Agenda packet — Menifee City Council, June 5, 2024 (part 2 of 7)

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must be filed at the time nomination papers are filed, along with a deposit for printing costs. If, after the statements are printed and mailed out, the actual cost to each candidate is found to be greater than the deposit, then the candidate must pay the additional amount. If the actual cost to each candidate turns out to be less than the deposit, that portion of the deposit in excess of the actual cost would be refunded. Candidate statement costs have not yet been provided by the Registrar of Voters. Potential candidates will receive those costs at the time the candidate nomination period.

Elections Code section 13307(b) states, “That the statement of each candidate shall be printed in type of uniform size and darkness, and with uniform spacing.” The Registrar of Voters and County Counsel have interpreted the code to prohibit bold font in candidate statement formatting, but will permit italics, underlining, bullets, and capitalized words. Therefore, the City Clerk would allow these types of fonts and formats and prohibit bold font.

STRATEGIC PLAN OBJECTIVE
Regular City Business

FISCAL IMPACT
The Riverside Registrar of Voters estimates the election costs at $3.50 per registered voter in the City of Menifee. The cost estimate provided by the Riverside County Registrar of Voters for the 2024 Election is $250,000. Election costs are included in the Fiscal Year 2024/2025 budget in Account No. 100-4113-52805.

ATTACHMENTS

1. Resolution - Calling the Election

2. Resolution - Candidate Statements
Item Title: 10.4
November 5, 2024 General Municipal Election Resolutions Item Page Number: 2

Menifee Mayor and City Council
June 5, 2024
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RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE,

CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF THE

REGULAR GENERAL MUNICIPAL ELECTION OF THE CITY OF MENIFEE TO BE HELD IN THE CITY OF MENIFEE ON TUESDAY, NOVEMBER 5, 2024,

FOR THE ELECTION OF CERTAIN COUNCIL MEMBERS AND REQUESTING

THE REGISTRAR OF VOTERS FOR THE COUNTY OF RIVERSIDE TO

CONDUCT THE ELECTION
WHEREAS, pursuant to the requirements of the laws of the State of California relating to general law cities, the City Council of the City of Menifee calls and orders to be held in the City of Menifee, California, on Tuesday, November 5, 2024, a consolidated municipal election to consider the election of municipal officers; and WHEREAS, the City has chosen under the provisions of Elections Code Section 1301(b) to consolidate its regular general election with the statewide general election held in November of even numbered years; and
WHEREAS, the County of Riverside has approved such consolidation of the regular general election of the City of Menifee with the statewide general election held in November of even numbered years; and
WHEREAS, the City Council requests the Registrar of Voters, County of Riverside, to conduct the regular general municipal election.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE,

CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1.That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Menifee, California, on Tuesday, November 5, 2024 a General Municipal Election for the purpose of electing three members of the City Council for the full term of four years (Mayor, District 1 and District 3) continuing to December 2028. Currently seated Councilmembers whose terms expire in 2024 are: Bill Zimmerman, Mayor, Robert Karwin, District 1, and Lesa Sobek, District 3.

SECTION 2.The ballots to be used at the election shall be in form and content as required by law.

SECTION 3.The polls for the election shall be open at seven o’clock a.m. on the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to California Election Code Section 10242, except as provided in Elections Code Section 14212 and 14401.

SECTION 4.In all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections in the City.

SECTION 5. The City Council of Menifee hereby respectfully requests of the County of Riverside and herein consents, to the consolidation of the election with other elections, Item Title: 10.4
November 5, 2024 General Municipal Election Resolutions Item Page Number: 3

Menifee Mayor and City Council
June 5, 2024
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City of Menifee
Resolution Calling the Election 2024
2 which may be held on said day in whole or in part of the territory of the City, as provided in Elections Code 10400.

SECTION 6.That pursuant to the provisions of Section 10002 of the Election Code of the State of California, the City Council requests the County Registrar of Voters to prepare and furnish the items outlined in Exhibit A to this resolution.

SECTION 7.The City shall reimburse the County Registrar of Voters for reasonable and actual election services performed when the work is completed and upon presentation to the City of a properly approved bill.

SECTION 8.The notice of the time and place of holding the election is given and the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 9. The City Clerk is directed to forward without delay to the County Registrar of Voters, a certified copy of this Resolution.

SECTION 10.This Resolution shall take effect immediately upon its adoption. The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED AND ADOPTED on this 5th day of June, 2024. _____________________________
Bill Zimmerman, Mayor
ATTEST:
_____________________________
Stephanie Roseen, Acting City Clerk
APPROVED AS TO FORM:
______________________________
Jeffrey T. Melching, City Attorney
Item Title: 10.4
November 5, 2024 General Municipal Election Resolutions Item Page Number: 4

Menifee Mayor and City Council
June 5, 2024
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City of Menifee
Resolution Calling the Election 2024
3 EXHIBIT A
Detailed list of services to be provided by the Riverside County Registrar of Voters:

1. Prepare all up-to-date election process forms.

2. Provide signature verification services for all nomination papers.

3. Prepare sample ballot/Voter Information Guide materials including candidate statements and translations for review by the City Clerk, prior to distribution.

4. Distribute sample ballots Voter Information Guide to all qualified City of Menifee registered voters.

5. Establish polling places/vote centers for voting precincts.

6. Provide voting equipment, ballot boxes, ballots, and all other necessary supplies and paraphernalia, for each established polling place/vote center.

7. Select, train and issue payment to poll workers and alternate poll workers as required by law for each polling place/vote center established. The City shall have the opportunity to review the final list of poll workers assigned to serve in City precincts/vote centers.

8. Provide training for "Range Inspectors" hired by the County to provide technical support on Election Days.

9. Provide an alphabetical listing of each voter in the City, including their appropriate polling place/vote center location.

10. Provide the necessary voter registration lists for all polling/vote center locations.

11. Publish and post required notices regarding polling places/vote centers and poll workers.

12. Provide the County tabulation equipment and qualified and trained County personnel to operate the same.

13. Provide County personnel for security during the ballot counting and tabulation process.

14. Provide sufficient personnel to deliver, process, count and tabulate the ballots on the night of the general municipal election.

15. Distribute and process all vote by mail and conditional voter ballots.

16. Prepare and deliver the election returns of the votes cast at the general municipal election to the Menifee City Clerk, to enable the City Clerk to canvass the returns and declare the results.

17. Provide voting precinct maps for use by the City Clerk's Office and City poll workers, in assisting voters to determine their precinct polling/vote center locations.

18. Provide itemized written Invoice prior to December 31, 2024.

Item Title: 10.4
November 5, 2024 General Municipal Election Resolutions Item Page Number: 5

Menifee Mayor and City Council
June 5, 2024
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RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE

PROVIDING FOR REGULATIONS PERTAINING TO MATERIALS FOR

CANDIDATES AND COSTS PERTAINING TO CANDIDATE STATEMENTS

SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 5, 2024
WHEREAS, California Elections Code Section 13307 provides that the governing body of any local agency adopt regulations pertaining to materials prepared by any candidate for a Municipal Election, including the costs thereof.

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

SECTION 1. General Provisions. That pursuant to California Elections Code Section 13307, each candidate for elective office to be voted for at the General Municipal Election to be held in the City of Menifee on Tuesday, November 5, 2024, may prepare a candidate statement on an appropriate form provided by the City Clerk. Such statements may include the name, age and occupation of the candidate and a brief description of no more than two hundred (200) words of the candidate’s education and qualifications expressed by the candidate themselves. In that City Council offices are non-partisan, such statements shall not include party affiliation of the candidate, nor membership activity in the partisan political organizations. Pursuant to Elections Code Section 13307, such statements may not include a reference to any other candidate. Such statements shall be filed in the Office of the City Clerk at the time the candidate’s nomination papers are filed. Such statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

SECTION 2. Foreign Language Policy. Pursuant to the Federal Voting Rights Act, the City Clerk shall provide a Spanish translation of the candidate’s statement to be included in the voter’s pamphlet and mailed with the sample ballot to each registered voter in the City, if the candidate requests such statement in Spanish. (In compliance with the amendments to the Federal Voting Rights Act of 1965, Public Law 94-73, August 6, 1975.)
SECTION 3. Payment. The City Clerk shall require a candidate filing a statement to pay a deposit in advance as a condition of having his or her statement included in the voters’ pamphlet. The City Clerk shall bill each candidate for any cost in excess of the deposit and shall refund any unused portion of any deposit.

SECTION 4. Formatting. The City Clerk shall allow italics, underlining, bullets, and capitalized words in candidate statements. Bold type is prohibited in candidate statements.

SECTION 5. State Standards. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

Item Title: 10.4
November 5, 2024 General Municipal Election Resolutions Item Page Number: 6

Menifee Mayor and City Council
June 5, 2024
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City of Menifee
Setting Candidate Fees
2 SECTION 6. Additional Materials. No candidate will be permitted to include additional materials to the sample ballot package.

SECTION 7. Copies. The City Clerk shall provide each candidate or the candidate’s representative with a copy of this Resolution at the time nomination petitions are issued.

SECTION 8. Repeal. That all previous resolutions establishing council policy on payment for candidate statements are repealed.

SECTION 9. Application. That this resolution shall apply to the election to be held on November 5, 2024 and shall then be repealed.

SECTION 10. Certification. The City Clerk shall certify to the passage and adoption of this Resolution, shall enter the same into the book of original Resolutions of the City of Menifee.

PASSED, APPROVED, AND ADOPTED THIS 5th day of June 2024. ____________________________
Bill Zimmerman, Mayor
ATTEST:
_________________________
Stephanie Roseen, Acting City Clerk
APPROVED AS TO FORM:
____________________________
Jeffrey T. Melching, City Attorney
Item Title: 10.4
November 5, 2024 General Municipal Election Resolutions Item Page Number: 7

Menifee Mayor and City Council
June 5, 2024
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CITY OF MENIFEE
SUBJECT: Authorization of Representatives for Access to Sales and Use Tax and Transaction and Use Tax Records
MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Margarita Cornejo, Deputy Finance Director REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION

1. Adopt a resolution authorizing the examination of the City’s sales and use tax and transaction and use tax records.

DISCUSSION
Pursuant Revenue and Taxation Code Section 7270, the City entered into a contract with the State Board of Equalization (“Board”) to perform all functions related to the administration and operation of the sales and use tax and the transaction and use tax, Ordinance No. 2016-199. The City is required to adopt a resolution, designating authorized representatives to examine the City’s sales and use tax and transaction and use tax records that are generated and maintained by the Board. Occasionally, as positions and employees change within the City, it becomes necessary to update this resolution. The latest resolution adopted for this purpose was Resolution No.20- 934 adopted on June 15, 2020.

The proposed resolution would authorize the City Manager, Assistant City Manager, Chief Financial Officer (CFO), Deputy Finance Director, other officers or employees so designated, and Hinderliter, de Llamas (HdL) Company, the City’s independent sales tax consultant, to receive correspondence from the Board and to receive sales and use tax and transaction and use tax data from the board for analytic purposes.

STRATEGIC PLAN OBJECTIVE
Thriving Economy
Item Title: 10.5
Authorization of Representatives for Access to Sales and Use Tax and Transaction and Use Tax Records Item Page Number: 1

Menifee Mayor and City Council
June 5, 2024
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City of Menifee Staff Report
Examination of the City's Sales, Transaction & Use Tax Records June 5, 2024

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

ATTACHMENTS

1. Resolution
Item Title: 10.5
Authorization of Representatives for Access to Sales and Use Tax and Transaction and Use Tax Records Item Page Number: 2

Menifee Mayor and City Council
June 5, 2024
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1 RESOLUTION NO. 24- _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA AUTHORIZING THE EXAMINATION OF THE CITY’S SALES AND USE TAX AND TRANSACTION AND USE TAX RECORDS.

WHEREAS, pursuant to Ordinance No. 2008-04 and No. 2016-199 of the City of Menifee (hereinafter called City) and Section 7270 of the Revenue and Taxation Code, the City entered into a contract with the State Board of Equalization to perform all functions incident to the administration and operation of the Sales and Use Tax and the Transaction and Use Tax Ordinance; and,
WHEREAS, the City deems it desirable and necessary for authorized representatives of the City to examine confidential sales and use tax and transactions and use tax records of the State Board of Equalization pertaining to sales and use tax and transaction and use taxes collected by the Board for the City pursuant to that contract; and, WHEREAS, Section 7056 of the Revenues and Taxation Code sets forth certain requirements and conditions for the disclosure of Board of Equalization records and establishes criminal penalties for the unlawful disclosure of information contained in or derived from, the sales and use tax and transaction and use tax records of the Board; NOW, THEREFORE, the City Council of the City of Menifee resolves as follows:

SECTION 1.That the City Manager, Assistant City Manager, Chief Financial Officer (CFO) and Deputy Finance Director, or other officer or employee of the City of Menifee (hereafter referred to as City) designated in writing by either the City Manager or the Assistant City Manager to the State Board of Equalization (hereafter referred to as Board) is hereby appointed to represent the City with authority to examine sales and use tax and transaction and use tax records of the Board pertaining to sales and use tax and transaction and use taxes collected for the City by the Board pursuant to the contract between the City and the Board. The information obtained by examination of Board records shall be used only for purposes related to the collection of the City’s sales and use tax and transaction and use taxes by the Board pursuant to the contract.

SECTION 2. That the City Manager, Assistant City Manager, Chief Financial Officer (CFO), Deputy Finance Director or other officer or employee of the City designed in writing by the City Manager or Assistant City Manager to the Board of Equalization is hereby appointed to represent the City with authority to examine those sales and use tax and transaction and use tax records of the Board for purposes related to the following governmental functions of the City:
a. Administrative
b. Budgeting & Forecasting
c. Economic Development
d. Monetary Oversight
e. Planning
The information obtained by examination of Board records shall be used only for those governmental functions of the City listed above.

Item Title: 10.5
Authorization of Representatives for Access to Sales and Use Tax and Transaction and Use Tax Records Item Page Number: 3

Menifee Mayor and City Council
June 5, 2024
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1 SECTION 3. That Hinderliter, de Llamas (HdL) Companies is hereby designated to examine the sales and use tax and transaction and use tax records of the Board of Equalization pertaining to sales and use tax and transaction and use taxes collected for the City by the Board.

The person or entity designated by this section meets all of the following conditions:
a. Has an existing contract with the City to examine those sales and use tax and transaction and use tax records;
b. Is required by that contract to disclose information contained in, or derived from those sales and use tax and transaction and use tax records only to the officer or employee authorized under Section 1 (or Section 2) of this resolution to examine the information; c. Is prohibited by that contract from performing consulting services for a retailer during the term of that contract;
d. Is prohibited by that contract from retaining the information contained in, or derived from those sales and use tax and transaction and use tax records after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Board records shall be used only for purposes related to the collection of City’s sales and use tax and transaction and use taxes by the Board pursuant to the contracts between the City and Board.

PASSED, APPROVED AND ADOPTED this 5th day of June 2024.

Attest:

Stephanie Roseen, Acting City Clerk
Approved as to form:

Jeffrey T. Melching, City Attorney
Bill Zimmerman, Mayor
Item Title: 10.5
Authorization of Representatives for Access to Sales and Use Tax and Transaction and Use Tax Records Item Page Number: 4

Menifee Mayor and City Council
June 5, 2024
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CITY OF MENIFEE
SUBJECT: Annual Investment Policy Update for Fiscal Year 2024/2025 MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Ann-Marie Etienne, Finance Manager
REVIEWED BY: Travis Hickey, Chief Financial Officer
APPROVED BY: Armando G. Villa, City Manager
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RECOMMENDED ACTION

1. Adopt a resolution approving the annual update to the City of Menifee’s Investment Policy for Fiscal Year 2024/2025.

DISCUSSION
In accordance with the current Investment Policy (Policy Number CC-11) (“Policy”), this Policy shall be reviewed and adopted at least once a year within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends. The Policy was initially adopted in 2008 and has had subsequent updates since then with the last annual update approved by the City Council on October 18, 2023.

The Finance Committee reviewed the Fiscal Year (FY) 2024/2025 updated draft Policy at its meeting held on May 7, 2024, and recommended approval by the City Council. The purpose of the Policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Menifee’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. The Policy also serves to organize and formalize the City of Menifee’s investment-related activities, while complying with all applicable statutes governing the investment of public funds.

This Policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

On July 5, 2022, the CMTA Investment Policy Certification was granted to the City of Menifee.

This Investment Policy Certification recognizes that CMTA has validated that the City of Menifee’s Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 1

Menifee Mayor and City Council
June 5, 2024
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City of Menifee Staff Report
Annual Investment Policy Update for Fiscal Year 2024/2025 June 5, 2024

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Investment Policy adheres with the State of California Government Code and meets specific requirements deemed to be best practices for municipal agency investment policies. Per CMTA recommendation, the City will seek to certify our Investment Policy every two to three years, or whenever a major update occurs.

Any recommended modifications or amendments shall be presented by staff to the City Council for their consideration and adoption. The draft FY 2024/2025 Policy revisions consist of:
•Added state-licensed broker dealers as an authorized institution. •Updated “portfolio” to “total portfolio” to reflect compliance is assessed across the entire client relationship. This provides a clarification on a holistic/aggregate review across all City investment activities.
•Clarified the provisions around Placement Services, including the associated glossary term based on the local government, financial affairs and surplus funds requirements established under AB 945.
•No action is necessary for SB 822 (effective 1/1/2024) related to Asset Backed Securities (ABS)/ Mortgage-Backed Securities (MBS)/ Collateralized Mortgage Obligations (CMO) as it was already stated in the policy.
•Added indication that benchmarks may change based on the needs of the City. This allows for the City to determine the benchmarks which best align with the City’s investment priorities.
•Updated the “City of Menifee Policy Maximum” to align to the narrative in the Authorized Investments.
•Removed terms not used in the document from the glossary. •Updated the annual review of the investment policy to be once a year, and no later than 120 days of the end of the fiscal year. This will align the review to be completed at the beginning of each fiscal year and in alignment with the annual budget process.

The overall goal of this policy is to ensure that the City’s investments are managed with the degree of professionalism worthy of the public trust, with preservation and protection of the City’s assets being the guiding philosophy.

STRATEGIC PLAN OBJECTIVE
Thriving Economy

FISCAL IMPACT
There is no fiscal impact associated with the annual approval of the Investment Policy itself. A review of the policy and necessary updates was completed as a collaborative effort between staff Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 2

Menifee Mayor and City Council
June 5, 2024
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City of Menifee Staff Report
Annual Investment Policy Update for Fiscal Year 2024/2025 June 5, 2024

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and the City’s current investment advisor, Chandler Asset Management. The Investment Policy provides the backbone policy guidelines for the City’s overall investment strategy, balancing fiscally prudent investment practices with the opportunities to increase fiscal resource the City can redirect towards municipal services.

ATTACHMENTS

1. Resolution- FY2024/2025 Investment Policy

2. Exhibit A- Revised Investment Policy FY2024/2025
Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 3

Menifee Mayor and City Council
June 5, 2024
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RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MENIFEE, CALIFORNIA, APPROVING THE FISCAL YEAR
2024/2025 INVESTMENT POLICY AND APPROVING DELEGATION

TO THE CITY TREASURER TO CARRY OUT SUCH POLICY
WHEREAS, Government Code Section 53607 permits the City Council to delegate its investment authority to the City Treasurer by resolution each fiscal year; and WHEREAS, the City Council desires to make such delegation in conjunction with the approval of an investment policy.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California: RESOLVE, DETERMINE, and ORDER as follows:

Section 1. The City Council hereby adopts the Statement of Investment Policy, attached and incorporated here as Exhibit 1.

Section 2. The City Council hereby delegates to the City Treasurer the City Council’s investment authority and authorizes the City Treasurer to appoint deputies to assist in carrying out this function for fiscal year 2024/2025.

PASSED AND ADOPTED by the City Council on this 5th day of June, 2024.

ATTEST: APPROVED:

Stephanie Roseen, Acting City Clerk Bill Zimmerman, Mayor APPROVED AS TO FORM:

Jeffrey T. Melching, City Attorney
1 Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 4

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June 5, 2024
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9 CITY OF MENIFEE
City Council Policy
Policy Number: CC-11
Approving Authority:

City Council
Effective Date: 10/1/2008
Last Modified:
09/21/2022
10/18/20236/5/2024
Subject
Investment Policy (FY 20232024-20242025)

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CITY OF MENIFEE

INVESTMENT POLICY
ADOPTED October 18, 2023June 5, 2024

CONTENTS
INTRODUCTION................................................................................................................................................................................1 I. SCOPE...................................................................................................................................................................1 II. PRUDENCE.....................................................................................................................................................................1 III. OBJECTIVES ..................................................................................................................................................................2 IV. DELEGATION OF AUTHORITY .......................................................................................................................2 V. ETHICS AND CONFLICTS OF INTEREST.......................................................................................................3 VI. INTERNAL CONTROLS .....................................................................................................................................3 VII.AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS ..........................4 VIII. AUTHORIZED INVESTMENTS..................................................................................................................................5 IX.PROHIBITED INVESTMENT VEHICLES AND PRACTICES..........................................................9 X. INVESTMENT POOLS/MUTUAL FUNDS ...................................................................................................10 XI. COLLATERALIZATION............................................................................................................................................10 XII. DELIVERY, SAFEKEEPING AND CUSTODY..............................................................................................11 XIII. MAXIMUM MATURITY .........................................................................................................................................11 XIV.RISK MANAGEMENT AND DIVERSIFICATION......................................................................11 XV. REVIEW OF INVESTMENT PORTFOLIO .....................................................................................................13 XVI. PERFORMANCE EVALUATION ...........................................................................................................................13 XVII. REPORTING.................................................................................................................................................................13 XVIII. REVIEW OF INVESTMENT POLICY.............................................................................................................14 XIX. APPENDIX A: PERMITTED INVESTMENTS.......................................................................................................15 XX. GLOSSARY OF INVESTMENT TERMS .........................................................................................................17 Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 5

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June 5, 2024
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1 INTRODUCTION
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Menifee’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City of Menifee’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

This investment policy was endorsed and adopted by the City of Menifee’s City Council and is effective as of the 18 day of October, 2023, and replaces any previous versions.

I. SCOPE
This policy covers all funds and investment activities under the direct authority of the City of Menifee, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
•Proceeds of debt issuance shall be invested in accordance with the City of Menifee’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
•Any other funds specifically exempted by the City Council.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City of Menifee will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

II. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City of Menifee are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 6

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2 or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the City of Menifee, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City of Menifee. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
The Treasurer and other authorized persons responsible for managing City of Menifee funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Treasurer or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.

III. OBJECTIVES
The City of Menifee’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
•SAFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City of Menifee will diversify its investments by investing funds among a variety of securities with independent returns.
•LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. •RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into accountconsidering the investment risk constraints for safety and liquidity needs.

IV. DELEGATION OF AUTHORITY
Authority to manage the City of Menifee’s investment program is derived from California Government Code, Sections 41006 and 53600 et seq.

The Governing Body is responsible for the management of the City of Menifee’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City of Menifee’s funds is hereby delegated to the Treasurer.

Item Title: 10.6
Annual Investment Policy Update for Fiscal Year 2024/2025 Item Page Number: 7

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3 The Treasurer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees.

Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.

The City of Menifee may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City of Menifee’s investment portfolio in a manner consistent with the City of Menifee’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City of Menifee's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City of Menifee recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City of Menifee.

V. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. ThusThus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the City Manager any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City of Menifee.

All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.C
VI. INTERNAL CONTROLS
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

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4 Periodically, as deemed appropriate by the City of Menifee and/or the Governing Body, an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.

VII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS To the extent practicable, the Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City of Menifee’s Treasurer will determine which financial institutions are authorized to provide investment services to the City of Menifee. It shall be the City of Menifee’s policy to purchase securities only from authorized institutions and firms.

The Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City of Menifee. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City of Menifee are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all ofall their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City of Menifee include:
•Institutions licensed by the state and proof of FINRA certification as a broker-dealer, as defined in Section 25004 of the Corporations Code.
•Primary government dealers as designated by the Federal Reserve Bank and non- primary government dealers.
•Nationally or state-chartered banks.
•The Federal Reserve Bank.
•Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City of Menifee, except where the City of Menifee utilizes an external investment adviser in which case the City of Menifee may rely on the adviser for selection.

All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City of Menifee’s investment policy. The Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

SelectionThe selection of broker/dealers used by an external investment adviser retained by Item Title: 10.6
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5 the City of Menifee will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price. original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

VIII. AUTHORIZED INVESTMENTS
The City of Menifee’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City of Menifee seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity, and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and institution issuer to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. MUNICIPAL SECURITIES include obligations of the City of Menifee, the State of California and any local Agency within the State of California, provided that:
•The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). •No more than 5% of the total portfolio may be invested in any single issuer. •No more than 30% of the total portfolio may be in Municipal Securities. •The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, Agency, or authority of any of the other 49 states, in addition to California.
•The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”). •No more than 5% of the total portfolio may be invested in any single issuer. •No more than 30% of the total portfolio may be in Municipal Securities.

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6 •The maximum maturity does not exceed five (5) years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City of Menifee may invest in U.S.

Treasuries, provided that:
•The maximum maturity is five (5) years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City of Menifee may invest in Federal City of Menifee or Government-Sponsored Enterprises (GSEs), provided that:
•No more than 25% of the total portfolio may be invested in any single Agency/GSE issuer.
•The maximum maturity does not exceed five (5) years.
•The maximum percent of Agency callable securities in the portfolio will be 20%.

5. BANKER’S ACCEPTANCES, provided that:
•They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
•No more than 40% of the total portfolio may be invested in Banker’s Acceptances. •No more than 5% of the total portfolio may be invested in any single issuer. •The maximum maturity does not exceed 180 days.

6. COMMERCIAL PAPER, provided that:
•The issuer is a corporation organized and operating in the United States with assets in excess of $500 million.
•The securities are rated “A-1” or its equivalent or better by at least one NRSRO. •They are issued by corporations which have long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. •City of Menifee may purchase no more than 10% of the outstanding commercial paper of any single issuer.
•No more than 25% of the total portfolio may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.
•No more than 5% of the total portfolio may be invested in any single issuer. •The maximum maturity does not exceed 270 days.

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7 7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or state- chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
•The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
•Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
•No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
•No more than 5% of the total portfolio may be invested in any single issuer. •The maximum maturity does not exceed five (5) years.

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8 one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
•No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS).
•No more than 5% of the total portfolio may be invested in any single issuer. •The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
•The amount per institution is limited to the maximum covered under federal insurance.
•No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
•The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
•No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
•The maximum maturity does not exceed five (5) years.

10. CERTIFICATE OF DEPOSIT PLACEMENT DEPOSIT SERVICE (CDARS), provided that:
•No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including CDARS.
•Under a provision sunsetting on January 1, 2026, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies.
•The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City of Menifee’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651. There are no limits on the dollar amount or percentage that the City of Menifee may invest in collateralized bank deposits.

12. REPURCHASE AGREEMENTS collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City of Menifee may invest, provided that:
•Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
•Repurchase Agreements are subject to a Master Repurchase Agreement between the City of Menifee and the provider of the repurchase agreement. The Master Item Title: 10.6
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9 Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
•The maximum maturity does not exceed one (1) year.

13. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:
•The City of Menifee may invest up to the maximum amount permitted by LAIF. •LAIF’s investments in instruments prohibited by or not specified in the City of Menifee’s policy do not exclude the investment in LAIF itself from the City of Menifee’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

14. LOCAL GOVERNMENT INVESTMENT POOLS
•Other LGIPs permitted by client.
•There is no issuer limitation for Local Government Investment Pools

15. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:
•The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
•The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
•No more than 30% of the total portfolio may be invested in MTNs. •No more than 5% of the total portfolio may be invested in any single issuer. •The maximum maturity does not exceed five (5) years.

16. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES,

AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, provided that:
•The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
•No more than 20% of the total portfolio may be invested in these securities. •No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.
•The maximum legal final maturity does not exceed five (5) years.

17. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a.MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:

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10 (i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.
•No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b.MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
•No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

18. SUPRANATIONALS, provided that:
•Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
•The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
•No more than 30% of the total portfolio may be invested in these securities. •No more than 10% of the total portfolio may be invested in any single issuer. •The maximum maturity does not exceed five (5) years.

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11 (ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.
•No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b.MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
•No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

IX. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
•State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. •In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. •Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited.
•Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.

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12 •Purchasing or selling securities on margin is prohibited. •The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
•The purchase of foreign currency denominated securities is prohibited. •The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

X. INVESTMENT POOLS/MUTUAL FUNDS
The City of Menifee shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Treasurer shall develop a questionnaire which will answer the following general questions:
•A description of eligible investment securities, and a written statement of investment policy and objectives.
•A description of interest calculations and how it is distributed, and how gains and losses are treated.
•A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. •A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
•A schedule for receiving statements and portfolio listings. •Are reserves, retained earnings, etc. utilized by the pool/fund? •A fee schedule, and when and how is it assessed.
•Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XI. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City of Menifee shall require any commercial bank or savings and loan association to deposit eligible securities with an Agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non- Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City of Menifee shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

REPURCHASE AGREEMENTS. The City of Menifee requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
•The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of Item Title: 10.6
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13 the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. •Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
•The City of Menifee shall receive monthly statements of collateral.

XII. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City of Menifee’s portfolio shall be held in safekeeping in the City of Menifee’s name by a third party custodian, acting as agent for the City of Menifee under the terms of a custody agreement executed by the bank and the City of Menifee. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City of Menifee from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money mutual funds, since the purchased securities are not deliverable.

XIII. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City of Menifee will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the Governing Body has by resolution granted authority to make such an investment.

XIV. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City of Menifee will mitigate credit risk by adopting the following strategies:
•The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.

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14 •No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. •The City of Menifee may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City of Menifee’s risk preferences. •If the credit ratings of any security owned by the City of Menifee are downgraded to a level below the quality required by this investment policy, it will be the City of Menifee’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.
•If a security is downgraded, the Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.
•If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the Governing Body.

MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City of Menifee recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City of Menifee will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City of Menifee further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City of Menifee, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
•The City of Menifee will maintain a minimum of six months of budgeted operating expenditures in short term investments to provide sufficient liquidity for expected disbursements.
•The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
•The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City of Menifee based on the City of Menifee’s investment objectives, constraints and risk tolerances.

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15 XV. REVIEW OF INVESTMENT PORTFOLIO
The Treasurer shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the Governing Body.

XVI. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City of Menifee’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the Treasurer’s quarterly report. The Treasurer shall select an appropriate, readily available index to use as a market benchmark.

Benchmarks may change over time based on changes in market conditions or cash flow requirements.

XVII. REPORTING

MONTHLY REPORTS
Monthly transaction reports will be submitted by the Treasurer to the Governing Body within 45 days of the end of the reporting period in accordance with California Government Code Section 53607.

QUARTERLY REPORTS
The Treasurer will submit a quarterly investment report to the Governing Body which provides full disclosure of the City of Menifee’s investment activities within 45 days after the end of the quarter. These reports will disclose, at a minimum, the following information about the City of Menifee’s portfolio:

1. An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date and interest rate.

2. Transactions for the period.

3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)

4. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; d. Average portfolio credit quality; and,
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16 e. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City of Menifee’s market benchmark returns for the same periods;

5. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

6. A statement that the City of Menifee has adequate funds to meet its cash flow requirements for the next six months.

ANNUAL REPORTS
A comprehensive annual report will be presented to the Governing Board. This report will include comparisons of the City of Menifee’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XVIII. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed and adopted at least annually, but no later than within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modifications or amendments shall be presented by Staff to the Governing Body for their consideration and adoption.

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17 XIX. APPENDIX A PERMITTED INVESTMENTS

ALLOWABLE INVESTMENT INSTRUMENTS PER STATE GOVERNMENT CODE (AS OF JANUARY 1, 2022)A APPLICABLE TO ALL LOCAL AGENCIESB See "Table of Notes" on the next page for footnotes related to this table.

INVESTMENT TYPE

MAXIMUM

REMAINING

MATURITY

MAXIMUM SPECIFIED
% OF PORTFOLIO
City of Menifee Policy
Maximums

MINIMUM QUALITY

REQUIREMENTS

GOVERNMENT

CODE SECTIONS
Local Agency Bonds 5 years None None
30%
None 53601(a)
U.S. Treasury Obligations 5 years None None None 53601(b) State Obligations: CA and Others 5 years None None
30%
None 53601(c)
53601(d)
CA Local Agency Obligations 5 years None None
30%
None 53601(e)
U.S. Agency Obligations 5 years None None
25%
None 53601(f)
Bankers' Acceptance 180 days 40% E 40% E None 53601(g)
Commercial Paper: Non-pooled FundsF
(under $100,000,000 of investments)
270 days or less 25% of the agency's
moneyG
25% of the agency's
moneyG
Highest letter and number
rating by an NRSROH 53601(h)(2)(c)
Commercial Paper: Non-pooled FundsF
(min. $100,000,000 of investments)
270 days or less 40% of the agency's
moneyG
25% of the agency's
moneyG
Highest letter and number
rating by an NRSROH 53601(h)(2)(c)
Commercial Paper: Pooled FundsI 270 days or less 40% of the agency's moneyG
25% of the agency's
moneyG
Highest letter and number
rating by an NRSROH 53635(a)(1)
Negotiable Certificates of Deposit 5 years 30% J 2030
%J
None 53601(i)
Non-negotiable Certificates of Deposit 5 years None None 20%
None 53630 et seq.

Placement Service Deposits 5 years 50% K 30% K None 53601.8 and 53635.8
Placement Service Certificates of Deposit 5 years 50% K 30% K None 53601.8 and 53635.8
Repurchase Agreements 1 year None None None 53601(j)
Reverse Repurchase Agreements and
Securities Lending Agreements 92 daysL 20% of the base value of the portfolio
20% of the base value
of the portfolio None M 53601(j)
Medium Term NotesN 5 years or less 30% 30% "A" rating category or its equivalent or better 53601(k)
Mutual Funds and Money Market Mutual
Funds N/A 20% O 20% O Multiple P,Q 53601(l) and
53601.6(b)
Collateralized Bank DepositsR 5 years None 20% None 53630 et seq. and 53601(n)
Mortgage Pass-through and Asset-Backed
Securities 5 years or less 20% 20% "AA" rating category or its equivalent or better 53601(o)
County Pooled Investment Funds N/A None None None 27133 Joint Powers Authority Pool N/A None None MultipleS 53601(p) Local Agency Investment Fund (LAIF) N/A None None None 16429.1 Voluntary Investment Program FundT N/A None None None 16340 Supranational ObligationsU 5 years or less 30% 30% "AA" rating category or its equivalent or better 53601(q)
Public Bank Obligations 5 years None None None 53601(r), 53635(c), and 57603
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18 TABLE OF NOTES FOR APPENDIX A
A Sources: Sections 16340, 16429.1, 27133, 53601, 53601.6, 53601.8, 53630 et L Reverse repurchase agreements or securities lending agreements may exceed the seq., 53635, 53635.8, and 57603. 92-day term if the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse B Municipal Utilities Districts have the authority under the Public Utilities Code repurchase agreement or securities lending agreement and the final maturity dates Section 12871 to invest in certain securities not addressed here. of the same security.

C Section 53601 provides that the maximum term of any investment authorized M Reverse repurchase agreements must be made with primary dealers of the Federal under this section, unless otherwise stated, is five years. However, the legislative Reserve Bank of New York or with a nationally or state-chartered bank that has a body may grant express authority to make investments either specifically or as a significant relationship with the local agency. The local agency must have held the part of an investment program approved by the legislative body that exceeds this securities used for the agreements for at least 30 days. five-year remaining maturity limit. Such approval must be issued no less than three months prior to the purchase of any security exceeding the five-year maturity limit. N “Medium-term notes” are defined in Section 53601as “all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, D Percentages apply to all portfolio investments regardless of source of funds. For issued by corporations organized and operating within the United States or by instance, cash from a reverse repur-chase agreement would be subject to the depository institutions licensed by the United States or any state and operating restrictions. within the United States.”
E No more than 30 percent of the agency’s money may be in bankers’ acceptances of O No more than 10 percent invested in any one mutual fund. This limitation does not any one commercial bank. apply to money market mutual funds.

F Includes agencies defined as a city, a district, or other local agency that do not pool P A mutual fund must receive the highest ranking by not less than two nationally money in deposits or investment with other local agencies, other than local recognized rating agencies, or the fund must retain an investment advisor who is agencies that have the same governing body. registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least
five years' experience investing in instruments authorized by Sections 53601 and 53635.

G Local agencies, other than counties or a city and county, may purchase no more Q A money market mutual fund must receive the highest ranking by not less than two than 10 percent of the outstanding commercial paper and medium-term notes of nationally recognized statistical rating organizations or retain an investment advisor any single issuer. registered with the SEC or exempt from registration and who has not less than five years' experience investing in money market instruments with assets under H Issuing corporation must be organized and operating within the U.S., have assets in management in excess of $500 million. excess of $500million, and debt other than commercial paper must be in a rating category of "A" or its equivalent or higher by a nationally recognized statistical R Investments in notes, bonds, or other obligations under Section 53601(n) require rating organization, or the issuing corporation must be organized within the U.S. as that collateral be placed into the custody of a trust company or the trust department a special purpose corporation, trust, or LLC, have program wide credit of a bank that is not affiliated with the issuer of the secured obligation, among other enhancements, and have commercial paper that is rated “A-1” or higher, or the specific collateral requirements. equivalent, by a nationally recognized statistical rating agency.

S A joint powers authority pool must retain an investment advisor who is registered I Includes agencies defined as a county, a city and county, or other local agency that with the SEC (or exempt from registration), has assets under management in excess pools money in deposits or investments with other local agencies, including local of $500 million, and has at least five years' experience investing in instruments agencies that have the same governing body. Local agencies that pool exclusively authorized by Section 53601, subdivisions (a) to (o). with other local agencies that have the same governing body must adhere to the limits set forth in Section 53601(h)(2)(C). T Local entities can deposit between $200 million and $10 billion into the Voluntary Investment Program Fund, upon approval by their governing bodies. Deposits in J No more than 30 percent of the agency’s money may be in negotiable certificates the fund will be invested in the Pooled Money Investment Account. of deposit that are authorized under Section 53601(i).

U Only those obligations issued or unconditionally guaranteed by the International K Effective January 1, 2020, no more than 50 percent of the agency’s money may be Bank for Reconstruction and Development (IBRD), International Finance invested in deposits, including certificates of deposit, through a placement service Corporation (IFC), and Inter- as authorized under 53601.8 (excludes negotiable certificates of deposit authorized American Development Bank (IADB), with a maximum remaining maturity of five under Section 53601(i)). On January 1, 2026, the maximum percentage of the years or less. portfolio reverts back to 30 percent. Investments made pursuant to 53635.8 remain subject to a maximum of 30 percent of the portfolio.

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19 XX. GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a Item Title: 10.6
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20 single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS Intrafi is currently the onlyan entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.
maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

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21 DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal Agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the other’s best interests.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.

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22 MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

A credit rating Agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state- licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).

PAYDOWN. A reduction in the principal amount owed on a bond, loan, or other debt.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same Item Title: 10.6
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23 transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government Agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1.An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten- year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

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Revision History
Revision No. Date Approved Approved By: Comments
0 10/01/2008 City Council 2008-2009 Investment Policy; Resolution No. 08-18 1 08/04/2009 City Council 2009-2010 Investment Policy; Resolution No. 09-110 2 11/15/2011 City Council 2011-2012 Investment Policy; Resolution No. 11-240 3 12/04/2012 City Council 2012-2013 Investment Policy; Resolution No. 12-299 4 11/06/2013 City Council 2013-2014 Investment Policy; Resolution No. 13-345 5 03/06/2019 City Council 2018-2019 Investment Policy; Resolution No. 19-775 6 05/05/2021 City Council 2020-2021 Investment Policy; Resolution No. 21-1018 7 09/21/2022 City Council 2022-2023 Investment Policy; Resolution No. 22-1201 8 10/18/2023 City Council 2023-2024 Investment Policy; Resolution No. 23-1362 9 06/05/2024 City Council 2024-2025 Investment Policy; Resolution No. 24- Item Title: 10.6
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CITY OF MENIFEE
SUBJECT: 2023 Emergency Management Performance Grant
MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Vanessa Barrera, Human Resources Analyst
REVIEWED BY: Jonathan Nicks, Deputy City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a resolution accepting the Fiscal Year (FY) 2023 Emergency Management Performance Grant (EMPG) in the amount of $24,685 and authorizing the City Manager, or his designee, to execute all necessary documents to implement the funded project/program; and

2. Adopt a budget amendment resolution amending the FY 2023/2024 budget, appropriating $24,685 of grant funds in revenue and expenditures.

DISCUSSION
The City of Menifee proactively seeks to mitigate losses resulting from manmade or natural catastrophic events and has regularly applied for Federal Emergency Management Agency (FEMA) grants. On April 9, 2024, the City was awarded the FY 2022/2023 EMPG with an allocation of $24,685 for the grant funds to be used for existing Emergency Management personnel salaries in order to continue to enhance the readiness of the City’s Emergency Operations Center (EOC). This grant has a performance period of April 9, 2024, to December 31, 2024, and requires a dollar-for-dollar match by the City. The City’s match would be provided through existing emergency management staff salaries and no additional funds are being requested.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community
Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 1

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City of Menifee Staff Report
2023 EMPG
June 5, 2024

Page 2 of 2 ends

2 1
8 4

FISCAL IMPACT
The fiscal impact for the acceptance of the grant is $24,685 in both revenue and expenditures, to be recognized in FY 2023/2024. The Finance Department would increase the budgeted revenue in Account No. 301-3829 (EMPG Grant Revenue) and appropriate those funds to Account No. 301-4114-52427 (EMPG Grant Expense). There is a $24,685 dollar-for-dollar required match by the City through the Grant Program.

ATTACHMENTS

1. EMPG Award Letter

2. EMPG Grant Summary Report

3. Resolution - EMPG Grant Acceptance

4. Budget Amendment Resolution
Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 2

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450 E. ALESSANDRO BLVD
RIVERSIDE, CALIFORNIA 92508
T: 951.358.7100 ♦ F: 951.358.7105 ♦ WEB: WWW.RIVCOREADY.ORG ♦ TDD: 951.358.5124

Bruce Barton, Director
Emergency Management Department

April 9, 2024

City of Menifee
Jonathan Nicks, Deputy City Manager

RE: FY23 Emergency Management Performance Grant Program (EMPG) Award - $24,685 Grant # 2023-0006 CFDA#: 97.042

The California Office of Emergency Services (CalOES) has approved Riverside County’s FY23 State Homeland Security Program Grant (SHSP) application and has authorized the commencement of reimbursement requests.

The performance period of this grant is April 9, 2024 – December 31, 2024. Final reimbursement requests are due within twenty (20) calendar days after the end of the grant period of performance.

This subaward is subject to requirements in 2 CFR, Part 200, including the Notice of Funding Opportunity (NOFO), Preparedness Grants Manual, California Supplement to the NOFO, Riverside County Supplement to the NOFO, Grant Assurances, and all applicable federal, state, and local requirements. All activities funded with this subaward must be completed within the period of performance.

The Riverside County Operational Area (OA) may reduce, suspend, or terminate grant funding, in whole or in part, or other measures may be imposed for any of the following reasons:
• Failure to submit required performance reports.
• Failure to expend a minimum of 90% of awarded funding. • Failure to expend funds in a timely manner consistent with the grant milestones, guidance, and assurances.
• Failure to comply with the requirements or statutory progress toward the goals or objectives of fede ral or state law.
• Failure to make satisfactory progress toward the goals or objectives set forth in the Subrecipient application.
• Failure to follow Grant Subaward requirements or special conditions. • Proposing or implementing substantial plan changes to the extent that, if originally submitted, the application would not have been selected for funding.
• False certification in the application or document.
• Failure to adequately manage, monitor, or direct the grant funding activities of the organization.

Subrecipients must obtain additional written approval prior to incurring costs for activities such as aviation, watercraft, noncompetitive procurement, and projects requiring Environmental Planning and Historic Preservation review. Any changes to the Financial Manage ment Forms Workbook requires approval from the OA prior to conducting activities and incurring costs.

Your organization’s Financial Management Forms Workbook is being provided to you via email along with a copy of this letter. The Facesheet, Governing Body Resolution, Grants Management Assessments form, Standard Assurances, EHP Screening Form (if applicable) must be read, signed, and dated by your authorized agent in blue ink and returned to [email protected] by July 9, 2024. Requests will not be processed without the acceptance documents on file.

This subaward is subject to all provisions of 2 CFR Part 200, Subpart F – Audit Requirements. Any funds rece ived Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 3

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450 E. ALESSANDRO BLVD
RIVERSIDE, CALIFORNIA 92508
T: 951.358.7100 ♦ F: 951.358.7105 ♦ WEB: WWW.RIVCOREADY.ORG ♦ TDD: 951.358.5124 in excess of current needs, approved amounts, or th ose found owed as a result of a final review or audit, must be refunded to the OA within 30 days upon receipt of an invoice from the County of Riverside Emergency Management Department.

For further as sistance, please contact [email protected] . We look forward to working with you and appreciate your cooperation and support.

Sincerely,
Louis Le
Senior Administrative Services Analyst
County of Riverside Emergency Management Department

Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 4

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This report is to be completed for each approved grant and forwarded along with approved council agenda staff report to the Finance Department.

FISCAL YEAR OF GRANT AWARD: _________________ DATE CITY COUNCIL APPROVED: ________________________ Grant Name: _____________________________________________ Granting Agency: __________________________ City Department: _________________________________________ City Grant Administrator: ____________________ Grant performance period: ________________ Type of Grant: ☐ State ☐ Federal ☐ Local ☐ Other: ________________ Grant Purpose/City Program:

If Federal Grant:

Federal Awarding Agency: ____________________ Federal CFDA Number: _____________________ If Pass-through Grant:

Pass-through Agency: ____________________ Pass-through Number: _____________________ Grant ID Number: ____________________
Grant Funding Period: ____________________ Amended Through: _____________________ Amount from Granting Agency: ____________________ Method of Funding: ____________________ City Matching Funds: ____________________ Frequency of Funding: ____________________ Total Grant Amount: ____________________ If other, please describe: ____________________ City Expenditure Account No: ____________________ City Revenue Account No: ____________________ Reporting Requirements:

Does the funding agency require a compliance audit? _____________________________________________ If yes, what kind of report? __________________________________________ Additional reporting required: ________________________________________ Does the funding agency require a copy of the Single Audit report? _____________________________________ Is this a federal grant (subject to Single Audit)? __________________________________________ Can grant funds be carried over to other fiscal years? __________________________________________ If yes, which years? __________________________________________ Is allocated interest a grant requirement? __________________________________________

CITY OF MENIFEE

GRANT SUMMARY REPORT

FINANCE DEPARTMENT
2023
6/5/2024
EMPG - Emergency Management Performance Grant
County of Riverside-EMD
Emergency Management
Vanessa Barrera
FEMA

97.042
County of Riverside -EMD
N/A
2023-0006
4/9/2024-12/31/2024
24,685
Reimbursement
24,685
Every 6 months
49,370
-
301-4114-52427
301-3829
No
N/A
N/A
No
Yes
No
N/a
No
✔
4/9/2024-12/31/2024
Funding from the EMPG Grant will cover existing Emergency Management personnel. The corresponding match will be existing personnel expenses.

Quarterly reports, Reimbursement requests must be submitted every 6 months.

Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 5

Menifee Mayor and City Council
June 5, 2024
Page
149 of 1108

1 RESOLUTION NO. 24-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA,

AUTHORIZING CERTAIN CITY OFFICIALS OF THE CITY OF MENIFEE OR DESIGNEE TO ACCEPT THE FISCAL YEAR 2023 EMERGENCY MANAGEMENT

PERFORMANCE GRANT PROGRAM AWARD IN THE AMOUNT OF TWENTY-FOUR THOUSAND, SIX HUNDRED EIGHTY-FIVE DOLLARS ($24,685.00), GRANT NO. 2023- 0006, CFDA NO. 97.042 AND TO AUTHORIZE ALL DOCUMENTS IN THE

FURTHERANCE THEREOF
WHEREAS, the City of Menifee has applied for the Fiscal Year 2023 Emergency Management Performance Grant Program (EMPG) Award in the Amount of Twenty-Four Thousand, Six Hundred Eighty-Five Dollars ($24,685.00), Grant No. 2023-0006, CFDA No. 97.042, as made available through and administered by the California Office of Emergency Services (“CalOES”) for fiscal year 2023; and WHEREAS, the City Council desires the City Manager, Assistant City Manager, or designee to accept the aforementioned grant and to execute for and on behalf of the City of Menifee any document, including agreements, amendments, extensions, and grant award documents with CalOES, or other responsible government agency, for the purpose of obtaining federal financial assistance provided by the Fiscal Year 2023 Emergency Management Performance Grant Program (EMPG) Award in the Amount of Twenty-Four Thousand, Six Hundred Eighty-Five Dollars ($24,685.00), Grant No. 2023- 0006, CFDA No. 97.042.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

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

Section 2.The City Council authorizes the City Manager, Assistant City Manager, or designee to execute for and on behalf of the City of Menifee any document, including agreements, amendments, extensions, and grant award documents with CalOES, or other responsible government agency, for the purpose of obtaining federal financial assistance provided by the Fiscal Year 2023 Emergency Management Performance Grant Program (EMPG) Award in the Amount of Twenty-Four Thousand, Six Hundred Eighty-Five Dollars ($24,685.00), Grant No. 2023-0006, CFDA No. 97.042.

Section 3.The City Council hereby authorizes, and does, accept the Fiscal Year 2023 Emergency Management Performance Grant Program (EMPG) Award in the Amount of Twenty-Four Thousand, Six Hundred Eighty-Five Dollars ($24,685.00), Grant No. 2023-0006, CFDA No. 97.042.

Section 4. This Resolution shall take effect immediately.

PASSED, APPROVED AND ADOPTED this 5th day of June, 2024. ___________________________
Bill Zimmerman, Mayor
Attest:
______________________________
Stephanie Roseen, Acting City Clerk
Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 6

Menifee Mayor and City Council
June 5, 2024
Page
150 of 1108

2 Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 7

Menifee Mayor and City Council
June 5, 2024
Page
151 of 1108

RESOLUTION NO. 24-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2023/24 OPERATING BUDGET
WHEREAS, the City of Menifee, California, adopted a budget for Fiscal Year 2023/24 and Fiscal Year 2024/25 with Resolution 23-1341 on June 21st, 2023; and WHEREAS, from time to time the City of Menifee receives unanticipated revenues, experiences unanticipated expenditures, and/or identifies alternative funding sources; and WHEREAS, it is in the best interest of the citizens of the City of Menifee to allocate budget resources to continue the operations of the City of Menifee; and WHEREAS, the City Council of the City of Menifee needs to amend the FY2023/24 budget as follows:

AMENDMENTS TO ADOPTED BUDGET:

Grant Fund 301 Adopted FY 2023/24 Revenue Budget: $531,369.00

1. Record Appropriation(s):

Amended Grant Fund 301 FY 2023/24 Revenue Budget: $11,221,282.94

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
N/A FY23/24 Carryover Grants 301-Various $3,981,911.78
August 16, 2023
Grant: National Opiate Litigation
Settlement 301-3895 $59,322.16
August 16, 2023
Grant: SB 821 Bicycle and
Pedestrian Facilities Program 301-3859 $690,120.00
November 1, 2023
Grant: Active Transportation
Program (ATP) - Project A 301-3752 $131,000.00
November 1, 2023
Grant: Active Transportation
Program (ATP) - Project B 301-3752 $124,000.00
November 1, 2023
Grant: RCTC Regional Arterial
Improvements Program 301-3753 $3,140,000.00
November 15, 2023 Grant: OTS STEP 301-3865 $140,000.00
November 15, 2023 Menifee JOBSNow Initiative 301-3742 $58,334.00 December 6, 2023
Central Park Amphitheater CIP 19-
15 - ARP 301-3742 $1,841,667.00
January 17, 2024
Grant: Caltrans HSIP Cycle 11
Citywide Traffic Signal Safety 301-3755 $162,000.00
January 17, 2024
Grant: Justice Assistance Grant
(JAG) 301-3745 $10,877.00
January 17, 2024
Grant: NRPA SHAPR 3.0 Walk With
Ease 301-3888 $3,000.00
February 7, 2024 Interest Increase at Mid-year 301-3800 $30,000.00 May 15, 2024
Grant: CalRecycle SB 1383 Local
Assistance Grant 301-3878 $292,997.00
June 5, 2024 Grant: 2023 EMPG 301-3829 $24,685.00
TOTAL: $10,689,913.94
Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 8

Menifee Mayor and City Council
June 5, 2024
Page
152 of 1108

Amending the Fiscal Year 2023/24 Grant Fund Budget
2023 Emergency Management Performance Grant (EMPG)
2 4
8 6
6 3
Grant Fund 301 Adopted FY 2023/24 Expenditure Budget: $531,369.00

2. Record Appropriation(s):

Amended Grant Fund 301 FY 2023/24 Expenditure Budget: $11,101,725.87

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL: $0

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
N/A FY23/24 Carryover Grants Various $3,892,354.71
August 16, 2023
Grant: National Opiate Litigation
Settlement 301-4911-58165 $59,322.16
August 16, 2023
Grant: SB 821 Bicycle and
Pedestrian Facilities Program 301-4555-58098 $690,120.00 November 1, 2023
Grant: Active Transportation
Program (ATP) - Project A 301-4555-58177 $131,000.00
November 1, 2023
Grant: Active Transportation
Program (ATP) - Project B 301-4555-58190 $124,000.00
November 1, 2023
Grant: RCTC Regional Arterial
Improvements Program 301-4555-58119 $3,140,000.00
November 15, 2023 Grant: OTS STEP 301-4911-52426 $140,000.00 November 15, 2023 Menifee JOBSNow Initiative 301-4350-52800 $58,334.00 December 6, 2023
Central Park Amphitheater CIP 19-
15 - ARP 301-4555-58079 $1,841,667.00
January 17, 2024
CIP Citywide Traffic Signal Safety
Improvements 301-4555-58174 $162,000.00
January 17, 2024
Grant: Justice Assistance Grant
(JAG) 301-4911-52845 $10,877.00
January 17, 2024
Grant: NRPA SHAPR 3.0 Walk
With Ease 301-4662-58206 $3,000.00
May 15, 2024
Grant: CalRecycle SB 1383 Local
Assistance Grant 301-4660-52854 $292,997.00
June 5, 2024 Grant: 2023 EMPG 301-4114-52427 $24,362.00 TOTAL: $10,570,356.87
Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 9

Menifee Mayor and City Council
June 5, 2024
Page
153 of 1108

Amending the Fiscal Year 2023/24 Grant Fund Budget
2023 Emergency Management Performance Grant (EMPG)
3 4
8 6
6 3

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the Grant Fund 301 for the City of Menifee for FY2023/24 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:
2023 Emergency Management Performance Grant $24,685.00 Amended Grant Fund 301 FY2023/24 Budget $11,221,282.94

Expenditures:
2023 Emergency Management Performance Grant $24,685.00 $0 Amended Grant Fund 301 FY2023/24 Budget $11,101,725.87 PASSED, APPROVED AND ADOPTED this 5th day of June, 2024. _____________________________
Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Stephanie Roseen, Acting City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.7
2023 Emergency Management Performance Grant
Item Page Number: 10

Menifee Mayor and City Council
June 5, 2024
Page
154 of 1108

CITY OF MENIFEE
SUBJECT: 2023 State Homeland Security Program Grant
MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Vanessa Barrera, Human Resources Analyst
REVIEWED BY: Jonathan Nicks, Deputy City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Adopt a resolution accepting the Fiscal Year (FY) 2023 State Homeland Security Program Grant in the amount of $15,323 and authorize the City Manager, or his designee, to execute all necessary documents to implement the funded project/program; and

2. Adopt a budget amendment resolution amending the FY 2023/2024 budget, appropriating $15,323 of grant funds in revenue and expenditures.

DISCUSSION
The Homeland Security Grant Program, administered under the purview of the U.S. Department of Homeland Security provides dedicated funding focused on assisting state and local governments. One of the main program components is the State Homeland Security Program (SHSP). SHSP supports the implementation of State Homeland Security Strategies to address the identified planning, organization, equipment, training, and exercise needs to prevent, protect against, mitigate, respond to, and recover from acts of terrorism and other catastrophic events.

Each year, the County of Riverside Emergency Management Department allocates available funding to the Riverside County jurisdictions for such activities.

The City of Menifee has regularly applied for the County of Riverside’s SHSP funding to support its emergency preparedness efforts. Historically, the City has used funding from this program to assist with the Community Emergency Response Team (CERT) Program training. The CERT Program educates volunteers about disaster preparedness for the hazards that may impact their area and trains volunteers in basic disaster response skills, such as fire safety, light search and rescue, team organization, and disaster medical operations. CERT offers a consistent, nationwide approach to volunteer training and organization that professional responders can rely on during disaster situations, which allows them to focus on more complex tasks.

Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 1

Menifee Mayor and City Council
June 5, 2024
Page
155 of 1108

City of Menifee Staff Report
FY 2023 SHSP
June 5, 2024

Page 2 of 2 ends

2 1
8 9
Under the FY 2023 SHSP, the City of Menifee has been awarded $15,323 to provide approximately three CERT basic training classes and purchase five fire extinguishers during the grant performance period of April 9, 2024, to May 31, 2025.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The fiscal impact for the acceptance of the grant is $15,323 in both revenue and expenditures, to be recognized in FY 2023/2024. The Finance Department would increase the budgeted revenue in Account No. 301-3833 (SHSP Grant) and appropriate those funds to Account No. 301-4114- 52421 (SHSP Grant Expense). There is no required match by the City through the Grant Program.

ATTACHMENTS

1. FY23 SHSP Award Letter

2. FY23 SHSP Grant Summary Report

3. Resolution- SHSP Grant Acceptance

4. Budget Amendment Resolution
Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 2

Menifee Mayor and City Council
June 5, 2024
Page
156 of 1108

450 E ALESSANDRO BLVD. RIVERSIDE, CALIFORNIA 92508
T: 951.358.7100 ♦ F: 951.358.7105 ♦ WEB: WWW.RIVCOREADY.ORG ♦ TDD: 951.358.5124

Bruce Barton, Director
Emergency Management Department
April 9, 2024

City of Menifee
Robert Cardenas, Deputy Human Resources Director
Vanessa Barrera, Emergency Management Analyst
RE: FY23 State Homeland Security Program Grant (SHSP) Award - $15,323 Grant #2023-0042 CFDA#: 97.067

The California Office of Emergen cy Services (CalOES) has approved Riverside County’s FY 23 State Homeland Security Program Grant (SHSP) application and has authorized the commencement of reimbursement requests .

The performance period of this grant is April 9, 2024 – May 31, 2025. Final reimbursement requests are due within twenty (20) calendar days after the end of the grant period of performance.

This subaward is subject to requirements in 2 CFR, Part 200, including the Notice of Funding Opportunity (NOFO), Preparedness Grants Manual, California Supplem ent to the NOFO, Riverside County Supplement to the NOFO, Grant Assurances, and all applica ble federal, state, and local requirements. All activities funded with this subaward must be completed within the period of performance.

The Riverside County Operational Area (OA) may reduce, suspend, or terminate grant funding, in whole or in part, or other measures may be imposed for any of the following reasons:
• Failure to submit required performance reports.
• Failure to expend a minimum of 90% of awarded funding. • Failure to expend funds in a timely manner consistent with the grant milestones, guidance, and assurances.
• Failure to comply with the requirements or statutory progress toward the goals or objectives of federal or state law.
• Failure to make satisfactory progress toward the goals or objectives set forth in the Subrecipient application.
• Failure to follow Grant Subaward requirements or special conditions. • Proposing or implementing substantial plan changes to the extent that, if originally submitted, the application would not have been selected for funding.
• False certification in the application or document.
• Failure to adequately manage, monitor, or direct the grant funding activities of the organization.

Subrecipients must o btain additional wr itten approva l prior to incurring costs for activities such as aviation, watercraft, noncompetitive procurement, and projects requiring Env ironmental Planning and Historic Preservation review. Any changes to the Financial Management Forms Workbook requires approval from the OA prior to conducting activities and incurring costs.

Your organization’s Financial Management Forms Workbook i s bei ng provided to you via email along with a copy of this letter. The Facesheet, Governing Body Resolution, Grants Management Assessments form, Standard Assurances, EHP Screening Form (if applicable) must be read, signed, and dated by your authorized agent in blue ink and returned to
[email protected] by July 9, 2024. Requests will not be pr ocessed without the acceptance documents on file.

This subaward is subject to all provisions of 2 CFR Part 200, Subpart F – Audit Requirements. Any funds received in excess of current needs, approved amounts, or those found owed as a result of a final revi ew or audit, must Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 3

Menifee Mayor and City Council
June 5, 2024
Page
157 of 1108

450 E ALESSANDRO BLVD. RIVERSIDE, CALIFORNIA 92508
T: 951.358.7100 ♦ F: 951.358.7105 ♦ WEB: WWW.RIVCOREADY.ORG ♦ TDD: 951.358.5124 be refunded to the OA within 30 days upon receipt of an invoice from the Count y of Riverside Emergency Management Department.

For further assistance, plea se contact [email protected]. We look forward to wor king with you and appreciate your cooperation and support.

Sincerely,
Louis Le
Senior Administrative Services Analyst
County of Riverside Emergency Management Department

Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 4

Menifee Mayor and City Council
June 5, 2024
Page
158 of 1108

This report is to be completed for each approved grant and forwarded along with approved council agenda staff report to the Finance Department.

If Federal Grant:

Federal Awarding Agency: ____________________ Federal CFDA Number: _____________________ If Pass-through Grant:

CITY OF MENIFEE

GRANT SUMMARY REPORT

FINANCE DEPARTMENT
2023
6/5/2024
SHSP- State Homeland Security Program Grant
County of Riverside-EMD
Emergency Management
Vanessa Barrera
FEMA

97.067
County of Riverside -EMD
N/A
2023-0042
4/9/24-5/31/25
15,323
Reimbursement
Every 6 months
15,323
-
301-4114-52421
301-3833
No
N/A
N/A
No
Yes
No
N/a
No
✔
4/9/24-5/31/25
Funding from the FY21 SHSP Grant will support the City's emergency preparedness efforts, including the implementation of the CERT program. Funding will be used for 3 CERT classes and the purchase of 5 fire extinguishers.

Quarterly reports, Reimbursement requests must be submitted every 6 months. Funding Risk Assessment and EHP must be approved prior to beginning activities.

Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 5

Menifee Mayor and City Council
June 5, 2024
Page
159 of 1108

1 RESOLUTION NO. 24-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA,

AUTHORIZING CERTAIN CITY OFFICIALS OF THE CITY OF MENIFEE OR DESIGNEE TO ACCEPT THE FISCAL YEAR 2023 STATE HOMELAND SECURITY PROGRAM

GRANT PROGRAM AWARD IN THE AMOUNT OF FIFTEEN THOUSAND, THREE HUNDRED TWENTY-THREE DOLLARS ($15,323.00), GRANT NO. 2023-0042 AND TO

AUTHORIZE ALL DOCUMENTS IN THE FURTHERANCE THEREOF
WHEREAS, the City of Menifee has applied for the Fiscal Year 2023 State Homeland Security Program Grant (SHSP) Award in the Amount of Fifteen Thousand, Three Hundred Twenty-Three Dollars ($15,323.00), Grant No. 2023-0042, CFDA No. 97.067, as made available through the U.S.

Department of Homeland Security (“DHS”) and administered by the County of Riverside Emergency Management Department (“County”) for fiscal year 2023; and WHEREAS, the City Council desires the City Manager, Assistant City Manager, or designee to accept the aforementioned grant and to execute for and on behalf of the City of Menifee any document, including agreements, amendments, extensions, and grant award documents with the County, or other responsible government agency, for the purpose of obtaining federal financial assistance provided by the Fiscal Year 2023 State Homeland Security Program Grant (SHSP) Award in the Amount of Fifteen Thousand, Three Hundred Twenty-Three Dollars ($15,323.00), Grant No. 2023-0042, CFDA No.

97.067.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

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

Section 2.The City Council authorizes the City Manager, Assistant City Manager, or designee to execute for and on behalf of the City of Menifee any document, including agreements, amendments, extensions, and grant award documents with the County, or other responsible government agency, for the purpose of obtaining federal financial assistance provided by the Fiscal Year 2023 State Homeland Security Program Grant (SHSP) Award in the Amount of Fifteen Thousand, Three Hundred Twenty-Three Dollars ($15,323.00), Grant No. 2023-0042, CFDA No. 97.067.

Section 3.The City Council hereby authorizes, and does, accept the Fiscal Year 2023 State Homeland Security Program Grant (SHSP) Award in the Amount of Fifteen Thousand, Three Hundred Twenty-Three Dollars ($15,323.00), Grant No. 2023-0042, CFDA No. 97.067.

Section 4. This Resolution shall take effect immediately.

PASSED, APPROVED AND ADOPTED this 5th day of June 2024. ___________________________
Bill Zimmerman, Mayor
Attest:
______________________________
Stephanie Roseen, Acting City Clerk
Approved as to form:

Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 6

Menifee Mayor and City Council
June 5, 2024
Page
160 of 1108

2 ___________________________
Jeffrey T. Melching, City Attorney
Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 7

Menifee Mayor and City Council
June 5, 2024
Page
161 of 1108

RESOLUTION NO. 23-____

AMENDMENTS TO ADOPTED BUDGET:

Grant Fund 301 Adopted FY 2023/24 Revenue Budget: $531,369.00

1. Record Appropriation(s):

Amended Grant Fund 301 FY 2023/24 Revenue Budget: $11,211,920.94

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
N/A FY23/24 Carryover Grants 301-Various $3,981,911.78
August 16, 2023
Grant: National Opiate Litigation
Settlement 301-3895 $59,322.16
August 16, 2023
Grant: SB 821 Bicycle and
Pedestrian Facilities Program 301-3859 $690,120.00
November 1, 2023
Grant: Active Transportation
Program (ATP) - Project A 301-3752 $131,000.00
November 1, 2023
Grant: Active Transportation
Program (ATP) - Project B 301-3752 $124,000.00
November 1, 2023
Grant: RCTC Regional Arterial
Improvements Program 301-3753 $3,140,000.00
November 15, 2023 Grant: OTS STEP 301-3865 $140,000.00
November 15, 2023 Menifee JOBSNow Initiative 301-3742 $58,334.00 December 6, 2023
Central Park Amphitheater CIP 19-
15 - ARP 301-3742 $1,841,667.00
January 17, 2024
Grant: Caltrans HSIP Cycle 11
Citywide Traffic Signal Safety 301-3755 $162,000.00
January 17, 2024
Grant: Justice Assistance Grant
(JAG) 301-3745 $10,877.00
January 17, 2024
Grant: NRPA SHAPR 3.0 Walk With
Ease 301-3888 $3,000.00
February 7, 2024 Interest Increase at Mid-year 301-3800 $30,000.00 May 15, 2024
Grant: CalRecycle SB 1383 Local
Assistance Grant 301-3878 $292,997.00
June 5, 2024 Grant: 2023 SHSP 301-3833 $15,323.00
TOTAL: $10,680,551.94
Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 8

Menifee Mayor and City Council
June 5, 2024
Page
162 of 1108

Amending the Fiscal Year 2023/24 Grant Fund Budget
2023 State Homeland Security Program Grant (SHSP)
2 4
7 6
3 1
Grant Fund 301 Adopted FY 2023/24 Expenditure Budget: $531,369.00

2. Record Appropriation(s):

Amended Grant Fund 301 FY 2023/24 Expenditure Budget: $11,092,363.87

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL: $0

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
N/A FY23/24 Carryover Grants Various $3,892,354.71
August 16, 2023
Grant: National Opiate Litigation
Settlement 301-4911-58165 $59,322.16
August 16, 2023
Grant: SB 821 Bicycle and
Pedestrian Facilities Program 301-4555-58098 $690,120.00 November 1, 2023
Grant: Active Transportation
Program (ATP) - Project A 301-4555-58177 $131,000.00
November 1, 2023
Grant: Active Transportation
Program (ATP) - Project B 301-4555-58190 $124,000.00
November 1, 2023
Grant: RCTC Regional Arterial
Improvements Program 301-4555-58119 $3,140,000.00
November 15, 2023 Grant: OTS STEP 301-4911-52426 $140,000.00 November 15, 2023 Menifee JOBSNow Initiative 301-4350-52800 $58,334.00 December 6, 2023
Central Park Amphitheater CIP 19-
15 - ARP 301-4555-58079 $1,841,667.00
January 17, 2024
CIP Citywide Traffic Signal Safety
Improvements 301-4555-58174 $162,000.00
January 17, 2024
Grant: Justice Assistance Grant
(JAG) 301-4911-52845 $10,877.00
January 17, 2024
Grant: NRPA SHAPR 3.0 Walk
With Ease 301-4662-58206 $3,000.00
May 15, 2024
Grant: CalRecycle SB 1383 Local
Assistance Grant 301-4660-52854 $292,997.00
June 5, 2024 Grant: 2023 SHSP 301-4114-52421 $15,323.00 TOTAL: $10,560,994.87
Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 9

Menifee Mayor and City Council
June 5, 2024
Page
163 of 1108

Amending the Fiscal Year 2023/24 Grant Fund Budget
2023 State Homeland Security Program Grant (SHSP)
3 4
7 6
3 1

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the Grant Fund 301 for the City of Menifee for FY2023/24 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:
2023 State Homeland Security Program Grant $15,323.00 Amended Grant Fund 301 FY2023/24 Budget $11,211,920.94

Expenditures:
2023 State Homeland Security Program Grant $15,323.00 $0 Amended Grant Fund 301 FY2023/24 Budget $11,092,363.87 PASSED, APPROVED AND ADOPTED this 5th day of June, 2024. _____________________________
Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Stephanie Roseen, Acting City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.8
2023 State Homeland Security Program Grant
Item Page Number: 10

Menifee Mayor and City Council
June 5, 2024
Page
164 of 1108

CITY OF MENIFEE
SUBJECT: Bid Award and Agreement with Leonida Builders Inc. for Construction Services for the La Piedra Road at Bell Mountain Middle School – ATP Project
MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Rex Caballero, Assistant Engineer
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Award bid and authorize the City Manager to execute a Contract Services Agreement with Leonida Builders Inc. to perform construction services for the La Piedra Road at Bell Mountain Middle School – Active Transportation Plan (ATP) Project, Capital Improvement Program (CIP) Project No. 22-25, located at the intersection of Antelope Road and La Piedra Road, in a total not-to-exceed amount of $574,993; and

2. Adopt a budget amendment resolution reprogramming $138,404.47 in expenditures from the General Fund (Fund 100) to the La Piedra Road at Bell Mountain Middle School – ATP Project and reducing appropriations in the same amount to the Bradley Road Bridge Over Salt Creek Project; and

3. Adopt a budget amendment resolution reprogramming $138,404.47 in expenditures in DIF Citywide - Circulation (Fund 526) to the Bradley Road Bridge Over Salt Creek Project and reducing appropriations in the same amount to the La Piedra Road at Bell Mountain Middle School – ATP Project.

DISCUSSION
The La Piedra Road at Bell Mountain Middle School – ATP Project (“Project”) was identified in the City’s 2020 ATP as a priority pedestrian project necessary to improve the safety infrastructure for the students commuting to and from Bell Mountain Middle School and Mt. San Jacinto College.

The Project would consist of repaving and restriping of road lanes, striping dedicated bicycle lanes, construction of Americans with Disabilities Act (ADA) compliant ramps, installation of rectangular rapid flashing beacons, construction of a median pedestrian refuge island, the installation of dual streetlights, and six high visibility crosswalks. The six high visibility crosswalks would be installed at the following intersections:

Item Title: 10.9
Bid

Award

and

Agreement

with

Leonida

Builders

Inc.

for

Construction

Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 1

Menifee Mayor and City Council
June 5, 2024
Page
165 of 1108

City of Menifee Staff Report
CIP 22-25 Leonida Bid Award
June 5, 2024

Page 2 of 4 ends

2 2
1 2
•La Piedra Road/Antelope Road - East/Westbound and North/Southbound •La Piedra Road/Mt. San Jacinto College Entrance - East/Westbound •La Piedra Road/Spring Deep Terrace - East/Westbound and North/Southbound •La Piedra Road/Menifee Road - North/Southbound
On May 8, 2024, an electronic bid opening was held following the administration of a formal competitive bid process for engineering construction services for the Project. The bid opening resulted in the receipt of one bid submission which came in under the amount of the Engineer’s estimate, as summarized in Table 1 below.

TABLE 1 – BID RESULT SUMMARY
Firm Name Total Bid Amount Lowest and
Responsible Bidder
Engineers Estimate $600,000.00
Leonida Builders Inc. $574,992.36 X
Staff reviewed the sole bid received and determined that Leonida Builders Inc. met the requirements for recommendation as the lowest responsive and responsible bidder. The total cost for the Contract Services Agreement (“Agreement”) for construction services with Leonida Builders Inc. is $574,992.36. Construction management and inspection services would be provided by City staff and ancillary services such as labor compliance and materials testing services would be procured separately.

The total estimated construction cost for the Project is $662,492.00, which would include construction services, ancillary services such as labor compliance and materials testing, as well as other unforeseen costs that may arise during construction.

If approved by the City Council, the tentative Project schedule would be as follows:

Construction Start: June 2024
Construction End: August 2024
City Council Acceptance: October 2024
The timeline above assumes no delays due to weather or unforeseen conditions.

Environmental Impact
The proposed project has been determined to be Categorically Exempt under the California Environmental Quality Act (“CEQA”) and CEQA Guidelines, Section 15301, Existing Facilities.

Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. Class 1 includes the following example of a project that would be exempt under this section: (c) [minor alterations to Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety), and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes. The project is for the minor alteration of an existing paved road for public safety, all within the existing City right- Item Title: 10.9
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Middle School – ATP Project
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of-way (“ROW”). No additional automobile lanes will be created by the project. The proposed project is the minor alteration of an existing public facility (“City Street”) involving a negligible expansion of the existing use. The project is exempt per Section 15301.

The proposed project is also exempt under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA (Section 15061(b)(3)). There is no possibility that the activity in question would have a significant effect on the environment because the proposed project is occurring in an area that is heavily disturbed and is not environmentally sensitive.

The amount of the proposed Agreement exceeds the City Manager’s signing authority. Pursuant to Menifee Municipal Code §3.12.040, any contract amount that exceeds the City Manager’s signing authority shall be approved by the City Council.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The fiscal impact of the proposed Agreement with Leonida Builders Inc. is in the total amount not- to-exceed $574,992.36, and the total anticipated fiscal impact for the construction phase of the Project is $662,492.00, which includes the cost of the Agreement and ancillary services such as materials testing and labor compliance.

The existing project budget of $361,509.47 is available to cover a portion of the total anticipated construction costs, as summarized in Table 2 below.

TABLE 2 – FY 2023/2024 EXISTING PROJECT BUDGET
Fund Account Number Available Budget Anticipated Cost
Grant Fund (SB 821) 301-4555-58143 $223,105.00 $223,105.00 DIF Citywide – Circulation 526-4555-58143 $138,404.47 $138,404.47 TOTALS $361,509.47 $361,509.47
The remaining $300,982.53 required to complete the construction phase for the Project has been identified in project savings from two completed projects and additional budget from professional services, which would be transferred to the Project as summarized in Table 3 on the following page. The transfer from professional services would take operational savings and increase the CIP project budget, but no new budget appropriation would be required.

Item Title: 10.9
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Inc.

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Road

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Mountain
Middle School – ATP Project
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TABLE 3 – IDENTIFIED PROJECT FUNDING
Fund Project / Account Account Number Available
Budget
Anticipated
Cost
General Professional Services 100-4555-52800 $41,420.07 $37,407.53 General Leon Rd Micro-Surfacing 100-4555-58158 $13,575.00 $13,575.00 General On Call AC Resurfacing 100-4555-58160 $250,000.00 $250,000.00 TOTALS $304,995.07 $300,982.53
Staff further recommend the reprogramming of $138,404.47 in DIF Citywide – Circulation funds from this Project to the Bradley Road Bridge over Salt Creek project, which also utilizes DIF Citywide – Circulation funds. The reprogramming of DIF Citywide – Circulation funds to the Bradley Road Bridge over Salt Creek project more closely aligns with the intended use of DIF Citywide – Circulation funds. Staff further recommends the reprogramming of $138,404.47 of existing General Funds from the Bradley Road Bridge over Salt Creek project to replace the DIF Citywide – Circulation funds. The reprogramming of funds would be processed by the Finance Department through Budget Amendment Resolutions (BARs) and would result in no increase or decrease to the overall FY 2023/2024 CIP budget. The BARs and previously mentioned transfers would result in a final budget of $662,492 to cover the construction phase, as summarized in Table 4 below.

TABLE 4 – FINAL PROPOSED PROJECT FUNDING
Fund Account Number Beginning Budget Proposed Budget
General* 100-4555-58143 $0.00 $439,387.00
Grant Fund (SB 821) 301-4555-58143 $223,105.00 $223,105.00 DIF Citywide – Circulation* 526-4555-58143 $138,404.47 $0.00 TOTALS $361,509.47 $662,492.00
*Includes reprogramming of funds from DIF Citywide – Circulation Fund to General Fund.

ATTACHMENTS

1. Project Location Map

2. Agreement – Leonida Builders Inc.

3. Budget Amendment Resolution – Fund 100

4. Budget Amendment Resolution – Fund 526
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Path: Z:\Project_Specific_Maps\Engineering_PublicWorks\BellMountainPedestrianImprovements\BellMountainPedestrianImprovements.aprx Date: 3/30/2022 Bell Mountain Middle School Pedestrian Project (CIP 22-25) Project Location Map
Item Title: 10.9
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CITY OF MENIFEE

CONTRACT SERVICES AGREEMENT
CIP 22-25 LA PIEDRA ROAD AT BELL MOUNTAIN MIDDLE SCHOOL- ATP THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this _________ day of ___________, 2024 by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and LEONIDA BUILDERS INC., a S- Corporation (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.

City sought, by issuance of a Request for Proposals or Invitation for Bids, for the performance of the services defined and described particularly in this Agreement. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in this Agreement, was selected by City to perform those services. Pursuant to the City of Menifee’s Municipal Code, City has authority to enter into this Agreement and the City Manager has authority to execute this Agreement. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.

SECTION 1. SERVICES.

1.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services, attached hereto as Exhibit B, “Scope of Services” and incorporated herein by this reference (the “Services”).

Contractor will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. The Scope of Services incorporates Contractor’s scope of work or bid for the Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit B, this Agreement shall prevail.

1.2 Term of Services. The term of this Agreement shall begin on June 5, 2024. Unless earlier terminated in accordance with Section 8 of this Agreement, this Agreement shall continue in full force and effect until final written approval and acceptance of the work performed under this Agreement by the Contract Administrator. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8.

1.3 Standard of Performance.
a. Quality of Work. As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to the best of its ability, experience, and talent, perform all Services described herein. Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that Item Title: 10.9
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all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and Item Title: 10.9
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guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.

1.4 Assignment of Personnel. Contractor shall assign only competent personnel to perform the Services. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services.

Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.5 Time. Time is of the essence in the performance of this Agreement. Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Scope of Services. When requested by Contractor, extensions to the time period(s) specified in the Scope of Services may be approved in writing by the Contract Administrator but not shall not exceed one hundred eighty (180) days cumulatively.

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shall within ten (10) days of the commencement of such delay notify the Contract Administrator in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.

1.7 Suspension of Services. The City Engineer of City (“Engineer”) shall have the authority to suspend the Services, wholly or in part, for such period as the Engineer may deem necessary, due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the Services, or for such time as the Engineer may deem necessary due to the failure on the part of Contractor to carry out orders given or to perform any provisions of the Services. Contractor shall immediately comply with the written order of the Engineer to suspend the Services wholly or in part and shall not resume the Services until ordered to do so in writing by the Engineer. Such suspension shall be without liability to Contractor on the part of City. In the event a suspension of work is ordered because of failure on the part of Contractor to carry out orders given or to perform any provisions of the Services, such suspension of the Services shall not relieve Contractor of responsibility to complete the Services within the time limit set forth herein and shall not be considered cause for extension of the time for completion and, further, such suspension of the Services shall not entitle Contractor to any additional compensation.

1.8 Familiarity with Work and Worksite. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Services, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Services. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Administrator.

1.9 Further Responsibilities of the Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless otherwise specified in this Agreement, neither Party shall be responsible for the service of the other.

1.10 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit A and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit A and any other provisions of this Agreement, the provisions of Exhibit A shall govern.

Item Title: 10.9
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SECTION 2. COMPENSATION.

2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed Five Hundred Seventy Four Thousand Nine Hundred Ninety Two Dollars and Thirty Six Cents ($574,992.36) notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section

8.4 herein. In the event of a conflict between this Agreement and Exhibit B, regarding the amount of compensation, this Agreement shall prevail. City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.

2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the Scope of Services, provided that time estimates are provided for the performance of subtasks, or (iv) such other methods as may be specified in the Scope of Services. In no event shall compensation exceed the amount set forth in Subsection 2.1.

2.3 Invoices. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub- contractor contracts. Subcontractor charges shall also be detailed by such categories. Invoices shall contain:
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit B; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.

Item Title: 10.9
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Invoices shall be submitted to:

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

2.4 City Payment of Invoices. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Pursuant to California Public Contract Code Section 20104.50, Contractor is notified that for public works Services, City’s failure to pay undisputed and properly submitted invoices within thirty (30) days shall be subject to interest at the legal rate set forth in Code of Civil Procedure Section 685.010. Any invoice for public works Services determined not to be a proper invoice suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) days, after receipt. An invoice returned pursuant to the foregoing shall be accompanied by a writing stating the reasons why the invoice is not proper.

2.5 Retention of Funds, Final Payment.
a. Contractor hereby authorizes City, in the sole discretion of the Contract Administrator, to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the total compensation. The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. b. Notwithstanding Paragraph a, California Public Contract Code Section 22300 permits the substitution of securities for any retention monies withheld by City for public works Services. At the request and expense of Contractor, securities equivalent to the monies withheld shall be deposited with City, or with a state or federally chartered bank in California as the escrow agent, who shall then pay such monies to Contractor. City retains the sole discretion to approve the bank selected by Contractor to serve as escrow agent. Upon satisfactory completion of the Services, the securities shall be returned to Contractor. Securities eligible for investment shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor. Upon satisfactory completion of the Item Title: 10.9
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Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.

2.6 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In no event shall Contractor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.

2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit B.

2.8 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. Reimbursable expenses not listed in Exhibit B must be approved in advance by the Contract Administrator, in his or her sole discretion. Contractor shall not be entitled to any additional compensation for the attendance of meetings reasonably deemed necessary by City for the execution of the Services.

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

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

2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

SECTION 3. FACILITIES AND EQUIPMENT.

3.1 Contractor Provides Facilities and Equipment. Except as otherwise provided, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. In no event shall City be required to furnish any facility or equipment that may involve incurring any direct expense.

3.2 Utility Relocation. Where applicable, pursuant to California Government Code Section 4215, City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities.

Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

Item Title: 10.9
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Agreement

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3.3 Trenches or Excavations. Pursuant to California Public Contract Code Sections 6705 and 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply.
a. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
b. If the Services involve an estimated expenditure in excess of Twenty-Five Thousand Dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by the City Engineer, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.
c. City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue an order or amendment for additional services pursuant to Subsection 8.4 or 8.5 of this Agreement. d. If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.

SECTION 4. INSURANCE AND BOND REQUIREMENTS.

Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and provide certified copies of insurance policies and original endorsements, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation. Contractor shall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Item Title: 10.9
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Agreement prior to execution. Contractor acknowledges the insurance policy must cover inter- insured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.

4.1 Workers’ Compensation. Contractor shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Contractor may rely on a self- insurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Contractor, if a program of self- insurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. Pursuant to California Labor Code Section 1860, Contractor is required to secure the payment of compensation to Contractor’s employees. Pursuant to California Labor Code Section 1861, Contractor hereby submits to City the following:

I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

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an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, 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 including “any auto” and endorsement CA 0025 or equivalent). 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:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.

4.3 Professional Liability Insurance.
a. General Requirements. Contractor, at its own expense, shall maintain professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)- year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.
b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:

Item Title: 10.9
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(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) 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, Contractor must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage.
(iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.

4.4 Pollution Liability Insurance. Contractor, at its own expense, shall maintain pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per pollution incident and ONE MILLION DOLLARS ($1,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement.

4.5 All Policies Requirements.
a. Verification of Coverage. Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance must include the following reference: CIP 22- 25 LA PIEDRA ROAD AT BELL MOUNTAIN MIDDLE SCHOOL- ATP. The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is:

City of Menifee, 29844 Haun Road, Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor. b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator.
c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of Item Title: 10.9
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the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded 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. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers.
d. Deductibles and Self-Insured Retentions. Contractor shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
e. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
f. 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.

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category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals. Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).

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

SECTION 5. INDEMNIFICATION.

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

5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or Item Title: 10.9
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subcontractors of Contractor. Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder.

5.3 Subcontractors. Contractor shall incorporate similar indemnity agreements with its subcontractors. Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.

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.

In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.

SECTION 6. INDEPENDENT CONTRACTOR.

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.4; however, otherwise City shall not have the right to control the means by which Contractor accomplishes the Services rendered pursuant to this Agreement.

The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall not at any time or in any manner represent that it is or any of its officers, employees, or agents are in any manner officers, officials, employees, or agents of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.

City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

SECTION 7. LEGAL REQUIREMENTS.

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

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7.2 Compliance with Applicable Laws. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City 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. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.

7.3 Prevailing Wages. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable prevailing wage laws and regulations and effectuating compliance with such laws, including, but not limited to the prevailing wage and related requirements set forth in this Subsection 7.3. Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
a. Public Work. Contractor hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Contractor, its employees or agents in writing or otherwise that the Services are not a “public work,” as defined in Section 1720 of the California Labor Code. It is agreed by the Parties that, in connection with the development, construction (as defined by applicable law) and operation of the Services, including, without limitation, any public work (as defined by applicable law), if any, Contractor shall bear all risks of payment or non-payment of state and/or federal prevailing wages and/or the implementation of California Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. To the extent applicable, City will enforce all penalties required by law for Contractor’s failure to pay prevailing wages. b. California Labor Code. The Contractor’s attention is directed to Division 2, Part 7, Chapter 1 of the California Labor Code and especially to Article 2 (Wages); and Article 3 (Working Hours), thereof.
(i) In accordance with Sections 1773 and 1773.2 of the California Labor Code, City has found and determined the general prevailing rates of wages in the locality in which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022-1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site.
(ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system.

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Item Page Number: 20

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(iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay. (v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code.
(vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of apprentices.

Pursuant to Section 1777.5 it is hereby stipulated that Contractor will be responsible for obtaining compliance therewith on the part of any and all sub-consultants or subcontractors employed by Contractor in connection with this Agreement.
(vii) Pursuant to California Labor Code Section 1775, it is hereby stipulated that Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for the Services by Contractor or any sub-consultant or subcontractor. c. Bidding Eligibility. Pursuant to California Labor Code Section 1771.1, no contractor or subcontractor (or consultant or subconsultant) may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations. Pursuant to California Public Contract Code Section 6109, Contractor may not perform any Services hereunder with a subcontractor who is ineligible to perform the Services pursuant to Section 1777.1 or 1777.7 of the California Labor Code.
d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to Item Title: 10.9
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Item Page Number: 21

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provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.

7.4 Licenses and Permits, Fees, and Assessments. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions, and perform the Services. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions, and perform the Services. In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder.

7.5 Conflicts of Interest. Contractor represents, warrants, and covenants that Contractor presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement. Contractor further agrees that while this Agreement is in effect, Contractor shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement.

7.6 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.

7.7 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.

7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working Item Title: 10.9
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Item Page Number: 22

Menifee Mayor and City Council
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day of delay in the performance of any of the Services. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages.

SECTION 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may terminate this Agreement at any time and without cause upon thirty (30) days’ written notification to Contractor. City may also terminate this Agreement pursuant to Subsection 8.8.

8.2 Termination by Contractor. Contractor may terminate this Agreement upon sixty (60) days’ written notice to City.

8.3 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services satisfactorily performed up to the date of termination; City, however, may condition payment of such compensation upon Contractor delivering to City any or all materials provided to Contractor or prepared by or for Contractor or City in connection with this Agreement. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Administrator.

8.4 Administrative Change Orders. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Administrator to Contractor, incorporating therein any adjustment in (i) the total compensation, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the total compensation or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved in writing by the Contract Administrator. Contractor understands and agrees that, if City grants an extension in time without additional work, City shall have no obligation to provide Contractor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Contractor for any otherwise reimbursable expenses incurred during the extension period. All other extensions or modifications to this Agreement shall require a written amendment pursuant to Subsection 8.5.

8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. The Contract Administrator shall have the authority to execute amendments to this Agreement which do not materially change the terms hereof, in the Contract Administrator’s discretion, to the extent permitted by applicable federal, state, and local law. The Contract Administrator may refer any proposed amendment to the City Council for review and approval.

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

Moreover, a substantial inducement to City for entering into this Agreement was and is the Item Title: 10.9
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Leonida

Builders

Inc.

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Bell

Mountain
Middle School – ATP Project
Item Page Number: 23

Menifee Mayor and City Council
June 5, 2024
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professional reputation and competence of Contractor. Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

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

8.8 Disputes, Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, in the sole discretion of the Contract Administrator. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor pursuant to this Agreement; c. Retain a different contractor to complete the Services; and/or d. Charge Contractor the difference between the cost to complete the Services that is unfinished at the time of breach and the amount that City would have paid Contractor pursuant to Section 2 if Contractor had completed the Services.

Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

8.9 Claims by Contractor. Claims, as that term is defined in California Public Contract Code Section 9204, by Contractor and, where applicable, any subcontractor, in connection with a public works project shall by subject to the mediation procedure in California Public Contract Code Section 9204.

SECTION 9. KEEPING AND STATUS OF RECORDS.

Award

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Mountain
Middle School – ATP Project
Item Page Number: 24

Menifee Mayor and City Council
June 5, 2024
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drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use.

Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.

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 the Documents and Materials.

Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.

9.3 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Administrator to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Administrator shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and Item Title: 10.9
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Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 25

Menifee Mayor and City Council
June 5, 2024
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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.

9.4 Reports. Contractor shall periodically prepare and submit to the Contract Administrator such reports concerning the performance of the Services required by this Agreement as the Contract Administrator shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Administrator of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.

9.5 Confidentiality. City and Contractor agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Administrator or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any Claims caused by or incurred as a result of Contractor’s conduct. Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Response to a subpoena or court order shall not be considered a voluntary disclosure so long as Contractor gives City notice of such court order or subpoena as provided herein.

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 Subsection shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.

Item Title: 10.9
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Leonida

Builders

Inc.

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Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 26

Menifee Mayor and City Council
June 5, 2024
Page
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10.2 Applicable Law, Venue. The laws of the State of California shall govern 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. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

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

10.7 Contractor Principals and Representatives. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
(Name) (Title)
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

Item Title: 10.9
Bid

Award

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Agreement

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Leonida

Builders

Inc.

for

Construction

Services

for

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Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 27

Menifee Mayor and City Council
June 5, 2024
Page
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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. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.

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

Attn: Panagiotis Leonida, President Secretary & Treasurer 32023 Crown Valley Road
Acton, CA 93510
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
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.

10.10 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.

10.11 Integration, Interpretation. This Agreement, including Exhibits A and B, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed Item Title: 10.9
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Leonida

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Mountain
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Item Page Number: 28

Menifee Mayor and City Council
June 5, 2024
Page
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for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.

10.12 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.

10.13 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.

10.14 Nondiscrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.

10.15 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.

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

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

10.18 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: 10.9
Bid

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Agreement

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Leonida

Builders

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Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 29

Menifee Mayor and City Council
June 5, 2024
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 Villa, City Manager
Attest:

Stephanie Roseen, Acting City Clerk
Approved as to Form:

Jeffrey T. Melching, City Attorney

CONTRACTOR
Panagiotis Leonida, President Secretary &
Treasurer

TBD

[Note: 2 officer’s signatures required if
Contractor is a corporation, unless provided
with a certificate of secretary in-lieu]
Item Title: 10.9
Bid

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Agreement

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Leonida

Builders

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Services

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Road

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Mountain
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Item Page Number: 30

Menifee Mayor and City Council
June 5, 2024
Page
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EXHIBIT A

SPECIAL REQUIREMENTS

INTENTIONALLY LEFT BLANK
Item Title: 10.9
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Mountain
Middle School – ATP Project
Item Page Number: 31

Menifee Mayor and City Council
June 5, 2024
Page
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EXHIBIT B

SCOPE OF SERVICES
Services shall include CIP 22-25 LA PIEDRA ROAD AT BELL MOUNTAIN MIDDLE SCHOOL- ATP services, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed Five Hundred Seventy Four Thousand Nine Hundred Ninety Two Dollars and Thirty Six Cents ($574,992.36) as further detailed in the attached pages (if any). If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement. Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement.

The numerical reference for the Bid Package or Request for Proposals is: ___73_________.

Item Title: 10.9
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Agreement

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Road

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Mountain
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Item Page Number: 32

Menifee Mayor and City Council
June 5, 2024
Page
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EXHIBIT B
Item Title: 10.9
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Mountain
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Item Page Number: 33

Menifee Mayor and City Council
June 5, 2024
Page
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2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
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Award

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Agreement

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Leonida

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Construction

Services

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Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 34

Menifee Mayor and City Council
June 5, 2024
Page
198 of 1108

2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
Bid

Award

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Agreement

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Leonida

Builders

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for

Construction

Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 35

Menifee Mayor and City Council
June 5, 2024
Page
199 of 1108

2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
Bid

Award

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Agreement

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Leonida

Builders

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Services

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Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 36

Menifee Mayor and City Council
June 5, 2024
Page
200 of 1108

2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
Bid

Award

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Agreement

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Leonida

Builders

Inc.

for

Construction

Services

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the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 37

Menifee Mayor and City Council
June 5, 2024
Page
201 of 1108

2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
Bid

Award

and

Agreement

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Leonida

Builders

Inc.

for

Construction

Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 38

Menifee Mayor and City Council
June 5, 2024
Page
202 of 1108

2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
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Mountain
Middle School – ATP Project
Item Page Number: 39

Menifee Mayor and City Council
June 5, 2024
Page
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2905/031858-0001
19201719.4 a05/13/24 EXHIBIT B.

Item Title: 10.9
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Mountain
Middle School – ATP Project
Item Page Number: 40

Menifee Mayor and City Council
June 5, 2024
Page
204 of 1108

RESOLUTION NO. 24-____

AMENDMENTS TO ADOPTED BUDGET:

General Fund 100 Adopted FY 2023/24 Revenue Budget: $70,722,556.00

1. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
November 15, 2023 State Asset Forfeiture 100-3468 20,563.00 December 6, 2023
CSA 145 Quimby County
Reimbursement / 1x Payment 100-3900 809,372.00
TOTAL: $829,935.00
Amended General Fund 100 FY 2023/24 Revenue Budget: $71,552,491.00 General Fund 100 Adopted FY 2023/24 Expenditure Budget: $71,955,477.00

2. Record Appropriation(s):

Amended General Fund 100 FY 2023/24 Expenditure Budget: $81,180,689.27

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
July 1, 2023 2023 Carryovers 100-Various 7,414,966.27
November 15, 2023 K9 Supplies 100-4911-52753 13,763.00
November 15, 2023 Training 100-4911-52211 6,800.00
December 6, 2023
CIP 19-15: Central Park
Amphitheater 100-4555-58079 789,683.00
January 17, 2024
CIP 23-10: Community Center
Project 100-4555-58157 1,000,000.00
June 5, 2024
CIP 22-25: SB821 La
Piedra/Bell Mtn Pedestrian Imp 100-4555-58143 138,404.47 June 5, 2024 CIP 13-04: Bradley Bridge 100-4555-58000 (138,404.47) TOTAL: $9,225,212.27
Item Title: 10.9
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Leonida

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Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 41

Menifee Mayor and City Council
June 5, 2024
Page
205 of 1108

Amending the Fiscal Year 2023/24 General Fund Budget
CIP 22-25: La Piedra Road at Bell Mountain Middle School – ATP Project 2 4
8 6
8 8

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL:

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the General Fund 100 for the City of Menifee for FY2023/24 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:

N/A $0.00
Amended General Fund 100 FY2023/24 Budget $71,552,491.00

Expenditures:

N/A $0.00
Amended General Fund 100 FY2023/24 Budget $81,180,689.27 PASSED, APPROVED AND ADOPTED this 5th day of June, 2024. _____________________________
Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Stephanie Roseen, Acting City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.9
Bid

Award

and

Agreement

with

Leonida

Builders

Inc.

for

Construction

Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 42

Menifee Mayor and City Council
June 5, 2024
Page
206 of 1108

RESOLUTION NO. 24-____

AMENDMENTS TO ADOPTED BUDGET:

DIF Citywide – Circulation 526 Adopted FY 2023/24 Revenue Budget: $3,210,234.00

1. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
February 7, 2024
Mid-year Adjustment – Revenue
moved to DIF Fund 518 526-3711 (3,049,096.00)
February 7, 2024
Mid-year Adjustment – Interest
increase 526-3800 2,500.00
TOTAL: ($3,046,596.00)
Amended DIF Citywide – Circulation Fund 526 FY 2023/24 Revenue Budget: $163,638.00 DIF Citywide – Circulation 526 Adopted FY 2023/24 Expenditure Budget: $4,105,724.00

2. Record Appropriation(s):

Amended DIF Citywide – Circulation 526 FY 2023/24 Expend. Budget: $11,629,929.74

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
July 1, 2023 2023 Carryovers 526-4555-Various 7,524,205.74 June 5, 2024
CIP 22-25: SB821 La
Piedra/Bell Mtn Pedestrian Imp 526-4555-58143 (138,404.47) June 5, 2024 CIP 13-04: Bradley Bridge 526-4555-58000 138,404.47 TOTAL: $7,524,206.00
Item Title: 10.9
Bid

Award

and

Agreement

with

Leonida

Builders

Inc.

for

Construction

Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 43

Menifee Mayor and City Council
June 5, 2024
Page
207 of 1108

Amending the Fiscal Year 2023/24 DIF Citywide – Circulation Fund Budget CIP 22-25: La Piedra Road at Bell Mountain Middle School – ATP Project 2 4
8 6
8 9

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
TOTAL:

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MENIFEE DOES HEREBY RESOLVE AS FOLLOWS:

The annual budget for the DIF Citywide – Circulation Fund 526 for the City of Menifee for FY2023/24 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:

N/A $0.00
Amended DIF Citywide – Circulation Fund 526 FY2023/24 Budget

$163,638.00

Expenditures:

N/A $0.00
Amended DIF Citywide – Circulation Fund 526 FY2023/24 Budget

$11,629,929.74
PASSED, APPROVED AND ADOPTED this 5th day of June, 2024. _____________________________
Bill Zimmerman, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Stephanie Roseen, Acting City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.9
Bid

Award

and

Agreement

with

Leonida

Builders

Inc.

for

Construction

Services

for

the

Piedra

Road

Bell

Mountain
Middle School – ATP Project
Item Page Number: 44

Menifee Mayor and City Council
June 5, 2024
Page
208 of 1108

CITY OF MENIFEE
SUBJECT: Agreement with Adame Landscape, Inc. for Routine Park, Right of Way, and Facility Landscape Maintenance and Park Restroom Janitorial Services
MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Nancy Rodriguez, Management Analyst
REVIEWED BY: Jonathan Nicks, Deputy City Manager
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute a Professional Services Agreement with Adame Landscape, Inc. for routine park, right-of-way, and facility landscape maintenance and park restroom janitorial services for an initial three-year term in a total not-to-exceed amount of $3,750,287 through June 30, 2027; and

2. Authorize the City Manager or designee to execute two optional, one-year extensions in an amount not-to-exceed $1,315,587 for year four and $1,381,366 for year five; and

3. Authorize the City Manager to execute additional amendments as needed to include services for future maintenance areas currently under construction, at the City’s discretion and contingent on availability of the corresponding budget.

DISCUSSION
The City of Menifee’s Community Services Department oversees the landscape maintenance of the City’s public parks, right-of-way (ROW), and facilities. The park system contains an estimated 116.36 acres of existing developed open space spread over 22 parks containing 17 restrooms, 4 baseball fields, 11 multipurpose fields, 10 pickleball and tennis courts, 13 basketball courts, a skate park, and a pump track. In addition, CSD is responsible for maintenance of approximately 5,903,980 square feet of public right-of way landscape as well as the landscape maintenance of 7 City facilities.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 1

Menifee Mayor and City Council
June 5, 2024
Page
209 of 1108

City of Menifee Staff Report
Adame Landscape, Inc. Agreement
June 5, 2024

Page 2 of 5 ends

2 1
1 0
On February 9, 2024, staff issued Request for Proposal (RFP) No. 2024-12 for landscape maintenance services for City parks, ROWs, and facilities and janitorial services for park restrooms. The services include comprehensive landscape and parkway maintenance of all existing sites: mow/blow/edge, trash, janitorial, weed abatement and extra work as needed, including graffiti and pest abatement, and emergency irrigation repair that may not be covered by in-house staff. By design, “extra work” is not a part of the base bid. However, rates for extra work have been provided should City elect to use the selected vendor instead of in-house staff for certain tasks as needed.

The City received six proposals from the firms outlined in Table 1 below. A committee consisting of City staff evaluated the proposals. The firms were evaluated based on the criteria set forth in RFP 2014-12 which included the experience/qualification of the firm and key personnel, work plan methodology/project approach, cost proposal, reference review, and quality of responsiveness of the proposal.

Following the evaluation process, interviews with the top three firms, and reference checks, City staff determined that Adame Landscape, Inc. (Adame) was most qualified to conduct the requested services. Adame has extensive experience providing landscape services to other municipalities as well as the City of Menifee.

All the tabulated results from the evaluations of the six firms are listed in Table 1 below:

TABLE 1 – RFP EVALUATION SUMMARY
Firm Name Evaluation Score Interview Score Cost Proposal Adame Landscape, Inc. 87.67 79.00 $1,233,737.42
Mariposa Landscapes 83.67 76.00 $1,776,089.16
RP Landscape Irrigation 82.33 69.33 $1,557,901.77
Brightview 81.33 - $1,974,967.94
Inland Empire Landscape 81.33 - $1,779,077.94
Nieves Landscape 71.67 - $2,241,262.39
The Parks, Recreation and Trails Commission reviewed the scope of services and bid summaries during their regular meeting on May 2, 2024, and approved a recommendation for City Council to award the Professional Services Agreement to Adame Landscape, Inc.

Staff proposes an initial three-year term from July 1, 2024 to June 30, 2027 with two additional single year renewals at the City Manager’s discretion. The proposed contract includes a not-to- exceed amount of $3,750,287 for the first three years including a total of $1,244,408 for Fiscal Year 2024/2025. This amount covers only existing and anticipated improvements requiring maintenance services as well as emergency as needed services. Following the conclusion of the evaluation, it was determined that multiple high traffic locations in the City’s main thoroughfare would be better served with weekly maintenance. The proposed weekly service increased the initial bid proposal’s annual cost by $10,671. In addition to the other areas already proposed to receive weekly services, the following locations are recommended to be included for weekly maintenance: Haun Road ROW Landscape, Newport and Haun Road Street Median, Newport CVS ROW, Newport Road ROW (Bradley and Town Center), and Santa Rosa Academy.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 2

Menifee Mayor and City Council
June 5, 2024
Page
210 of 1108

City of Menifee Staff Report
Adame Landscape, Inc. Agreement
June 5, 2024

Page 3 of 5 ends

2 1
1 0
The $1,244,408 can be summarized into four principal maintenance services to be provided.

1. Park Maintenance Services

2. Park Restroom (Janitorial) Maintenance Services

3. ROW Landscape Maintenance Services

4. Planter Area & Turf Maintenance Services (Facilities) Funding for the landscaping maintenance services involves various sources within the City operating budget, including but not limited to:
•General Fund
•Lighting and Landscaping Maintenance Districts
•Community Services Areas (CSA) 33 and 145
•Community Facilities Districts (CFD) 2012-1, 2012-2, 2014-1, 2014-2, 2015-2, and 2017- 1 (Various Annexations/Zones)
A breakdown of the four principal maintenance service categories with the corresponding funding source is attached to the agreement as Exhibit B.

Amendments to the Agreement may be required to include additional landscape services for new areas that are still under development. Staff is requesting City Manager authorization to amend the agreement as these new areas are completed, contingent on budget and city discretion. At that time, staff would evaluate quotes received to ensure the current agreement remains the most cost-effective option. As additional improvements are accepted by the City, contract amendment(s) would be processed to capture additional landscape maintenance services needed, based on the comprehensive price proposal submitted by Adame.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The fiscal impact of the proposed agreement with Adame totals a not-to-exceed amount of $6,447,239 over five years as listed in Table 2 below.

TABLE 2 – AGREEMENT BREAKDOWN BY YEAR
Year Amount
FY 2024/2025 – Year 1 $1,244,408
FY 2025/2026 – Year 2 $1,252,939
FY 2026/2027 – Year 3 $1,252,939
FY 2027/2028 – Year 4 $1,315,587
FY 2028/2029 – Year 5 $1,381,366
Total $6,447,239
Funding in the amount of $1,244,408 for year one is available within the Fiscal Year 2024/2025 budget within the CSA 145, CSA 33, CFD 2012-1, CFD 2012-2, CFD 2014-1, CFD 2014-2, CFD 2015-2, CFD 2017-1, and General Fund accounts, as detailed in Table 3 on the following pages.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 3

Menifee Mayor and City Council
June 5, 2024
Page
211 of 1108

City of Menifee Staff Report
Adame Landscape, Inc. Agreement
June 5, 2024

Page 4 of 5 ends

2 1
1 0
Funding for the remaining $5,202,831 in years two through five would be budgeted as part of their respective year’s budget.

TABLE 3 – FISCAL YEAR 2024/2025 FUNDING AVAILABILITY
Fund Account No. Contract Amt.

General Fund 100-4663-52607 $67,136.83
General Fund 100-4663-52608 $10,427.00
General Fund – ISF 116-4221-52801 $451.09
General Fund – ISF 116-4445-52050 $8,346.93
General Fund – ISF 116-4550-52801 $734.29
General Fund – ISF 116-4660-52801 $851.87
LLMD 89-1C, Zone 3 370-4557-52607 $87,588.15
LLMD 89-1C, Zone 27 372-4557-52607 $824.37
LLMD 89-1C, Zone 37 373-4557-52607 $4,342.45
LLMD 89-1C, Zone 38 374-4557-52607 $10,487.19
LLMD 89-1C, Zone 47 376-4557-52607 $459.80
LLMD 89-1C, Zone 69 380-4557-52607 $7,576.78
LLMD 89-1C, Zone 77 382-4557-52607 $4,867.47
LLMD 89-1C, Zone 81 383-4557-52607 $5,824.58
LLMD 89-1C, Zone 133 391-4557-52607 $17,161.67
LLMD 89-1C, Zone 167 393-4557-52607 $484.00
CSA 145 480-4554-52607 $4,840.00
CSA 145 480-4554-52608 $130,511.01
CFD 2012-1, Audie Murphy Ranch 490-4558-52607 $196,904.14 CFD 2012-1, Audie Murphy Ranch 490-4558-52608 $129,660.68 CFD 2012-2, Hidden Hills 491-4558-52607 $28,130.87
CFD 2012-2, Hidden Hills 491-4558-52608 $27,124.22
CFD 2014-1, Town Center 492-4558-52607 $4,236.45
CFD 2014-2: Commerce Point 493-4558-52607 $4,591.73
CFD 2107-1, Zone 1 494-4558-52607 $12,801.68
CFD 2015-2, Citywide Parks 622-4558-52608 $48,650.58
CFD 2015-2, Zone 1 630-4558-52607 $54,521.44
CFD 2015-2, Zone 1 630-4558-52608 $44,249.43
CFD 2015-2, Zone 3 632-4558-52607 $775.17
CFD 2015-2, Zone 4 633-4558-52607 $81.31
CFD 2015-2, Zone 7 636-4557-52607 $10,760.89
CFD 2015-2, Zone 7 636-4558-52608 $26,318.67
CFD 2015-2, Zone 8 637-4558-52607 $1,278.90
CFD 2015-2, Zone 9 638-4558-52607 $1,144.66
CFD 2015-2, Zone 10 639-4558-52607 $96.20
CFD 2015-2, Zone 14 643-4558-52607 $133.10
CFD 2015-2, Zone 15 644-4558-52607 $282.29
CFD 2015-2, Zone 17 646-4558-52607 $1,076.90
CFD 2015-2, Zone 19 648-4558-52607 $556.00
CFD 2015-2, Zone 20 649-4558-52607 $22,081.60
Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 4

Menifee Mayor and City Council
June 5, 2024
Page
212 of 1108

City of Menifee Staff Report
Adame Landscape, Inc. Agreement
June 5, 2024

Page 5 of 5 ends

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1 0
CFD 2015-2, Zone 20 649-4558-52608 $37,757.37
CFD 2015-2, Zone 21 651-4558-52607 $2,398.58
CFD 2015-2, Zone 23 653-4558-52607 $266.20
CFD 2015-2, Zone 28 658-4558-52607 $3,838.36
CFD 2015-2, Zone 29 659-4558-52607 $24,842.14
CFD 2015-2, Zone 29 659-4558-52608 $31,875.54
CFD 2015-2, Zone 33 663-4558-52607 $890.56
CFD 2015-2, Zone 34 664-4558-52607 $1,331.00
CFD 2015-2, Zone 35 665-4558-52607 $3,218.60
CFD 2017-1, Zone 2 672-4558-52607 $2,376.97
CFD 2017-1, Zone 4 674-4558-52607 $33,595.68
CFD 2017-1, Zone 4 674-4558-52607 $40,534.49
CFD 2017-1, Zone 5 675-4558-52607 $7,027.39
CFD 2017-1, Zone 6 676-4558-52607 $12,177.73
CFD 2017-1, Zone 8 678-4558-52607 $16,682.52
CFD 2017-1, Zone 8 678-4558-52608 $27,367.66
CFD 2017-1, Zone 9 679-4558-52607 $4,854.64
As Needed Emergency Services Various $15,000.00
TOTAL: $1,244,408

ATTACHMENTS

1. Agreement - Adame Landscape, Inc.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 5

Menifee Mayor and City Council
June 5, 2024
Page
213 of 1108

2905/031858-0001
19201719.4 a10/04/23

CITY OF MENIFEE

CONTRACT SERVICES AGREEMENT

LANDSCAPE MAINTENANCE SERVICES FOR (PUBLIC RIGHT-OF-WAY (ROW),

PARKS, AND FACILITIES)
THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this _________ day of ___________, 2024 by and between the CITY OF MENIFEE, a California municipal corporation, (“City”) and ADAME LANDSCAPING, INC., a California Corporation (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.

SECTION 1. SERVICES.

1.2 Term of Services. This Agreement shall become effective on July 1, 2024, the Effective Date and shall continue until June 30, 2027 (“Initial Term”). Upon termination of the Initial Term, this Agreement shall automatically renew for one (1) additional one (1) year term (“First Renewal Term”). Upon termination of the First Renewal Term, if it occurs, this Agreement shall automatically renew for one (1) additional one (1) year term (“Second Renewal Term”).

None of the renewal terms provided hereunder shall occur if the term of this Agreement is otherwise terminated or extended as provided for in Section 8. The word “term” shall refer to the Initial Term and any renewal term which actually occurs. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement.

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 6

Menifee Mayor and City Council
June 5, 2024
Page
214 of 1108

2905/031858-0001
19201719.4 a10/04/23 -2-
facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to the best of its ability, experience, and talent, perform all Services described herein. Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 7

Menifee Mayor and City Council
June 5, 2024
Page
215 of 1108

2905/031858-0001
19201719.4 a10/04/23 -3-
and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 8

Menifee Mayor and City Council
June 5, 2024
Page
216 of 1108

2905/031858-0001
19201719.4 a10/04/23 -4-

1.6 Force Majeure. The time period(s) specified in the Scope of Services for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Administrator in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 9

Menifee Mayor and City Council
June 5, 2024
Page
217 of 1108

2905/031858-0001
19201719.4 a10/04/23 -5-

SECTION 2. COMPENSATION.

2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed Six Million Four Hundred Forty Seven Thousand Two Hundred Thirty Eight Dollars and Fifty Four Cents ($6,447,238.54) if and only if both renewal terms actually occur (see Exhibit B for year-to-year compensation not-to-exceed amounts), notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section 8.4 herein. In the event of a conflict between this Agreement and Exhibit B, regarding the amount of compensation, this Agreement shall prevail. City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 10

Menifee Mayor and City Council
June 5, 2024
Page
218 of 1108

2905/031858-0001
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e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit B; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.

Invoices shall be submitted to:

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

with

Adame

Landscape,

Inc.

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Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 11

Menifee Mayor and City Council
June 5, 2024
Page
219 of 1108

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shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor. Upon satisfactory completion of the Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.

2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on the fee schedule included with Exhibit B.

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

2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

SECTION 3. FACILITIES AND EQUIPMENT.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 12

Menifee Mayor and City Council
June 5, 2024
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Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

SECTION 4. INSURANCE AND BOND REQUIREMENTS.

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Item Page Number: 13

Menifee Mayor and City Council
June 5, 2024
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maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation. Contractor shall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Contractor acknowledges the insurance policy must cover inter- insured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.

I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake Item Title: 10.10
Agreement

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Item Page Number: 14

Menifee Mayor and City Council
June 5, 2024
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self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

Contractor Initial: _______

4.2 Commercial General and Automobile Liability Insurance. a. General Requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, 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 including “any auto” and endorsement CA 0025 or equivalent). 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:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.

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Item Page Number: 15

Menifee Mayor and City Council
June 5, 2024
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professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)- year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.
b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) 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, Contractor must provide extended reporting coverage for a minimum of five (5) years after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage.
(iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.

LANDSCAPE MAINTENANCE SERVICES FOR (PUBLIC RIGHT-OF-WAY (ROW), PARKS, AND FACILITIES). The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is: City of Menifee, 29844 Haun Road, Item Title: 10.10
Agreement

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Item Page Number: 16

Menifee Mayor and City Council
June 5, 2024
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Menifee, CA 92586. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor. b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator.
c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded 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.

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Item Page Number: 17

Menifee Mayor and City Council
June 5, 2024
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coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.

4.6 Payment and Performance Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secure the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. Payment and performance bonds shall be secured from a surety company rated Grade “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals. Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).

SECTION 5. INDEMNIFICATION.

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Item Page Number: 18

Menifee Mayor and City Council
June 5, 2024
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nature and, if Contractor 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 Contractor, its officers, agents, employees, or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement.

In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.

SECTION 6. INDEPENDENT CONTRACTOR.

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Item Page Number: 19

Menifee Mayor and City Council
June 5, 2024
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entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.

City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.

SECTION 7. LEGAL REQUIREMENTS.

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

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Item Page Number: 20

Menifee Mayor and City Council
June 5, 2024
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which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022-1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site.
(ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system. (iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay. (v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code.
(vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of apprentices.

Item Title: 10.10
Agreement

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Item Page Number: 21

Menifee Mayor and City Council
June 5, 2024
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d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.

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Item Page Number: 22

Menifee Mayor and City Council
June 5, 2024
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appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.

SECTION 8. TERMINATION AND MODIFICATION.

8.2 Termination by Contractor. Contractor may terminate this Agreement upon sixty (60) days’ written notice to City.

Item Title: 10.10
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Item Page Number: 23

Menifee Mayor and City Council
June 5, 2024
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Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Contractor. Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

Item Title: 10.10
Agreement

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Item Page Number: 24

Menifee Mayor and City Council
June 5, 2024
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SECTION 9. KEEPING AND STATUS OF RECORDS.

9.1 Documents and Data. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the “Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use.

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Item Page Number: 25

Menifee Mayor and City Council
June 5, 2024
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during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement.

Item Title: 10.10
Agreement

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Item Page Number: 26

Menifee Mayor and City Council
June 5, 2024
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SECTION 10. MISCELLANEOUS PROVISIONS.

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.

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Item Page Number: 27

Menifee Mayor and City Council
June 5, 2024
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(Name) (Title)
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.

10.8 City Contract Administration. This Agreement shall be administered by a City employee, Nancy Rodriguez, Management Analyst (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.

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

Attn: Carlos Adame
41863 JUNIPER STREET
MURRIETA, CA 92562
Any written notice to City shall be sent to the Contract Administrator at:

City of Menifee
29844 Haun Road
Menifee, CA 92586
Attn: Nancy Rodriguez, Management Analyst
with a copy to:

Item Title: 10.10
Agreement

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Item Page Number: 28

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June 5, 2024
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10.12 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.

10.15 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.

Item Title: 10.10
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Item Page Number: 29

Menifee Mayor and City Council
June 5, 2024
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Item Page Number: 30

Menifee Mayor and City Council
June 5, 2024
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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 Villa, City Manager
Attest:

Stephanie Roseen, Acting City Clerk
Approved as to Form:

Jeffrey T. Melching, City Attorney

CONTRACTOR
Carlos Adame, General Manager

Rodolfo Adame, Owner

[Note: 2 officer’s signatures required if
Contractor is a corporation, unless provided
with a certificate of secretary in-lieu]
Item Title: 10.10
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Item Page Number: 31

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June 5, 2024
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2905/031858-0001
19201719.4 a10/04/23 EXHIBIT A.

EXHIBIT A

SPECIAL REQUIREMENTS

INTENTIONALLY LEFT BLANK
Item Title: 10.10
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Item Page Number: 32

Menifee Mayor and City Council
June 5, 2024
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2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

EXHIBIT B

SCOPE OF SERVICES
Services shall include LANDSCAPE MAINTENANCE SERVICES FOR (PUBLIC RIGHT- OF-WAY (ROW), PARKS, AND FACILITIES) services, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed Six Million Four Hundred Forty Seven Thousand Two Hundred Thirty Eight Dollars and Fifty Four Cents ($6,447,238.54) as further detailed in the attached pages (if any).

If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement. Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement. The amounts set forth below include compensation based on Contractor’s proposal for the total cost of performing the Services, includes additional purchasing authorization for as-needed services, and includes the 5% annual markup percentage indicated in the Scope of Services or mutually agreed upon by the Parties:
•Initial Term: Three Million Seven Hundred Fifty Thousand Two Hundred Eighty Six Dollars and Eighty One Cents ($3,750,286.81).
•First Renewal Term: One Million Three Hundred Fifteen Thousand Five Hundred Eighty Six Dollars and Twenty One Cents ($1,315,586.21) (Includes the 5% CPI) •Second Renewal Term: One Million Three Hundred Eighty One Thousand Three Hundred Sixty Five Dollars and Fifty Two Cents ($1,381,365.52) (Includes the 5% CPI) The numerical reference for the Bid Package or Request for Proposals is: RFP 2024-12.

Item Title: 10.10
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Item Page Number: 33

Menifee Mayor and City Council
June 5, 2024
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2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

Item Title: 10.10
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Item Page Number: 34

Menifee Mayor and City Council
June 5, 2024
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2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

Item Title: 10.10
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Item Page Number: 35

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June 5, 2024
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2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

Item Title: 10.10
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Item Page Number: 36

Menifee Mayor and City Council
June 5, 2024
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2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 37

Menifee Mayor and City Council
June 5, 2024
Page
245 of 1108

2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

Item Title: 10.10
Agreement with Adame Landscape, Inc. for Routine Park, Right of Way, and Facility Landscape Maintenance and Park Restroom Janitorial Services Item Page Number: 38

Menifee Mayor and City Council
June 5, 2024
Page
246 of 1108

2905/031858-0001
19201719.4 a00/00/00

EXHIBIT B

SCOPE OF WORK
The City seeks proposals from qualified vendors (Proposer) who can demonstrate that they possess the experience to provide park and landscape maintenance services for the City Parks, Facilities, Right-of-Ways, and janitorial services for Park Restrooms. Work will be completed per the technical specifications attached

CONTRACTOR RESPONSIBILITIES/REQUIREMENTS

1. Technical Specifications. Contractor is responsible for completing all work and maintaining all standards as detailed in the Technical Specifications. (Exhibit A).

2. Standards of Conduct. Contractor is responsible for maintaining standards of employee competence, conduct, courtesy, appearance, honesty, and integrity satisfactory to the city.

3. Supervision. Contractor shall provide adequate and competent supervision at all times during the Contract term. Contractor shall be readily available to meet with the City.

Contractor shall provide the telephone numbers where its representative(s) can be reached.

4. Work Hours. Normal work hours (at the site) shall be Monday through Friday 7:00am – 3:30pm. All work is to be scheduled and coordinated with written approval from City Designee. Any work completed outside of the normal work hours will need to be pre- approved by City Designee.

5. City Premises. Contractor’s employees and agents shall comply with all City rules and regulations while on City premises.

6. Removal of Employee. City may request Contractor immediately remove from assignment to the city any employee found unfit to perform duties at the city. Contractor shall comply with all such requests.

7. Communication Skills. Contractor shall ensure that onsite employees can communicate in English both verbally and in writing.

8. Local Office. If possible, the Contractor shall maintain a local office with a competent company representative who can be reached during normal working hours, 8:00 a.m. to 5:00 p.m. and who is authorized to discuss matters pertaining to this contract with the Technical Representative. A local office is one that can be reached by telephone within the 951 area code. An answering service or mobile telephone may fulfill the requirement for a local office, provided that all calls from the City are returned within a one (1) hour time period. Please specify where your office is located in your proposal submittal.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 39

Menifee Mayor and City Council
June 5, 2024
Page
247 of 1108

2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.

9. Equipment. The Contractor shall be responsible for provisions of all equipment required to execute the work. All equipment must be in compliance with the applicable inspection requirements. The Contractor shall be responsible for daily mobilization & de- mobilization of equipment and resources to specific work.

10. The Contractor shall comply with limitations on use of public streets and with other requirements of authorities having jurisdiction.

11. Noise, Vibration, and Odors: The Contractor shall coordinate operations that may result in high levels of noise and vibration, odors, or other disruption with Owner. Use of audible radios and music players is prohibited.

12. While conducting services, Contractor staff must wear recognizable company shirts, vests, or uniforms.

13. Controlled Substances. Use of tobacco products and other controlled substances on project site is not permitted.

14. Safety Measures. The Contractor shall obey and adhere to Cal OSHA requirements for worker safety, and ANSI Z133.1 Safety Requirements. Contractor shall provide and assure compliance in using personal protective equipment such as hard hats, gloves, goggles, harnesses, and safety shoes to Contractor’s workers and personnel.

15. Additional Extra Work must be authorized by the City and shall be shown as a separate item on the invoice submitted to the City. The invoice for Additional Extra Work shall show the exact location of the work, including the name and location. The invoice shall include any supplies used with their unit price and total cost, provided that labor is chargeable to this Additional Extra Work.

16. Inspections. All of the Landscape Areas will be inspected regularly by the City. The City may require the Contractor to accompany City staff during inspections, if the City is not satisfied with the Contractor’s work. The Contractor is expected to be capable of understanding the deficiencies and authorized to take remedial action in a manner consistent with the contract requirements and specifications.

17. Unacceptable Service. If the City, upon routine inspection, determines that any landscape has not been serviced according to the specifications, a notice outlining the deficiencies will be e-mailed to the company representative or faxed to the Contractor’s local office. Payment will not be made for any services not provided by Contractor. All notices of deficiencies will specify the date when the specified work must be completed.

The date of completion will be less than five (5) days from the date the notice is issued.

Failure to complete the work to the satisfaction of the City by the date specified will result in no payments being made to the contractor for the missed work.

Prior to re-submitting a request for payment, the Contractor must request a re-inspection.

A re-inspection request should be completed in writing to the City and either faxed or e- mailed to the City. If the work is deemed satisfactory upon re-inspection, the City will Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 40

Menifee Mayor and City Council
June 5, 2024
Page
248 of 1108

2905/031858-0001
19201719.4 a10/04/23 EXHIBIT B.
accept a request for payment, minus a one hundred dollar ($100) charge for re- inspection. Any time an additional inspection is required as a result of inadequate performance, the one hundred dollar ($100) re-inspection charge will be assessed for each inspection completed by the City until the specified work is completed

18. Park Restroom Janitorial Services
The Contractor shall furnish, as part of this contract, all paper products such as toilet paper, hand towels, seat protectors, sanitary napkins, and including trash liners and all soap products necessary for the public to utilize the facilities in a proper manner.

Contractor is provide all necessary cleaning supplies and equipment to clean and maintain the use of the facility, including but not limited to carts, containers, baskets, maintenance products, cleaning powders and products, detergents, disinfectants, polishes, mops, brushes, etc. All soap dispensers shall be maintained by the Contractor.

Contractor shall maintain Janitor Closet and equipment in a safe and clean condition.

PREVAILING WAGE
In accordance with California Labor Code Section 1771, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the Work is to be performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in the California Labor Code must be paid to all workers engaged in performing the Work. Copies of such prevailing rate of per diem wages can be found at the following website:
http://www.dir.ca.gov/DLSR/PWD/index.htm.

All contractors and subcontractors who bid or work on a public works project must register and pay an annual fee to Department of Industrial Relations (DIR) pursuant to California Labor Code section 1725.5. Information regarding DIR registration can be found at the following website: http://www.dir.ca.gov/public-works/publicworks.html.

Contractor agrees, in accordance with Section 1771.1 of the California Labor Code, that contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded. No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the DIR pursuant to California Labor Code section 1725.5. Contractor agrees, in accordance with Section 1771.4 of the California Labor Code, this Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

Contractor shall pay prevailing wages in accordance with State of California Department of Industrial Relations (DIR) General Prevailing Wage Determination.

Item Title: 10.10
Agreement

with

Adame

Landscape,

Inc.

for

Routine

Park,

Right

Way,

and

Facility

Landscape

Maintenance

and

Park
Restroom Janitorial Services
Item Page Number: 41

Menifee Mayor and City Council
June 5, 2024
Page
249 of 1108

CITY OF MENIFEE
SUBJECT: Agreement Amendment with Environmental Science Associates for On-Call Environmental Review Services
MEETING DATE: June 5, 2024
TO: Mayor and City Council
PREPARED BY: Molly Binnall, Management Analyst II
REVIEWED BY: Cheryl Kitzerow, Community Development Director APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Environmental Science Associates for Fiscal Years (FY) 2023/2024 and 2024/2025 on-call environmental review services, increasing the amount by $10,000 for a total not-to-exceed amount of $35,000 for FY 2023/2024.

DISCUSSION
The Community Development Department currently utilizes Environmental Science Associates (ESA) to provide necessary planning services on an as-needed basis for the peer review of environmental and biological resource services, and the preparation of any associated documentation. At the City Council meeting on June 21, 2023, the City Council approved an agreement with ESA in the amount of $15,000 for FY 2023/2024 and $15,000 for FY 2024/2025 for a total agreement amount of $30,000. On February 21, 2024, the City Council approved Amendment No. 1 authorizing an additional $10,000 specific to FY 2023/2024 for a not-to-exceed contract amount of $25,000.

Due to significant increases in services needed for new development, staff is requesting an amendment of $10,000 for FY 2023/2024 for a total not-to-exceed contract amount of $35,000.

All other terms of the agreement shall remain the same.

STRATEGIC PLAN OBJECTIVE
Thriving Economy
Item Title: 10.11
Agreement Amendment with Environmental Science Associates for On-Call Environmental Review Services Item Page Number: 1

Menifee Mayor and City Council
June 5, 2024
Page
250 of 1108

City of Menifee Staff Report
ESA On-Call Contract Amendment No. 2
June 5, 2024

Page 2 of 2 ends

Menifee City CouncilJune 5, 2024

Menifee City Council
June 5, 2024