Agenda packet — Menifee City Council, February 19, 2025 (part 3 of 6)

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The Owners have requested that the City assist them in annexing Assessor’s Parcel Nos. 333- 040-045 and 333-040-046 into CFD 2017-1 to cover the costs associated with the maintenance of public improvements. The area proposed for annexation would be designated “Annexation No. 27,” and would include a gasoline service station, a convenience store, automated drive-thru car wash, and drive thru fast-food restaurant. Per the Owners’ request, the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 27 to pay for those services.

Annexation No. 27 would have a maximum annual tax of $6,018 per acre. This tax rate includes a Maximum Special Tax A of $5,016 per acre per year for maintenance services of public facilities and a Maximum Special Tax B (“Contingent Tax B”) of $1,002 per acre per year and would be included in CFD No. 2017-1 as “Tax Zone 27.” The maximum annual tax rate is proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.

The Owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owners have submitted “Consent and Waiver” forms on file in the City Clerk’s Office which authorizes the City to (1) hold the election and declare election results (2) shorten election time requirements, (3) waive analysis and arguments, and (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

The next step to annex Assessor’s Parcel Nos. 333-040-045 and 333-040-046 into CFD 2017-1 is to publish a notification of the proposed annexation along with the Resolution of Intention and Boundary Maps of the proposed Annexation area. A public hearing on the matter would take place on April 2, 2025, and at that time the Council would formally consider approval of the Annexation No. 27.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the tract development that there will be an annual collection of special tax revenues of approximately $9,481, not including Contingent Tax B, to be used to pay for maintenance costs.

On June 1 of each year, every taxable acre within the boundaries of the CFD, would be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given fiscal year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 2

Menifee Mayor and City Council
February 19, 2025
Page
608 of 1056

City of Menifee Staff Report
CFD 2017-1, Annex 27 Encanto/McCall Gas Station
February 19, 2025

Page 3 of 3 ends

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All costs associated with annexation into the CFD have been borne by the Owners. By annexing into the CFD, the costs of maintaining improvements located within the development would be financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund.

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention and Exhibits

3. CFD Maintenance Site Plan Exhibit
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 3

Menifee Mayor and City Council
February 19, 2025
Page
609 of 1056

MCCALL BLVD

ENCANTO
DR

BRADLEY
RD

ALTA VISTA WAY

DEL MONTE LNGRANADA WAY

SHADEL RD
I-215
SBON
§¨¦
215
^_

MENIFEE
RD

ETHANAC RD

SHERMAN
RD

MURRIETA
RD

MCLAUGHLIN RD

OREGONPL

JUNO ST

MONUM ENT PKWY

SUNCITYBLVD
CANNON
DR
VALLEY
BLVD
CASAB

ONITA AVE

GOLDENROD AVE
GEARY
ST

ALD ERGATE DR
EASTDR

JUNIPERO RD

ASPEL RD

BARNETT RD
§¨¦215

CHAMBERS AVE
VELADR

POTOMAC DR

LUPIN PL LASFLORES DR
(MAINTENANCE SERVICES)
ANNEXATION NO. 27

PROJECT MAP
Item Title: 10.12
Resolution of Intention for Annexation No. 27, Encanto/McCall Gas Station, into Community Facility District 2017-1, Maintenance Services Item Page Number: 4

Menifee Mayor and City Council
February 19, 2025
Page
610 of 1056

1 RESOLUTION NO. 25-____

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

DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2017- 1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED (ANNEXATION NO. 27) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) , on November 1, 2017 , the City Council (the “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17-654 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the "CFD No. 2017- 1") for the purpose of levying special taxes on parcels of taxable property therein, which taxes would be used to provide certain services necessary to meet increased demands placed upon the City by development; and WHEREAS, the City Council has received a written instrument to initiate and conduct proceedings pursuant to the Act, to annex territory into CFD No. 2017-1 and to consent to the shortening of election time requirements, waiving of analysis and arguments, and waiving of all notice and word limit requirements for the ballot relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area described in Exhibit A be annexed territory into the boundaries of CFD No. 2017-1, and that a rate and method of apportionment of the special tax to be levied therein be established.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Menifee, California, acting as the Legislative Body of Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, determined and order as follows:

Section 1. Intent to Annex. The City Council, acting as the legislative body of the CFD No. 2017-1 hereby declares that it proposes and intends to conduct proceedings pursuant to Article

3.5 of the Act for the annexation into the CFD No. 2017 -1 of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to CFD No. 2017-1.

Section 2. Name of the Community Facilities District. The existing community facilities district is known as “Community Facilities District No. 2017-1 (Maintenance Services).” Section 3. Description of Territory Included in Existing CFD No. 2017 -1. The boundaries of the territory currently included in the CFD No. 2017-1 are described and shown on that certain map entitled "Proposed Boundary Map – Community Facilities District No. 2017 -1 (Maintenance Services) City of Menifee, County of Riverside, State of California", as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 69, and as Document No. 2017-0465706 in the official records of the County of Riverside, as amended by the following:

Section 4. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed is included within the boundaries within which property may annex to CFD No. 2017-1 and is more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California,” as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 70, and as Document No. 2017-0465707 in the official records Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 5

Menifee Mayor and City Council
February 19, 2025
Page
611 of 1056

Resolution of Intention Annex 27
Resolution No. 25-
2 of the County of Riverside. The territory proposed to be annexed to the CFD No. 2017 -1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 27, Community Facilities District No. 2017-1 (Maintenance Services), City of Menifee, County of Riverside, State of California," which is on file with the Acting City Clerk (the "Annexation Map") and attached hereto as Exhibit D
Section 5. Description of Authorized Services. The services proposed to be financed by the territory proposed to be annexed to the CFD No. 2017-1 (the “Services”) are the same as those services authorized to be financed by the existing territory in the CFD No. 2017-1 and are described in Exhibit B attached hereto. The cost of providing the Services includes “Administrative Expenses,” which include costs associated with the creation of CFD No. 2017-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2017-1. The Services authorized to be financed by CFD No. 2017-1 are in addition to those currently provided in the territory of CFD No. 2017-1 and do not supplant Services already available within that territory.

Section 6. Plan for Providing Services. The Services would be provided within the territory proposed to be annexed to the CFD No. 2017-1 and the existing territory in the CFD No. 2017-1 on the same basis.

Section 7. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including Administrative Expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2017 -1, would be levied annually within the territory proposed to be annexed to the CFD No. 2017-

1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit C.

Section 8. No Alteration of the Special Tax Levied in the Existing CFD No. 2017-1. The City Council does not propose to alter the special tax rate levied within the existing territory in the CFD No. 2017-1.

Section 9. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2017-1. Pursuant to Section 3111 of said Code, the Acting City Clerk shall file the original of the Annexation map in his or her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

Section 10. Public Hearing. The City Council hereby fixes 6:00 p.m., or as soon thereafter as practicable, on Wednesday, April 2, 2025 in the City Council Chambers located at 29844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council would conduct a public hearing on the proposed annexation of the area depicted on the Annexation Map and described in Exhibit A hereto territory to the CFD No. 2017-1.

Section 11. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2017-1. The publication of said notice shall be completed at least seven days prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53339.4 of the Act.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 6

Menifee Mayor and City Council
February 19, 2025
Page
612 of 1056

Resolution of Intention Annex 27
Resolution No. 25-
3 Section 12. Mailing Ballots. In anticipation of its action on Wednesday, April 2, 2025, to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2017-1 a ballot, the full text of which shall be as set forth in Exhibit G hereto and shall be included in the ballot pamphlet mailed to each qualified elector . A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

Section 13. Authorization to Take Action. The officers, employees and agents of the City are hereby authorized and directed to take all actions and do all things which they, or any of them, may deem necessary or desirable to accomplish the purposes of this Resolution and not inconsistent with the provisions hereof.

Section 14. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this ____ day of _______, 2025.

___________________________
Ricky Estrada, Mayor

Attest:

___________________________
Stephanie Roseen, City Clerk

Approved as to form:

___________________________
Jeffrey T. Melching, City Attorney

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 7

Menifee Mayor and City Council
February 19, 2025
Page
613 of 1056

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Menifee Community Facilities District No. 2017 -1 (Maintenance Services) (the “CFD No. 2017 -1”) Annexation No. 27 is currently comprised of two (2) parcels, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

Assessor Parcel Number(s) Owner Name
333-040-045
KA Menifee, LLC , Capital Financial Group, Inc Defined Benefit Pension Plan, Kaassi International, Inc. Defined Benefit Pension Plan, KZA Inc. Defined Benefit Pension Plan
333-040-046
KA Menifee, LLC, Capital Financial Group, Inc Defined Benefit Pension Plan, Kaassi International, Inc. Defined Benefit Pension Plan, KZA Inc. Defined Benefit Pension Plan

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 8

Menifee Mayor and City Council
February 19, 2025
Page
614 of 1056

EXHIBIT B

DESCRIPTION OF AUTHORIZED SERVICES

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 9

Menifee Mayor and City Council
February 19, 2025
Page
615 of 1056

City of Menifee 12
Community Facilities District No. 2017-1 (Maintenance Services)

APPENDIX B

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES

The services which may be funded with proceeds of the special tax of CFD No. 2017- 1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right -of-way, public landscaping, public open spaces and other similar lan dscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right -of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as loc al roads within residential subdivisions located within CFD No. 2017- 1; and any portions adjacent to the properties within CFD No. 2017-1; and

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by p roceeds of the special tax of CFD No. 2017 -1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017 -1 before the territory was annexed, as applicable.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 10

Menifee Mayor and City Council
February 19, 2025
Page
616 of 1056

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 11

Menifee Mayor and City Council
February 19, 2025
Page
617 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 1 RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

OF THE CITY OF MENIFEE

A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2017-1 (Maintenance Services) (the “CFD No. 2017-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 201 8, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2017-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2017-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS

“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, t he land area shall be calculated by the Administrator.

“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2017 -1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2017 -1, or any designee thereof associated with fulfilling the CFD No. 2017- 1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2017- 1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2017-1 and third party expenses related to CFD No. 2017-1. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2017 -1 for any other admin istrative purposes of CFD No. 2017- 1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.

“Administrator” means the City Manager of the City of Menifee, or his or her designee.

“Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the June 1 preceding the Fiscal year in which the special tax is being levied.

“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.

“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.

“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.

“Building Square Footage” or “BSF” means the floor area square footage reflected on the original Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 12

Menifee Mayor and City Council
February 19, 2025
Page
618 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 2 construction building permit issued for construction of a building of Non -Residential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building.

“Calendar Year” means the period commencing January 1 of any year and ending the following December 31.

“CFD” or “CFD No. 2017 -1” means the City of Menifee Community Facilities District No. 2017 -1 (Maintenance Services).

“City” means the City of Menifee.

“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017- 1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.

“County” means the County of Riverside.

“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.

“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision.

“Fiscal Year” means the period from and including July 1 st of any year to and including the following June
30th.

“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied.

“Maximum Special Tax ” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.

“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

“Maximum Special Tax B (Contingent) ” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent) , as determin ed in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 13

Menifee Mayor and City Council
February 19, 2025
Page
619 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 3 “Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed.

“Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non -residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.

“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone.

“Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undevelope d Property.

“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator.

“Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units.

“Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017 -1 as set forth in the documents adopted by the City Council at the time the CFD was formed as identified in Appendix B.

“Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel.

“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.

“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement.

"Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2017-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve fo r the costs of Services as determined by the Administrator, and (v) Administ rative Expenses. Under no circu mstances shall the Special Tax A Requirement include funds for Bonds.
“Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 14

Menifee Mayor and City Council
February 19, 2025
Page
620 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 4 “Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator.

"Taxable Property" means all Assessor’s Parcels within CFD No. 2017-1, which are not Exempt Property.

“Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2017-1 at formation; additional Tax Zones may be created when property is annexed into the CFD.

"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.

"Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.

“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2017 -1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non -Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi- Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or sh own on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel , the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Un its by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.

For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Non-Residential Property, all such Assessor’s Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map as determined by the Administrator. Once the Administrator determines the actual number of Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

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Facility

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2017-1,
Maintenance Services
Item Page Number: 15

Menifee Mayor and City Council
February 19, 2025
Page
621 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 5 Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.

1. Special Tax A
a. Developed Property
(i) Maximum Special Tax A
The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax A for Developed Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 1 below:

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax A
1 TR 36299-1
& PM 9504
Single Family Residential Property RU $158
Multi-Family Residential Property RU $158
Non-Residential Property Acre $1,714

(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use a s determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017 -1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 2 below:

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 16

Menifee Mayor and City Council
February 19, 2025
Page
622 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 6 TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY

On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017 -1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit Maximum Special Tax A
1 TR 36299-1
& PM 9504 Acre $1,515

On each July 1, commencing on July 1, 201 9 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

2. Special Tax B (Contingent)
The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its obligation to maintain the Contingent Services, which default shall be deemed to have occurred, as determined by the Administrator, in each of the following circumstances:
(a) The POA files for bankruptcy;
(b) The POA is dissolved;
(c) The POA ceases to levy annual assessments for the Contingent Services; or (d) The POA fails to provide the Contingent Services at the same level as the City provides similar services and maintains similar improvements throughout the City and within ninety (90) days after written notice from the City, or such longer period permitted by the City Manager, fails to remedy the deficiency to the reasonable satisfaction of the City Council.

a. Developed Property
Item Title: 10.12
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Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

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Facility

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2017-1,
Maintenance Services
Item Page Number: 17

Menifee Mayor and City Council
February 19, 2025
Page
623 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 7 (i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017 -1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY

Tax
Zone Tract Land Use Category
Taxable
Unit
Maximum
Special Tax B
(Contingent)
1 TR 36299-1
& PM 9504
Single Family Residential Property RU $0
Multi-Family Residential Property RU $0
Non-Residential Property Acre $0

(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 201 9 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

(iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Cate gory. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acrea ge desi gnated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.

b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017 - 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 5 below:

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 18

Menifee Mayor and City Council
February 19, 2025
Page
624 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 8 TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY

On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017- 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY

Tax Zone Tracts Taxable Unit
Maximum Special
Tax B (Contingent)
1 TR 36299-1
& PM 9504 Acre $0

On each July 1, commencing on July 1, 201 9 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

1. Special Tax A
Commencing with Fiscal Year 2018-19 and for each following Fiscal Year, the City Council shall determine the Special Tax A Requirement for each Tax Zone and shall levy the Special Tax A on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax A equals the Special Tax A Requirement for such Tax Zone. The Special Tax A shall be levied for each Fiscal Year as follows:

Second: I f additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 19

Menifee Mayor and City Council
February 19, 2025
Page
625 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 9 Property at up to 100% of the Maximum Special Tax A for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council s hall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the a ggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

Second: I f additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;

Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2017-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties . Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.

F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.

G. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2017-1, all Assessor’s; (i) which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for public uses; or (iv) which are in use in the performance of a public function as determined by the Administrator.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 20

Menifee Mayor and City Council
February 19, 2025
Page
626 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 10 H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2017- 1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2017 -1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 21

Menifee Mayor and City Council
February 19, 2025
Page
627 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 11 APPENDIX A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

COST ESTIMATE
Special Tax A Services - The estimate breaks down the costs of providing one year's maintenance services for Fiscal Year 2024-25. These services are being funded by the levy of Special Tax A for Community Facilities District No. 2017-1 Tax Zone 27.

TAX ZONE 27 (SERVICES)
Parcel Nos. 333-040-045 and 333-040-046
Item Description Estimated Cost
1 Landscaping $2,571
2 Lighting $1,430
3 Streets $3,299
4 Graffiti $548
5 Reserves $497
6 Admin $1,135
Total $9,481
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2024-25. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1 Tax Zone 27.

TAX ZONE 27 (CONTINGENT SERVICES)
Parcel Nos. 333-040-045 and 333-040-046
Item Description Estimated Cost
1 Drainage $690
2 Reserves $69
3 Administration $1,135
Total $1,894
TAX ZONE 27
FY 2024-25 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Taxable
Unit
Maximum
Special Tax A
Maximum
Special Tax B
Developed Acre $5,016 $1,002
Approved Acre $5,016 $1,002
Undeveloped Acre $5,016 $1,002

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 22

Menifee Mayor and City Council
February 19, 2025
Page
628 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 12 MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Tax
Zone
Fiscal
Year
Included
Tract/
APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
1 2018-19 36299-1 &
PM 9504
426 SFR RU $158 $0 Stark Menifee Land, LLC
548 MFR RU $158 $0 Stark Menifee Land, LLC &
Menifee Multifamily, LLC

27.68 NR Acre $1,714 $0 Several
2 2020-21 TR 37576 65 SFR RU $539 $43 Meritage Homes
3 2020-21 TR 28859 161 SFR RU $727 $0 Woodside O5S
4 2020-21 TTM 31098 258 SFR RU $878 $0 Lennar Homes of
California, Inc.
5 2020-21 TTM 36852 68 SFR RU $755 $151 Strata Holland, LLC 6 2021-22 TTM 37668 175 SFR RU $765 $295 Meritage Homes of California, Inc.
7 2022-23 TTM 31456 176 SFR RU $996 $0 RCFC Investments, LLC 8 2021-22 TR 32102 &
TR 32102-1 256 SFR RU $674 $0
Diamond Brother Five
Partnership, LP and Pulte
Home Company, LLC
9 2021-22 TTM 37400 174 SFR RU $703 $0 D.R. Horton Los Angeles Holding Company, Inc.
10 2022-23 TPM 37380 3.62 NR Acre $3,588 $1,646 Briggs & 74, LLC 11 2024-25 TR 31194 552 SFR RU $913 $0 Golden Meadowland, LLC & Golden Hill Country, LLC
12 2022-23 TR 37408 &
TR 37409 1,022 SFR RU $963 $5 BLC Fleming LLC
13 2022-23 TR 36803 80 SFR RU $556 $171 FPG Sun Menifee 80 LLC 14 2022-23 TR 32628 303 SFR RU $281 $45 FPG Tricon Menifee Property LLC
15 2022-23 PLN 20-0167 9.92 MFR/NR Acre $3,865 $2,375 Boulders Menifee LLC 16 2022-23 LLA 17-007 12.48 MFR Acre $3,273 $2,119 Jefferson Menifee, LLC 17 2023-24 PM 37145 4.82 NR Acre $3,137 $0 VSK Investments, LLC 18 2023-24 TR 37131 305 SFR RU $533 $38 AG EHC II (LEN) CA 1, LP 19 2023-24 PLN 22-0199 0.96 NR Acre $2,995 $0 DSMD Cajun Properties 20 To Be Determined
21 2024-25 TR 38219 198 SFR RU $315 $71 Richmond American Homes of Maryland Inc.
22A 2023-24 TR 36658-1,
-3, -4, & -7 393 SFR RU $1,086 $100 Pulte Home Company, LLC 22B 2023-24 TR 36658-2 116 SFR RU $879 $100 Pulte Home Company, LLC 22C 2023-24 TR 36658-5
& 36658-6 247 SFR RU $879 $100 Pulte Home Company, LLC
23 2024-25 TR 37671 182 SFR RU $1,293 $0 Pulte Home Company, LLC 24 CANCELED
25 To Be Determined
26 To Be Determined
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 23

Menifee Mayor and City Council
February 19, 2025
Page
629 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 13 Tax
Zone
Fiscal
Year
Included
Tract/
APN
No. of
Taxable
Units
Land Use
Category
Taxable
Unit
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent) Subdivider
27 2024-25 333-040-045,
333-040-046 1.89 NR Acre $5,016 $1,002
KA Menifee, LLC, Capital
Financial Group, Inc.

Defined Benefit Pension
Plan, Kaassi International,
Inc. Defined Benefit
Pension Plan, KZA Inc.

Defined Benefit Pension
Plan.
28 2024-25 PLN 22-0154 40.67 COM Acre $658 $0 Nova Power, LLC, Rita Reggio and Janet Logan
29 To Be Determined

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 20 19 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 24

Menifee Mayor and City Council
February 19, 2025
Page
630 of 1056

City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 14 APPENDIX B

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES

The services which may be funded with proceeds of the special tax of CFD No. 2017-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right -of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals ; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and

(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and

(c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017-1; and any portions adjacent to the properties within CFD No. 2017-1; and

The above services may be financed by proceeds of the special tax of CFD No. 2017-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017-1 before the territory was annexed, as applicable.

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 25

Menifee Mayor and City Council
February 19, 2025
Page
631 of 1056

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

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Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 26

Menifee Mayor and City Council
February 19, 2025
Page
632 of 1056

McCall Blvd
Encanto
Dr
§¨¦
215
333-040-045
333-040-046
SHEET 1 OF 1 SHEET
\_
CFD 2017-1
TAX ZONE 27
·|}þ74·|}þ74
§¨¦215

MENIFEE
03 0 0 6 0 0 150 Feet
ANNEXATION MAP NO. 27
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES)

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

T H I S M A P S H O W S T H E B O U N D A R I E S O F A R E A S T O B E ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY O F R I V E R S I D E , S T A T E O F C A L I F O R N I A .

THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP

THEREOF WHICH WAS PREVIOUSLY RECORDED ON
NOVEMBER 7, 2017 IN BOOK 81 OF MAPS OF ASSESSMENT
A N D C O M M U N I T Y F A C I L I T I E S D I S T R I C T A T P A G E 6 9 A N D AS INSTRUMENT NO. 2017-0465706 IN THE OFFICE OF THE

COUNTY RECORDER OF THE COUNTY OF RIVERSIDE,
S T A T E O F C A L I F O R N I A .

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED
BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE

CITY COUNCIL OF THE CITY OF MENIFEE AT A REGULAR
MEETING THEREOF, HELD ON ______ DAY OF ______,
20____,
BY ITS RESOLUTION NO. _______________
___________________________________

CITY CLERK

C IT Y OF MENIF EE
-

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2024-25.

RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
P A G E _ _ _ _ _ O F M A P S O F A S S E S S M E N T A N D C O M M U N I T Y

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.

FEE: _____________ NO.: ______________________

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________
DEPUTY

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF
MENIFEE, THIS _______ DAY OF _________________, 20___. ___________________________________

CITY CLERK

C IT Y OF MENIF EE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER
LEGEND

PARCEL LINE

CFD BOUNDARY

CITY BOUNDARY
27 TAX ZONE
27 Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 27

Menifee Mayor and City Council
February 19, 2025
Page
633 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 28

Menifee Mayor and City Council
February 19, 2025
Page
634 of 1056

EXH
IBIT E

PETITIONS
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 29

Menifee Mayor and City Council
February 19, 2025
Page
635 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 30

Menifee Mayor and City Council
February 19, 2025
Page
636 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 31

Menifee Mayor and City Council
February 19, 2025
Page
637 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 32

Menifee Mayor and City Council
February 19, 2025
Page
638 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 33

Menifee Mayor and City Council
February 19, 2025
Page
639 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 34

Menifee Mayor and City Council
February 19, 2025
Page
640 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 35

Menifee Mayor and City Council
February 19, 2025
Page
641 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 36

Menifee Mayor and City Council
February 19, 2025
Page
642 of 1056

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 37

Menifee Mayor and City Council
February 19, 2025
Page
643 of 1056

EXHIBIT F

NOTICE OF PUBLIC HEARING

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 38

Menifee Mayor and City Council
February 19, 2025
Page
644 of 1056

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 27)

NOTICE IS HEREBY GIVEN that the City Council of the City of Menifee on February 19, 2025 adopted its Resolution No. 2025-__, in which it declared its intention to annex territory to existing Community Facilities District No. 201 7-1 (Maintenance Services) (the "CFD No. 201 7-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello- Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2017-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, April 2, 2025 in the City Council Chambers located at 29844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 201 7-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the April 2, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951-723-3471.

DATED: ____________, 2025 _________________________________________ City Clerk of the City of Menifee
PUB: ____________, 2025

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 39

Menifee Mayor and City Council
February 19, 2025
Page
645 of 1056

EXHIBIT G
BALLOT

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 40

Menifee Mayor and City Council
February 19, 2025
Page
646 of 1056

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 27

(April 2, 2025)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1”) of the City of Menifee:

Name of Landowner Number of Acres Owned Total Votes
Capital Financial Group, Inc. Defined Benefit
Pension Plan .27 1

According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Menifee (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2017-1, City of Menifee, County of Riverside, State of California. Please advise the City Clerk, at (951) 672-6777 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels.

This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than March 19, 2025, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on April 2, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on April 2, 2025.

Very truly yours,

Stephanie Roseen
City Clerk
City of Menifee
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 41

Menifee Mayor and City Council
February 19, 2025
Page
647 of 1056

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

Capital Financial Group, Inc. Defined Benefit
Pension Plan
Attn: Kayvon Agahnia
5820 Oberlin Drive, Suite 201
San Diego, CA 92121
333-040-045, 333-040-046

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
(Contingent)
Non-Residential $5,016 $1,002
plus an annual increase on each July 1, commencing on July 1, 2025 the Maximum Special Tax A and the Maximum Special Tax B shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino – Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “ Annexation Map No. 27 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, and graffiti for Special Tax A, and drainage for Special Tax B (Contingent) as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Menifee on April 2, 2025 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017 -1 (Maintenance Services) in the amount of special taxes collected?
YES _________

NO _________

Certification for Special Election Ballot

The undersigned is an authorized representative of the above- named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 20__.

Kayvon Agahnia
Trustee

Signature

Print Name

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 42

Menifee Mayor and City Council
February 19, 2025
Page
648 of 1056

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 27

Name of Landowner Number of Acres Owned Total Votes
KA Menifee, LLC 1.30 2

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on April 2, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on April 2, 2025.

Very truly yours,

Stephanie Roseen
City Clerk
City of Menifee
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 43

Menifee Mayor and City Council
February 19, 2025
Page
649 of 1056

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

KA Menifee, LLC
Attn: Kaream Assi
5820 Oberlin Drive, Suite 201
San Diego, CA 92121
333-040-045, 333-040-046

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
(Contingent)
Non-Residential $5,016 $1,002
plus an annual increase on each July 1, commencing on July 1, 2025 the Maximum Special Tax A and the Maximum Special Tax B shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino – Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “ Annexation Map No. 27 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, and graffiti for Special Tax A, and drainage for Special Tax B (Contingent) as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Menifee on February 19, 2025 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected?
YES _________

NO _________

Certification for Special Election Ballot

The undersigned is an authorized representative of the above- named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 20__.

Kaream Assi
Manager

Signature

Print Name

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 44

Menifee Mayor and City Council
February 19, 2025
Page
650 of 1056

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 27

Name of Landowner Number of Acres Owned Total Votes
Kaassi International, Inc. Defined Benefit
Pension Plan 0.27 1

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on April 2, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on April 2, 2025.

Very truly yours,

Stephanie Roseen
City Clerk
City of Menifee
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 45

Menifee Mayor and City Council
February 19, 2025
Page
651 of 1056

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

Kaassi International, Inc. Defined Benefit
Pension Plan
Attn: Kaream Assi
5820 Oberlin Drive, Suite 201
San Diego, CA 92121
333-040-045, 333-040-046

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
(Contingent)
Non-Residential $5,016 $1,002
plus an annual increase on each July 1, commencing on July 1, 2025 the Maximum Special Tax A and the Maximum Special Tax B shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino – Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “ Annexation Map No. 27 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, and graffiti for Special Tax A, and drainage for Special Tax B (Contingent) as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Menifee on February 19, 2025 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected?
YES _________

NO _________

Certification for Special Election Ballot

The undersigned is an authorized representative of the above- named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 20__.

Kaream Assi
Trustee

Signature

Print Name

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 46

Menifee Mayor and City Council
February 19, 2025
Page
652 of 1056

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 27

Name of Landowner Number of Acres Owned Total Votes
KZA Inc. Defined Benefit Pension Plan 0.27 1

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on April 2, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on April 2, 2025.

Very truly yours,

Stephanie Roseen
City Clerk
City of Menifee
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 47

Menifee Mayor and City Council
February 19, 2025
Page
653 of 1056

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT

Name & Address of Property Owner: Assessor’s Parcel Number(s):

KZA Inc. Defined Benefit Pension Plan
Attn: Kambiz Agahnia
5820 Oberlin Drive, Suite 201
San Diego, CA 92121
333-040-045, 333-040-046

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT

SPECIAL TAX BALLOT MEASURE MARK “YES” OR
“NO” WITH AN “X”:

Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table:

Land Use
Category
Maximum
Special Tax A
Maximum
Special Tax B
(Contingent)
Non-Residential $5,016 $1,002
plus an annual increase on each July 1, commencing on July 1, 2025 the Maximum Special Tax A and the Maximum Special Tax B shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino – Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “ Annexation Map No. 27 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, and graffiti for Special Tax A, and drainage for Special Tax B (Contingent) as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Menifee on February 19, 2025 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected?
YES _________

NO _________

Certification for Special Election Ballot

The undersigned is an authorized representative of the above- named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 20__.

Kambiz Agahnia
Trustee

Signature

Print Name

Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 48

Menifee Mayor and City Council
February 19, 2025
Page
654 of 1056

STREET & LANDSCAPE EXHIBIT
1 OF 1
Section 22, Township 5S and Range 3W S.B.M.

Date Exhibit Prepared: APRIL 17, 2024
4320 VIEWRIDGE AVE. SUITE C
SAN DIEGO, CA 92123
PH:(858) 634-8620 FAX:(858)-634-8627
CFD Maintenance Site Plan Exhibit
Item Title: 10.12
Resolution

Intention

for

Annexation

No.

27,

Encanto/McCall

Gas

Station,

into

Community

Facility

District

2017-1,
Maintenance Services
Item Page Number: 49

Menifee Mayor and City Council
February 19, 2025
Page
655 of 1056

CITY OF MENIFEE
SUBJECT: Resolution of Intention for Annexation No. 29, Heritage Village, into Community Facility District 2017-1, Maintenance Services
MEETING DATE: February 19, 2025
TO: Mayor and City Council
PREPARED BY: Kristen Jensen, Financial Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Accept the Petition of Lennar Homes of California, LLC, Tentative Tract Map (TTM) 38346, located on the northwest corner of Rouse Road and Menifee Road, for annexation into Community Facilities District (“CFD No. 2017-1” or “CFD”), Maintenance Services, as Annexation Area No. 29; and

2. Adopt a resolution of intention to add Annexation No. 29 into CFD No. 2017-1, to authorize the levy of special tax therein to finance certain maintenance services, and to set a public hearing for April 2, 2025.

DISCUSSION
On December 6, 2017, the City Council adopted Resolution No. 17-658, establishing CFD No. 2017-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”).

CFD No. 2017-1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City.

The Lennar Homes of California, LLC, (“Owner”) is the Owner of TTM 38346, which consists of approximately 7.52 gross acres of a vacant lot which would be developed to include 162 multi- family residential two-story condominiums. The property is located on the northwest corner of Rouse Road and Menifee Rd, as shown in the attached Project Location Map.

The Owner has requested that the City assist in annexing TTM 38346 into CFD 2017-1 to cover the costs associated with the maintenance of public improvements. The area proposed for annexation would be designated “Annexation No. 29,” and 162 multi-family lots. Per the Owner’s Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 1

Menifee Mayor and City Council
February 19, 2025
Page
656 of 1056

City of Menifee Staff Report
CFD 2017-1, Annex 29 - Heritage Village
February 19, 2025

Page 2 of 3 ends

2 5
3 8
request, the City would establish a rate and method of apportionment and authorize the levy of special taxes on the taxable property within Annexation No. 29, to pay for those services.

Annexation No. 29 would have a maximum annual tax of $339 per unit and would be included in CFD No. 2017-1 as “Tax Zone 29.” This tax rate includes Maximum Special Tax A of $274 per unit per year for maintenance services of public facilities and a Maximum Special Tax B (“Contingent Tax B”) of $65 per acre per year and would be included in the CFD No. 2017-1 as “Tax Zone 29”. The maximum annual tax rate is proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 2%. The attached CFD Maintenance Site Plan Exhibit illustrates which services would be maintained by the CFD.

The Owner has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Owner has submitted a “Consent and Waiver” form on file in the City Clerk’s Office which authorizes the City to (1) hold the election and declare election results (2) shorten election time requirements, (3) waive analysis and arguments, and (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing.

The next step to annex TTM 38346 into CFD 2017-1 is to publish a notification of the proposed annexation along with the Resolution of Intention and Boundary Maps of the proposed Annexation area. A public hearing on the matter would take place on April 2, 2025, and at that time the Council would formally consider approval of the Annexation No. 29.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The individual property owners in the CFD would be responsible for annual payments of special taxes. It is estimated, upon full completion of the tract development that there would be an annual collection of special tax revenues of approximately $44,388 not including Contingent Tax B, to be used to pay for maintenance costs.

On June 1 of each year, every taxable acre within the boundaries of the CFD, would be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to buildout of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD.

All costs associated with annexation into the CFD have been borne by the Owners. By annexing into the CFD, the costs of maintaining improvements located within the development would be financed through special taxes levied on the parcels within CFD No. 2017-1 and not through the City’s General Fund.

Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 2

Menifee Mayor and City Council
February 19, 2025
Page
657 of 1056

City of Menifee Staff Report
CFD 2017-1, Annex 29 - Heritage Village
February 19, 2025

Page 3 of 3 ends

2 5
3 8

ATTACHMENTS

1. Project Location Map

2. Resolution of Intention and Exhibits

3. CFD Maintenance Site Plan Exhibit
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 3

Menifee Mayor and City Council
February 19, 2025
Page
658 of 1056

333-070-069
333-070-080

MENIFEE
RD
BACK
BAY
DR

NORTH BAY LN

MATTHEWS
RD

STEAMBOAT DR

UNNAMED

ROUSE RD

JUNIPERO
RD
^_MENIFEE
RD

NEWPORT RD

ETHANAC RD

NORMANDY RD

SHERMAN
RD

MURRIETA
RD

MCLAUGHLIN RD

JUNO ST

LAZY CREEK RD CHAMPIONS DR

MONUM ENT PKWY

SUNCITYBLVD

CANNONDR
VALLEY
BLVD

GOLDENROD AVE
GEARY
ST

ALD ERGATE DR

JUNIPERO RD

ASPEL RD

BARNETT RD
§¨¦215

CHAMBERS AVE
VELADR

POTOMAC DRLASFLORES DR
(MAINTENANCE SERVICES)
ANNEXATION NO. 29

PROJECT MAP
Item Title: 10.13
Resolution of Intention for Annexation No. 29, Heritage Village, into Community Facility District 2017-1, Maintenance Services Item Page Number: 4

Menifee Mayor and City Council
February 19, 2025
Page
659 of 1056

RESOLUTION NO. 25-____

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

DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) OF THE CITY OF MENIFEE, ADOPTING A MAP OF THE AREA PROPOSED TO BE ANNEXED (ANNEXATION NO. 29) AND AUTHORIZING THE LEVY OF SPECIAL TAXES THEREIN
WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on November 1, 2017, the City Council (the “City Council”) of the City of Menifee (the “City”) approved Resolution No. 17-654 establishing Community Facilities District No. 2017-1 (Maintenance Services) of the City of Menifee, County of Riverside, State of California (the "CFD No. 2017-1") for the purpose of levying special taxes on parcels of taxable property therein, which taxes would be used to provide certain services necessary to meet increased demands placed upon the City by development; and WHEREAS, the City Council has received a written instrument to initiate and conduct proceedings pursuant to the Act, to annex territory into CFD No. 2017-1 and to consent to the shortening of election time requirements, waiving of analysis and arguments, and waiving of all notice and word limit requirements for the ballot relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area described in Exhibit A be annexed territory into the boundaries of CFD No. 2017-1, and that a rate and method of apportionment of the special tax to be levied therein be established.

Section 1. Intent to Annex. The City Council, acting as the legislative body of the CFD No. 2017-1 hereby declares that it proposes and intends to conduct proceedings pursuant to Article

3.5 of the Act for the annexation into the CFD No. 2017-1 of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to CFD No. 2017-1.

Section 2.

Section 3.

Name of the Community Facilities District. The existing community facilities district is known as “Community Facilities District No. 2017-1 (Maintenance Services).” Description of Territory Included in Existing CFD No. 2017-1. The boundaries of the territory currently included in the CFD No. 2017-1 are described and shown on that certain map entitled "Proposed Boundary Map – Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee, County of Riverside, State of California", as recorded on November 7, 2017 in Book 81 of Maps of Assessment and Community Facilities Districts, at Page 69, and as Document No. 2017-0465706 in the official records of the County of Riverside, as amended by the following:

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 5

Menifee Mayor and City Council
February 19, 2025
Page
660 of 1056

Resolution of Intention Annex 29
Resolution No. 25-
of the County of Riverside. The territory proposed to be annexed to the CFD No. 2017-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 29, Community Facilities District No. 2017-1 (Maintenance Services), City of Menifee, County of Riverside, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D
Section 5. Description of Authorized Services. The services proposed to be financed by the territory proposed to be annexed to the CFD No. 2017-1 (the “Services”) are the same as those services authorized to be financed by the existing territory in the CFD No. 2017-1 and are described in Exhibit B attached hereto. The cost of providing the Services includes “Administrative Expenses,” which include costs associated with the creation of CFD No. 2017-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2017-1. The Services authorized to be financed by CFD No. 2017-1 are in addition to those currently provided in the territory of CFD No. 2017-1 and do not supplant Services already available within that territory.

Section 6.

Section 7.

Plan for Providing Services. The Services would be provided within the territory proposed to be annexed to the CFD No. 2017-1 and the existing territory in the CFD No. 2017-1 on the same basis.

Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including Administrative Expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2017-1, would be levied annually within the territory proposed to be annexed to the CFD No. 2017-

1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit C.

Section 8.

Section 9.

No Alteration of the Special Tax Levied in the Existing CFD No. 2017-1. The City Council does not propose to alter the special tax rate levied within the existing territory in the CFD No. 2017-1.

Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2017-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his or her office and shall file a copy of the Annexation Map with the County Recorder of the County of Riverside no later than 15 days prior to the date of the hearing specified in Section 7 hereof.

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 6

Menifee Mayor and City Council
February 19, 2025
Page
661 of 1056

Resolution of Intention Annex 29
Resolution No. 25-
Section 12. Mailing Ballots. In anticipation of its action on Wednesday April 2, 2025, to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2017-1 a ballot, the full text of which shall be as set forth in Exhibit G hereto and shall be included in the ballot pamphlet mailed to each qualified elector. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference.

Section 14. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this ____ day of _______, 2025. ___________________________
Ricky Estrada, Mayor
Attest:
___________________________
Stephanie Roseen, City Clerk
Approved as to form:
___________________________
Jeffrey T. Melching, City Attorney
3 Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 7

Menifee Mayor and City Council
February 19, 2025
Page
662 of 1056

DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED
The City of Menifee Community Facilities District No. 2017-1 (Maintenance Services) (the “CFD No. 2017-1”) Annexation No. 29 is currently comprised of three (3) parcels, located within the City boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

Assessor Parcel Number(s)
331-250-028
Owner Name
Lennar Homes of California, LLC
Lennar Homes of California, LLC
Lennar Homes of California, LLC
331-250-029
331-250-030
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 8

Menifee Mayor and City Council
February 19, 2025
Page
663 of 1056

EXHIBIT B

DESCRIPTION OF AUTHORIZED SERVICES
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 9

Menifee Mayor and City Council
February 19, 2025
Page
664 of 1056

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2017-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and
(b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017-1; and any portions adjacent to the properties within CFD No. 2017-1; and In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2017-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017-1 before the territory was annexed, as applicable.

City of Menifee 12
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 10

Menifee Mayor and City Council
February 19, 2025
Page
665 of 1056

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 11

Menifee Mayor and City Council
February 19, 2025
Page
666 of 1056

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

OF THE CITY OF MENIFEE
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2017-1 (Maintenance Services) (the “CFD No. 2017-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2018, in an amount determined by the City Council of the City of Menifee, acting in its capacity as the legislative body of CFD No. 2017-1, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2017-1, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be calculated by the Administrator.
“Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation, annexation, and administration of CFD No. 2017-1 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2017-1, or any designee thereof associated with fulfilling the CFD No. 2017-1 disclosure requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2017-1 or any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees including payment of a proportional share of City overhead and salaries and benefits of any City employees whose duties are related to the administration of CFD No. 2017-1 and third party expenses related to CFD No. 2017-1. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2017-1 for any other administrative purposes of CFD No. 2017-1, including attorney's fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Menifee, or his or her designee. “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being levied, and that have not been issued a building permit on or prior to the June 1 preceding the Fiscal year in which the special tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that identification number assigned to a parcel by the County Assessor of the County.
“Building Square Footage” or “BSF” means the floor area square footage reflected on the original City of Menifee 1
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 12

Menifee Mayor and City Council
February 19, 2025
Page
667 of 1056

construction building permit issued for construction of a building of Non-Residential Property and any Building Square Footage subsequently added to a building of such Non-Residential Property after issuance of a building permit for expansion or renovation of such building. “Calendar Year” means the period commencing January 1 of any year and ending the following December 31.
“CFD” or “CFD No. 2017-1” means the City of Menifee Community Facilities District No. 2017-1 (Maintenance Services).
“City” means the City of Menifee.
“Contingent Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017-1 as set forth in the documents adopted by the City Council at the time the CFD was formed to be provided by the City in the event the Administrator makes a determination pursuant to Section C(2) that a Property Owners’ Association fails to adequately provide such services.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to June 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section G.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.) or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual lots for which building permits may be issued without further subdivision. “Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an Assessor’s Parcel is assigned consistent with the land use approvals that have been received or proposed for the Assessor’s Parcel as of June 1 preceding the Fiscal Year in which the Special Tax is being levied. “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B (Contingent), as applicable.
“Maximum Special Tax A” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax A, as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.
“Maximum Special Tax B (Contingent)” means for each Assessor’s Parcel and each Fiscal Year, the maximum Special Tax B (Contingent), as determined in accordance with Section C below that can be levied on such Assessor’s Parcel in such Fiscal Year.

City of Menifee 2
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 13

Menifee Mayor and City Council
February 19, 2025
Page
668 of 1056

“Multi-Family Residential Property” or “MFR” means any Assessor’s Parcel of Residential Property upon which a building or buildings comprised of attached Residential Units sharing at least one common wall with another unit are constructed or are intended to be constructed. “Non-Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a building permit(s) was issued for a non-residential use. The Administrator shall make the determination if an Assessor’s Parcel is Non-Residential Property.
“Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s association established to maintain certain landscaping within a Tax Zone. “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Approved Property, and (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum Special Tax per acre is the same for all Parcels of Undeveloped Property.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. “Residential Property” means all Assessor’s Parcels of Taxable Property upon which Residential Units have been constructed or are intended to be constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Service(s)” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2017-1 as set forth in the documents adopted by the City Council at the time the CFD was formed as identified in Appendix B. “Single Family Residential Property” or “SFR” means any Residential Property other than Multi-Family Residential Property on an Assessor’s Parcel.
“Special Tax(es)” means the Special Tax A or Special Tax B (Contingent) to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
“Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax A Requirement. "Special Tax A Requirement" means for each Tax Zone that amount to be collected in any Fiscal Year to pay for certain costs as required to meet the needs of such Tax Zone within CFD No. 2017-1 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for maintenance services including but not limited to (i) maintenance and lighting of parks, parkways, streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii) public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A Requirement include funds for Bonds.
“Special Tax B (Contingent)” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax B (Contingent) Requirement, if required.

City of Menifee 3
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 14

Menifee Mayor and City Council
February 19, 2025
Page
669 of 1056

“Special Tax B (Contingent) Requirement” means that amount required in any Fiscal Year, if the POA is unable to maintain the Contingent Service(s) to: (i) pay the costs of Contingent Services incurred or otherwise payable in the Calendar Year commencing in such Fiscal Year; (ii) fund an operating reserve for the costs of Contingent Services as determined by the Administrator; less a credit for funds available to reduce the annual Special Tax B (Contingent) levy as determined by the Administrator. "Taxable Property" means all Assessor’s Parcels within CFD No. 2017-1, which are not Exempt Property. “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may be levied pursuant to this Rate and Method of Apportionment of Special Tax. Appendix C identifies the Tax Zone in CFD No. 2017-1 at formation; additional Tax Zones may be created when property is annexed into the CFD.
"Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1. "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for subdivision.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property or Approved Property.

B. ASSIGNMENT TO LAND USE CATEGORIES
For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2017-1 shall be classified as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed Property and Approved Property shall be classified as either Residential Property or Non-Residential Property. Residential Property shall be further classified as Single Family Residential Property or Multi- Family Residential Property and the number of Residential Units shall be determined by the Administrator.

C. MAXIMUM SPECIAL TAX RATES
For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed Property and Approved Property which are classified as Residential Property, all such Assessor’s Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon as specified in or shown on the building permit(s) issued or Final Map as determined by the Administrator. Once a single family attached or multi-family building or buildings have been built on an Assessor's Parcel, the Administrator shall determine the actual number of Residential Units contained within the building or buildings, and the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential Unit for the Tax Zone below or as included in Appendix A as each annexation occurs.

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 15

Menifee Mayor and City Council
February 19, 2025
Page
670 of 1056

Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the applicable Tax Zone below or as included in Appendix A as each annexation occurs.

TABLE 1

MAXIMUM SPECIAL TAX A RATES

DEVELOPED PROPERTY
Tax
Zone
Taxable
Unit
RU
RU
Acre
Maximum
Special Tax A
$158
$158
$1,714
Tract Land Use Category
Single Family Residential Property
Multi-Family Residential Property
Non-Residential Property
TR 36299-1
& PM 95041
(ii) Increase in the Maximum Special Tax A
On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax A that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax A for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Approved Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 2 below:

City of Menifee 5
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 16

Menifee Mayor and City Council
February 19, 2025
Page
671 of 1056

TABLE 2

MAXIMUM SPECIAL TAX A RATES

APPROVED PROPERTY
Tax
Zone
Taxable
Unit
RU
RU
Acre
Maximum
Special Tax A
$158
$158
$1,714
Tract Land Use Category
Single Family Residential Property
Multi-Family Residential Property
Non-Residential Property
TR 36299-1
& PM 95041
On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax A for Undeveloped Property for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 3 below:

TABLE 3

MAXIMUM SPECIAL TAX A RATES

UNDEVELOPED PROPERTY
Tax Zone Tracts Taxable Unit Maximum Special Tax A
TR 36299-1
& PM 95041 Acre $1,515
On each July 1, commencing on July 1, 2019 the Maximum Special Tax A for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 17

Menifee Mayor and City Council
February 19, 2025
Page
672 of 1056

(i) Maximum Special Tax B (Contingent)
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown in Table 4 and shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017-1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zones annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 4 below:

TABLE 4

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

DEVELOPED PROPERTY
Maximum
Tax
Zone
Taxable
Unit
RU
RU
Acre
Special Tax B
(Contingent)Tract Land Use Category
Single Family Residential Property
Multi-Family Residential Property
Non-Residential Property
$0
$0
$0
TR 36299-1
& PM 95041
(ii) Increase in the Maximum Special Tax B (Contingent) On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Developed Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater. (iii) Multiple Land Use Categories
In some instances, an Assessor's Parcel of Developed Property may contain more than one Land Use Category. The Maximum Special Tax B (Contingent) that can be levied on an Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be levied for each Land Use Category located on that Assessor's Parcel. For an Assessor's Parcel that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based on the amount of Acreage designated for each land use as determined by reference to the site plan approved for such Assessor's Parcel. The Administrator's allocation to each type of property shall be final.
b. Approved Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Approved Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017- 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 5 below:

City of Menifee 7
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 18

Menifee Mayor and City Council
February 19, 2025
Page
673 of 1056

TABLE 5

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

APPROVED PROPERTY
Maximum
Tax Taxable Special Tax B
Zone Tract Land Use Category
Single Family Residential Property
Multi-Family Residential Property
Non-Residential Property
Unit
RU
RU
Acre
(Contingent)
$0
$0
$0
TR 36299-1
& PM 95041
On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Approved Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.
c. Undeveloped Property
The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Undeveloped Property shall be specific to each Tax Zone within the CFD. When additional property is annexed into CFD No. 2017- 1, the rate and method adopted for the annexed property shall reflect the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A. The Maximum Special Tax B (Contingent) for Fiscal Year 2018-19 within Tax Zone 1 is identified in Table 6 below:

TABLE 6

MAXIMUM SPECIAL TAX B (CONTINGENT) RATES

UNDEVELOPED PROPERTY
Maximum Special
Tax Zone Tracts Taxable Unit Tax B (Contingent)
TR 36299-1
& PM 95041 Acre $0
On each July 1, commencing on July 1, 2019 the Maximum Special Tax B (Contingent) for Undeveloped Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX

First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax A to satisfy the Special Tax A Requirement; Second: If additional moneys are needed to satisfy the Special Tax A Requirement after the first step has been completed, the Special Tax A shall be levied Proportionately on each Parcel of Approved City of Menifee 8
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 19

Menifee Mayor and City Council
February 19, 2025
Page
674 of 1056

Property at up to 100% of the Maximum Special Tax A for Approved Property; Third: If additional monies are needed to satisfy the Special Tax A Requirement after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax A for Undeveloped Property.

2. Special Tax B (Contingent)
Commencing with the first Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for each following Fiscal Year, the City Council shall determine the Special Tax B (Contingent) Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals the Special Tax B (Contingent) Requirement for such Tax Zone. The Special Tax B (Contingent) shall be levied for each Fiscal Year as follows:

First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy the Special Tax B (Contingent) Requirement;
Second: If additional moneys are needed to satisfy the Special Tax B (Contingent) Requirement after the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on each Parcel of Approved Property at up to 100% of the Maximum Special Tax B (Contingent) for Approved Property;
Third: If additional monies are needed to satisfy the Special Tax B (Contingent) Requirement after the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately on all Assessor’s Parcels of Undeveloped Property up to 100% of the Maximum Special Tax B (Contingent) for Undeveloped Property.

E. FUTURE ANNEXATIONS
It is anticipated that additional properties will be annexed to CFD No. 2017-1 from time to time. As each annexation is proposed, an analysis will be prepared to determine the annual cost for providing Services to such properties. Based on this analysis, any properties to be annexed, pursuant to California Government Code section 53339 et seq. will be assigned the appropriate Maximum Special Tax rates for the Tax Zone when annexed and included in Appendix A.

F. DURATION OF SPECIAL TAX
For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.

For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services are being provided.

City of Menifee 9
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 20

Menifee Mayor and City Council
February 19, 2025
Page
675 of 1056

H. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator of CFD No. 2017-1 shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided, however, that CFD No. 2017-1 may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

City of Menifee 10
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 21

Menifee Mayor and City Council
February 19, 2025
Page
676 of 1056

APPENDIX A

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

TAX ZONE 29 (SERVICES)
TTM 38346
Item
1 Description
Landscaping
Estimated Cost
$8,582
$1,903
$8,870
$507
$18,621
$1,547
$744
2 3
4 5
6 7
8 Lighting
Streets
Drainage
Parks
Trails
Graffiti
Reserves
Administration
$1,385
2,1749
Total $44,333
TAX ZONE 29 (CONTINGENT SERVICES)
TTM 38346
Special Tax B Contingent Services – The estimate breaks down the costs of providing one year’s contingent maintenance services for Fiscal Year 2024-25. If necessary, these services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District No. 2017-1 Tax Zone 29.

Item Description Estimated Cost
1 2
Drainage
Reserves
$8,785
$878
3 Administration $885
Total $10,548
TAX ZONE 29
FY 2024-25 MAXIMUM SPECIAL TAX RATES
Land Use
Category
Developed
Taxable
Unit
RU
Maximum
Special Tax A
Maximum Special
Tax B
$274 $65
Approved RU $274 $65
Undeveloped Acre $5,895 $1,403
City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 11 Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 22

Menifee Mayor and City Council
February 19, 2025
Page
677 of 1056

MAXIMUM SPECIAL TAXES ASSIGNED TO EACH TAX ZONE
Fiscal
Year
Included
No. of
Taxable
Units
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent)
$0
Tax
Zone
Tract/
APN
Land Use
Category
SFR
Taxable
Unit Subdivider
Stark Menifee Land, LLC
Stark Menifee Land, LLC &
Menifee Multifamily, LLC
Several
426 RU $158
36299-1 &
PM 95041 2018-19 548 MFR RU $158 $0

27.68 65
161
NR
SFR
SFR
Acre
RU
RU
$1,714
$539
$727
$0
$43
$0
2 3
2020-21
2020-21
TR 37576
TR 28859
Meritage Homes
Woodside O5S
Lennar Homes of
California, Inc.

Strata Holland, LLC
Meritage Homes of
California, Inc.
4 5
6 7
2020-21
2020-21
2021-22
2022-23
TTM 31098
TTM 36852
TTM 37668
TTM 31456
258
68 SFR
SFR
SFR
SFR
RU
RU
RU
RU
$878
$755
$765
$996
$0
$151
$295
$0
175
176 RCFC Investments, LLC
Diamond Brother Five
Partnership, LP and Pulte
Home Company, LLC
D.R. Horton Los Angeles
Holding Company, Inc.

Briggs & 74, LLC
TR 32102 &
TR 32102-18 2021-22 256 SFR RU $674 $0
9 2021-22
2022-23
2024-25
TTM 37400
TPM 37380
TR 31194
174

3.62 552
SFR
NR
RU
Acre
RU
$703
$3,588
$913
$0
$1,646
$0
10 11 Golden Meadowland, LLC
& Golden Hill Country, LLCSFR
TR 37408 &
TR 37409
TR 36803
12 13
14 2022-23
2022-23
2022-23
1,022
80 SFR
SFR
SFR
RU
RU
RU
$963
$556
$281
$5 BLC Fleming LLC
$171
$45
FPG Sun Menifee 80 LLC
FPG Tricon Menifee
Property LLCTR 32628 303
Boulders Menifee LLC15 2022-23 PLN 20-0167 9.92 MFR/NR Acre $3,865 $2,375 16 17
18 19
20 2022-23
2023-24
2023-24
2023-24
LLA 17-007
PM 37145
TR 37131

12.48 4.82
305
MFR
NR
SFR
NR
Acre
Acre
RU
$3,273
$3,137
$533
$2,119
$0
$38
$0
Jefferson Menifee, LLC
VSK Investments, LLC
AG EHC II (LEN) CA 1, LP
DSMD Cajun PropertiesPLN 22-0199 0.96 Acre $2,995
To Be Determined
Richmond American
Homes of Maryland Inc.21 2024-25 TR 38219 198 SFR RU $315 $71 TR 36658-1,
-3, -4, & -7
TR 36658-2
TR 36658-5
& 36658-6
TR 37671
22A
22B
22C
2023-24
2023-24
2023-24
2024-25
393
116
247
182
SFR
SFR
SFR
SFR
RU
RU
RU
$1,086
$879
$100
$100
$100
$0
Pulte Home Company, LLC
Pulte Home Company, LLC
Pulte Home Company, LLC
Pulte Home Company, LLC
$879
23 24
25 RU

CANCELED
To Be Determined
$1,293
The Han Family Trust
Dated February 27, 200326 2024-25 TTM 38126 96 SFR RU $1,239 $0 City of Menifee
Community Facilities District No. 2017-1 (Maintenance Services) 12 Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 23

Menifee Mayor and City Council
February 19, 2025
Page
678 of 1056

Fiscal
Year
Included
No. of
Taxable
Units
Maximum
Special Tax
A
Maximum
Special Tax B
(Contingent)
Tax
Zone
Tract/
APN
Land Use
Category
Taxable
Unit Subdivider
KA Menifee, LLC, Capital
Financial Group, Inc.

Defined Benefit Pension
Plan, Kaassi International,
Inc. Defined Benefit
Pension Plan, KZA Inc.

Defined Benefit Pension
Plan.
333-040-043,
333-040-04427 2024-25
2024-25

1.89 162
NR Acre $5,016 $1,002
$65
28 29
To Be Determined
RU $274 Lennar Homes of
California, LLCTTM 38346 MFR

ESCALATION OF MAXIMUM SPECIAL TAXES
On each July 1, commencing on July 1, 2019 the Maximum Special Tax shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles - Riverside - Orange County (1982-84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.

City of Menifee 13
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 24

Menifee Mayor and City Council
February 19, 2025
Page
679 of 1056

APPENDIX B

CITY OF MENIFEE
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2017-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-way, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following:
(a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance and servicing of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2017-1; as well as local roads within residential subdivisions located within CFD No. 2017-1; and any portions adjacent to the properties within CFD No. 2017-1; and
In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of Apportionment.

The above services may be financed by proceeds of the special tax of CFD No. 2017-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2017-1 before CFD No. 2017-1 was created or those provided in the territory annexed to CFD No. 2017-1 before the territory was annexed, as applicable.

City of Menifee 14
Community Facilities District No. 2017-1 (Maintenance Services) Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 25

Menifee Mayor and City Council
February 19, 2025
Page
680 of 1056

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 26

Menifee Mayor and City Council
February 19, 2025
Page
681 of 1056

ANNEXATION MAP NO. 29
SHEET 1 OF 1 SHEET
COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES)

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA

THIS MAP SHOWS THE BOUNDARIES OF AREAS TO BE
ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA.

RECORDED THIS ____ DAY OF _______________, 20____ AT
THE HOUR OF ____ O'CLOCK __M IN BOOK _____
PAGE _____ OF MAPS OF ASSESSMENT AND COMMUNITY

FACILITIES DISTRICTS IN THE OFFICE OF THE COUNTY

RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA.THE BOUNDARIES OF WHICH COMMUNITY FACILITIES

DISTRICT ARE SHOWN AND DESCRIBED ON THE MAP
THEREOF WHICH WAS PREVIOUSLY RECORDED ON FEE: _____________ NO.: ______________________ NOVEMBER 7, 2017 IN BOOK 81 OF MAPS OF ASSESSMENT
AND COMMUNITY FACILITIES DISTRICT AT PAGE 69 AND
AS INSTRUMENT NO. 2017-0465706 IN THE OFFICE OF THE

PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDER
BY: _______________________________

DEPUTYCOUNTY RECORDER OF THE COUNTY OF RIVERSIDE,
STATE OF CALIFORNIA.

FILED IN THE OFFICE OF THE CITY CLERK, CITY OF
MENIFEE, THIS _______ DAY OF _________________, 20___.I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSED BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2017-1
(MAINTENANCE SERVICES), OF THE CITY OF MENIFEE, COUNTY

OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVED BY THE
___________________________________

CITY CLERK

CITY OF MENIFEECITY COUNCIL OF THE CITY OF MENIFEE AT A REGULAR MEETING THEREOF, HELD ON ______ DAY OF ______,
20____,
BY ITS RESOLUTION NO. _______________
331-250-029
29 ___________________________________

CITY CLERK

CITY OF MENIFEE
331-250-030
331-250-028
þ
74 þ
74 CFD 2017-1
TAX ZONE 29
_

MENIFEE
LEGEND
§ ¦215

PARCEL LINE

CFD BOUNDARY

CITY BOUNDARY

XXX-XXX-XXX
29 ASSESSOR PARCEL NUMBER

TAX ZONE
-

THIS ANNEXATION MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT.

FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2024-25. 0 250 500 1,000 Feet
Item Title: 10.13
Resolution of Intention for Annexation No. 29, Heritage Village, into Community Facility District 2017-1, Maintenance Services Item Page Number: 27

Menifee Mayor and City Council
February 19, 2025
Page
682 of 1056

Item Title: 10.13
Resolution of Intention for Annexation No. 29, Heritage Village, into Community Facility District 2017-1, Maintenance Services Item Page Number: 28

Menifee Mayor and City Council
February 19, 2025
Page
683 of 1056

EXHIBIT E

PETITION
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 29

Menifee Mayor and City Council
February 19, 2025
Page
684 of 1056

Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 30

Menifee Mayor and City Council
February 19, 2025
Page
685 of 1056

Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 31

Menifee Mayor and City Council
February 19, 2025
Page
686 of 1056

Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 32

Menifee Mayor and City Council
February 19, 2025
Page
687 of 1056

Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 33

Menifee Mayor and City Council
February 19, 2025
Page
688 of 1056

EXHIBIT F

NOTICE OF PUBLIC HEARING
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 34

Menifee Mayor and City Council
February 19, 2025
Page
689 of 1056

NOTICE OF PUBLIC HEARING ON RESOLUTION OF INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 29)
NOTICE IS HEREBY GIVEN that the City Council of the City of Menifee on February 19, 2025 adopted its Resolution No. 2025-__, in which it declared its intention to annex territory to existing Community Facilities District No. 2017-1 (Maintenance Services) (the "CFD No. 2017-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2017-1 is proposed.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 6:00 p.m., or as soon thereafter as practicable, Wednesday, April 2, 2025 in the City Council Chambers located at 29844 Haun Road, Menifee, California 92586, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2017-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the April 2, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Menifee (www.cityofmenifee.us), and outside of City Hall at 29844 Haun Road, Menifee, California 92586. A copy of the Agenda will be made available upon request to the Menifee City Clerk's office at 951-723-3471.

DATED: ____________, 2025
PUB: ____________, 2025
_________________________________________
City Clerk of the City of Menifee
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 35

Menifee Mayor and City Council
February 19, 2025
Page
690 of 1056

EXHIBIT G
BALLOT
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 36

Menifee Mayor and City Council
February 19, 2025
Page
691 of 1056

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) ANNEXATION NO. 29
(April 2, 2025)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2017-1 (Maintenance Services) (“CFD No. 2017-1”) of the City of Menifee:

Name of Landowner Number of Acres Owned

7.52 Total Votes
8Lennar Homes of California, LLC
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Menifee (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 5:00 p.m. on April 2, 2025, at the Clerk’s office at 29844 Haun Road, City of Menifee, CA 92586.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on April 2, 2025.

Very truly yours,
Stephanie Roseen
City Clerk
City of Menifee
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 37

Menifee Mayor and City Council
February 19, 2025
Page
692 of 1056

TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner:

Lennar Homes of California, LLC
Attn: Geoff Smith
Assessor’s Parcel Number(s):
4140 Temescal Canyon Road, Suite 410
Corona, CA 92883
331-250-028, 331-250-029, 331-250-030

CITY OF MENIFEE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2017-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT MARK “YES” OR
“NO” WITH AN “X”:SPECIAL TAX BALLOT MEASURE
Shall the City Council of the City of Menifee be authorized to levy a special tax on an annual basis at the rates set forth in the following table: YES _________ Land Use
Category
Multi-Family Residential
Maximum
Special Tax A
Maximum Special
Tax B (Contingent)
$65$274
NO _________plus an annual increase on each July 1, commencing on July 1, 2025 the Maximum Special Tax A shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Riverside – San Bernardino – Ontario (December 2017 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater, to finance certain services within the territory identified on the map entitled “Annexation Map No. 29 of Community Facilities District No. 2017-1 (Maintenance Services) City of Menifee” including landscaping, lighting, streets, drainage, parks, trails, and graffiti abatement for Special Tax A, and drainage for Special Tax B, as provided in the Rate and Method of Apportionment which is attached as Exhibit C to Resolution No. 2025-__ adopted by the City Council of the City of Menifee on February 19, 2025 (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2017-1 (Maintenance Services) in the amount of special taxes collected?
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct, and that this declaration is executed on ____________, 20__.

Geoff Smith
Vice President of Forward Planning
Signature
Print Name
Item Title: 10.13
Resolution

Intention

for

Annexation

No.

29,

Heritage

Village,

into

Community

Facility

District

2017-1,

Maintenance
Services
Item Page Number: 38

Menifee Mayor and City Council
February 19, 2025
Page
693 of 1056

CFD 2017-1 ANNEXATION 29 - CFD MAINTENANCE SITE EXHIBIT EX
Item Title: 10.13
Resolution of Intention for Annexation No. 29, Heritage Village, into Community Facility District 2017-1, Maintenance Services Item Page Number: 39

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February 19, 2025
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CITY OF MENIFEE
SUBJECT: Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road
MEETING DATE: February 19, 2025
TO: Mayor and City Council
PREPARED BY: Jenny McConville, Management Analyst
REVIEWED BY: Nick Fidler, Public Works Director
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute an Agreement of Purchase and Sale and Escrow Instructions, in substantially the form provided in the attached Draft Agreement of Purchase and Sale, with property owner Marco Antonio Campista Cedillo, for real property located at 27930 Watson Road, Menifee, CA, identified as Assessor Parcel No. (APN) 329- 050-049, for the Ethanac Road/Antelope Road/Highway 74 Intersection Realignment Project, Capital Improvement Program (CIP) Project No. 25-13, for a total amount not-to-exceed $275,000; and

2. Authorize the City Manager to modify the Agreement of Purchase and Sale and Escrow Instructions, without modifying core deal terms, as necessary to further benefit the City, and to execute any additional documents required for the acquisition of the real property (APN 329-050-049); and

3. Adopt a budget amendment resolution for the Trust Fund approving an increase in revenue and appropriation of expenditures in the amount of $275,000 (Transfer Out); and

4. Adopt a budget amendment resolution for the Capital Projects Fund approving an increase in revenue (Transfer In) and appropriation of expenditures in the amount of $275,000 to the Project account assigned by the Finance Department.

DISCUSSION
On June 7, 2023, the City Council adopted the Fiscal Year (FY) 2023-2028 Capital Improvement Program (CIP), which included the Ethanac Road/Antelope Road/Highway 74 Intersection Realignment Project, CIP No. 25-13 (“Project”), as a future transportation project. The Project is identified in the City’s General Plan as a long-range capital project necessary to address the Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 1

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February 19, 2025
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City of Menifee Staff Report
Purchase Agreement for Watson Property
February 19, 2025

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increased traffic demand resulting from the commercial and residential development in the surrounding vicinity.

The Project would construct an overpass to traverse the existing railroad tracks and realign Highway 74, Ethanac Road, and Antelope Road. The Project would include drainage, street lighting, and traffic signal improvements. The Project would also enhance multi-modal transportation by eliminating the current railroad crossing barrier and installing sidewalks and dedicated bicycle lanes. The Project is currently in the preliminary planning phase with a feasibility study expected to be conducted in the upcoming months to determine the environmental, drainage, and right-of-way constraints. As the Project advances into final design, City staff would coordinate with Caltrans and the Riverside County Transportation Commission as the owners of the railroad facilities and right-of-way along Highway 74.

City staff continuously works with private developers and local public utility agencies as an ongoing effort to coordinate and identify the future project needs of all stakeholders and to prevent development that may conflict with upcoming City projects, ultimately resulting in costly relocations. Through these coordination efforts, Eastern Municipal Water District (EMWD) shared with the City their plans to construct a Domestic Water Booster Station (“Booster Station”) located at 27995 Ethanac Road, APN 331-150-027, a parcel of EMWD-owned land within the Project area. The timing of the Booster Station project would result in it being constructed ahead of the City’s Project. If constructed at this location, the Booster Station would create a significant conflict with the proposed Project.

Staff has worked closely with EMWD to identify an alternate location for their future Booster Station which would better support and benefit both agencies in moving forward with their respective projects. Discussions with EMWD included the potential for the City to purchase property outside of the Project area that could serve as the future site for EMWD’s Booster Station.

Once an alternate property was identified and purchased by the City, the City could then transfer the property to EMWD to utilize as the future site of their Booster Station. EMWD would, in turn, transfer the property planned as the original site for the Booster Station to the City to support the Project realignment.

Staff in conjunction with EMWD identified an alternate location for the Booster Station in a property located at 27930 Watson Road, Menifee, CA, identified as Assessor Parcel Number 329-050-049 (“Property”). The Property is generally situated north of Watson Road, west of Antelope Road, east of Bruner Road, and south of Baroni Road. The Property would accommodate EMWD’s future Booster Station and would prevent significant conflicts with the City’s future Project location.

On November 20, 2024, staff received authorization from the City Council during a closed session meeting to commence negotiations for the purchase the Property. The appraisal report, prepared by the City’s approved right-of-way consultant, Dokken (“Consultant”), valued the Property at $245,000; the property was listed for sale at $300,000. Upon approval, the Consultant initiated the negotiation efforts. Following several discussions between the Consultant and the Property owner’s representative, the Property owner agreed to accept a final purchase price in a total amount not-to-exceed $275,000 for the Property. Based on the appraisal report for the Property, staff and the Consultant agree that this amount is a fair and equitable price for the Property and is within the approved amount authorized by City Council. The terms for the purchase of the Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 2

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February 19, 2025
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City of Menifee Staff Report
Purchase Agreement for Watson Property
February 19, 2025

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Property are currently under review to ensure the City’s interests are protected. As a result, minor modifications to the language in the proposed Agreement for Purchase and Sale and Escrow Instructions (“Agreement”) may occur. Changes to the Agreement language would not impact the final purchase price of the Property, which would remain for a total amount not-to-exceed $275,000.

By purchasing the Property now, the City would ultimately save a significant amount of time and money that would otherwise be required to relocate EMWD’s Booster Station before the City’s Project could begin construction activities. Staff is actively working with EMWD to develop an agreement to memorialize property transfer arrangements. Given that property appraisals are only valid for a specific period and knowing that property values are likely to increase should an additional appraisal be required, time is of the essence in moving forward with the purchase of the Property at this time.

On May 3, 2023, City Council approved a Community Benefit Agreement (CBA) for the NOVA Power Bank Project (“NOVA Project”), which is located on a 44.22-acre site at 26226 Antelope Road, Menifee, CA, identified as APN’s 331-180-021 and 331-180-022. The NOVA Project includes the re-development of the Inland Empire Energy Center (IEEC) generation plant which would interconnect with the energy grid at Southern California Edison’s Valley Substation. In addition to standard conditions of approval to construct public improvements (i.e., Antelope Road frontage with extension to McLaughlin Road, and San Jacinto Road frontage with extension to McLaughlin Road), the NOVA Project is required to participate in a future Road and Bridge Benefit District (RBBD). The RBBD, which is currently in the formation process, would be established to fund future transportation infrastructure in the vicinity. It is anticipated that the RBBD fee required for the NOVA Project would not exceed $1,000,000 and would be paid from the Community Benefit Fee collected as part of the CBA. The City’s future Project is located within the proposed RBBD vicinity. As such, it is recommended that a portion of the Community Benefit Fee received from the NOVA Project be appropriated to the Project at this time to fund the purchase of the Property, and in ultimate support the development of the Project as a facility funded in part by the future RBBD.

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
Connectivity and Mobility

FISCAL IMPACT
The total fiscal impact of the proposed Agreement for the acquisition of property identified as APN 329-050-049 is for the total amount not-to-exceed $275,000. Funding for the Agreement is available within the Trust Fund which holds a balance of $1 million received by the Nova Power Bank Project Community Benefit Agreement (CBA) collected in 2023 for a future Road and Bridge Benefit District (RBBD). The proposed Agreement is an eligible expense under the future RBBD.

Accordingly, $275,000 from the $1 million held in trust will be recognized as revenue in the Trust Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 3

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February 19, 2025
Page
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City of Menifee Staff Report
Purchase Agreement for Watson Property
February 19, 2025

Page 4 of 4 ends

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3 1
Fund (8350-438850). The funding would then be transferred out of the Trust Fund (8350-PWD- CIPS-659000) and transferred into the Capital Projects Fund (4320-439000). The Finance Department would appropriate corresponding expenditures within the Capital Projects Fund (4320-PWD-CIPS-760000) for the Project, as summarized in Table 1 on the following page.

TABLE 1 – PROJECT BUDGET SET-UP
Fund Account Description Account# Revenue
Budget
Expenditure
Budget
Trust Fund Revenue - NOVA CBA fees 438850 $275,000
Trust Fund Transfer Out 659000 $275,000
Capital Projects Transfer In 439000 $275,000
Capital Projects Expenditures - CIP
Transportation
760000 $275,000

ATTACHMENTS

1. Property Location Map

2. Draft Purchase and Sale Agreement

3. Budget Amendment Resolution - Trust Fund

4. Budget Amendment Resolution - Capital Projects Fund
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 4

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February 19, 2025
Page
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Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 5

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 6

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 7

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 8

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 9

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 10

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February 19, 2025
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 11

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 12

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February 19, 2025
Page
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 13

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February 19, 2025
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 14

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February 19, 2025
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 15

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February 19, 2025
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 16

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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 17

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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 18

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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 19

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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 20

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Item Title: 10.14
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 22

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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 23

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February 19, 2025
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DRAFT
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 24

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RESOLUTION NO. 25-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, AMENDING THE FISCAL YEAR 2024/25 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 FY2024/25 budget as follows:

AMENDMENTS TO ADOPTED BUDGET:

Trust Fund 8350 Adopted FY 2024/25 Revenue Budget: $0.00

1. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
February 19, 2025
CIP 25-13 Ethanac Road/Antelope
Road/Highway 74 Intersection
Realignment Project
8350-00-XNC-XNCL-
000-00000-438850- 275,000.00
TOTAL: $275,000.00
Amended Trust Fund 8350 FY 2024/25 Revenue Budget: $275,000.00 Trust Fund 8350 Adopted FY 2024/25 Expenditure Budget: $0.00

2. Record Appropriation(s):

Amended Trust Fund 8350 FY 2024/25 Expenditure Budget: $275,000.00

3. Record Transfer of Funds:

FROM ACCOUNT # TO ACCOUNT # AMOUNT
8350-00-XNC-XNCL-000-
00000-260400- NOVA Liability
8350-00-XNC-XNCL-000-
00000-438850- NOVA Revenue
275,000.00
TOTAL: $275,000.00

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
February 19, 2025
CIP 25-13 Ethanac Road/Antelope
Road/Highway 74 Intersection
Realignment Project
8350-57-PWD-CIPS-
000-00000-659000- 275,000.00
TOTAL: $275,000.00
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 25

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Amending the Fiscal Year 2024/25 Trust Fund Budget
CIP 25-13 Agreement of Purchase for the Acquisition of Real Property 2 5
0 0
3 4

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

The annual budget for the Trust Fund 8350 for the City of Menifee for FY2024/25 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:

CIP 25-13 Agreement of Purchase for the Acquisition of Real Property $275,000.00 Amended Trust Fund 8350 FY2024/25 Budget $275,000.00

Expenditures:

CIP 25-13 Agreement of Purchase for the Acquisition of Real Property $275,000.00 Amended Trust Fund 8350 FY2024/25 Budget $275,000.00 PASSED, APPROVED AND ADOPTED this 19th day of February, 2025. _____________________________
Ricky Estrada, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Stephanie Roseen, City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 26

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February 19, 2025
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RESOLUTION NO. 25-____

AMENDMENTS TO ADOPTED BUDGET:

Capital Projects Fund 4320 Adopted FY 2024/25 Revenue Budget: $258,679.00

1. Record Appropriation(s):

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
June 5, 2024 Mid-Cycle Budget Adjustments
4320-00-XNC-XNCL-
000-00000-438000- 52,533.00
February 19, 2025
CIP 25-13 Ethanac Road/Antelope
Road/Highway 74 Intersection
Realignment Project
4320-00-XNC-XNCL-
000-00000-439000- 275,000.00
TOTAL: $327,533.00
Amended Capital Projects Fund 4320 FY 2024/25 Revenue Budget: $586,212.00 Capital Projects Fund 4320 Adopted FY 2024/25 Expenditure Budget: $258,679.00

2. Record Appropriation(s):

Amended Capital Projects Fund 4320 FY 2024/25 Expenditure Budget: $3,491,702.00

CITY COUNCIL
MEETING DESCRIPTION ACCOUNT # AMOUNT
July 1, 2024 FY 2023/2024 Carryovers Various 2,958,023.00 February 19, 2025
CIP 25-13 Ethanac Road/Antelope
Road/Highway 74 Intersection
Realignment Project
4320-55-PWD-CIPS-
000-00000-760000- 275,000.00
TOTAL: 3,233,023.00
Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 27

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Amending the Fiscal Year 2024/25 Capital Projects Fund Budget CIP 25-13 Agreement of Purchase for the Acquisition of Real Property 2 5
0 0
3 5

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 Capital Projects Fund 4320 for the City of Menifee for FY2024/25 is hereby increased and amended to reflect unanticipated revenues and expenditures as follows:

Revenues:

CIP 25-13 Agreement of Purchase for the Acquisition of Real Property $275,000.00 Amended Capital Projects Fund 4320 FY2024/25 Budget $586,212.00

Expenditures:

CIP 25-13 Agreement of Purchase for the Acquisition of Real Property $275,000.00 Amended Capital Projects Fund 4320 FY2024/25 Budget $3,491,702.00 PASSED, APPROVED AND ADOPTED this 19th day of February, 2025. _____________________________
Ricky Estrada, Mayor
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________ Stephanie Roseen, City Clerk Jeffrey T. Melching, City Attorney Item Title: 10.14
Agreement of Purchase and Sale for the Acquisition of Real Property Located at 27930 Watson Road Item Page Number: 28

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February 19, 2025
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CITY OF MENIFEE
SUBJECT: Memorandum of Understanding with the City of San Diego Police Department, Internet Crimes Against Children Task Force
MEETING DATE: February 19, 2025
TO: Mayor and City Council
PREPARED BY: Christine Booker, Budgets & Grants Analyst REVIEWED BY: Chris Karrer, Police Chief
APPROVED BY: Armando G. Villa, City Manager
-------------------------------------------------------------------------------------------------------------------------------

RECOMMENDED ACTION

1. Approve and authorize the City Manager, or designee, to execute a Memorandum of Understanding (MOU) with the City of San Diego, on behalf of its Internet Crimes Against Children Task Force.

DISCUSSION
The proposed MOU between the City of Menifee Police Department (PD) and the City of San Diego strives to enhance the Internet Crimes Against Children (ICAC) Task Force by supplementing operation overtime costs. This joint task force would coordinate investigations and cases for criminal prosecution. The City of San Diego is a grant award recipient of federal and state funds from the U.S. Department of Justice Office (USDOJ) of Juvenile Justice and Delinquency Prevention Department (OJJDP) and the California Governor’s Office of Emergency Management (Cal OES). The proposed MOU would enable Menifee PD to be classified as a sub- recipient of the grant under the management and reporting authority of the City of San Diego.

The proposed MOU’s primary objectives include assisting state and local law enforcement agencies in developing an effective response to cyber enticement and other internet type crimes against children. The task force would support those agencies with investigative and forensic components, training and technical assistance, victim services, and community education.

The proposed MOU would include assigning up to one Police Detective provided by the Menifee PD. The task force position allotted in this MOU is an existing Detective position within the Police Department organizational structure and no additional bodies are being requested. Additionally, there are no new vehicle or equipment appropriations that the City of Menifee would be required to acquire. This task force participation is in line with the Detective’s current duties and would not result in additional un-reimbursable overtime charged to the general fund.

Item Title: 10.15
Memorandum

Understanding

with

the

City

San

Diego

Police

Department,

Internet

Crimes

Against

Children

Task
Force
Item Page Number: 1

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February 19, 2025
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City of Menifee Staff Report
ICAC MOU w/ San Diego
February 19, 2025

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5 3
Participation in the task force would allow Menifee PD to request reimbursement for overtime expenses incurred by the assigned Detective. As identified in Appendix C to the attached MOU, the allowable reimbursement amount is $5,000. Reimbursement totals can fluctuate from year to year, but if future funding was ever reduced, adjustments would be made to ensure there is no negative impact on the general fund. If the funding were to be eliminated, the overtime expenses would be absorbed into the existing Menifee PD overtime budget.

STRATEGIC PLAN OBJECTIVE
Safe and Vibrant Community

FISCAL IMPACT
The funding for this position is already included in the Fiscal Year 2024/2025 Budget and there is no additional appropriation needed. Additionally, the City of Menifee could be reimbursed up to $5,000 from the City of San Diego as approved for overtime associated with task force operations.

ATTACHMENTS

1. ICAC MOU

2. ICAC Appendix C
Item Title: 10.15
Memorandum

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7 AGREEMENT BETWEEN THE CITY OF SAN DIEGO POLICE DEPARTMENT

INTERNET CRIMES AGAINST CHILDREN TASK FORCE
AND

MENIFEE POLICE DEPARTMENT
THIS AGREEMENT is made this day of __________________, 2025 in the City and County of San Diego, State of California, by and between the MENIFEE POLICE DEPARTMENT (“SUBRECIPIENT") and the CITY OF SAN DIEGO, a municipal corporation (“SAN DIEGO" or "CITY"), acting by and through the SAN DIEGO POLICE DEPARTMENT ("SDPD"), referred to herein as the "Parties."

RECITALS
WHEREAS, the San Diego Police Department (“SDPD”) is the recipient of federal and state grant funds from the U. S. Department of Justice (USDOJ), Office of Juvenile Justice and Delinquency Prevention Department (OJJDP), and the California Governor’s Office of Emergency Management (Cal OES).

WHEREAS, in August 2014, the Parties entered into a Memorandum of Agreement for the period beginning August 5, 2014, to the end of federal funding or the MOU is canceled by either Party.

WHEREAS, SUBRECIPIENT and the SDPD continue to be the recipients of federal and state grant funds and have established a task force to detect, investigate, and prevent Internet Crimes Against Children (“ICAC”) and will continue to apply for grant funds in the future; and WHEREAS, the Parties now wish to enter into a new agreement for the period of January 1, 2024 to December 31, 2028, contingent on continued grant funding being awarded and received; and WHEREAS, SUBRECIPIENT intends to provide staff to this ICAC Task Force as described in Appendix C – Scope of Work, U. S. Department of Justice (USDOJ), Office of Juvenile Justice and Delinquency Prevention Department (OJJDP), and California Governor’s Office of Emergency Services ("Cal OES") ICAC Grant proposal, so long as SDPD continues to be the recipient of such grant funds; and WHEREAS, it is the express intent of the Parties, and consistent with the intent of the USDOJ OJJDP and Cal OES that this partnership occurs.

ARTICLE 1

DEFINITIONS

1.1Specific Terms. Unless the context requires otherwise, the following capitalized terms (whether singular or plural) shall have the meanings set forth below:
(a) “ADA” shall mean the Americans with Disabilities Act (including all rules and regulations thereunder) and all other applicable federal, state, and local disability rights legislation, as the same may be amended, modified or supplemented from time to time. (b) “Authorized Expenditures” shall mean expenditures for those purposes identified and budgeted in the SUBRECIPIENT Award Letter (Appendix A) and/or approved modification. (c) “Event of Default” shall have the meaning set forth in Section 7.1.

Item Title: 10.15
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7 (d) “Fiscal Quarter” shall mean each period of three calendar months commencing on July 1, October 1, January 1, and April 1, respectively.
(e) “Grant Funds” shall mean all funds allocated or disbursed to SUBRECIPIENT under this Agreement. This Agreement shall specifically cover funds allocated or disbursed from the following:

1. California Governor’s Office of Emergency Services ICAC grant, as awarded during the Term of this Agreement, with a performance period from January 1st to December 30th; and/or

2.The US Department of Justice, Office of Justice Programs, Office of Juvenile Justice and Delinquency Prevention ICAC grant, as awarded during the Term of this Agreement, with a performance period from October 1st to September 30th. (f) “Grant Plan” shall mean the plans, performances, events, exhibitions, acquisitions or other activities or matter, and the budget and requirements, described in the approved Appendix C - Scope of Work. If SUBRECIPIENT requests any modification to the Grant Plan, SUBRECIPIENT shall submit a written request to the ICAC Commander with the following information: Scope of change requested, reason for change, proposed plan for change, summary of approved and requested modifications to the Grant Plan, and any necessary approvals in support of change. (g) “Indemnified Parties” shall mean: (i) the City of San Diego ("CITY"), including all commissions, departments including SDPD, agencies, and other subdivisions of the CITY; (ii) CITY’s elected officials, directors, officers, employees, agents, successors, and assigns; and (iii) all persons or entities acting on behalf of the foregoing.
(h) “Losses” shall mean any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, judgments, fees, expenses, and costs of whatsoever kind and nature (including legal fees and expenses and costs of investigation, of prosecuting or defending any Loss described above) whether or not such Loss be founded or unfounded, of whatsoever kind and nature. (i) “Reimbursement Request” shall have the meaning set forth in Section 3.9 (a). (j)“ICAC Commander” shall mean the SDPD ICAC Project Manager (Detective Sergeant).

1.2Additional Terms. The terms “as directed” “as required,” or “as permitted,” and similar terms shall refer to the direction, requirement, or permission of CITY. The terms “sufficient,” “necessary,” or “proper” and similar terms shall mean sufficient, necessary, or proper in the sole judgment of CITY. The terms “approval,” “acceptable,” or “satisfactory,” or similar terms shall mean approved by, or acceptable, or satisfactory to, CITY. The terms “include,” “included,” or “including,” and similar terms shall be deemed to be followed by the words “without limitation.” The use of the term “subcontractor,” “subgrantee,” “successor,” or “assign,” herein refers only to a subcontractor, subgrantee, successor, or assign expressly permitted under Article 8.

1.3References to this Agreement. References to this Agreement include: (a) any and all appendices, exhibits, schedules, and attachments hereto; (b) any and all statutes, ordinances, regulations, or other documents expressly incorporated by reference herein; and (c) any and all amendments, modifications, or supplements hereto made in accordance with Section 10.2. References to articles, sections, subsections, or appendices refer to articles, sections, or subsections of, or appendices to, this Item Title: 10.15
Memorandum

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ICAC – SUBRECIPIENT A-3
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7 Agreement, unless otherwise expressly stated. Terms such as “hereunder,” “herein,” or “hereto,” refer to this Agreement as a whole.

1.4Reference to laws. Any reference in this Agreement to a federal or state statute, regulation, executive order, requirement, policy, guide, guideline, information bulletin, or instruction shall mean that statute, regulation, executive order, requirement, policy, guide, guideline, information bulletin, or instruction as is currently in effect and as may be amended, modified, or supplemented from time to time.

ARTICLE 2
ALLOCATION AND CERTIFICATION OF GRANT FUNDS;
LIMITATIONS ON SAN DIEGO’S OBLIGATIONS

2.1Risk of Non-Allocation of Grant Funds. This Agreement is subject to all federal grant requirements and guidelines, including USDOJ requirements, guidelines, information bulletins, and instructions, the decision-making of the USDOJ and the ICAC Commander, the terms and conditions of the grant award; the approved application, and to the extent applicable, the budget and fiscal provisions of the City of San Diego City Charter. The ICAC Commander shall have no obligation to allocate or direct disbursement of funds for this Agreement in lieu of allocations for new or other agreements.

SUBRECIPIENT acknowledges and agrees that grant decisions are subject to the discretion of the USDOJ and the ICAC Commander. Further, SUBRECIPIENT acknowledges and agrees that the CITY shall have no obligation to disburse Grant Funds to SUBRECIPIENT until CITY and SUBRECIPIENT have fully and finally executed this Agreement. SUBRECIPIENT acknowledges and agrees that if it takes any action, informal or formal, to appropriate, encumber, or expend Grant Funds before final allocation decisions by USDOJ and the ICAC Commander, and before this Agreement is fully and finally executed, it assumes all risk of possible non-allocation or non-reimbursement of funds, and such acknowledgement and agreement is part of the consideration of this Agreement.

2.2Certification of Controller; Guaranteed Maximum Costs. No funds shall be available under this Agreement without prior written authorization certified by the San Diego Chief Financial Officer as set forth in Section 39 of the City of San Diego City Charter:
“No contract, agreement, or other obligation for the expenditure of public funds shall be entered into by any officer of the City and no such contract shall be valid unless the Chief Financial Officer shall certify in writing that the money required for such contract, agreement, or obligation for such year is or will be in the treasury to the credit of the appropriation from which it is to be drawn and that it is otherwise unencumbered.”
ARTICLE 3

PERFORMANCE OF THE AGREEMENT

3.1Duration of Term. The term of this Agreement shall apply retroactively to JANUARY 1, 2024, and shall end at 11:59 p.m. Pacific Standard Time on DECEMBER 31, 2028, or upon the exhaustion of Grant Funds, whichever occurs earlier

3.2Maximum Amount of Funds. In no event shall the amount of Grant Funds disbursed hereunder exceed the amount awarded under the SUBRECIPIENT Award letter (Appendix A), and/or approved modification. The CITY will not automatically transfer Grant Funds to SUBRECIPIENT upon execution of this Agreement. SUBRECIPIENT must submit a Reimbursement Request under Section 3.9 (a) of this Item Title: 10.15
Memorandum

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7 Agreement, approved by the ICAC Commander and CITY, before the CITY will disburse Grant Funds to SUBRECIPIENT.

3.3Use of Funds.
(a) General Requirements. SUBRECIPIENT shall use the Grant Funds received under this Agreement for the purposes and in the amounts set forth in the Grant Plan.

SUBRECIPIENT shall not use or expend Grant Funds for any purpose not set forth in the Grant Plan, including but not limited to, for matching funds for other federal grants/cooperative agreements, lobbying or intervention in federal regulatory or adjudicatory proceedings, or to sue the federal government or any other government entity. SUBRECIPIENT shall not permit any federal employee to receive Grant Funds. (b) Modification of Grant Plan. Under Sections 1.1(f) and 10.2 of this Agreement, SUBRECIPIENT may submit a written request to modify the Grant Plan. SUBRECIPIENT shall not appropriate, encumber or expend any additional or reallocated Grant Funds pursuant to such a request for modification until and unless the ICAC Commander or designee has provided written approval for the request. In addition, if the modification request requires approval from the granting agency, as determined by the ICAC Commander in conjunction with the SDPD Grants Coordinator, SUBRECIPIENT shall not appropriate, encumber or expend any additional or reallocated Grant Funds pursuant to the modification request without approval from the ICAC Commander and/or the granting agency. (c) No Supplanting. SUBRECIPIENT shall use Grant Funds to supplement existing funds, and not replace (supplant) funds that have been appropriated for the same purpose. (d) Obligations. SUBRECIPIENT must expend Grant Funds in a timely manner consistent with the grant milestones, guidance and assurances; and make satisfactory progress toward the goals, objectives, milestones and deliverables in this Agreement. (e) Training:

1. SUBRECIPIENT agrees to make Investigators, designated as ICAC Task Force members, available for applicable specialized training provided through the national ICAC Program and other appropriate training programs.

2. The Task Force Commander has the authority to send the designated SUBRECIPIENT Investigator to training deemed appropriate based on the needs of the ICAC Task Force.

3. The San Diego Police Department will provide funding for ICAC Task Force-related training expenses of the SUBRECIPENT’s Investigator, exclusively from ICAC Program Grant Funds.

These expenses include travel, lodging, per diem, and incidental expenses in an amount not to exceed the current United States General Service Administration Domestic Per Diem Rates.

4. The training must be approved by the ICAC Task Force Commander before attending said training.
(f) Reimbursement:

1. When seeking reimbursement for training, travel, and/or ICAC Task Force-related equipment whose purchase was authorized by the ICAC Commander, SUBRECIPIENT shall submit a Item Title: 10.15
Memorandum

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Department,

Internet

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Task
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Item Page Number: 6

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February 19, 2025
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7 detailed statement of expenses in a prescribed format to the ICAC Program Coordinator within 30 days following the end of each quarter.

2. Any requests for reimbursement submitted 30 days after the statement is due will not be accepted and reimbursement will not be owed.

3. The San Diego Police Department shall make every effort to process the invoices in a timely manner, so that SUBRECIPIENT is reimbursed at the agreed-upon rate within a reasonable period of time.

3.4Grant Assurances; Other Requirements; Cooperation with Monitoring. (a) SUBRECIPIENT shall comply with all Grant Assurances included in Appendix B, attached hereto and incorporated by reference as though fully set forth herein. SUBRECIPIENT shall require all subgrantees, contractors, and other entities receiving Grant Funds through or from SUBRECIPIENT to execute a copy of the Grant Assurances and shall ensure that they comply with those Grant Assurances.
(b) In addition to complying with all Grant Assurances, SUBRECIPIENT shall comply with all applicable statutes, regulations, executive orders, requirements, policies, guides, guidelines, information bulletins, USDOJ grant management memos, and instructions; the terms and conditions of the grant award; the approved application, and any conditions imposed by USDOJ or the ICAC Commander. SUBRECIPIENT shall require and ensure that all subgrantees, contractors, and other entities receiving Grant Funds through or from SUBRECIPIENT comply with all applicable statutes, regulations, executive orders, requirements, policies, guides, guidelines, information bulletins, USDOJ grant management memos, and instructions; the terms and conditions of the grant award; the approved application, and any conditions imposed by the USDOJ or the ICAC Commander. (c) SUBRECIPIENT shall promptly comply with all standards, specifications and formats of SAN DIEGO and the ICAC Commander, including but not limited to the ICAC Operational and Investigative Standards as they may from time to time exist and be provided to SUBRECIPIENT, related to evaluation, planning and monitoring of the Grant Plan and compliance with this Agreement.

SUBRECIPIENT shall cooperate in good faith with SAN DIEGO and the ICAC Commander in any evaluation, inspection, planning or monitoring activities conducted or authorized by USDOJ or the CITY.

For ensuring compliance with non-supplanting requirements, upon request by CITY or the ICAC Commander, SUBRECIPIENT shall supply documentation certifying that a reduction of non-federal resources occurred for reasons other than the receipt or expected receipt of Grant Funds.

3.5Administrative, Programmatic, and Financial Management Requirements.

SUBRECIPIENT shall establish and maintain administrative, programmatic, and financial management systems, and records in accordance with federal requirements.

This provision requires, at a minimum, that SUBRECIPIENT comply with the following non-exclusive list of regulations commonly applicable to USDOJ grants, as applicable to this Agreement and the Grant Plan:

Item Title: 10.15
Memorandum

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Item Page Number: 7

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7 (a) Administrative Requirements:

1. 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (formerly 44 CFR Part 13, OMB Circulars A-21, A-87, A-89, A-102, A-110, A-122, and A-133).
(b) Cost Principles:

1. 2 CFR Part 200, Subpart E - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (formerly 44 CFR Part 13, OMB Circulars A-21, A-87, A-89, A-102, A-110, A-122, and A-133);

2. Federal Acquisition Regulations (FAR), Part 31.2 Contract Principles and Procedures, Contracts with Commercial Organizations.
(c) Audit Requirements:

1. 2 CFR Part 200 Subpart F - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (formerly 44 CFR Part 13, OMB Circulars A-21, A-87, A-89, A-102, A-110, A-122, and A-133).

3.6Procurement Requirements.
(a) General Requirements. SUBRECIPIENT shall follow its own procurement requirements as long as those requirements comply with all applicable federal statutes, regulations, requirements, policies, guides, guidelines and instructions.
(b) Bond requirement. SUBRECIPIENT shall obtain a performance bond for any equipment items over $250,000 or any vehicle, aircraft, or watercraft financed with Grant Funds.

3.7Subgrantee and Contractor Requirements.
(a) SUBRECIPIENT shall ensure and independently verify that any subgrantee, contractor, or other entity receiving Grant Funds through or from SUBRECIPIENT is not debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs, under Executive Orders 12549 and 12689, as implemented at 2 CFR Part 3000. SUBRECIPIENT shall obtain documentation of eligibility before disbursing Grant Funds to any subgrantee, contractor, or other entity.

SUBRECIPIENT shall maintain documentary proof of this verification in its files. SUBRECIPIENT shall establish procedures for the effective use of the “Excluded Parties List System,” to assure that it does not provide Grant Funds to excluded Parties. SUBRECIPIENT shall also establish procedures to provide for effective use and/or dissemination of the list to assure that its grantees and subgrantees, including contractors, at any tier do not make awards in violation of the non-procurement debarment and suspension common rule.
(b) SUBRECIPIENT shall ensure that any subgrantee, contractor, or other entity receiving Grant Funds through or from SUBRECIPIENT complies with the requirements of 44 CFR Part 18, New Restrictions on Lobbying; and
(c) SUBRECIPIENT shall ensure that any subgrantee, contractor, or other entity receiving Grant Funds through or from SUBRECIPIENT complies with the requirements of 2 CFR Part 3001, Requirements for Drug-Free Workplace (Financial Assistance).

Item Title: 10.15
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7 3.8Monitoring Grant Performance.
(a) The CITY is authorized to perform periodic monitoring reviews of SUBRECIPIENT’s performance under this Agreement, to ensure that the Grant Plan goals, objectives, performance requirements, timelines, milestone completion, budgets, and other criteria are being met. Monitoring may involve a combination of remote and/or on-site monitoring visits, inspection of records, and verifications of grant activities. These reviews will involve a review and analysis of the financial, programmatic, performance, and administrative issues relative to each program and will identify areas where technical assistance and other support may be needed. The reviews may include, but are not limited to:

1. Evaluating eligibility of expenditures;

2. Comparing actual grant activities to those approved by the National Incident-Based Reporting System (NIBRS) Project Manager and specified in the Grant Plan;

3. Ensuring that any advances have been deposited in an interest-bearing account and disbursed in accordance with applicable guidelines, if applicable; and

4. Confirming compliance with: Grant Assurances; information provided on performance reports and payment requests; and needs and threat assessments and strategies.
(b) SUBRECIPIENT is responsible for monitoring and auditing the grant activities of any subgrantee, contractor, or other entity receiving Grant Funds through or from SUBRECIPIENT. This requirement includes but is not limited to mandatory on-site verification visits. (c) If after any monitoring review, the USDOJ makes findings that require a Corrective Action Plan by SUBRECIPIENT, the CITY shall place a hold on all Reimbursement Requests from SUBRECIPIENT until the findings are resolved.

3.9Disbursement Procedures. CITY shall disburse Grant Funds to SUBRECIPIENT as follows:
(a) SUBRECIPIENT shall submit to the ICAC Commander, in the manner specified for notices pursuant to Article 9, a Reimbursement Request containing a summary of all charges for the period, with the corresponding supporting documentation. The ICAC Commander shall serve as the primary contact for SUBRECIPIENT regarding any Reimbursement Request. (b) The ICAC Commander in conjunction with the SDPD Grants Coordinator, will review all Reimbursement Requests for compliance with this Agreement and all applicable guidelines and requirements. The ICAC Commander will return to SUBRECIPIENT any Reimbursement Request that is submitted and not approved by either the ICAC Commander and/or the SDPD Grants Coordinator, with a brief statement of the reason for the rejection of the Reimbursement Request. (c) If a rejection relates only to a portion of the expenditures itemized in any Reimbursement Request, CITY shall have no obligation to disburse any Grant Funds for any other expenditures itemized in such Reimbursement Request unless and until SUBRECIPIENT submits a Reimbursement Request that is in all respects acceptable to the NIBRS Project Manager and the SDPD Grants Coordinator. (d) If SUBRECIPIENT is not in compliance with any provision of this Agreement, CITY may withhold disbursement of Grant Funds until SUBRECIPIENT has taken corrective action and currently complies with all terms and conditions of the Agreement.

Item Title: 10.15
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7 3.10Disallowance. SUBRECIPIENT agrees that if it claims or receives reimbursement from CITY for an expenditure that is later disallowed by the federal government, SUBRECIPIENT shall promptly refund the disallowed amount to CITY upon CITY’s written request. At its option, CITY may offset all or any portion of the disallowed amount against any other payment due to SUBRECIPIENT hereunder or under any other Agreement with SUBRECIPIENT. Any such offset with respect to a portion of the disallowed amount shall not release SUBRECIPIENT from SUBRECIPIENT’s obligation hereunder to refund the remainder of the disallowed amount.

3.11Sustainability. Grant Funded programs that contain continuing personnel and operating expenses, over and above planning and implementation costs, must be sustained once the Grant Funding ends. If equipment is purchased with Grant Funds, the equipment must be sustained through the useful life of equipment. By executing this Agreement, SUBRECIPIENT acknowledges its responsibility and agrees to sustain continuing programs beyond the Grant Funding period. SUBRECIPIENT acknowledges and agrees that this sustainability requirement is a material term of the Agreement.

3.12National Energy Conservation Policy and Energy Policy Acts. SUBRECIPIENT shall comply with the following requirements:
(a) Grant Funds may not be used in contravention of the Federal buildings performance and reporting requirements of Executive Order 13123, part 3 of Title V of the National Energy Conservation Policy Act (42 USC §8251 et seq.), or Subtitle A of Title I of the Energy Policy Act of 2005; and (b) Grant Funds may not be used in contravention of Section 303 of the Energy Policy Act of 1992 (42 USC §13212).

3.13Royalty-Free License. SUBRECIPIENT understands and agrees that the USDOJ reserves a royalty-free, non-exclusive, and irrevocable license to reproduce, publish, or otherwise use, and authorize others to use, for federal government purposes: (a) the copyright in any work developed using Grant Funds; and (b) any rights of copyright that SUBRECIPIENT purchases or acquires using Grant Funds.

SUBRECIPIENT shall consult with the ICAC Commander and USDOJ regarding the allocation of any patent rights that arise from, or are purchased with, Grant Funds.

3.14Publication Statements. SUBRECIPIENT shall ensure that all publications created or developed under this Agreement acknowledge awarding agency assistance. An acknowledgement of support shall be made through use of the following or comparable footnote: “This project was supported by the ICAC grant awarded by the U. S. Department of Justice, Office of Juvenile Justice and Delinquency Program (OJJDP)”.

3.15Performance Period. SUBRECIPIENT shall ensure that hard copies of all Reimbursement Requests and supporting documentation will be submitted to the ICAC Commander by the end of the project.

ARTICLE 4
REPORTING REQUIREMENTS; AUDITS

4.1Regular Reports. SUBRECIPIENT shall provide, in a prompt and timely manner, financial, operational, and other reports, as requested by the ICAC Commander, in form and substance satisfactory to the ICAC Commander and the SDPD Grants Coordinator.

Item Title: 10.15
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ICAC – SUBRECIPIENT A-9
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7 4.2Notification of Defaults or Changes in Circumstances. SUBRECIPIENT shall notify the ICAC Commander and CITY immediately of (a) any Event of Default or event that, with the passage of time, would constitute an Event of Default; (b) any change of circumstances that would cause any of the representations or warranties contained in Article 5 to be false or misleading at any time during the term of this Agreement; and (c) any change of circumstances or events that would cause SUBRECIPIENT to be out of compliance with the Grant Assurances in Appendix B.

4.3Books and Records. SUBRECIPIENT shall establish and maintain accurate files and records of all aspects of the Grant Plan and the matters funded in whole or in part with Grant Funds. Without limiting the scope of the foregoing, SUBRECIPIENT shall establish and maintain accurate financial books and accounting records relating to Authorized Expenditures and to Grant Funds received and expended under this Agreement, together with all invoices, documents, payrolls, time records, and other data related to the matters covered by this Agreement, whether funded in whole or in part with Grant Funds. SUBRECIPIENT shall maintain all files, records, books, invoices, documents, payrolls, and other data required to be maintained under this Section in a readily accessible location and condition for a period of not less than three (3) years after expiration of this Agreement or until any final audit by the USDOJ has been fully completed, whichever is later.

4.4Inspection and Audit. SUBRECIPIENT shall make available to the ICAC Commander, SDPD Grants Coordinator, and CITY employees and authorized representatives, during regular business hours, all of the files, records, books, invoices, documents, payrolls, and other data required to be established and maintained by SUBRECIPIENT under Section 4.3 and allow access and the right to examine those items. SUBRECIPIENT shall permit the ICAC Commander, SDPD Grants Coordinator, and CITY employees and authorized representatives, to inspect, audit, examine, and make excerpts and transcripts from any of the foregoing. The rights of the ICAC Commander and CITY pursuant to this Section shall remain in effect so long as SUBRECIPIENT has the obligation to maintain such files, records, books, invoices, documents, payrolls, and other data under this Article 4. The USDOJ, and the Comptroller General of the United States or designee, shall have the same inspection and audit rights as the CITY and the ICAC Commander. SUBRECIPIENT shall cooperate with any federal audit.

4.5Audit Report. If the amount specified in Section 3.2 of this Agreement is $750,000 or more, SUBRECIPIENT shall submit an organization-wide financial and compliance audit report. The audit must be performed in accordance with GAO’s Government Auditing Standards, and 2 CFR Part 200 Subpart F - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. SUBRECIPIENT shall submit its audit report to the ICAC Commander no later than six months after the end of SUBRECIPIENT’s fiscal year.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES
SUBRECIPIENT represents and warrants each of the following as of the date of this Agreement and at all times throughout the term of this Agreement:

5.1No Misstatements. No document furnished or to be furnished by SUBRECIPIENT to the ICAC Commander in connection with this Agreement, any Reimbursement Request, or any other document relating to any of the foregoing, contains or will contain any untrue statement of material fact or omits or will omit a material fact necessary to make the statements contained therein not misleading, under the circumstances under which any such statement shall have been made.

Item Title: 10.15
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7 5.2Eligibility to Receive Federal Funds. By executing this Agreement, SUBRECIPIENT certifies that it is eligible to receive federal funds, and specifically certifies as follows:
(a) SUBRECIPIENT is not suspended, debarred, or otherwise excluded from participation in federal assistance programs, as required by Executive Order 12549 and 12689, “Debarment and Suspension” and implemented at 2 CFR Part 3000.
(b) SUBRECIPIENT complies with 31 U.S.C. §1352, Limitation on use of appropriated funds to influence federal contracting and financial transactions, as implemented at 44 CFR Part 18 and 6 CFR Part 9.
(c) SUBRECIPIENT complies with the Drug-Free Workplace Act of 1988, as amended, 41 U.S.C. §701 et seq., as implemented in 2 CFR Part 3001, and will continue to provide a drug-free workplace as required under that Act and implementing regulations. (d) SUBRECIPIENT is not delinquent in the repayment of any federal debt. See OMB Circular A-129.

SUBRECIPIENT acknowledges that these certifications of eligibility to receive federal funds are material terms of the Agreement.

ARTICLE 6

INDEMNIFICATION AND GENERAL LIABILITY

6.1Indemnification. SUBRECIPIENT shall indemnify, protect, defend, and hold harmless each of the Indemnified Parties from and against any and all Losses arising from, in connection with or caused by SUBRECIPIENT’s performance of this Agreement, including, but not limited to, the following: (a) a material breach of this Agreement by SUBRECIPIENT; (b) a material breach of any representation or warranty of SUBRECIPIENT contained in this Agreement; (c) any personal injury or death caused, directly or indirectly, by any act or omission of SUBRECIPIENT or its employees, subgrantees or agents; (d) any loss of or damage to property caused, directly or indirectly, by any act or omission of SUBRECIPIENT or its employees, subgrantees or agents; (e) the use, misuse or failure of any equipment or facility used by SUBRECIPIENT, or by any of its employees, subgrantees or agents, regardless of whether such equipment or facility is furnished, rented or loaned to SUBRECIPIENT by an Indemnified Party; (f) any tax, fee, assessment or other charge for which SUBRECIPIENT is responsible under Section 10.4; or (g) any infringement of patent rights, copyright, trade secret, or any other proprietary right or trademark of any person or entity in consequence of the use by any Indemnified Party of any goods or services furnished by SUBRECIPIENT or its employees, subgrantees, or agents to such Indemnified Party in connection with this Agreement. The foregoing indemnity shall include, without limitation, reasonable fees of attorneys, consultants, and experts and related costs and SAN DIEGO’s costs of investigating any claims against SAN DIEGO.

6.2Duty to Defend; Notice of Loss. SUBRECIPIENT acknowledges and agrees that its obligation to defend the Indemnified Parties under Section 6.1: (a) is an immediate obligation, independent of its other obligations hereunder; (b) applies to any Loss which actually or potentially falls within the scope of Section 6.1, regardless of whether the allegations asserted in connection with such Loss are or may be groundless, false or fraudulent; and (c) arises at the time the Loss is tendered to SUBRECIPIENT by the Indemnified Party and continues at all times thereafter. The Indemnified Party shall give SUBRECIPIENT prompt notice of any Loss under Section 6.1 and SUBRECIPIENT shall have the right to defend, settle, and compromise any such Loss; provided, however, that the Indemnified Party shall Item Title: 10.15
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7 have the right to retain its own counsel at the expense of SUBRECIPIENT if representation of such Indemnified Party by the counsel retained by SUBRECIPIENT would be inappropriate due to conflicts of interest between such Indemnified Party and SUBRECIPIENT.

An Indemnified Party's failure to notify SUBRECIPIENT promptly of any Loss shall not relieve SUBRECIPIENT of any liability to such Indemnified Party pursuant to Section 6.1, unless such failure materially impairs SUBRECIPIENT’s ability to defend such Loss. SUBRECIPIENT shall seek the Indemnified Party's prior written consent to settle or compromise any Loss if SUBRECIPIENT contends that such Indemnified Party shares in liability with respect thereto.

6.3Incidental and Consequential Damages. Losses covered under this Article 6 shall include any and all incidental and consequential damages resulting in whole or in part from SUBRECIPIENT’s acts or omissions. Nothing in this Agreement shall constitute a waiver or limitation of any rights that any Indemnified Party may have under applicable law with respect to such damages.

6.4LIMITATION ON LIABILITY OF CITY OF SAN DIEGO. CITY’S OBLIGATIONS

UNDER THIS AGREEMENT SHALL BE LIMITED TO THE AGGREGATE AMOUNT OF GRANT FUNDS ACTUALLY DISBURSED HEREUNDER. NOTWITHSTANDING ANY OTHER

PROVISION CONTAINED IN THIS AGREEMENT OR ANY OTHER DOCUMENT OR

COMMUNICATION RELATING TO THIS AGREEMENT, IN NO EVENT SHALL CITY BE

LIABLE, REGARDLESS OF WHETHER ANY CLAIM IS BASED ON CONTRACT OR TORT, FOR

ANY SPECIAL, CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, INCLUDING LOST

PROFITS, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, THE GRANT

FUNDS, THE GRANT PLAN, OR ANY ACTIVITIES PERFORMED IN CONNECTION WITH THIS AGREEMENT.

ARTICLE 7
EVENTS OF DEFAULT AND REMEDIES; TERMINATION FOR CONVENIENCE

7.1Events of Default. The occurrence of any one or more of the following events shall constitute an "Event of Default" under this Agreement:
(a)False Statement. Any statement, representation, certification, or warranty contained in this Agreement, in any Reimbursement Request, or in any other document submitted to the ICAC Commander or to CITY under this Agreement is found by the ICAC Commander or by CITY to be false or misleading.
(b)Failure to Perform Other Covenants. SUBRECIPIENT fails to perform or breaches any provision or covenant of this Agreement to be performed or observed by SUBRECIPIENT as and when performance or observance is due and such failure or breach continues for a period of ten (10) days after the date on which such performance or observance is due. (c)Failure to Comply with Applicable Laws. SUBRECIPIENT fails to perform or breaches any of the terms or provisions of Article 12.
(d)Voluntary Insolvency. SUBRECIPIENT(i) is generally not paying its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy, insolvency or other debtors' relief law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee, or other Item Title: 10.15
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7 officer with similar powers of SUBRECIPIENT or of any substantial part of SUBRECIPIENT’s property or, (v) takes action for the purpose of any of the foregoing. (e)Involuntary Insolvency. Without consent by SUBRECIPIENT, a court or government authority enters an order, and such order is not vacated within ten (10) days, (i) appointing a custodian, receiver, trustee, or other officer with similar powers with respect to SUBRECIPIENT or with respect to any substantial part of SUBRECIPIENT’s property, (ii) constituting an order for relief or approving a petition for relief or reorganization or arrangement or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy, insolvency, or other debtors' relief law of any jurisdiction or, (iii) ordering the dissolution, winding-up, or liquidation of SUBRECIPIENT.

7.2Remedies upon Event of Default. Upon and during the continuance of an Event of Default, CITY may do any of the following, individually or in combination with any other remedy:
(a)Termination. CITY may terminate this Agreement by giving a written termination notice to SUBRECIPIENT and, on the date specified in such notice, this Agreement shall terminate and all rights of SUBRECIPIENT hereunder shall be extinguished. In the event of such termination, CITY will pay SUBRECIPIENT for Authorized Expenditures in any Reimbursement Request that was submitted and approved by the ICAC Commander, SDPD Grants Coordinator, and by CITY prior to the date of termination specified in such notice.
(b)Withholding of Grant Funds. CITY may withhold all or any portion of Grant Funds not yet disbursed hereunder, regardless of whether SUBRECIPIENT has previously submitted a Reimbursement Request or whether the ICAC Commander and/or CITY has approved the disbursement of the Grant Funds requested in any Reimbursement Request. Any Grant Funds withheld pursuant to this Section and subsequently disbursed to SUBRECIPIENT after cure of applicable Events of Default shall be disbursed without interest.
(c)Return of Grant Funds. CITY may demand the immediate return of any previously disbursed Grant Funds that have been claimed or expended by SUBRECIPIENT in breach of the terms of this Agreement, together with interest thereon from the date of disbursement at the maximum rate permitted under applicable law.

7.3Termination for Convenience.
(a) Either Party shall have the option, in its sole discretion, to terminate this Agreement, at any time during the term hereof, for convenience and without cause. The Party terminating the agreement shall exercise this option by giving the other Party thirty (30) days’ written notice of termination. The notice shall specify the date on which termination shall become effective. (b) Upon receipt of the notice by the Party terminating the agreement, the other Party shall commence and perform, with diligence, all actions necessary on its part to effect the termination of this Agreement on the date specified and to minimize the liability of the other Party and to third parties as a result of termination. All such actions shall be subject to the prior approval of the ICAC Commander, in conjunction with the SDPD Grants Coordinator.
(c) Within 30 days after the specified termination date, SUBRECIPIENT shall submit to the ICAC Commander an invoice for all Authorized Expenses incurred through the termination date. For Authorized Expenses incurred after receipt of the notice of termination, CITY will only reimburse Item Title: 10.15
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7 SUBRECIPIENT if the Authorized Expenses received prior approval from the ICAC Commander, in conjunction with the SDPD Grants Coordinator as specified in subparagraph (b). (d) In no event shall CITY be liable for costs incurred by SUBRECIPIENT or any of its contractors or subgrantees after the termination date specified by CITY. (e) CITY’S payment obligation under this Section shall survive termination of this Agreement.

7.4Remedies Nonexclusive. Each of the remedies provided for in this Agreement may be exercised individually or in combination with any other remedy available hereunder or under applicable laws, rules and regulations. The remedies contained herein are in addition to all other remedies available to CITY at law or in equity by statute or otherwise and the exercise of any such remedy shall not preclude or in any way be deemed to waive any other remedy.

ARTICLE 8

ASSIGNMENTS

8.1No Assignment by SUBRECIPIENT. SUBRECIPIENT shall not, either directly or indirectly, assign, transfer, hypothecate, subcontract, or delegate all or any portion of this Agreement or any rights, duties, or obligations of SUBRECIPIENT hereunder without the prior written consent of the ICAC Commander in conjunction with the SDPD Grants Coordinator; provided, however, that any contractor or subgrantee specifically referenced in Appendix A shall not require the consent of the ICAC Commander.

This Agreement shall not, nor shall any interest herein, be assignable as to the interest of SUBRECIPIENT involuntarily or by operation of law without the prior written consent of CITY. A change of ownership or control of SUBRECIPIENT or a sale or transfer of substantially all of the assets of SUBRECIPIENT shall be deemed an assignment for purposes of this Agreement.

8.2Agreement Made in Violation of this Article. Any agreement made in violation of Section 8.1 shall confer no rights on any person or entity and shall automatically be null and void.

8.3SUBRECIPIENT Retains Responsibility. SUBRECIPIENT shall in all events remain liable for the performance by any subgrantee contractor, or assignee of all of the covenants, terms and conditions in this Agreement.

ARTICLE 9

NOTICES AND OTHER COMMUNICATIONS

9.1Requirements. Unless otherwise specifically provided herein, all notices, consents, directions, approvals, instructions, requests and other communications hereunder shall be in writing, shall be addressed to the person and address set forth below and shall be (a) deposited in the U. S. mail, first class, certified with return receipt requested and with appropriate postage, (b) hand delivered or (c) sent via facsimile (if a facsimile number is provided below):

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7 If to CITY of San Diego ICAC Commander:

San Diego Police Department
Investigations I/ICAC
9444 Balboa Avenue #375
San Diego, CA 92123
Attention: Detective Sergeant Garrick Nugent
Phone: 858-715-7120
If to SUBRECIPIENT:

MENIFEE POLICE DEPARTMENT
29714 Haun Road, Unit A
Menifee, CA 92586
Attention: Chris Karrer, Chief of Police
Phone: 951-723-1500

9.2Effective Date. All communications sent in accordance with Section 9.1 shall become effective on the date of receipt. Such date of receipt shall be determined by: (a) if mailed, the return receipt, completed by the U. S. postal service; (b) if sent via hand delivery, a receipt executed by a duly authorized agent of the party to whom the notice was sent.

9.3Change of Address. From time to time any Party hereto may designate a new address or recipient for notice for purposes of this Article 9 by written notice to the other Party and the ICAC Commander.

ARTICLE 10

MISCELLANEOUS

10.1No Waiver. No waiver by CITY of any default or breach of this Agreement shall be implied from any failure by the ICAC Commander or CITY to take action on account of such default if such default persists or is repeated. No express waiver by CITY shall affect any default other than the default specified in the waiver and shall be operative only for the time and to the extent therein stated. Waivers by CITY of any covenant, term, or condition contained herein shall not be construed as a waiver of any subsequent breach of the same covenant, term, or condition. The consent or approval by the ICAC Commander and/or the SDPD Grants Coordinator of any action requiring further consent or approval shall not be deemed to waive or render unnecessary the consent or approval to or of any subsequent similar act.

10.2Modification. This Agreement may not be modified, nor may compliance with any of its terms be waived, except by written instrument executed and approved in the same manner as this Agreement; provided, however, that the ICAC Commander or designee may establish alternate procedures for modification of the Grant Plan.

10.3Governing Law; Venue. The formation, interpretation, and performance of this Agreement shall be governed by the laws of the State of California, without regard to its conflict of laws principles. Venue for all litigation relative to the formation, interpretation, and performance of this Agreement shall be in San Diego.

10.4SUBRECIPIENT to Pay All Taxes. SUBRECIPIENT shall pay to the appropriate governmental authority, as and when due, any and all taxes, fees, assessments, or other governmental charges, including Item Title: 10.15
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7 possessory interest taxes and California sales and use taxes, levied upon or in connection with this Agreement, the Grant Plan, the Grant Funds or any of the activities contemplated by this Agreement.

10.5Headings. All article and section headings and captions contained in this Agreement are for reference only and shall not be considered in construing this Agreement.

10.6Entire Agreement. This Agreement sets forth the entire Agreement between the Parties and supersedes all other oral or written provisions. The following Appendices are attached to and are a part of this Agreement:
•Appendix A, SUBRECIPIENT Award Letter
•Appendix B, Grant Assurances
•Appendix C, ICAC Scope of Work

10.7Certified Resolution of Signatory Authority. Upon request of San Diego, SUBRECIPIENT shall deliver to CITY a copy of the corporate resolution(s) authorizing the execution, delivery, and performance of this Agreement, certified as true, accurate, and complete by the appropriate authorized representative of SUBRECIPIENT.

10.8Severability. Should the application of any provision of this Agreement to any particular facts or circumstances be found by a court of competent jurisdiction to be invalid or unenforceable, then (a) the validity of other provisions of this Agreement shall not be affected or impaired thereby, and (b) such provision shall be enforced to the maximum extent possible so as to effect the intent of the Parties and shall be reformed without further action by the Parties to the extent necessary to make such provision valid and enforceable.

10.9Successors; No Third-Party Beneficiaries. Subject to the terms of Article 8, the terms of this Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their successors and assigns. Nothing in this Agreement, whether express or implied, shall be construed to give any person or entity (other than the Parties hereto and their respective successors and assigns and, in the case of Article 6, the Indemnified Parties) any legal or equitable right, remedy or claim under or in respect of this Agreement or any covenants, conditions, or provisions contained herein.

10.10Survival of Terms. The obligations of SUBRECIPIENT and the terms of the following provisions of this Agreement shall survive and continue following expiration or termination of this Agreement: Sections 4.3 and 4.4, Article 6, this Article 10, and the Grant Assurances of Appendix B.

10.11Further Assurances. From and after the date of this Agreement, SUBRECIPIENT agrees to do such things, perform such acts, and make, execute, acknowledge and deliver such documents as may be reasonably necessary or proper and usual to complete the transactions contemplated by this Agreement and to carry out the purpose of this Agreement in accordance with this Agreement.

10.12Disclosure of Subawards and Executive Compensation. Pursuant to the Federal Funding Accountability and Transparency Act (FFATA) (P.L. 109-282) as amended by Section 6202(a) of the Government Funding Transparency Act of 2008 (P.L. 110-252), full disclosure to the public of entities or organizations receiving federal funds is now required. As defined by the Office of Management and Budget (OMB), all new Federal awards of $25,000 or more as of October 1, 2010, are subject to FFATA reporting requirements. The Transparency Act definition of “Federal awards” includes not only prime awards for grantees, cooperators, and contractors, but also awards to sub-recipients. If applicable, Item Title: 10.15
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7 SUBRECIPIENT must provide the following information on SUBRECIPIENT letterhead within 30 days of receipt of this Agreement.

1. Subawards greater than $25,000:
a) Name of entity receiving award;
b) Amount of award;
c) Funding agency;
d) The Catalog of Federal Domestic Assistance program number; e) Award title (descriptive of the purpose of the funding action); f) Location of the entity and primary location of performance including city, state, and congressional district;
g) Dun & Bradstreet (D&B) DUNS Number of the entity, and its parent if applicable; and, h) Total compensation and names of top five executives (same thresholds as for prime recipients).

2. The total compensation and names of the top five executives if:
a) 80% or more of annual gross revenues are from Federal awards (contracts, sub-contracts and Federal financial assistance), and $25,000,000 or more in annual gross revenues from Federal awards; and,
b) Compensation information is not already available through reporting to the Securities and Exchange Commission.

10.13. No Employer/Employee Relationship. The ICAC Task Force does not directly or indirectly employ personnel assigned to the task force. The ICAC Task Force is established for the coordination of applicable investigations and does not establish employer/employee relationships with the personnel assigned to the ICAC Task Force from any participating agency.

ARTICLE 11

INSURANCE

11.1Types and Amounts of Coverage. Without limiting SUBRECIPIENT’s liability pursuant to Article 6 of this Agreement, SUBRECIPIENT shall maintain in force, during the full term of the Agreement, insurance in the following amounts and coverages:
(a) Workers’ Compensation, in statutory amounts, with Employers’ Liability Limits not less than $1,000,000 each accident, injury, or illness; and
(b) Commercial General Liability Insurance with limits not less than $1,000,000 each occurrence Combined Single Limit for Bodily Injury and Property Damage, including Contractual Liability, Personal Injury, Products, and Completed Operations; and (c) Commercial Automobile Liability Insurance with limits not less than $1,000,000 each occurrence Combined Single Limit for Bodily Injury and Property Damage, including Owned, Non-Owned, and Hired auto coverage, as applicable.

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7 11.2Additional Requirements for General and Automobile Coverage. Commercial General Liability and Commercial Automobile Liability Insurance policies must be endorsed to provide:
(a) Name as Additional Insured the CITY, its Officers, Agents, and Employees. (b) That such policies are primary insurance to any other insurance available to the Additional Insureds, with respect to any claims arising out of this Agreement, and that insurance applies separately to each insured against whom claim is made or suit is brought.

11.3Additional Requirements Regarding Workers' Compensation. Regarding Workers’ Compensation, SUBRECIPIENT hereby agrees to waive subrogation which any insurer of SUBRECIPIENT may acquire from SUBRECIPIENT by virtue of the payment of any loss.

SUBRECIPIENT agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the CITY for all work performed by the SUBRECIPIENT, its employees, agents, and subcontractors.

11.4Additional Requirements for All Policies. All policies shall provide thirty days’ advance written notice to the CITY of reduction or nonrenewal of coverages or cancellation of coverages for any reason.

Notices shall be sent to the CITY address in Article 9, Notices and Other Communications.

11.5Required Post-Expiration Coverage. Should any of the required insurance be provided under a claims-made form, SUBRECIPIENT shall maintain such coverage continuously throughout the term of this Agreement and, without lapse, for a period of three years beyond the expiration of this Agreement, to the effect that, should occurrences during the Agreement term give rise to claims made after expiration of the Agreement, such claims shall be covered by such claims-made policies.

11.6General Annual Aggregate Limit/Inclusion of Claims Investigation or Legal Defense Costs.

Should any of the required insurance be provided under a form of coverage that includes a general annual aggregate limit or provides that claims investigation or legal defense costs be included in such general annual aggregate limit, such general annual aggregate limit shall be double the occurrence or claims limits specified above.

11.7Lapse in Insurance. Should any required insurance lapse during the term of this Agreement, requests for reimbursement originating after such lapse may not be processed, in the CITY's sole discretion, until the CITY receives satisfactory evidence of reinstated coverage as required by this Agreement, effective as of the lapse date. If insurance is not reinstated, the CITY may, at its sole option, terminate this Agreement effective on the date of such lapse of insurance.

11.8Evidence of Insurance. Before commencing any operations or expending any Grant Funds under this Agreement, SUBRECIPIENT shall furnish to CITY certificates of insurance and additional insured policy endorsements with insurers with ratings comparable to A-, VIII or higher, that are authorized to do business in the State of California, and that are satisfactory to CITY, in form evidencing all coverages set forth above. Failure to maintain insurance shall constitute a material breach of this Agreement.

11.9Effect of Approval. Approval of the insurance by CITY shall not relieve or decrease the liability of SUBRECIPIENT hereunder.

11.10Insurance for Subcontractors and Evidence of this Insurance. If a subcontractor or subgrantee will be used to complete any portion of this Agreement, SUBRECIPIENT shall ensure that the Item Title: 10.15
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7 subcontractor or subgrantee shall provide all necessary insurance and shall name the CITY, its officers, agents, and employees and the SUBRECIPIENT as additional insureds.

11.11Authority to Self-Insure. Nothing in this Agreement shall preclude SUBRECIPIENT from self- insuring all or part of the insurance requirement in this Article. However, SUBRECIPIENT shall provide proof of self-insurance, in a form acceptable to CITY, in the amounts of each line of self-insurance.

ARTICLE 12

COMPLIANCE

12.1Nondiscrimination. In the performance of this Agreement, SUBRECIPIENT agrees not to discriminate against any employee, CITY employee working with SUBRECIPIENT or any subgrantee of SUBRECIPIENT, applicant for employment with SUBRECIPIENT or subgrantee of SUBRECIPIENT, or against any person seeking accommodations, advantages, facilities, privileges, services, or membership in all business, social, or other establishments or organizations, on the basis of the fact or perception of a person’s race, color, creed, religion, national origin, ancestry, age, height, weight, sex, sexual orientation, gender identity, domestic partner status, marital status, disability or Acquired Immune Deficiency Syndrome or HIV status (AIDS/HIV status), or association with members of such protected classes, or in retaliation for opposition to discrimination against such classes.

12.2Conflict of Interest. Through its execution of this Agreement, SUBRECIPIENT acknowledges that it is familiar with the provisions of Section 87100 et seq. and Section 1090 et seq. of the Government Code of the State of California and certifies that it does not know of any facts which constitute a violation of said provisions and agrees that it will immediately notify CITY if it becomes aware of any such fact during the term of this Agreement. SUBRECIPIENT agrees that it will promptly notify CITY in writing of all violations of State or Federal criminal law involving fraud, bribery, or gratuities affecting or involving the use of Grant Funds.

12.3Compliance with ADA. SUBRECIPIENT acknowledges that, pursuant to the ADA, programs, services, and other activities provided by a public entity to the public, whether directly or through a grantee or contractor, must be accessible to the disabled public. SUBRECIPIENT shall not discriminate against any person protected under the ADA in connection with all or any portion of the Grant Plan and shall comply at all times with the provisions of the ADA.

ARTICLE 13

AUTHORITY

13.1 Authority to Execute Agreement. By signing below, the SUBRECIPIENT certifies that they have the proper authority to enter into this Agreement and have obtained all prerequisite written authority required by the SUBRECIPIENT governing body, if applicable.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the date first specified herein.

CITY OF SAN DIEGO: SUBRECIPIENT:

By: By:
______________________________________ _______________________________________ Chief of Police Armando G. Villa, City Manager
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7 City of San Diego City of Menifee
Federal Tax ID #: 94-3439857
Approved as to Form: Approved as to Form and Legality:

Mara W. Elliott Jeffrey T. Melching
City Attorney City Attorney
By: ___________________________________ ______________________________________ City Attorney City Attorney Item Title: 10.15
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7 Appendix A — SUBRECIPIENT Award Letter
June 10, 2024
Chis Karrer, Chief of Police
Menifee Police Department
29714 Haun Road, Unit A
Menifee, CA 92586
SUBJECT:NOTIFICATION OF SUBRECIPIENT SUBAWARD APPROVAL
Internet Crimes Against Children Task Force Continuation Grant Grant 15PJDP-21-GK-03811-MECP and the California Governor’s Office of Emergency Services (Cal OES) ICAC Grant IC23 14 7919
Once your completed MOU and Grant Assurances are signed and received in our office, you may request reimbursement of eligible grant expenditures.

Following acceptance of this award, you must sign and return the Memorandum of Understanding as well as the Grant Assurances. Your agency must coordinate with the SDPD ICAC Commander to prepare and submit monthly reports for the duration of the grant period or until your agency completes all activities and the grant is formally closed. Failure to submit required reports could result in grant reduction, suspension, or termination.

This grant is subject to all provisions of 2 CFR Part 200. Any funds received in excess of current needs, approved amounts, or those funds owed as a result of a final review or audit, must be refunded to the City of San Diego within 30 days upon receipt of an invoice from the City of San Diego.

Your dated signature is required on this letter. Please sign and return the original to Jose Luis Romo, San Diego Police Department Grants Coordinator at 1401 Broadway, San Diego, CA 92101 within 20 days of receipt and keep a copy for your files.

Sincerely,
_____________________________________ __________________________ Chief of Police Date
City of San Diego

____________________________________ __________________________ Armando G. Villa, City Manager Date
City of Menifee
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ICAC Program Grant Assurances B-1 Initials _______
Appendix B-- Grant Assurances
Name of Jurisdiction: Menifee Police Department
Name of Authorized Agent: Armando G. Villa, City Manager Address: 29714 Haun Road, Unit A City: Menifee State: California Zip Code: 92586 Telephone Number: 951-723-1500
E-Mail Address: [email protected]; [email protected] Standard Assurances
For Federal and California Grant Programs
As the duly authorized representative of the Applicant, I hereby certify that the Applicant has the legal authority to apply for Federal and California assistance and the institutional, managerial, and financial capability (including funds sufficient to pay any non-Federal share of project cost) to ensure proper planning, management, and completion of the project described in this application, within prescribed timelines.

I further acknowledge that the Applicant is responsible for reviewing and adhering to all requirements within the:
a) Applicable Federal Regulations (see below);
b) Federal Program Notice of Funding Opportunity (NOFO); c) Federal Grant Program Guidelines, including the DOJ Grants Financial Guide, as currently stated and as may be amended from time to time; and
d) Cal OES Subrecipient Handbook, as currently stated and as may be amended from time to time.

Federal Regulations
Government cost principles, uniform administrative requirements, and audit requirements for federal grant programs are housed in Title 2, Part 200 of the Code of Federal Regulations (CFR) and in updates issued by the Office of Management and Budget (OMB) on http://www.whitehouse.gov/omb/.

Significant federal grant award requirements (some of which appear in the documents listed above) are called out below. The Applicant hereby agrees to comply with the following:

1. Proof of Authority
The Applicant will obtain written authorization from the city council, governing board, or authorized body in support of this project. This written authorization must specify that the Applicant and the city council, governing board, or authorized body agree:
a. That any liability arising out of the performance of this agreement shall be the responsibility of the Applicant and the city council, governing board, or authorized body. b. That Grant Funds shall not be used to supplant expenditures controlled by the city council, governing board, or authorized body.
c. That the official executing this agreement is, in fact, authorized to do so.

This Proof of Authority must be maintained on file and readily available upon demand.

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ICAC Program Grant Assurances B-2 Initials _______

2. Period of Performance
The Applicant will initiate work after approval of the award and complete all work within the period of performance specified in the grant.

3. Lobbying and Political Activities
As required by Section 1352, Title 31 of the U. S. Code (U.S.C.), for persons entering into a contract, grant, loan, or cooperative agreement from an agency or requests or receives from an agency a commitment providing for the United States to insure or guarantee a loan, the Applicant certifies that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying”, in accordance with its instructions. c. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

The Applicant will also comply with provisions of the Hatch Act (5 U.S.C. §§1501-1508 and §§7324- 7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

Finally, the Applicant agrees that Federal funds will not be used, directly or indirectly, to support the enactment, repeal, modification, or adoption of any law, regulation, or policy without the express written approval from the Federal awarding agency.

4. Debarment and Suspension
As required by Executive Orders (EO) 12549 and 12689, and 2 CFR §200.212 and codified in 2 CFR Part 180, Debarment and Suspension, the Applicant will provide protection against waste, fraud, and abuse by debarring or suspending those persons deemed irresponsible in their dealings with the Federal government. The Applicant certifies that it and its principals:

a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; b. Have not within a three-year period preceding this application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; Item Title: 10.15
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ICAC Program Grant Assurances B-3 Initials _______
c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (2)(b) of this certification; and d. Have not within a three-year period preceding this application had one or more public transactions (Federal, State, or local) terminated for cause or default. Where the Applicant is unable to certify to any of the statements in this certification, he or she shall attach an explanation to this application.

5. Non-Discrimination and Equal Employment Opportunity
The Applicant will comply with all Federal statutes relating to non-discrimination. These include, but are not limited to, the following:
a. Title VI of the Civil Rights Act of 1964 (Public Law (P.L.) 88-352 and 42 U.S.C. §2000d et. seq.) which prohibits discrimination on the basis of race, color, or national origin and requires that recipients of federal financial assistance take reasonable steps to provide meaningful access to persons with limited English proficiency (LEP) to their programs and services;
b. Title IX of the Education Amendments of 1972, as amended (20 U.S.C. §§1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; c. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. §794), which prohibits discrimination on the basis of handicaps;
d. Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to ADA (42 U.S.C. 12101, et seq.);
e. Age Discrimination Act of 1975, as amended (42 U.S.C. §§6101-6107), which prohibits discrimination on the basis of age;
f. Drug Abuse Office and Treatment Act of 1972) (P.L. 92-255), as amended (P.L. 96-181), relating to nondiscrimination on the basis of treatment or recovery from drug abuse; g. Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L. 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism;
h. Sections 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. §§290 dd-3 and 290 ee 3), as amended, relating to confidentiality of alcohol and drug abuse patient records;
i. Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §3601 et seq.), as amended, relating to nondiscrimination in the sale, rental, or financing of housing; j. EO 11246, which prohibits federal contractors and federally assisted construction contractors and subcontractors, who do over $10,000 in Government business in one year from discriminating in employment decisions on the basis of race, color, religion, sex, or national origin;
k. EO 11375, which bans discrimination on the basis of sex in hiring and employment in both the United States federal workforce and on the part of government contractors; l. California Public Contract Code §10295.3, which addresses discrimination based on domestic partnerships;
m. Any other nondiscrimination provisions in the specific statute(s) under which application for Federal assistance is being made; and
n. The requirements of any other nondiscrimination statute(s) which may apply to the application.

6. Drug-Free Workplace
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ICAC Program Grant Assurances B-4 Initials _______
As required by the Drug-Free Workplace Act of 1988 (41 U.S.C. §701 et seq.), the Applicant certifies that it will or will continue to provide a drug-free workplace and a drug-free awareness program as outlined in the Act.

7.Environmental Standards
The Applicant will comply with State and Federal environmental standards which may be prescribed pursuant to the following, as applicable:
a. Federal Clean Water Act (CWA) (33 U.S.C. §1251 et seq.), which establishes the basic structure for regulating discharges of pollutants into the waters of the United States and regulating quality standards for surface waters;
b. Institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L. 91-190) and Executive Orders (EO) on the Environmental Justice Act (EO 12898) and Environmental Quality (EO 11514); c. Notification of Environmental Protection Agency (EPA) violating facilities pursuant to EO 11738;
d. Protection of wetlands pursuant to EO 11990;
e. Evaluation of flood hazards in floodplains in accordance with EO 11988; f. Assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. §1451 et seq.); g. Conformity of Federal actions to State (Clean Air) Implementation Plans under Section 176(c) of the Clean Air Act of 1955, as amended (42 U.S.C. §7401 et seq.); h. Protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended (P.L. 93-523);
i. Protection of endangered species under the Endangered Species Act of 1973, as amended (P.L. 93-205);
j. Wild and Scenic Rivers Act of 1968 (16 U.S.C. §1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

Finally, the Applicant shall not be: 1) in violation of any order or resolution promulgated by an air pollution district; or 2) finally determined to be in violation of federal law relating to air or water pollution.

8. Audits
For subrecipients expending $750,000 or more in Federal grant funds annually, the Applicant will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act Amendments of 1996 and Title 2 of the Code of Federal Regulations, Part 200, Subpart F Audit Requirements.

9. Access to Records
In accordance with 2 CFR §200.336, the Applicant will give the awarding agency, the Comptroller General of the United States, through any authorized representative, access to and he right to examine all records, books, papers, or documents related to the award. The Applicant will require any subrecipients, contractors, successors, transferees, and assignees to acknowledge and agree to comply with this provision.

10. Conflict of Interest
The Applicant will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest or personal gain.

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ICAC Program Grant Assurances B-5 Initials _______

11. Financial Management
False Claims for Payment
The Applicant will comply with 31 U.S.C §3729 which sets forth that no subgrantee, recipient, or subrecipient shall submit a false claim for payment, reimbursement, or advance.

12. Reporting - Accountability
The Applicant agrees to comply with applicable provisions of the Federal Funding Accountability and Transparency Act (FFATA) (2 CFR Chapter 1, Part 170), specifically (a) the reporting of subawards obligating $25,000 or more in federal funds and (b) executive compensation data for first-tier subawards. This includes the provisions of FFATA, which includes requirements on executive compensation, and also requirements implementing the Act for the non-Federal entity at 2 CFR part 25 Financial Assistance Use of Universal Identifier and Central Contractor Registration and 2 CFR part 170 Reporting Subaward and Executive Compensation Information.

The Applicant also must comply with statutory requirements for whistleblower protections at 10 U.S.C. §2409, 41 U.S.C. §4712, and 10 U.S.C. §2324, 41 U.S.C. §4304 and §4310 and 31 U.S.C. §6101 et seq.

13. Human Trafficking
The Applicant will comply with the requirements of Section 106(g) of the Trafficking Victims Protection Act (TVPA) of 2000, as amended (22 U.S.C. §7104) which prohibits grant award recipients or a subrecipient from (1) Engaging in severe forms of trafficking in persons during the period of time that the award is in effect; (2) Procuring a commercial sex act during the period of time that the award is in effect; or (3) Using forced labor in the performance of the award or subawards under the award.

14. Labor Standards
The Applicant will comply with the following federal labor standards:

a. Comply with the provisions of the Davis-Bacon Act (40 U.S.C. §§276a to 276a-7), as applicable, and the Copeland Act (40 U.S.C. §3145 and 18 U.S.C. §874) and the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-333), regarding labor standards for federally-assisted construction contracts or subcontracts. b. Comply with the Federal Fair Labor Standards Act (29 U.S.C. §201 et al.) as they apply to employees of institutes of higher learning (IHE), hospitals, and other non-profit organizations.

15. Property-Related
If applicable to the type of project funded by this Federal award, the Applicant will:

a. Comply with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally-assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchase. b. Comply with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires subrecipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more.

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ICAC Program Grant Assurances B-6 Initials _______
c. Assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. §470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. §469a-1 et seq.).
d. Comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. §4831 and 24 CFR Part 35) which prohibits the use of lead-based paint in construction or rehabilitation of residence structures.

16. Certifications Applicable Only to Federally Funded Construction Projects For all construction projects, the Applicant will:
a. Not dispose of, modify the use of, or change the terms of the real property title or other interest in the site and facilities without permission and instructions from the awarding agency. Will record the Federal awarding agency directives and will include a covenant in the title of real property acquired in whole or in part with Federal assistance funds to assure nondiscrimination during the useful life of the project. b. Comply with the requirements of the awarding agency with regards to the drafting, review, and approval of construction plans and specifications. c. Provide and maintain competent and adequate engineering supervision at the construction site to ensure that the completed work conforms with the approved plans and specifications and will furnish progressive reports and such other information as may be required by the assistance awarding agency or State.

17. Freedom of Information Act
The Applicant acknowledges that all information submitted in the course of applying for funding under this program or provided in the course of an entity’s grant management activities which is under Federal control is subject to the Freedom of Information Act (FOIA), 5 U.S.C. §552. The Applicant should also consult its own State and local laws and regulations regarding the release of information, which should be considered when reporting sensitive matters in the grant application, needs assessment and strategic planning process.

DEPARTMENT OF JUSTICE - BUREAU OF JUSTICE STATISTICS –

PROGRAM SPECIFIC ASSURANCES / CERTIFICATIONS

18. Hotel and Motel Fire Safety Act of 1990
All subrecipients must ensure that all conference, meeting, convention, or training space funded in whole or in part with Federal funds complies with Section 6 of the fire prevention and control guidelines of the Federal Fire Prevention and Control Act of 1974, 15 U.S.C. §2225a.

19. Terrorist Financing E.O. 13224
All subrecipients must comply with U. S. Executive Order 13224 and U. S. law that prohibit transactions with, and the provisions of resources and support to, individuals and organizations associated with terrorism. It is the legal responsibility of subrecipients to ensure compliance with the E.O. and laws.

20. USA Patriot Act of 2001
All subrecipients must comply with the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (USA Patriot Act), which amends 18 U.S.C. §§175-175c.

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ICAC Program Grant Assurances B-7 Initials _______
State Regulations

1.Subrecipient acknowledges awareness of, and the responsibility to comply with all state and federal civil rights laws. The Subrecipient certifies it will not discriminate in the delivery of services or benefits based on any protected class and will comply with all requirements of the Cal OES Subrecipient Handbook section 2.020.

2.Subrecipient certifies it will promote Equal Employment Opportunity by prohibiting discrimination or harassment in employment because of any status protected by state or federal law and will comply with all requirements of the Cal OES Subrecipient Handbook section 2.025.

3.The Subrecipient certifies it will comply with the Drug-Free Workplace Act of 1990 and all other requirements of the Cal OES Subrecipient Handbook section 2.030.

4.The Subrecipient certifies that, if the activities of the Grant Subaward meet the definition of a “project” pursuant to the CEQA, Section 20165, it will comply with all requirements of CEQA and of the Cal OES Subrecipient Handbook section 2.035.

5.The Subrecipient certifies it will not use Grant Subaward funds, property, or funded positions for any lobbying activities and will comply with all requirements of the Cal OES Subrecipient Handbook sections 2.040 and 4.105.

IMPORTANT
The purpose of the assurance is to obtain federal financial assistance, including any and all federal grants, loans, reimbursement, contracts, etc. The Applicant recognizes and agrees that federal financial assistance will be extended based on the representations made in this assurance. This assurance is binding on the Applicant, its successors, transferees, assignees, etc. Failure to comply with any of the above assurances may result in suspension, termination, or reduction of Grant Funds.

All appropriate documentation, as outlined above, must be maintained on file by the Applicant and available for USDOJ or public scrutiny upon request. Failure to comply with these requirements may result in suspension of payments under the grant or termination of the grant or both and the subrecipient may be ineligible for award of any future grants if the USDOJ determines that any of the following has occurred: (1) the recipient has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.

All of the language contained within this document must be included in the award documents for all subawards at all tiers, including contracts under grants and cooperative agreements and subcontracts.

The undersigned represents that he/she is authorized by APPLICANT to enter into this agreement for and on behalf of APPLICANT.

Signature of Authorized Agent: (Armando G. Villa, City Manager) Printed Name of Authorized Agent:

Title: Date:

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APPENDIX C

INTERNET CRIMES AGAINST CHILDREN

SCOPE OF WORK
The San Diego Police Department ("SDPD") is the recipient of a grant from the United States Department of Justice ("USDOJ"), the Office of Juvenile Justice and Delinquency Prevention ("OJJDP"), and the California Governor’s Office of Emergency Services (Cal OES) to enforce laws regarding Internet Crimes Against Children (ICAC). The SDPD utilizes this grant to administer and operate the ICAC Task Force.

A. OVERVIEW / MISSION STATEMENT

1. OJJDP has created the ICAC Task Force Program which is a national network of state and local law enforcement cybercrime units. The national ICAC program assists state and local law enforcement agencies to develop an effective response to cyber enticement and child pornography cases. This help encompasses investigative and forensic components, training and technical assistance, victim services, and community education. Due in large part to the technological aspects of these cases, the ICAC Task Force Program promotes a multi-jurisdictional, multi- agency team approach to investigating and prosecuting ICAC cases.

2. The mission of the San Diego ICAC Task Force ("ICAC Task Force") therefore is to:

A. Properly investigate and prosecute those who sexually exploit children through the use of the internet and/or computers; and
B. Provide training and equipment to those involved in investigating and prosecuting ICAC; and C. Provide community education regarding the prevention of ICAC-related crimes.

B. PURPOSE
The purpose of this document is to formalize the working relationship between the MENIFEE POLICE DEPARTMENT (SUBRECIPIENT) the SDPD, and the ICAC Task Force, as well as to delineate the responsibilities and expectations of the Parties. By signing this MOU, the SUBRECIPIENT agrees to join the ICAC Task Force by placing an Investigator with the ICAC Task Force. This Investigator will be placed at the ICAC Task Force for the primary purpose of vigorously and properly investigating Internet Crimes Against Children. By joining the ICAC Task Force, the SUBRECIPIENT will benefit from grant resources, joint operations, and extensive training opportunities.

By entering into this MOU, the ICAC Task Force will benefit from investigative support from the SUBRECIPIENT.

C. INVESTIGATIONS
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All ICAC investigations will be conducted only by sworn law enforcement investigators and in a spirit of cooperation with other ICAC Task Force members. Investigations will follow guidelines established by each agency’s respective policy manual or guidelines. However, ICAC investigations shall also be governed by the national ICAC Program’s Operational and Investigative Standards, attached as Appendix E, to which the SUBRECIPIENT agrees to be bound. Violation of the ICAC Operational and Investigative Standards is cause for cancellation of this MOU. This MOU is not intended to infringe on the ongoing investigations of any other agency. It is agreed that unilateral acts on the part of employees involved in ICAC Task Force investigations are not in the best interest of the ICAC Task Force.

D.SUBRECIPIENT agrees to the following:

1. Only SUBRECIPIENT personnel will conduct undercover ICAC investigations. Each investigator involved with undercover operations must receive ICAC training before initiating proactive investigations and shall submit reports of all undercover activity to the ICAC Task Force for deconfliction.

2. Conduct reactive investigations where subjects are associated within the SUBRECIPIENT jurisdiction, including investigations of child pornography, CYBERTIP referrals from NCMEC, Internet Service Providers, and law enforcement referrals, and other ICAC-related investigations.

Additional case initiations may develop from other sources, including subject interviews, documented public sources, direct observations of suspicious behavior, and public complaints.

3. Record and document all undercover online activity. Any deviations from this policy due to unusual circumstances shall be documented in the relevant case file and reviewed by the ICAC Commander.

4. Provide the ICAC Task Force access to all ICAC investigative files including, without limitation, computer records, to ensure compliance with all national ICAC standards.

5. Locate its ICAC Task Force investigators in a secured space provided by the SUBRECIPIENT with controlled access to all equipment, software, and investigative files. At a minimum, information should be maintained in locked cabinets and under the control of the SUBRECIPIENT Task Force personnel, with restricted access to authorized personnel only.

6. Conduct education and prevention programs to foster awareness and provide practical, relevant guidance to children, parents, educators, librarians, the business and law enforcement communities, and other individuals concerned about Internet child safety issues. Presenters shall not discuss ongoing investigative techniques and undercover operations utilized by the ICAC Task Force.

E. SUPERVISION
The SUBRECIPIENT will be responsible for the day-to-day operational supervision, administrative control, and personal and professional conduct of its deputies and agents assigned to the ICAC Task Force. ICAC investigations are a cooperative effort and investigative decisions will be a joint process guided by ICAC standards.

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F. JURISDICTION

1. The SUBRECIPIENT will focus its task force activities in the areas in which it has jurisdiction.

The SUBRECIPIENT will participate in task force activities commensurate with its level of membership in the task force, and consistent with statutes governing mutual aid.

2. Nothing in this agreement shall otherwise limit or enhance the jurisdiction and powers normally possessed by an employee as a member of the employee’s respective agency.

G. EVIDENCE
Seized evidence and any other related forfeiture will be handled in a manner consistent with the seizing law enforcement agency’s policies.

H. MAXIMUM ALLOCATION AMOUNTS OF PERSONNEL, EQUIPMENT AND

SUPPLIES FUNDING SUBJECT TO REIMBURSEMENT
Reimbursement and/or partial reimbursement under this MOU is limited to pre-approved, travel/training, and equipment/supplies. The maximum allocation amounts for equipment/supplies set forth below reflect the maximum amount subject to reimbursement on an annual basis, tied to the performance period of the Grant Funds from which reimbursement is sought.

a. EQUIPMENT/SUPPLIES
SDPD will allocate an annual maximum of $5,000.00 in ICAC program grant funds to reimburse SUBRECIPIENT for the costs of procuring equipment and/or supplies necessary for SUBRECIPIENT to perform the functions as set forth this Agreement.

H. REIMBURSEMENT PROCESS

1. When seeking reimbursement for ICAC Task Force-related training, travel, and/or ICAC Task Force-related equipment whose purchase was authorized by the ICAC Commander, SUBRECIPIENT shall submit a detailed statement of expenses in a prescribed format to the ICAC Program Coordinator within 30 days following the end of each quarter.

2. Any requests for reimbursement submitted more than 30 days after the end of each quarter will not be accepted and reimbursement will not be owed.

J. REPORTING REQUIREMENTS
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1. Using a form provided by the ICAC Task Force, the MENIFEE POLICE DEPARTMENT shall submit monthly statistics to the ICAC Commander on all ICAC investigations or other investigative work about the sexual exploitation of children via the Internet. These statistics shall be submitted in the appropriate OJJDP format by the 10th day of each month and shall include data on all related investigations opened or closed during the month, as well as forensic examinations, technical/investigative assistance provided to other agencies, subpoenas, and court orders issued, training hours attended and taught, and community outreach provided.

2. In addition, a breakdown of basic case data shall be included for each sexual exploitation of a minor (child pornography) case, and/or criminal solicitation of a minor (enticement/traveler) case investigated by the MENIFEE POLICE DEPARTMENT. The ICAC Task Force will then be responsible for all required reporting to OJJDP.

K. TRAINING

1. The MENIFEE POLICE DEPARTMENT shall make investigators designated as ICAC Task Force members available for specialized training provided through the national ICAC program and other recommended training programs. The ICAC Commander will review and preapprove training requests, provided that funding is available and the request is appropriate.

2. The MENIFEE POLICE DEPARTMENT shall invoice SDPD quarterly for approved training expenses. These expenses include travel, lodging, per diem, and incidental expenses in an amount not to exceed the current U. S. General Service Administration Domestic Per Diem Rates.

L. CONFIDENTIALITY
Any confidential information about investigations of Internet Crimes Against Children will be held in the strictest confidence and will only be shared with participating ICAC Task Force members or other law enforcement agencies where necessary, or as otherwise permitted by federal and/or state law.

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CITY OF MENIFEE
SUBJECT: Agreement Amendment with Kimley-Horn and Associates, Inc. for the Master Circulation Plan Study in the Economic Development Corridor – Northern Gateway
MEETING DATE: February 19, 2025
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
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RECOMMENDED ACTION

1. Approve and authorize the City Manager to execute Amendment No. 2 to the Professional Services Agreement with Kimley-Horn and Associates, Inc. to extend the term of services to prepare a Master Circulation Plan Study within the Economic Development Corridor – Northern Gateway through June 30, 2025.

DISCUSSION
The City of Menifee is currently processing multiple land use development applications for the proposed industrial development within the Economic Development Corridor – Northern Gateway (“EDC-NG”), west of the I-215. On March 27, 2024, the City of Menifee and the City of Perris entered into a Professional Services Agreement (“Agreement”) to prepare a Master Circulation Plan Study (“Study”). This Study aims to design a roadway network that meets the circulation needs of residents, employees, and visitors to the City of Menifee (General Plan Goal C-1), and to promote development patterns that unify neighborhoods and work with neighboring jurisdictions to provide compatible roadway linkages at the City limits (General Plan Policy C-1.4) The traffic study will facilitate the development of a circulation plan for the entirety of the EDC- NG, covering approximately 401 acres. Upon full buildout, the site has a potential to accommodate roughly 7.64 million square feet of industrial development. Additionally, there is also a potential truck corridor located north of the Southern California Edison (SCE) transmission corridor, bordering the SCE right-of-way between Wheat Street and Barnett Road.

The completion of the Study by Kimley-Horn has required additional time; to accommodate this, Amendment No. 1 was approved administratively on January 2, 2025, extending the term of services through February 28, 2025. A draft of the Study is under staff review and additional time beyond the current extended term is needed to finalize the components of the Study. The Item Title: 10.16
Agreement

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City of Menifee Staff Report
Master Circulation Plan Study Amendment No. 2
February 19, 2025

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Menifee City Council
February 19, 2025