
Menifee Mayor and City Council
February 15, 2023
Page
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(continued)

-97-
2017 2018 2019 2020 2021 2022
5,158,876$ 6,265,963 $ 8,177,727 $ 9,907,689 $ 14,183,374 $ 12,323,993 $ 18,129,742 25,497,233 27,595,237 29,559,843 27,853,563 31,656,830 3,403,182 4,925,868 5,347,196 5,253,832 5,408,287 6,437,034 1,664,348 3,034,270 4,082,858 5,432,196 3,546,483 1,083,554 8,281,676 6,082,233 16,979,928 18,331,483 16,251,977 3,257,056 891,605 917,342 863,713 1,108,218 569,679 1,240,597 37,529,429 46,722,909 63,046,659 69,593,261 67,813,363 55,999,064 19,257,460 27,218,239 33,823,689 24,835,036 30,631,445 35,013,739 3,578,315 4,722,133 5,141,336 5,530,426 8,057,443 10,832,899 3,107,374 33,885,278 46,785,288 38,642,004 34,739,876 17,727,525 25,943,149 65,825,650 85,750,313 69,007,466 73,428,764 63,574,163 (11,586,280)$ 19,102,741$ 22,703,654$ (585,795)$ 5,615,401$ 7,575,099$ 12,369,587$ 18,876,904 $ 20,771,353 $ 22,361,021 $ 24,076,949 $ 26,024,300 $ 225,956 232,117 238,464 189,032 506,967 529,006 8,661,218 18,005,117 20,384,878 21,102,457 27,476,156 31,684,459 2,973,633 3,076,719 3,141,174 6,289,806 3,653,129 4,055,791 582,937 615,333 623,801 801,896 1,126,860 1,523,574 39,873 47,721 44,113 73,963 73,963 115,162 221,371 613,165 2,011,031 1,805,179 48,592 (4,886,350) 92,689 166,682 211,335 155,676 665,758 185,488 - - - - - (30,628) 25,167,264 41,633,758 47,426,149 52,779,030 57,628,374 59,200,802 - - - - - - - - - - - - 13,580,984$ 60,736,499$ 70,129,803$ 52,193,235$ 63,243,775$ 66,775,901$

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 134
Menifee Mayor and City Council
February 15, 2023
Page
459 of 644

CITY OF MENIFEE

FUND BALANCES OF GOVERNMENTAL FUNDS

-98-
As of June 30, 2013 2014 2015 2016
GENERAL FUND:

Nonspendable - $ - $ 2,173,477$ 1,880,909 $ Committed 6,546,700 6,546,700 6,546,700 6,546,700 Assigned 58,429 40,836 40,836 226,500 Unassigned 951,533 2,002,972 (486,600) 1,268,621 Total General Fund 7,556,662 8,590,508 8,274,413 9,922,730

ALL OTHER GOVERNEMENTAL FUNDS
Nonspendable - - - - Restricted for Community Development Projects 520,300 785,619 1,184,687 4,180,264 Restricted for Public Safety 52,861 166,413 194,826 267,934 Restricted for Engineering/Public Works 16,712,925 18,577,229 25,022,383 23,908,504 Restricted for Capital Projects 6,513,444 23,541,211 20,022,031 9,619,732 Restricted for Debt Service 20,620,358 1,338,301 1,354,467 1,359,694 Unassigned (16,810) (1,655,616) - - Total All Other Governmental Funds 44,403,078 42,753,157 47,778,394 39,336,128 TOTAL GOVERNMENTAL FUNDS 51,959,740$ 51,343,665$ 56,052,807$ 49,258,858$

The City of Menifee was incorporated during fiscal year 2008-2009. No information prior to that date is available.

1 Fund balance classification reflects GASB 54 implementation beginning Fiscal Year 2011. 2 Establish $15,000 self-insurance, retention reserve.
3 Certificates of Participations issued for capital construction. 4 Establish emergency reserve of 20% of General Fund expenditures and $250,000 towards construction of new City Hall.
5 Transferred proceeds from Certificates of Participation to debt service fund. 6 Transferred proceeds from Certificates of Participation to capital project fund.

Source: City Finance Department
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 135
Menifee Mayor and City Council
February 15, 2023
Page
460 of 644

(continued)

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2017 2018 2019 2020 2021 2022
64,540$ 28,073 $ 65,751 $ 13,473 $ - $ - $ 3,543,729 3,543,729 3,543,729 5,688,958 7,642,510 13,365,638 461,890 4,396,969 13,437,218 8,701,430 9,349,272 12,362,984 8,547,350 16,886,664 18,089,574 27,202,215 39,321,579 51,177,085 12,617,509 24,855,435 35,136,272 41,606,076 56,313,361 76,905,707 - - - - 174,389 166,085 4,660,916 5,363,977 6,373,715 4,569,409 5,839,667 12,368,526 234,782 12,472 191,737 - - - 19,781,187 32,360,079 44,929,363 40,165,976 48,539,844 60,237,030 5,461,997 - - - - - 1,358,034 1,371,931 7,884,527 1,572,272 381,638 397,206 - (154) - (57,963) (446,980) (412,708) 31,496,916 39,108,305 59,379,342 46,249,694 54,488,558 72,756,139 44,114,425$ 63,963,740$ 94,515,614$ 87,855,770$ 110,801,919$ 149,661,846$

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 136
Menifee Mayor and City Council
February 15, 2023
Page
461 of 644

CITY OF MENIFEE

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
-100-

For the Year Ended June 30, 2013 2014 2015 2016

REVENUES
Taxes 17,180,634 $ 20,853,483 $ 24,744,819 $ 25,477,199 $ Licenses and permits 2,627,988 6,330,389 5,463,643 6,832,170 Intergovernmental 8,355,898 5,527,820 9,151,033 6,369,501 Charges for services 98,707 167,830 658,972 1,630,272 Use of money and property 127,399 154,230 151,449 254,526 Fines and forfeitures 407,637 447,996 502,613 553,986 Developer participation 9,521,754 4,878,374 6,079,281 4,518,711 Miscellaneous 23,185 53,677 54,509 77,778 Contributions from property owners - - - - Total Revenues 38,343,202 38,413,799 46,806,319 45,714,143

EXPENDITURES
Current:

General government 2,818,701 3,296,176 4,087,029 4,253,708 Public safety 16,255,888 17,363,329 19,336,968 20,836,489 Community development 2,500,826 3,126,267 2,838,474 3,154,443 Parks and recreation 736,915 555,384 2,075,562 1,182,854 Engineering and public works 6,174,881 6,583,127 11,457,614 20,576,193 Capital outlay 1,164,653 6,804,204 997,142 1,200,818 Debt service:

Principal retirement 290,000 350,000 360,000 370,000 Interest and fiscal charges 1,013,023 951,387 944,388 933,587 Bond issuance costs - - - - Total Expenditures 30,954,887 39,029,874 42,097,177 52,508,092 Excess (Deficiency) of Revenues
Over (Under) Expenditures 7,388,315 (616,075) 4,709,142 (6,793,949)

OTHER FINANCING SOURCES (USES)
Transfers in 22,485,729 20,916,110 1,566,639 1,645,900 Transfers out (22,485,729) (20,916,110) (1,566,639) (1,645,900) Other debts issued - - - - Payment to refunded bond escrow agent - - - - Proceeds from lease - - - - Total Financing Sources (Uses) - - - - Net Change in Fund Balances 7,388,315 (616,075) 4,709,142 (6,793,949) Fund Balances, beginning of year 44,571,425 51,959,740 51,343,665 56,052,807 Restatements - - - - Fund Balances, end of year $ 51,959,740 $ 51,343,665 $ 56,052,807 $ 49,258,858

DEBT SERVICE AS A PERCENTAGE OF
NON CAPITAL EXPENDITURES 4.37% 4.04% 3.17% 2.54%
Source: City Finance Department

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 137
Menifee Mayor and City Council
February 15, 2023
Page
462 of 644

(continued)
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2017 2018 2019 2020 2021 2022
24,813,331$ 34,743,397 $ 38,523,243 $ 44,111,372 $ 49,468,537 $ 56,042,702 $ 8,061,714 10,867,727 10,765,702 10,011,450 10,914,819 13,343,572 5,748,048 12,580,822 13,820,929 16,762,108 19,146,908 23,165,414 6,219,925 6,677,180 8,428,907 8,177,911 9,431,071 10,803,623 221,382 613,165 2,011,031 1,805,179 63,611 (4,886,358) 655,544 718,890 942,403 598,244 329,487 438,833 5,295,110 9,078,142 14,077,226 5,559,177 9,600,934 10,262,446 95,359 128,323 162,935 117,986 630,271 114,987 - - - - - 14,110,185 51,110,413 75,407,646 88,732,376 87,143,427 99,585,638 123,395,404 5,391,081 6,151,518 8,169,511 9,981,475 13,962,912 18,688,827 21,350,629 25,062,622 27,389,574 33,869,480 29,174,294 34,950,472 3,643,590 4,872,304 5,693,505 5,196,946 5,377,780 6,811,947 2,461,119 2,833,753 3,592,890 3,977,479 4,943,713 5,752,300 5,947,990 9,438,808 13,436,193 20,997,861 7,041,057 5,528,660 16,157,949 5,898,238 5,143,341 18,164,545 13,332,826 17,605,427 380,000 390,000 410,000 475,088 2,585,843 7,250,613 922,488 911,088 895,488 1,140,397 540,059 1,202,754 - - - - 306,935 40,000 56,254,846 55,558,331 64,730,502 93,803,271 77,265,419 97,831,000 (5,144,433) 19,849,315 24,001,874 (6,659,844) 22,320,219 25,564,404 1,442,815 1,475,606 2,444,198 11,477,822 5,509,717 6,051,725 (1,442,815) (1,475,606) (2,444,198) (11,477,822) (5,509,717) (6,051,725) - - 6,550,000 - 17,885,000 6,355,581 - - - - (17,372,007) - - - - - - 6,939,942 - - 6,550,000 - 512,993 13,295,523 (5,144,433) 19,849,315 30,551,874 (6,659,844) 22,833,212 38,859,927 49,258,858 44,114,425 63,963,740 94,515,614 87,855,770 110,801,919 - - - - 112,937 - $ 44,114,425 $ 63,963,740 $ 94,515,614 $ 87,855,770 $ 110,801,919 $ 149,661,846

3.25% 2.62% 2.19% 2.14% 4.89% 10.54%
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 138
Menifee Mayor and City Council
February 15, 2023
Page
463 of 644

CITY OF MENIFEE

MAJOR REVENUES BY SOURCE – GOVERNMENTAL FUNDS
-102-

Fiscal Property Sales Motor Vehicle Franchise
Year Tax Tax In Lieu Tax Tax Total
2013 8,783,126$ 4,978,337 $ 45,443 $ 2,921,048 $ 16,727,954 $ 2014 11,945,065 5,386,619 34,912 2,967,476 20,334,072 2015 14,634,225 5,924,347 34,308 3,586,271 24,179,151 2016 14,577,983 7,137,168 34,451 3,084,175 24,833,777 2017 12,369,587 8,661,218 39,873 2,973,633 24,044,311 2018 18,876,904 18,005,117 47,721 3,076,719 40,006,461 2019 20,771,353 20,384,878 44,113 3,141,174 44,341,518 2020 22,361,021 21,102,457 73,963 6,289,086 49,826,527 2021 24,076,949 27,476,156 73,963 3,653,129 55,280,197 2022 26,024,300 31,684,459 115,162 4,055,791 61,879,712 Source: City Finance Department

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 139
Menifee Mayor and City Council
February 15, 2023
Page
464 of 644

CITY OF MENIFEE

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

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Total Taxable
Fiscal Assessed Percent
Year Secured Unsecured SBE Nonunitary Exemptions Value Change 2013 5,802,742,402$ 101,020,305 $ 577,528,271 $ (19,336,905) $ 6,461,954,073 $ -4.13% 2014 6,179,136,921 94,335,266 440,228,271 (19,630,098) 6,694,070,360 3.59% 2015 6,987,584,499 92,460,808 346,628,271 (19,962,118) 7,406,711,460 10.65% 2016 7,686,424,297 95,234,280 295,028,271 (131,240,361) 7,945,446,487 7.27% 2017 8,204,501,816 94,227,737 253,828,271 (144,682,408) 8,407,875,416 5.82% 2018 8,712,740,063 99,807,071 105,828,271 (21,427,691) 8,896,947,714 5.82% 2019 9,492,168,800 113,916,759 118,100,000 (21,889,314) 9,702,296,245 9.05% 2020 10,257,311,309 119,918,747 13,800,000 (1,199,425) 10,389,830,631 7.09% 2021 11,130,368,586 140,615,466 - - 11,270,984,052 9.05% 2022 12,129,504,862 174,182,957 - - 12,303,687,819 9.16% Source: HdL Companies, Riverside County Assessor
In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 140
Menifee Mayor and City Council
February 15, 2023
Page
465 of 644

CITY OF MENIFEE

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

BY USE CATEGORY

-104-
Total Taxable Total
Fiscal Residential Commercial Industrial Assessed Percent Direct Year Property Property Property Dry Farm Other Exemptions Value Change Rate 2013 4,653,661,495$ 400,175,540 $ 71,956,220 $ 21,439,147 $ 1,334,058,576 $ (19,336,905) $ 6,461,954,073 $ -4.13% 0.06617 2014 5,025,043,795 419,255,659 74,872,731 22,134,820 1,172,393,453 (19,630,098) 6,694,070,360 3.59% 0.14552 2015 5,837,398,400 419,946,710 78,550,017 20,875,554 1,069,902,897 (19,962,118) 7,406,711,460 10.65% 0.14230 2016 6,349,493,758 444,912,094 79,232,788 21,615,968 1,070,534,347 (20,342,468) 7,945,446,487 7.27% 0.14069 2017 6,823,268,713 465,564,229 80,678,726 21,511,185 1,038,617,091 (21,764,528) 8,407,875,416 5.82% 0.13943 2018 7,368,551,565 522,390,630 86,731,580 20,505,027 920,196,603 (21,427,691) 8,896,947,714 5.82% 0.13809 2019 8,050,646,652 592,624,119 97,305,521 20,895,440 962,713,827 (21,889,314) 9,702,296,245 9.05% 0.13739 2020 8,789,370,483 634,623,902 96,855,473 84,679,342 785,500,856 (1,199,425) 10,389,830,631 7.09% 0.13697 2021 9,605,927,556 718,201,265 92,954,481 61,632,016 792,268,734 - 11,270,984,052 8.48% 0.14302 2022 10,521,453,404 768,722,082 96,436,403 69,173,323 847,902,607 - 12,303,687,819 9.16% 0.14144 Source: HdL Companies, Riverside County Assessor
In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% based upon the assessed value of the property being taxed. Each year, the assessed value of property may beincreased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time it is sold to new owner. At that point, the new assessed value is reassessed at the purchase price sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 141
Menifee Mayor and City Council
February 15, 2023
Page
466 of 644

CITY OF MENIFEE

DIRECT AND OVERLAPPING PROPERTY TAX RATES

-105-
Agency 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Basic Levy* 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Eastern Municipal Water Imp District 0.21100 0.21100 0.15800 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 0.05000 Menifee School Debt Service 0.03486 0.03421 0.03275 0.03010 0.03269 0.06080 0.06303 0.06277 0.06111 0.06319 Metropolitan Water District Original Area 0.00370 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 0.00350 Perris Union High School Debt Service 0.03429 0.06970 0.06303 0.06236 0.06092 0.01320 0.01320 0.08244 0.08569 0.01320 Mt. San Jacinto Jr. College - - - 0.01394 0.01320 0.05675 0.05243 0.01320 0.01320 0.08859 Total Direct & Overlapping Tax Rates 1.28385 1.31841 1.25728 1.14596 1.14711 1.18425 1.18216 1.21191 1.21350 1.21848 City of Menifee Share of 1% per Prop 13 0.06459 0.12740 0.12740 0.12740 0.12740 0.12904 0.12903 0.12903 0.12643 0.12643 Total Direct Rate** 0.06454 0.06373 0.06617 0.14552 0.14227 0.14069 0.13943 0.13809 0.14302 0.14144 This schedule shows information for all city tax rate areas. **Total Direct Rate is the weighted average of all individual direct rates applied by the government entity. *In 1978, California voters passed Proposition 13 which set the property tax rate at 1.00% fixed amount. This 1.00% is shared by all taxing agencies in which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds or assessments.

Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 142
Menifee Mayor and City Council
February 15, 2023
Page
467 of 644

CITY OF MENIFEE

PRINCIPAL PROPERTY TAX PAYERS

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Percent Percent
of Total City of Total City
Total Taxable Total Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Rank Value Value Rank
MG Artesa Apartments LLC 92,625,716$ 0.75% 1 Malcolm Jerome and Maxine Winer 91,477,994 0.74% 2 Newport Property LLC 86,961,483 0.71% 3
Antelope Ridge Apartments LLC 47,730,235 0.39% 4 30,855,140 $ 0.48% 6 Cantabria Development LP 46,880,565 0.38% 5 Lennar Home of California Inc 37,833,556 0.31% 6 PHH Real Estate 33,271,044 0.27% 7 28,672,012 0.44% 7 BLC Fleming LLC 31,566,961 0.26% 8
Target Corporation 26,556,335 0.22% 9 23,072,677 0.36% 8 SRP LLC 25,895,534 0.21% 10
Inland Empire Energy Center, LLC 577,500,000 8.94% 1 BJS Restaurant 57,610,040 0.89% 2
Stark Menifee Land 53,597,608 0.83% 3
Carrington Place Limited 40,000,000 0.62% 4
Strata Cantabria LLC 35,778,745 0.55% 5
HCP HB2 Carrington Cherry Hills 20,654,266 0.32% 9 CV Communities 15,944,387 0.25% 10
Totals 520,799,423 4.23% 883,684,875 13.68% All Other 11,782,888,396 95.77% 5,578,269,198 86.32% City Total 12,303,687,819$ 100.00% 6,461,954,073$ 100.00% 2022 2013

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 143
Menifee Mayor and City Council
February 15, 2023
Page
468 of 644

CITY OF MENIFEE

PROPERTY TAX LEVIES AND COLLECTIONS

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Total Tax
Fiscal Levy for Percentage of Amount Collected in Total Tax Percentage Year Fiscal Year Amount Levy Subsequent Year Collections of Levy 2013 8,354,848$ 8,321,443 $ 99.60% 144,969 $ 8,466,413 $ 100% 2014 9,319,167 9,159,856 98.29% 159,311 9,319,168 100% 2015 10,165,063 10,091,501 99.28% 73,562 10,165,064 100% 2016 10,903,160 10,707,116 98.20% 196,044 10,903,161 100% 2017 11,592,282 11,391,985 98.27% 200,297 11,592,283 100% 2018 12,027,685 11,935,913 99.24% 91,772 12,027,686 100% 2019 13,268,770 13,077,732 98.56% 191,038 13,268,771 100% 2020 14,397,065 14,170,014 98.42% 227,051 14,397,066 100% 2021 16,382,479 16,347,132 99.78% 35,348 16,382,481 100% 2022 17,649,773 17,263,608 97.81% 386,165 17,649,774 100% Source: County of Riverside
Fiscal Year of Levy
Collected within the
With the passage of Resolution 10-138 in June 2010, the City of Menifee agreed to participate in the Riverside County Teeter Program. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of the amount of delinquencies.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 144
Menifee Mayor and City Council
February 15, 2023
Page
469 of 644

CITY OF MENIFEE

RATIO OF OUTSTANDING DEBT BY TYPE

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General Lease Certificates Distribution Total Percentage of Fiscal Obligation Revenue of Facilities County Governmental Personal Per Year Bonds Bonds Participation Financing Repayment (1) Activities Income Capita (2) 2013 - $ - $ 20,942,080$ - $ 1,099,390$ 22,918,222 $ 1.22% 267.84 $ 2014 - - 20,586,752 - 1,057,619 22,490,715 1.20% 258.55 2015 - - 20,206,344 - 1,057,619 22,079,899 1.14% 249.04 2016 - - 19,815,936 - 1,057,619 20,873,555 1.10% 235.80 2017 - - 19,415,528 - - 19,415,528 1.00% 214.16 2018 - - 19,005,120 - - 19,005,120 0.09% 206.80 2019 - - 18,144,304 6,550,000 - 24,694,304 1.09% 264.25 2020 - - 17,688,896 6,499,912 - 24,188,808 0.99% 249.13 2021 - - 16,040,392 6,120,786 - 22,161,178 0.84% 222.31 2022 - - 16,315,000 5,900,754 - 22,215,754 0.84% 216.74 (1) County Repayment is not bonded debt
(2) See the schedule of demographic and economic statistics for population data.

Source: City Finance Division
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 145
Menifee Mayor and City Council
February 15, 2023
Page
470 of 644

CITY OF MENIFEE

RATIO OF GENERAL BONDED DEBT OUTSTANDING

-109-
Total Less Percent
General Debt Net of Debt to Debt
Fiscal Assessed Obligation Service Bonded Assessed per
Year Population Value Bonds Fund (1) Debt Value (2) Capita 2013 82,292 6,461,954,073$ - - - 0.00% - 2014 83,716 6,694,070,360 - - - 0.00% - 2015 85,385 7,406,711,460 - - - 0.00% - 2016 88,524 7,945,446,487 - - - 0.00% - 2017 90,660 8,407,875,416 - - - 0.00% - 2018 91,902 8,896,947,714 - - - 0.00% - 2019 93,452 9,702,296,245 - - - 0.00% - 2020 97,093 10,389,830,631 - - - 0.00% - 2021 99,686 11,270,984,052 - - - 0.00% - 2022 106,627 12,303,687,819 - - - 0.00% - (1) Amounts available for repayment of general obligation bonds.

Source: City Finance Division
(2) Assessed value has been used because the actual value of taxable property is not readily available in the State of California.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 146
Menifee Mayor and City Council
February 15, 2023
Page
471 of 644

CITY OF MENIFEE

DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2022

-110-
Percent City's
Total Applicable Share of
Debt to City Debt
Direct Debt
City of Menifee-County Loan Repayment - $ 0.0% - $ City of Menifee-Certificates of Participation 16,315,000 100.0% 16,315,000 City of Menifee-Distribution Facilities Financing Agreement 5,900,754 100.0% 5,900,754 Total Direct Debt 22,215,754$ 100.0% 22,215,754$
Direct and Overlapping Tax and Assessment Debt
Metropolitan Water District 20,175,000 $ 0.352% 71,016 $ Riverside County Flood Control & Water Conservation District Zone 7,880,000 19.295% 1,520,446 Eastern Municipal Water District Improvement Districts 13,975,000 80.528-100.% 11,802,898 Mount San Jacinto Community College District 253,195,000 10.79300% 28,742,696 Perris Union High School District 308,808,231 57.517% 179,593,603 Menifee Union School District 124,944,720 75.293% 94,097,118 Perris Union High School District Community Facilites District No. 9 31,910,000 60.672% 19,360,435 Menifee Union School District Community Facilities Districts 173,315,000 33.681-100% 169,615,182 Romoland School District Communit Facilities Districts 172,655,000 54.833-100% 159,665,026 Eastern Municipal Water District Community Facilities Districts 93,887,000 62.092-100% 90,941,548 City of Menifee Community Facilities District Nos. 2016-2 and 2017- 14,080,000 100% 14,080,000 Riverside County Community Facilities Districts 29,900,000 27.147-95.731% 22,347,092 Eastern Municipal Water District 1915 Act Bonds 2,545,000 64.200% 1,636,079 Total Direct and Overalapping Tax and Assessment Debt 793,473,139$ Overlapping General Fund Debt:

Riverside County General Fund Obligations 720,218,351 $ 3.716% 26,763,314 $ Riverside County Pension Obligations 820,060,000 3.716% 30,473,430 Perris Union High School District Certificates of Participation 40,793,235 58.157% 23,724,122 Menifee Union School District Certificates of Participation 45,872,408 75.311% 34,546,969 Total Gross Overlapping General Fund Debt 115,507,835$
Less: Riverside County Supported Obligations -
Total Net Overlapping General Fund Debt 115,507,835$
Overlapping Tax Increment Debt 231,912,748$ 1.924-12.217% 14,752,601$ (Riverside County Successor Agency)
Total Direct Debt 22,215,754$
Total Gross Overlapping Debt 923,733,575$
Total Net Overlapping Debt 923,733,575$
Total Direct and Overlapping Debt 945,949,329$
Gross Combined Total Debt 1 946,844,361$
Net Combined Total Debt 946,844,361$
Ratios to 2019-20 Assessed Valuation:

Total Direct Debt 0.19%
Total Direct and Overlapping Tax and Asssessment Debt 6.45% Gross Combined Total Debt 7.70%
Net Combined Total Debt 7.70%
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total assessed value. (1) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: California Municipal Statisitics
Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 147
Menifee Mayor and City Council
February 15, 2023
Page
472 of 644

CITY OF MENIFEE

LEGAL DEBT MARGIN INFORMATION

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2018 2019 2020 2021 2022
Assessed valuation 8,896,947,714$ 9,702,296,245$ 10,389,830,631$ 11,270,984,052$ 12,303,687,819$ Debit Limit Percentage 15% 15% 15% 15% 15%
Debt limit 1,334,542,157 1,455,344,437 1,558,474,595 1,690,647,608 1,845,553,173 Total Net Debt Applicable to the Limit
General Obligation Bonds: - - - - - Legal debt margin 1,334,542,157$ 1,455,344,437$ 1,558,474,595$ 1,690,647,608$ 1,845,553,173$ Total Debt Applicable to the Limit
as a Percentage of Debt Limit 0.00% 0.00% 0.00% 0.00% 0.00% The City of Menifee has no general obligation indebtedness.

Only last five years shown.

Source: City Finance Department, HdL Companies
Section 43605 of the Government Code of the State of California limits the amount of indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the City.

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 148
Menifee Mayor and City Council
February 15, 2023
Page
473 of 644

CITY OF MENIFEE

DEMOGRAPHIC AND ECONOMIC STATISTICS

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Personal Per Capita Median Occupied Persons
Fiscal Income Personal Home Housing per Median Unemployment Year Population (In 1000) Income Price Units Household Age Rate 2013 82,292 1,812,481 $ 22,025 $ 198,750 $ 31,975 2.57 38.2 10.20% 2014 83,716 1,808,600 21,604 250,000 28,933 2.89 38.0 8.90% 2015 85,385 1,868,959 22,333 280,000 29,383 2.91 37.9 9.60% 2016 88,524 1,891,622 21,253 300,000 30,226 2.93 38.7 7.90% 2017 90,660 1,936,648 21,253 325,000 31,253 3.94 37.4 7.10% 2018 91,902 2,055,023 22,667 340,000 31,253 2.94 37.4 4.70% 2019 93,452 2,264,845 24,235 350,000 31,222 2.99 37.9 4.50% 2020 97,093 2,450,076 25,234 374,000 33,348 2.91 37.9 4.00% 2021 99,686 2,647,056 26,553 450,000 34,256 2.91 37.7 10.10% 2022 106,627 2,871,857 26,933 560,000 36,308 2.94 38.0 7.50% Source: Riverside County Center for Demographic Research, California Department of Finance E-5

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 149
Menifee Mayor and City Council
February 15, 2023
Page
474 of 644

CITY OF MENIFEE

PRINCIPAL EMPLOYERS

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Number of Percentage of
Employer Employees Employment Rank
Mt San Jacinto College District 1,500 27.43% 1
Menifee Union School District 1,290 23.59% 2
Romoland Elementary School District 554 10.13% 3
Target Corporation 417 7.63% 4
Menifee Global Medical Center 365 6.68% 5
Stater Brothers 362 6.62% 6
City of Menifee 312 5.71% 7
United Parcel Service (UPS) 248 4.54% 8
Southern California Edison 220 4.02% 9
Texas Roadhouse 200 3.66% 10
Total Employment Listed 5,468 100.00%
Source: Menifee Valley Chamber of Commerce, City of Menifee Business License Division 2022

Item Title: 12.1
Annual Comprehensive Financial Report (ACFR) for Fiscal Year End June 30, 2022 Item Page Number: 150
Menifee Mayor and City Council
February 15, 2023
Page
475 of 644

CITY OF MENIFEE

FULL AND PART-TIME CITY EMPLOYEES BY PROGRAM

-114-
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent
Full Time
Equivalent

FUNCTION
City Manager 1.50 1.25 2.00 2.00 1.00 4.00 4.00 5.00 5.00 8.00 Administrative Services 4.50 2.75 4.50 5.00 6.00 - - - - - City Clerk 2.00 2.00 2.00 2.00 2.00 3.00 3.00 5.00 5.00 6.00 Emergency Services - 0.75 - - - - - Finance 6.00 6.00 6.00 6.00 7.00 10.00 12.50 13.50 13.50 17.00 Human Resources 1.00 1.00 1.00 1.00 - 4.00 8.50 6.50 6.50 8.00 Information Technology - - - - - 2.00 5.00 8.00 8.00 13.00 Economic Development 2.25 2.00 2.00 2.00 3.00 3.00 5.00 3.50 3.50 4.00 Community Development 3.00 3.00 4.00 4.00 5.00 11.00 13.50 13.00 13.00 15.00 Code Enforcement 4.00 4.00 5.00 4.00 4.00 7.00 7.00 5.00 6.00 8.00 Fire - - - - - 1.00 2.00 2.00 2.00 2.00 Engineering/ Pub Works 5.00 6.00 10.00 12.00 16.00 24.00 32.00 33.00 33.00 44.50 Building/Safety 4.00 4.00 7.00 8.00 9.00 12.00 14.00 12.00 12.00 15.00