Moreno Valley City Council
May 21, 2024

DEBT MANAGEMENT POLICY
employment within the City; and, that such enhancement or employment gain can be measured in a manner which permits the City to evaluate the risks and rewards of acting as the conduit issuer. Significant public benefit will be based on the City’s evaluation of the availability of public access to the widest possible number of residents of the City, depending on the context.

2. Acceleration or addition of public infrastructure in excess of that required by law or the City’s land use polices could also produce significant public benefit. Such benefits arise either from the installation or completion of public infrastructure assets prior to the time they might otherwise be installed or from the additional assets which might be realized as a result of being able to finance the project more efficiently.

3. Finally, the finding of significant public benefit can arise from the installation or acquisition of a community asset which produces additional employment opportunities or which produces environmental benefits either as a direct or secondary result of its completion. In circumstances where the financed improvements generate regional benefits, the finding of significant public benefit will be easier than in those where the financed facilities serve only a small number of residents. The process for approval of a conduit financing will generally require a two-step process. First, the Chief Financial Officer/City Treasurer and the City Manager will seek City Council direction and will establish the ground rules for evaluating the request. Requests for conduit financing which do not originate within the Financial & Management Services Department shall be forwarded to the Chief Financial Officer/City Treasurer or City Manager for transmittal to the City’s Debt Management Team, which is described in Paragraph VI-A-2. Upon an evaluation by the Chief Financial Officer/City Treasurer and the City Manager, the matter will be referred back to the City Council for approval of the financing documents.

4. The City will require a financial pro forma and business plan for any project to be financed with the proceeds of a conduit issue. The City will impose a fee for acting as a conduit issuer of securities as shown in Appendix B hereto. The City will require an initial deposit increase to $40,000 to reflect current 2023 costs for any entity seeking financing through the City as a conduit, which will be held by the City, and which the City may require additional deposits to, from time to time. The City’s fees and costs will be charged against the initial or subsequent deposits, and any excess remaining at the time of issuance of the debt, or the abandonment of the project, whichever is applicable, will be refunded to the applicant.

C. Credit Quality of Conduit Debt

1. The City will consider conduit financing only for those applicants which are creditenhanced or expected so as to attain a rating of at least “A” from any one of the three major credit rating agencies. The City may consider a waiver of this requirement in special circumstances and upon the written recommendation of the City’s Chief Financial Officer/City Treasurer. In cases where the City elects to waive this requirement, it specifically reserves the right to require the sponsor of such a conduit financing to use a private placement of the securities and to impose a “sophisticated investor” requirement acceptable to the City. In this context the concept of a Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 175 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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“sophisticated investor” will be the standard imposed by federal securities law for private placements of corporate securities. In addition, the City will seek to limit the resale of the securities in one of the following ways: (1) the investor must agree to hold the securities to their respective maturity dates; or, (2) the investor must agree to secure a rating on the bonds of at least “A” before reselling them; or, (3) the investor must agree to resell the securities only (a) to another sophisticated investor who will also agree to sign a sophisticated investor letter, and (b) obtain the City’s approval for such a resale. Selection of an individual criterion depends on the facts and circumstances of the particular sale, but restrictions 1 and 3 above are most suitable where the credit characteristics of the individual issue are expected to remain static. Issues that are expected to improve over time in credit characteristics are more appropriate for the application of rule number 2.

V. Creditworthiness Objectives
A. Credit Ratings

1. The City of Moreno Valley seeks to maintain the highest possible credit ratings for all categories of short- and long-term direct debt that can be achieved without compromising delivery of basic City services and achievement of adopted City policy objectives. The City recognizes that there is a direct correlation between the credit rating it achieves and the cost of borrowing. Therefore, as a general rule, the City will seek to acquire and maintain an investment grade rating on all of its direct debt.

2. The City recognizes that external economic, natural, or other events may from time to time affect the creditworthiness of its debt. Nevertheless, the City is committed to ensuring that actions within its control are prudent and consistent with these Policies.

B. Financial Disclosure, Initial and Continuing

1. The City is committed to full and complete financial disclosure, and to cooperating fully with rating agencies, institutional and individual investors, City departments and agencies, other levels of government, and the general public to share clear, comprehensible, and accurate financial information. The City is committed to meeting secondary disclosure requirements as set forth in Securities and Exchange Commission Rule 15c2-12, and its amendments, on a timely and comprehensive basis. (See Section VIII– Continuing Disclosure for additional discussion.)

2. Official statements accompanying debt issues, Annual Comprehensive Financial Reports, and continuous disclosure statements will meet (at a minimum), the standards articulated by the Municipal Standards Rulemaking Board (MSRB), the Government Accounting Standards Board (GASB), the National Federation of Municipal Analysts, the Securities and Exchange Commission (SEC), and Generally Accepted Accounting Principles (GAAP). The Financial & Management Services Department is designated as the responsible party for ongoing disclosure to established national information repositories and for maintaining compliance with Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 176 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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disclosure standards promulgated by state and national regulatory bodies and for compliance with continuing disclosure requirements required by contractual arrangements necessary to comply with Rule 15c2-12.

C. Capital Planning: To enhance creditworthiness and prudent financial management, the City of Moreno Valley is committed to systematic capital planning, intergovernmental cooperation and coordination, and long-term financial planning. Evidence of this commitment to systematic capital planning will be demonstrated through adoption of an annual review of the City’s capital improvement budget and its ten-year capital improvement plan budget.

D. Debt Limits: The City will keep outstanding debt within the limits prescribed by State statute and at levels consistent with its creditworthiness objectives. In the case of debt serviced from the City’s General Fund, the City will observe a guideline of 7% of the amounts budgeted for expenditures and transfers out as the maximum level for General Fund resources committed to the repayment of debt.

VI. Debt Standards and Structure
A. Term of Debt: Debt will be structured for the shortest period consistent with a fair allocation of costs to current and future beneficiaries or users. The implication of this policy will generally require that debt be issued only for a time period that is consistent with the life span of the project for which the debt was issued.

B. Debt Structure

1. Debt will be structured to achieve the lowest possible net cost to the City given market conditions, the urgency of the capital project, and the nature and type of security provided. Moreover, to the extent possible, the City will design the repayment of its overall debt so as to recapture rapidly its credit capacity for future use. The City shall strive to repay at least 20 percent of the principal amount of its general fund supported debt within five years and at least 40 percent within ten years as these measures are used by the major national credit rating agencies to determine the creditworthiness of the City. In applying the 20% and 40% tests, the debt repayment amounts are non-cumulative, that is, the goal is to have all of the City’s general fund debt structured so as to achieve a reduction in principal of 20% at the five year mark and 40% at the ten year mark. Individual issues will be structured so that the new debt is retired using a level debt service.

2. Individual issues may be structured using either serial bonds or term bonds. In the case of issues structured with term bonds, the City will use a sinking fund to retire the term bonds. A sinking fund is the mechanism whereby money is accumulated on a regular basis in a separate account for the purpose of redeeming the term bonds when due. The sinking fund monies are typically applied to redeem bonds on an annual basis in amounts that would result in approximately level debt service requirements.

3. The City will not issue debt that commences principal payment beyond the fiscal year in which the financed asset is completed or is substantially available to the City.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 177 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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Capitalized interest may be used in the debt structure, but only to the extent necessary to accommodate the deferral of principal to the point of substantial availability to the City.

C. Amortization

1. The City will seek to structure debt with level principal and interest costs over the life of the debt. So-called "back-loading" of debt service will be considered only when natural disasters or extraordinary or unanticipated external factors make the short-term cost of the debt prohibitive, when the benefits derived from the debt issuance can clearly be demonstrated to be greater in the future than in the present, when such structuring is beneficial to the City's overall amortization schedule, or when such structuring will allow debt service to more closely match project revenues during the early years of the project's operation.

2. In the case of an issue structured with term bonds and a sinking fund, the City’s policy will be to retire the term bonds in substantially level fashion over each year of the life of the sinking fund unless the factors described above apply.

D. Variable Rate Debt: The City may choose to issue securities that pay a rate of interest that varies according to pre-determined formula or results from a periodic remarketing of the securities, consistent with state law and covenants of pre-existing bonds, and depending on market conditions. The City may elect to control its interest rate exposure on variable rate debt through the use of financial products designed to offset such risks, but only upon the expressed approval of the Chief Financial Officer/City Treasurer.

E. Subordinate Debt: The City shall issue subordinate lien debt only if it is financially beneficial to the City and is consistent with the City’s creditworthiness objectives as set forth in Paragraph IV-A, “Credit Ratings.” Generally, subordinated debt is that debt which has a lien position on an asset or revenue stream that is junior in position to another debt issues.

Examples could include leases that are junior in payment obligation to senior leases.

F. Non-Traditional Financial Products: The City will consider the use of non-traditional financial products on a case by case basis and consistent with state law and financial prudence.

Examples of such non-traditional products include: interest rate swaps, interest rate caps and collars, “synthetic” refunding transactions and float contracts. Use of non-traditional financial products will only be undertaken upon written recommendation of the Chief Financial Officer/City Treasurer and concurrence by the City Council.

G. Tax-Exempt vs. Taxable Bonds: The City generally seeks to issue debt at the lowest total cost.

Generally this objective is achieved through the issuance of tax-exempt debt which can be offered at lower interest rates since investors get the additional benefit of the tax break. The Internal Revenue has established guidelines which must be met for municipal bond issuances to qualify for the tax-exempt status. (For a more detailed discussion of this issue please see IRS Publication 4079 – Tax-Exempt Government Bonds). One of the relationships that can interfere with the City’s ability to issue under the tax-exempt status is the area of Management and Service Contracts. When entering into these types of contracts it is recommended that the Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 178 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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City involve bond counsel to ensure that the language does not impact the ability of the City to issue tax-exempt debt related to the impacted facilities or improvements.

H. Refunding

1. Periodic reviews of all outstanding debt will be undertaken to determine refunding opportunities. Refunding will be considered (within federal tax law constraints) if and when there is a net economic benefit of the refunding or the refunding is essential in order to modernize covenants essential to the City’s financial or operating position.

2. In general, advance refundings for economic savings will be undertaken when net present value savings of at least five percent (5%) of the refunded debt can be achieved. Current refundings that produce net present value savings of less than five percent will be considered on a case-by-case basis, provided that the present value savings are at least three percent (3%) of the refunded debt. Refundings with savings of less than three percent (3%), or with negative savings, will not be considered unless there is a compelling public policy objective. The measurement of the 3% or 5% savings may, but is not required, to consider benefits to the City from sources other than the proposed bond transaction, if deemed appropriate by the City’s Debt Management Team.

I. Short-Term Borrowings: Use of short-term borrowing, such as bond anticipation notes (BANs), tax and revenue anticipation notes (TRANs), tax-exempt commercial paper and other similar short-term borrowing vehicles will be undertaken only if the transaction costs plus interest of the debt are less than the cost of internal financing, or available cash is insufficient to meet working capital requirements. The City will not employ the use of such borrowings solely for the purpose of earning arbitrage profits.

J. Credit Enhancements: Credit enhancement (letters of credit, reserve fund surety, bond insurance, etc.) will be used to the extent that net debt service on the bonds is reduced by more than the costs of the enhancement, measured in present value terms. In order to calculate the economic effectiveness of a credit enhancement, the City will compare the present worth of the debt service required on the proposed transaction on both an enhanced and unenhanced basis to determine the economic benefits of the enhancement offered. Credit enhancement which does not produce economic benefits, in present value terms, will be considered only if acceptance of the enhancement directly furthers other City goals and objectives.

VII. Debt Administration and Process
A. All Debt to be Reviewed by City’s Debt Management Team

1. No City Department, agency, or sub-unit shall incur long term debt of more than $100,000 without the approval of the City Council. Indebtedness is generally any obligation of the City to pay money in the future with a stated maturity of longer than nine months. All requests to incur long term debt of more than $100,000 and with a stated maturity of longer than nine months will be presented by memo from the requesting Department, through the Chief Financial Officer/City Treasurer, to the Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 179 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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City’s Debt Management Team. The memo shall specify the purpose of the borrowing, any options for financing the project without borrowing, and specific sources of payment of debt service. This policy is not intended to be an impediment to the purchase of goods or services, or the contracting for such goods or services by the City in the normal course of business.

2. The Debt Management Team will be comprised “ex officio” of the City Manager, the Chief Financial Officer/City Treasurer and the City Attorney, or their respective designee(s). The City Manager may appoint additional members to the Debt Management Team on an ad hoc basis as individual circumstances warrant. The Debt Management Team is authorized to provide advice to the City Council, the City Manager, the Chief Financial Officer/City Treasurer, and the various Departments of the City in all matters pertaining to the creation of debt. The Chief Financial Officer/City Treasurer has responsibility for the oversight and periodic review of these Policies, and will recommend amendments from time to time to the City Council. All direct and indirect debt of the City and its component units will be presented to the City Council’s Finance Committee for deliberation and recommendation prior to submittal to the full City Council.

B. Investment of Bond Proceeds

1. All general fund supported and revenue bond proceeds shall be invested as part of the City's consolidated pool, using appropriate trust fund accounting procedures, unless otherwise specified by law or the controlling bond documents and approved in advance by the Chief Financial Officer/City Treasurer. Investments will be consistent with those authorized by existing state law and by the City's investment policy

2. It will also be the City’s policy to select investment advisors, if appropriate to the facts and circumstances of an individual borrowing or borrowing program, on a basis similar to that which it uses to engage investment advisors for its investment portfolio. The City will execute the investment directives for bond proceeds through the applicable trustee for such proceeds.

C. Costs and Fees

1. All costs and fees related to issuance of bonds will be paid out of bond proceeds. In the case of conduit financings, the City may require prepayment for certain costs and fees from the project applicant(s). Under certain extraordinary circumstances, the City may authorize the expenditure of City funds for the engagement of outside counsel or consultants for the purpose of assisting the City with the feasibility analysis of the contemplated debt. It is intended that any expenditure for such purposes would be in anticipation of, or reliance upon, reimbursement by a project applicant for such expenses.

2. Should the proposed debt issue be abandoned prior to its completion, the City will retain any deposits or prepayments in amounts necessary to insure that its costs, both direct and indirect, are fully recovered.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 180 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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D. Method of Sale

1. In general, City debt will be issued through a competitive bidding process. Bids will be awarded on a true interest cost basis (TIC), providing other bidding requirements are satisfied. In such instances where the City in a competitive bidding deems the bids received unsatisfactory, it may, at the election of the Chief Financial Officer/City Treasurer, enter into negotiation for sale of the securities.

2. Negotiated sales of debt will be considered in circumstances when the complexity of the issue requires specialized expertise, when a change of underwriter may result in losses (for example, changing the remarketing agent in mid-program for variable rate debt), when the negotiated sale would result in substantial savings in time or money, or when market conditions or City credit are unusually volatile or uncertain. Only the Chief Financial Officer/City Treasurer shall make such a determination.

E. Council Action to be Regular Business Item, Not Consent Calendar: For all debt sales, the City will require that the action taken by the City Council to incur the debt will be taken as a regular business item, and at a regular or special City Council meeting, consistent with state law. Generally, it shall be the City’s policy to submit the proposed debt issuance to the City Council in a study session wherever possible prior to submittal to the full City Council as an action item.

VIII. Underwriters, Consultants and Counsel
A. Underwriters

1. For all competitive and negotiated sales, underwriters will be required to demonstrate sufficient capitalization and experience related to the debt. The City may engage an underwriter for a negotiated sale of debt through a competitive process administered by the City's Financial & Management Services Department based on the prior recommendation of the City’s Debt Management Team. The utilization of the underwriter for a particular bond sale will be at the discretion of the Financial & Management Services Department and pursuant to a written underwriting agreement.

2. The selection process for underwriters will require that the selected underwriter have comprehensive municipal debt experience, experience with diverse financial structuring requirements and strong distribution capabilities for municipal securities.

Upon completion of the underwriter’s engagement, the City has the option of making a new arrangement with any existing underwriter.

B. Payment of Underwriter’s Counsel Fees: City payments for underwriter’s counsel in negotiated sales will be authorized by the Financial & Management Services Department on a case by case basis depending on the nature and complexity of the transaction and the needs expressed by the underwriters.

C. Bond Counsel: The City will retain external bond counsel for all debt issues and such retainer will be evidenced by a contract with the selected firm(s). All debt issued by the City will Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 181 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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include a written opinion by bond counsel affirming that the City is authorized to issue the debt, stating that the City has met all statutory requirements necessary for issuance, and determining the federal income tax status of such debt. Bond counsel will be selected by the City Attorney based on the prior recommendation of the City’s Debt Management Team. The selection process will require comprehensive municipal debt experience and clearly demonstrated skill and capabilities in the municipal bond sector and with the type of financing proposed. Upon expiration of a specific contract, the City has the option of signing a new contract with its existing bond counsel.

D. Disclosure Counsel: In certain instances, the City may choose to engage the services of a disclosure counsel for the purposes of assisting in the various aspects of the preparation of an official statement, private placement memorandum or other form of offering, disclosure or continuing disclosure document to be disseminated in connection with the sale of the City’s debt or conduit debt. In performing these services, the disclosure counsel is clearly representing the City, as the issuer of the debt, and not the underwriter as well, as is the case where underwriter’s counsel prepares such documents. Because disclosure counsel is engaged by the City, the cost of disclosure counsel’s services is typically paid from the proceeds of the debt issue, and may be structured as either hourly charges or fixed fees, depending on the circumstances.

E. Municipal Advisor

1. The utilization of the municipal advisor for particular bond sales will be at the discretion of the Financial & Management Services Department on a case by case basis and pursuant to a written municipal advisory service contract. While engagement of a municipal advisor on each City debt issue is not required, it is strongly encouraged. In particular, the services of a municipal advisor will be used on all competitive sales of City debt as well as those negotiated issues that present unique structuring, marketing or credit circumstances.

2. The City may engage an external municipal advisor through a competitive process administered by the City's Financial & Management Services Department based on the prior recommendation of the City’s Debt Management Team. The selection process for municipal advisors will require that the selected municipal advisor have comprehensive municipal debt experience, experience with diverse financial structuring requirements and strong pricing capabilities for determining the fairness of the prices received by the City for its debt issues. Upon completion of the municipal advisor’s engagement, the City has the option of making a new arrangement with any existing municipal advisor.

3. For each engagement the municipal advisor will provide services to the Chief Financial Officer/City Treasurer and such other departments of the City as may be designated by the Chief Financial Officer/City Treasurer pursuant to an agreed upon scope of services to be negotiated with the Chief Financial Officer/City Treasurer.

F. Fiscal Agents, Paying Agents and Trustees: The Financial & Management Services Department will utilize a fiscal agent, paying agent or trustee on all City indebtedness, as may be required by the type of debt instrument being used. Fees for such services on outstanding Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 182 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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bonds will be paid from the resources of the department or program supporting the debt service on the instrument, unless specified otherwise by the Chief Financial Officer/City Treasurer.

The City’s Financial & Management Services Department will administer the review and journalizing of transactions from monthly statements furnished by the fiscal agent, paying agent or trustee, as the case may be.

G. Compensation for Services: Compensation for bond counsel, underwriter's counsel, financial advisors, and other financial service providers will be consistent with industry standards.

H. Selection Process: The Chief Financial Officer/City Treasurer shall make all final determinations of selection for underwriters, and municipal advisors based on the recommendation of the City’s Debt Management Team. The determination will be made following an independent review of competitive bids or responses to requests for proposals (RFPs) or requests for statements of qualifications (RFQs). The City’s Debt Management Team will review the proposals or statements of qualifications. The City’s municipal advisors at the direction of the Chief Financial Officer/City Treasurer may also review underwriter proposals.

I. Other Service Providers: The Chief Financial Officer/City Treasurer shall have the authority to periodically select other service providers (e.g., escrow agents, verification agents, trustees, arbitrage consultants, assessment engineers, special tax consultants, investment advisors etc.) as necessary to meet legal requirements and minimize net City debt costs. The Chief Financial Officer/City Treasurer may select firm(s) to provide such financial services related to debt without a RFP or RFQ, consistent with City requirements. A firm so selected must receive Chief Financial Officer/City Treasurer approval before undertaking any transaction or providing any service.

IX. Continuing Disclosure
A. Background
Pursuant to SEC Rule 15c2-12 (the “Rule”), issuers of obligations are required under most circumstances to provide financial and operating information on an annual basis with the Municipal Securities Rulemaking Board (MSRB) using the Electronic Municipal Market Access system (EMMA). The City of Moreno Valley, California (the “City”), the Moreno Valley Public Financing Authority (MVPFA), the Successor Agency to the Moreno Valley Redevelopment Agency and certain community facility districts and assessment districts (collectively, the “Moreno Valley Issuers”) have issued or may issue obligations which are covered by the Rule (the “Obligations”) and must comply with any required filings in a timely manner. These Policies and Procedures are intended to assure that all filings required under the Rule are made timely and completely and meet all requirements of the Rule. The Moreno Valley Issuers have covenanted or will covenant to comply with the Rule through the execution and delivery of continuing disclosure agreements or certificates (each, a “Continuing Disclosure Undertaking”) applicable to each issue of Obligations.

The Rule requires that an underwriter, prior to purchasing or selling an issue of obligations in connection with a covered offering, determine that the issuer, and any other “Obligated Person” (as defined in the Rule) for whom financial or operating data is presented in the Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 183 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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official statement, has undertaken in writing to provide the following information to the MSRB using EMMA and to the appropriate state information depository (“SID”), if any:

Note: There is no SID currently in the State of California. If the State of California should establish a SID, the Moreno Valley Issuers may also be required to file all required information with the SID depending on the contractual requirements of their previous Continuing Disclosure Undertakings.

1. By a specified date, annual financial and operating information for each Obligated Person for whom financial information or operating data is presented in the official statement (an “Annual Information Filing”).

2. By a specified date, if available, audited annual financial statements for each Obligated Person (“Audited Financial Statements”) and, if not available by the date required, unaudited financial statements followed by with Audited Financial Statements once they are available.

3. In a timely manner within 10 business days of occurrence, notice of the occurrence of one or more of the listed events described in the Rule (a “Rule 15c2-12 Event Notice”).

4. Not less than 30 days before the submission date, the Responsible Party shall prepare a draft submission of required financial and operating information, highlighting any information still unavailable.

5. In a timely manner, notice of a failure of any Obligated Person required to make the Annual Information Filing and/or file the Audited Financial Statements on or before the date(s) specified in the Continuing Disclosure Undertaking (“Notice of Failure”).

A. Listed Events
“The Rule” requires filing of a Rule 15c2-12 Event Notice upon the occurrence of certain listed events described in the Continuing Disclosure Undertakings. The Responsible Party shall provide a Rule 15c2-12 Event Notice to the MSRB using EMMA within 10 business days of occurrence of any such listed event. The list is as follows:

1. Principal and interest payment delinquencies

2. Non-payment related defaults

3. Unscheduled draws on debt service reserves reflecting financial difficulties

4. Unscheduled draws on credit enhancements reflecting financial difficulties

5. Adverse tax opinions, IRS notices or material events affecting the tax status of the security

6. Modifications of rights of security holders (if material)

7. Bond calls (if material)
Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 184 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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8. Defeasances

9. Release, substitution or sale of property securing repayment of the securities (if material)

10. Rating changes

11. Tender offers

12. Bankruptcy, insolvency, receivership or similar event of the obligated person

13. Merger, consolidation, or acquisition of the obligated person (if material)

14. Appointment of a successor or additional trustee, or the change of name of a trustee (if material)

15. Substitution of credit or liquidity providers, or their failure to perform

16. Incurrence of financial obligation (if material)

17. Default, event of acceleration, termination event, modification of terms or other similar events under the terms of a financial obligation of the obligated party, any of which reflect financial difficulties.

18. Other voluntary disclosure as listed in the Rule
B. Familiarity with EMMA Submission Process

1. The Responsible Party shall register with EMMA and review the on-line process of filing with EMMA located at www.emma.msrb.org in order to submit the required information. The MSRB market Information Department can also be contacted at (703) 797-6668. A tutorial is available at the website and a practice submission is available as well.

2. The Responsible Party also shall enroll the Moreno Valley Issuers in EMMA’s reminder system to ensure timely performance of their responsibilities and obligations.

C. California Debt and Investment Advisory Commission (CDIAC)

1. With the passage of Senate Bill 1029 (Hertzberg) which became effective January 1, 2017, the Responsible Party will prepare and submit an annual report by January 31 of each year for the previously completed fiscal year.

2. CDIAC has developed the Annual Debt Transparency Report (ADTR) and an online reporting portal to assist issuers in meeting this requirement.

3. The ADTR will include the following data elements ( these requirements can be found in section 8855(k) of the California Government Code):
a. Debt authorized during the reporting period, which shall include the following:
i. Debt authorized at the beginning of the period
ii. Debt authorized and issued during the reporting period iii. Debt authorized but not issued at the end of the reporting period
iv. Debt authority that has lapsed during the reporting period b. Debt outstanding during the reporting period which will include:
i. Principal balance at the beginning of the reporting period Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 185 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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ii. Principal paid during the reporting period
iii. Principal outstanding at the end of the reporting period c. The use of proceeds of issued debt during the reporting period which shall include:
i. Debt proceeds available at the beginning of the reporting period.
ii. Proceeds spent during the reporting period and the purpose for which it was spent.
iii. Debt proceeds remaining at the end of the period.

4. Section 6599.1 of the California Government Code requires that all issuers selling Marks-Roos bonds, which is part of the Marks-Roos Local Bond Pooling Act of 1985, after January 1, 1996 are required to report specific information to CDIAC by October 30th of the current year and each year thereafter, until maturity. Section 53359.5(b) of the California Government Code requires all agencies issuing MelloRoos Community Facilities District bonds, including refunding bonds, after January 1, 1993, to report specific information to CDIAC by October 30th of each year.

5. To facilitate and ensure consistency in reporting, CDIAC has developed the Yearly Fiscal Status Report (YFSR).

D. Training Efforts
To ensure adequate resources to comply with the Rule, the Responsible Party shall develop a training process aimed at providing additional assistance in preparing required information.

The training process shall be conducted at least annually and shall encompass a review of the EMMA submission process and an understanding of the timing requirements necessary for full compliance.

E. Coordination Effort
The Responsible Party shall coordinate the preparation and submission of the required information with the Municipal Advisor. Special Tax Consultant and corporate trustees and paying agents to ensure full compliance with the requirements of the Rule and the Continuing Disclosure Undertakings.

F. Records Retention
The Responsible Party shall maintain records with respect to the filings with the MSRB using EMMA, including, but not limited to, EMMA posting receipts showing the dates and nature or contents of all filings for each issue of Obligations of any Moreno Valley Issuer outstanding during each fiscal year.

G. Investor Communication
While the City shall post its annual financial report as well as other financial reports on the City’s website, this information is intended for the citizens of the City of Moreno Valley.

Information with the intention of reaching the investing public, including bondholders, rating Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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analysts, investment advisors, or any other member of the investment community will be filed on the EMMA system. Information similar to that posted on EMMA will be included on the City’s website under the Investor Relations tab.

H. Responsible Party; Maintenance of List and Files
The Responsible Party for the Moreno Valley Issuers shall be the Chief Financial Officer/City Treasurer for the City and any alternate or assistant as the Chief Financial Officer/City Treasurer shall appoint. The Responsible Party shall maintain a current list for each fiscal year identifying each issue of Obligations of any Moreno Valley Issuer outstanding during such fiscal year setting forth the name, original principal amount, date of issuance and CUSIP numbers for each such issue, the dates by which the Annual Information Filings and the Audited Financial Statements are required to be submitted to the MSRB using EMMA and the current contact information for the dissemination agent (if any) with respect to such Continuing Disclosure Undertaking, such list to be accompanied by copies of the related Continuing Disclosure Undertakings.

I. Annual Information Filing Requirements
The Responsible Party shall be knowledgeable and familiar with the provisions of each Continuing Disclosure Undertaking as to the type, format and content of the financial and operating information to be included in each Annual Information Filing to be made thereunder and the timing requirements for the filing thereof. The submission dates for the Continuing Disclosure Undertakings vary and in some cases require the filing of annual reports as early as the last day of December in each year following (or, in some cases, within 180 days following) the close of the Moreno Valley Issuers’ fiscal year which is currently June 30.

J. Audited Financial Statements
Audited Annual Financial Statements of the Moreno Valley Issuers are also required to be filed no later than the submission dates established under each Continuing Disclosure Undertaking. The Responsible Party shall be knowledgeable and familiar with the specific timing requirements for the filing of Audited Financial Statements and, if not available by the date(s) required, the provisions regarding the filing of unaudited financial statements under the terms of each Continuing Disclosure Undertaking.

K. Notices of Failures to File
The Responsible Party shall be knowledgeable and familiar with the specific requirements for the filing of a Notice of Failure to make Annual Information Filings and/or to file Audited Financial Statements by the date(s) required under the terms of each Continuing Disclosure Undertaking.

L. Preparation
Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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Approximately 90 days before the submission date for required filings established under each Continuing Disclosure Undertaking, the Responsible Party shall initiate the process of preparing the financial and operating information required to be submitted thereunder. The Responsible Party shall assemble the information available at that time and determine the scope of additional information to be required and also contact the auditors to establish a schedule for completion and submission for the Audited Financial Statements.

1. Not less than 30 days before the submission date, the Responsible Party shall prepare a draft submission of required financial and operating information, highlighting any information still unavailable.

2. On or before the submission date established under each Continuing Disclosure Undertaking, the Responsible Party shall make the Annual Information Filing together with the Audited Financial Statements. If the Audited Financial Statements are not then available, unaudited financial information shall be filed with the MSRB using EMMA and the Audited Financial Statements shall be filed within 10 business days of their receipt and acceptance.

3. The Responsible Party shall set calendar reminders in the City Finance Department’s recordkeeping systems.

II. Other Policies
A. Arbitrage Compliance: The Financial & Management Services Department shall maintain a system of record keeping and reporting to meet the arbitrage rebate compliance requirements of the Federal Tax Code.

B. Unsolicited Financing Proposals: Any unsolicited financing proposal to a City department, agency, or employee involving pledge or other extension of the City's credit through sale of securities, execution of loans or leases, marketing guarantees, or otherwise involving directly or indirectly the lending or pledging of the City's credit, shall be referred to the Financial & Management Services Department for review by the City’s Debt Management Team prior to submittal to the City Council for approval.

C. Internal Borrowings

1. Provided that sufficient resources are available, liquidity will not be impaired, and a defined source of repayment is available, the City will generally favor internal borrowings over external borrowings for short-term liquidity purposes. The Financial & Management Services Department may undertake inter-fund borrowings and such borrowings will be evidenced by a written memorandum or agreement specifying the tenor and terms of the borrowing, including repayment terms, interest rates and calculations and procedures for amendment and must have the approval of the City Council, except for fiscal year end accounting entries that create temporary loans for financial statement presentation purposes. Any internal borrowing must be first coordinated with the responsible managing department. For example, the internal borrowings affecting the City’s successor agency or Community Development Block Grant funds should be coordinated with the Community and Economic Development Department. All such inter-fund borrowings will be Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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reflected in the City’s accounting records as “due to” and “due from” items respecting the funds and accounts borrowed from and loaned to, respectively.

2. Inter-fund borrowing will typically bear interest at the rate being borne by the Local Agency Investment Fund (“LAIF”) administered by the California State Treasurer’s Office, unless specifically recommended otherwise by the Chief Financial Officer/City Treasurer.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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D. Issuance Tax Compliance

1. The purpose of these Post-Issuance Tax Compliance Procedures is to establish policies and procedures in connection with tax-exempt bonds or obligations (whether in the form of bonds, certificates of participation, installment sale contracts, leases or other financing structures) and other tax-advantaged bonds or obligations, if any (e.g. “build America bonds” or direct pay subsidy bonds) (collectively, the “Bonds”) issued for the benefit of the City of Moreno Valley (the “City”) so as to ensure that the City complies with all applicable post-issuance requirements of federal income tax law needed to preserve the tax-exempt or special tax status of the Bonds.

2. General
a. Ultimate responsibility for all matters relating to City financings and refinancings rests with the City’s Chief Financial Officer/City Treasurer (the “Responsible Officer”) or such other person or persons as the Responsible Officer shall designate.

3. Tax Compliance Requirements
a. External Advisors / Documentation
i. The Responsible Officer and other appropriate City personnel shall consult with bond counsel and other legal counsel and advisors, as needed, throughout the Bond issuance process to identify requirements and to establish procedures necessary or appropriate so that the Bonds will continue to qualify for the appropriate tax status. Those requirements and procedures shall be documented in a City resolution(s), Tax Certificate(s) and/or other documents finalized at or before issuance of the Bonds. Those requirements and procedures shall include future compliance with applicable arbitrage rebate and yield restriction requirements and all other applicable post-issuance requirements of federal tax law throughout (and in some cases beyond) the term of the Bonds.
ii. The Responsible Officer and other appropriate City personnel also shall consult with bond counsel and other legal counsel and advisors, as needed, following issuance of the Bonds to ensure that all applicable post-issuance requirements, in fact, are met. This shall include, without limitation, consultation in connection with future contracts with respect to the use or management of Bondfinanced assets. iii. Whenever necessary or appropriate, the City shall engage expert advisors (such as a “Rebate Service Provider”) to assist in the calculation of arbitrage rebate which may be payable in respect of the investment of Bond proceeds.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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b. Role of the City
i. Unless otherwise provided by City resolutions, unexpended Bond proceeds shall be held by the City, and the investment of Bond proceeds shall be managed by the Responsible Officer. The Responsible Officer shall maintain records and shall prepare regular, periodic statements to the City regarding the investments and transactions involving Bond proceeds.
ii. If a City resolution provides for Bond proceeds to be administered by a trustee, the trustee shall provide regular, periodic (monthly) statements regarding the investments and transactions involving Bond proceeds.
c. Arbitrage Rebate and Yield
i. Unless a Tax Certificate documents that bond counsel has advised that arbitrage rebate will not be applicable to an issue of Bonds:
a.) the City shall engage the services of a Rebate Service Provider, and the City or the Bond trustee shall deliver periodic statements concerning the investment of Bond
proceeds to the Rebate Service Provider on a prompt basis; b.) upon request, the Responsible Officer and other appropriate City personnel shall provide to the Rebate Service Provider additional documents and information reasonably requested by the Rebate Service Provider;
c.) the Responsible Officer and other appropriate City
personnel shall monitor efforts of the Rebate Service
Provider and assure payment of required rebate amounts, if any, no later than 60 days after each 5-year anniversary of the issue date of the Bonds, and no later than 60 days after the last Bond of each issue is redeemed; and
d.) during the construction period of each capital project financed in whole or in part by Bonds, the Responsible
Officer and other appropriate City personnel shall monitor the investment and expenditure of Bond proceeds and shall consult with the Rebate Service Provider to determine
compliance with any applicable exceptions from the
arbitrage rebate requirements during each 6-month
spending period up to 6 months, 18 months or 24 months, as applicable, following the issue date of the Bonds.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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e.) The City shall retain copies of all arbitrage reports and trustee statements as described below under “Record
Keeping Requirements”.
d. Use of Bond Proceeds
i. The Responsible Officer and other appropriate City personnel shall:
a.) monitor the use of Bond proceeds and the use of Bondfinanced assets (e.g., facilities, furnishings or equipment) throughout the term of the Bonds (and in some cases beyond the term of the Bonds) to ensure compliance with covenants and restrictions set forth in applicable City resolutions and Tax Certificates;
b.) maintain records identifying the assets or portion of assets that are financed or refinanced with proceeds of each issue of Bonds;
c.) consult with Bond Counsel and other professional expert advisers in the review of any contracts or arrangements involving use of Bond-financed facilities to ensure
compliance with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates;
d.) maintain records for any contracts or arrangements
involving the use of Bond-financed facilities as might be necessary or appropriate to document compliance with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates; and
e.) meet at least annually with personnel responsible for Bondfinanced assets to identify and discuss any existing or planned use of Bond-financed assets and to ensure that
those uses are consistent with all covenants and restrictions set forth in applicable City resolutions and Tax Certificates. f.) All relevant records and contracts shall be maintained as described below.

1. Record Keeping Requirements
a. Unless otherwise specified in applicable
City resolutions or Tax Certificates, the
City shall maintain the following
documents for the term of each issue of
Bonds (including refunding Bonds, if any)
plus at least three years:
b. a copy of the Bond closing transcript(s) and
other relevant documentation delivered to
Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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the City at or in connection with closing of
the issue of Bonds;
c. a copy of all material documents relating to
capital expenditures financed or refinanced
by Bond proceeds, including (without
limitation) construction contracts, purchase
orders, invoices, trustee requisitions and
payment records, as well as documents
relating to costs reimbursed with Bond
proceeds and records identifying the assets
or portion of assets that are financed or
refinanced with Bond proceeds;
d. a copy of all contracts and arrangements
involving private business use of Bondfinanced assets; and e. copies of all records of investments,
investment agreements, arbitrage reports
and underlying documents, including
trustee statements.
e. Identification and Correction of Violations: In the event that the use of bond proceeds or bond-financed assets, or the payments derived from such assets, are different than those expected at the time bonds are issued, the City should contact Bond Counsel in a timely manner to ensure that there is no adverse effect on the tax status of the bonds. Under existing Treasury Regulations, various “self-help” remedies are available to the City in the event of certain violations of the limits of use of bond proceeds, the investment of bond proceeds, and the use of the bond-financed assets. For example, a change in the use of the bond-financed assets after the issuance of the bonds that results in excessive private business use may be corrected through a 'remedial action' that is described in the Treasury Regulation Section 1.141-12. Such remedial actions include a defeasance of the portion of the bonds affected by the excessive private business use or using the disposition proceeds from the sale of the bond-financed assets for another qualified purpose. In the event that the self-help remedial actions in Treasury Regulation Section 1.141-12 are not available to the City, violations occurring through City action (or inaction) that potentially adversely affect the status of the bonds may be corrected through the Voluntary Closing Agreement Program as further described in IRS Notice 2008-31 and in Sections 7.2.3 of the Internal Revenue Manual.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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APPENDIX A: GLOSSARY

AD VALOREM TAX
A tax calculated "according to the value" of property. Such a tax is based on the assessed valuation of real property and, in certain cases, on a valuation of tangible personal property. In most jurisdictions, the tax is a lien on the property enforceable by seizure and sale of the property. General restrictions, such as overall restrictions on rates, or the percent of charge allowed, sometimes apply. As a result, ad valorem taxes often function as the balancing element in local budgets.

ADVANCE REFUNDING
A procedure whereby outstanding bonds are refinanced by the proceeds of a new bond issue more than 90 days prior to the date on which outstanding bonds become due or are callable. Generally, either the entire outstanding issue is refunded (full refunding) or only the callable bonds are refunded (partial refunding).

Typically an advance refunding is performed to take advantage of interest rates that are significantly lower than those associated with the original bond issue. At time, however, an advance refunding is performed to remove restrictive language or debt service reserve requirements required by the original issue. (See also “CURRENT REFUNDING”)

AMORTIZATION
The planned reduction of a debt obligation according to a stated maturity or redemption schedule.

ARBITRAGE
The gain that may be obtained by borrowing funds at a lower (often tax- exempt) rate and investing the proceeds at higher (often taxable) rates. The ability to earn arbitrage by issuing tax-exempt securities has been severely curtailed by the Tax Reform Act of 1986, as amended.

ASSESSED VALUATION
The appraised worth of property as set by a taxing authority through assessments for purposes of ad valorem taxation. The method of establishing assessed valuation varies from state to state, with the method generally specified by state law. For example, in certain jurisdictions the assessed evaluation is equal to the full or market value of the property; in other jurisdictions the assessed valuation is equal to a percentage of the full market value.

ASSESSMENT BONDS
Bonds issued to develop facilities and basic infrastructure for the benefit of specific properties within the assessment district which directly benefit from the facilities. The key consideration here is the “direct and special benefit” to be received by the property subject to the assessment. Voter approval is not required.

Instead, a majority vote of the property owners with a majority of assessments is needed to authorize the issue.

The issuer's recourse for nonpayment is foreclosure. This type of bond is normally not rated. The bonds may be issued under the provisions of the various assessment bond acts of the State, whichever is most appropriate. (See also “Special Tax Bond” for a description of bonds issued pursuant to the Mello-Roos Act.)

BALLOON MATURITY
A maturity within a serial issue of securities which contains a disproportionately large percentage of the principal amount of the original issue. A balloon maturity is generally distinguished from a term bond by the fact that a term bond generally has the benefit of a sinking fund to smooth out the amount of principal paid from any single year's operations. A balloon maturity increases the likelihood that the jurisdiction will need to refinance the securities for an extended period of time upon their initial maturity.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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BASIS POINT
One one-hundredth of one percent (0.0001).

BOND
A security that represents an obligation to pay a specified amount of money on a specific date in the future, typically with periodic interest payments.

BOND ANTICIPATION NOTES
Notes issued to provide temporary financing, to be repaid from the proceeds of a subsequent long-term financing.

BOND COUNSEL
An attorney (or firm of attorneys) retained by the issuer to give a legal opinion concerning the validity of the securities. The bond counsel's opinion usually addresses the subject of tax exemption. Bond counsel may prepare, or review and advise the issuer regarding authorizing resolutions or ordinances, trust indentures, official statements, validation proceedings and litigation.

BOND INSURANCE
Bond insurance is a type of credit enhancement whereby a monoline insurance company indemnifies an investor against default by the issuer. In the event of a failure by the issuer to pay principal and interest in full and on time, investors may call upon the insurance company to do so. Once assigned, the municipal bond insurance policy generally is irrevocable. The insurance company receives an up-front fee, or premium, when the policy is issued.

BOOK-ENTRY-ONLY
Bonds that are issued in fully registered form but without certificates of ownership. The ownership interest of each actual purchaser is recorded on computer.

CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC) The CDIAC website provides information, education, and technical assistance on debt issuance and public fund investments to local public agencies and other public finance professionals. CDIAC was created to serve as the state’s clearinghouse for public debt issuance information and to assist state and local agencies with the monitoring, issuance, and management of public debt. CDIAC is the website the Annual Debt Transparency Report (ADTR) must be submitted to.

CALL OPTION
The right to redeem a bond prior to its stated maturity, either on a given date or continuously. The call option is also referred to as the optional redemption provision. Often a "call premium" is added to the call option as compensation to the holders of the earliest bonds called. Generally, the earliest callable bonds called carry a 102% premium, the next earliest, a 101 % premium, and the balance of the bonds are called at par value.

CAPITAL APPRECIATION BOND
A bond without current interest coupons that is sold at a substantial discount from par. Investors are provided with a return based upon the accretion of value in the bond through maturity. (see zero coupon bond)

CAPITAL LEASE
Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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The acquisition of a capital asset over time rather than merely paying a rental fee for temporary use. A lease-purchase agreement, in which provision is made for transfer of ownership of the property for a nominal price at the scheduled termination of the lease, is referred to as a capital lease.

CERTIFICATES OF PARTICIPATION
A lease agreement with another party (a lessor, such as a joint powers authority) to lease an asset over a defined period of time at a prearranged annual payment. Voter approval is generally not required. Lease payments are made primarily from general fund revenues. Current law requires the lessee to make lease payments only if the City has beneficial use of the facility to be leased. The legislative body has to appropriate annual debt service payments. For the security of the bondholders, a reserve fund is normally established and held by a trustee until all bonds are paid. Interest during project construction must be capitalized. An "asset transfer" structure, whereby an existing facility is used as security to finance construction or acquisition of another project, may be used for flexibility. Sometimes this structure is styled as a “lease revenue bond,” which is functionally the same as Certificates of Participation.

COMMERCIAL PAPER (TAX-EXEMPT)
By convention, short-term, unsecured promissory notes issued in either registered or bearer form with a stated maturity of 270 days or less.

COMPETITIVE SALE
Sales of securities in which the securities are awarded to the bidder who offers to purchase the issue at the best price or lowest cost.

CONDUIT FINANCING
The issuance of securities by a governmental entity to finance a project that will primarily benefit a third party, typically a private corporation. The security for this type of financing is usually the credit of the private entity, rather than the governmental unit. Usually such securities do not constitute general obligations of the issuer since the private entity is liable for generating the pledged revenues for repayment. Industrial development bonds are a common type of conduit financing.

CONTINUING DISCLOSURE
The requirement by the Securities and Exchange Commission for most issuers of municipal debt to provide current financial information to the informational repositories for access by the general marketplace. Generally, SEC Rule 15c2-12 requires issuers of municipal securities and certain other “obligated persons” to make contractual promises to provide continuing information to the marketplace during the life of securities issues.

Under the rule, an underwriter is not permitted to purchase or sell municipal securities in connection with a primary offering of $1.0 million or more unless it has entered into such a contractual arrangement with the issuer of the securities for the benefit of the holders of the securities.

In conduit issues, the obligation to maintain continuing disclosure efforts should be imposed on the project sponsors.

COUPON RATE
The interest rate on specific maturities of a bond issue. While the term "coupon' derives from the days when virtually all municipal bonds were in bearer form with coupons attached, the term is still frequently used to refer to the interest rate on different maturities of bonds in registered form.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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CURRENT REFUNDING
A procedure whereby outstanding bonds are refinanced by the proceeds of a new bond issue within 90 days of the date on which outstanding bonds become due or are callable. Generally, either the entire outstanding issue is refunded (full refunding) or only the callable bonds are refunded (partial refunding). Typically a current refunding is performed to take advantage of interest rates that are significantly lower than those associated with the original bond issue. At times, however, a current refunding is performed to remove restrictive language or debt service reserve requirements required by the original issue. (See also “ADVANCE REFUNDING”)

CUSIP NUMBER
The term CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures. An identification number is assigned to each maturity of an issue, and is usually printed on the face of each individual certificate of the issue. The CUSIP numbers are intended to help facilitate the identification and clearance of municipal securities. As the municipal market has evolved, and new derivative products are devised, the importance of the CUSIP system for identification purposes has increased.

DEBT BURDEN
The ratio of outstanding tax-supported debt to the market value of property within a jurisdiction. The overall debt burden includes a jurisdiction's proportionate share of overlapping debt as well as the municipality's direct net debt.

DEBT LIMITATION
The maximum amount of debt that is legally permitted by a jurisdiction's charter, constitution, or statutory requirements.

DEBT SERVICE
The amount necessary to pay principal and interest requirements on outstanding bonds for a given year or series of years.

DEBT SERVICE RESERVE FUND
The fund into which moneys are placed which may be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The debt service reserve fund may be entirely funded with bond proceeds, or it may only be partly funded at the time of the issuance and allowed to reach its full funding requirement over time, due to the accumulation of pledged revenues. If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the funds from the first available funds or revenues. A typical reserve requirement might be the maximum aggregate annual debt service for any year remaining until the bonds reach maturity. The size of the reserve fund, and the manner in which it is invested, may be subject to arbitrage regulations.

DEBT SERVICE RESERVE FUND SURETY
A form of insurance provided by a bond insurer to satisfy a reserve fund requirement for a bond issuance.

Under this arrangement, instead of depositing cash in a reserve fund the City would buy a surety policy by paying a one time premium equal to a percentage of the fair value of policy.

DEFAULT
The failure to pay principal or interest in full or on time. An actual default should be distinguished from technical default. The latter refers to a failure by an issuer to abide by certain covenants but does not necessarily result in a failure to pay principal or interest when due.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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DEFEASANCE
Providing for payment of principal of premium, if any, and interest on debt through the first call date or scheduled principal maturity in accordance with the terms and requirements of the instrument pursuant to which the debt was issued. A legal defeasance usually involves establishing an irrevocable escrow funded with only cash and US. government obligations.

DEPOSITORY TRUST COMPANY (DTC)
A limited purpose trust company organized under the New York Banking Law. DTC facilitates the settlement of transactions in municipal securities.

DERIVATIVES
Financial products whose value is derived from the value of an underlying asset, reference rate, or index.

Typically these agreements are contracts between a lender/investor and a borrower and include interest rate swaps, caps, floors, collars, and forward purchase agreements.

DISCOUNT
The difference between a bond's par value and the price for which it is sold when the latter is less than par.

ELECTRONIC MUNICIPAL MARKET ACCESS SYSSTEM (EMMA)
Managed by the MSRB the EMMA website was established to increase the transparency of the municipal securities market by providing free public access to municipal securities disclosures and data. EMMA provides investors, state and local governments and other market participants with key information and tools to put that information into context. EMMA is the location where all municipal issuers are to post or publish continuing disclosure information.

ENTERPRISE ACTIVITY
A revenue-generating project or business. The project often provides funds necessary to pay debt service on securities issued to finance the facility. The debts of such projects are self-liquidating when the projects earn sufficient monies to cover all debt service and other requirements imposed under the bond contract. Common examples include water and sewer treatment facilities and utility facilities.

MUNICIPAL ADVISOR
A consultant who advises an issuer on matters pertinent to a debt issue, such as structure, sizing, timing, marketing, pricing, terms, and bond ratings. A municipal advisor has a fiduciary duty to protect the financial interest of the City.

FITCH INVESTORS SERVICE
A financial services company, founded in 1913, which provides investors with an independent assessment of the credit worthiness of debt obligations.

FINAL OFFICIAL STATEMENT (FOS)
A document published by the issuer that generally discloses material information on a new issue of municipal securities including the purposes of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities. (See also Official Statement)

FLOW OF FUNDS
The order in which pledged revenues must be disbursed, as set forth in the trust indenture or bond resolution.

In most instances, the pledged revenues are deposited into a general collection account or revenue fund as they Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 198 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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DEBT MANAGEMENT POLICY
are received and subsequently transferred into the other accounts established by the bond resolution or trust indenture. The other accounts provide for payment of the costs of debt service, debt service reserve deposits, operation and maintenance costs, renewal and replacement, and other requirements.

GENERAL OBLIGATION BONDS
Bonds backed by the full faith and credit of the City. The taxing power is an unlimited ad valorem tax, usually on real estate and personal property. A special rate is incorporated in the property tax bill annually to pay for debt service. A two-thirds voter approval is required for authorization. Because it is secured by an unlimited tax levy, this structure has strong marketability and lower interest costs.

GENERAL OBLIGATION DEBT
Debt that is secured by a pledge of the ad valorem taxing power of the issuer. Also known as a full faith and credit obligation.

INDENTURE
A contract between the issuer and a trustee stipulating the characteristics of the financial instrument, the issuer's obligation to pay debt service, and the remedies available to the trustee in the event of a default.

INVESTMENT GRADE
The broad designation given bonds which have a high probability of being paid, and minor, if any, speculative features. Bonds rated “BBB” or higher by Standard & Poor’s Corporation, “Baa” or higher by Moody’s Investor’s Service, and “BBB” or higher by Fitch IBCA Rating Service are deemed by those agencies to be “investment grade.”

ISSUANCE COSTS
The costs incurred by the bond issuer during the planning and sale of securities. These costs include but are not limited to municipal advisory, disclosure counsel and bond counsel fees, printing and advertising costs, rating agency fees, and other expenses incurred in the marketing of an issue.

ISSUER COUNSEL
An attorney engaged by the issuer to represent its best interest in a debt transaction. Often this role is performed by bond counsel, however, at times separate counsel is engaged that does not have responsibility to issue the bond opinion as well as represent the issuer’s best interests.

JUNIOR LIEN BONDS
Bonds that have a subordinate claim against pledged revenues.

LEASE
An obligation wherein a lessee agrees to make payments to a lessor in exchange for the use of certain property.

The term may refer to a capital lease or to an operating lease.

LEASE REVENUE BONDS
Bonds that are secured by an obligation of one party to make annual lease payments to another for use and occupancy of an asset.

LESSEE
The party to a lease agreement that obtains use of a facility or piece of equipment on exchange for rental payments.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 199 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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DEBT MANAGEMENT POLICY
LESSOR
The owner of the property being leased.

LETTER OF CREDIT
Bank credit facility whereby a bank will honor the payment of an issuer's debt, in the event that an issuer is unable to do so, thereby providing an additional source of security for bondholders for a predetermined period of time. A letter of credit often is referred to as an L/C or an LOC. Letter of Credit can be issued on a "stand-by" or "direct pay" basis.

LINE OF CREDIT
Bank credit facility wherein the bank agrees to lend up to a maximum amount of funds at some date in the future in return for a commitment fee.

MANAGER
The member (or members) of an underwriting syndicate -charged with the primary responsibility for conducting the affairs of the syndicate. The managers take the largest underwriting commitment.

UNDERWRITER
The underwriter serving as head of the syndicate. The lead Manager generally handles negotiations in a negotiated underwriting of a new issue of municipal securities or directs the process by which a bid is determined for a competitive underwriting. The lead Manager also is charged with allocating securities among the members of the syndicate in accordance with the terms of the syndicate agreement or agreement among underwriters.

UNDERWRITING GROUP
Any member of the management group.

MASTER LEASE AGREEMENTS
A lease agreement with a provider to lease equipment or facilities whose useful life is too short, or whose cost is too small to finance with conventional long-term debt. Various pieces and types of real and personal property from different vendors over a period of time can be acquired under one master lease agreement. Interest can be fixed or tied to an index. Financing costs are normally minimal, but the interest cost may be higher than with other instruments.

MARKS-ROOS BONDS
Bonds issued by a joint powers authority to buy other bond issues. By pooling bond issues, marketability can be improved and administration costs are reduced. Often used in the case of a negotiated sale of successor agency debt in order to avoid the competitive sale requirements for such debt.

MOODY'S INVESTORS SERVICE, INC.

A financial service company, a subsidiary of Dun & Bradstreet Corp. has provided ratings for municipal securities and other financial information to investors since 1918.

MUNICIPAL SECURITIES RULEMAKING BOARD (MSRB)
A self-regulating organization established on September 5, 1975 whose mission is to protect investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its the EMMA website.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 200 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
Policy #3.10

DEBT MANAGEMENT POLICY

NEGOTIATED SALE
A sale of securities in which the terms of sale are determined through negotiation between the issuer and the purchaser, typically an underwriter, without competitive bidding

NET INTEREST COST (NIC)
The average interest cost of a bond issue calculated on the basis of simple interest. This calculation involves a fraction in which the numerator is the gross amount of interest to be paid over the bonds' life (adjusted for the amount of discount or premium granted at the time of sale), and the denominator is the average life of the bond issue multiplied by the issue's par value.

NOTE
A written promise to pay a certain amount of money on a specific date, with interest. By convention, the maturity of a note is one year or less, making it short-term debt. However, financial instruments with a longer stated maturity sometimes are called Notes. For example, a bond anticipation note can have maturities of two years or longer.

OFFICIAL STATEMENT (OS)
A document published by the issuer that generally discloses material information on a new issue of municipal securities including the purposes of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities. (See also Final Official Statement)

OPERATING LEASE
A lease that enables the lessee to acquire the use of an asset only, not its ownership as in a capital lease. The lease term typically runs for only a portion of the asset's useful life.

ORIGINAL ISSUE DISCOUNT BONDS
Bonds which are sold at a substantial discount from their par value at the time of the original sale.

OVERLAPPING DEBT
The legal jurisdictions of local governments often overlap one another. In some cases, one unit of government is located entirely within the boundaries of another. Overlapping debt represents the proportionate share of debt that must be borne by one unit of government because another government with overlapping or underlying taxing authority issued its own bonds.

PAR VALUE
The face value or principal amount of a security.

PAYING AGENT
An agent of the issuer with responsibility for timely payment of principal and interest to bond holders.

PRELIMINARY OFFICIAL STATEMENT (POS)
The POS is a preliminary version of the official statement that is used by an issuer or underwriters to describe the proposed issue of municipal securities prior to the determination of the interest rate(s) and offering price(s).

The preliminary official statement, also called a "red herring,” often is examined upon by potential purchasers prior to making an investment decision.

PREMIUM
The excess of the price at which a bond is sold over its face value.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 201 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
Policy #3.10

DEBT MANAGEMENT POLICY

PRESENT VALUE
The value of a future amount or stream of revenues or expenditures in current dollars.

PRIVATE ACTIVITY BONDS
A bond where the use of bond proceeds is used for private purposes. If deemed a private activity bond, the interest is not tax exempt unless the use of the proceeds meets certain requirements of the Internal Revenue Code.

PUT OPTION
The right to demand repayment of principal prior to a bond's maturity. In the case of short-term variable rate debt, this right often is referred to as a variable-rate demand option.

REFUNDING
A procedure whereby an issuer refinances an outstanding bond issue by issuing new bonds.

REGISTERED BOND
A security on which the ownership is recorded by the issuer or its agent.

RESERVE FUND
A fund established by the indenture of a bond issue into which money is deposited for payment of debt service in case of a shortfall in current revenues.

REVENUE BONDS
Bonds secured by revenues generated by the facility that is financed or by dedicated user fees. Voter approval may or may not be required. Planning is more complex because costs and revenues affect each other. Credit enhancement (e.g., insurance, or letter of credit) may be needed because of the limited source of debt service payment.

SECONDARY MARKET
The market in which bonds are sold after their initial sale in the new issue market.

SENIOR LIEN BONDS
Bonds having a prior, or first claim on pledged revenues.

SERIAL BONDS
A bond issue in which the principal is repaid in periodic installments over the issue's life.

SOPHISTICATED INVESTOR
A purchaser of bonds, who is considered knowledgeable about the pricing and risk factors associated with the repayment of bonds. This type of investor usually purchases bonds in large dollar amounts, typically $100,000 or more.

SPECIAL ASSESSMENTS
A charge imposed against property or parcel of land that receives a special benefit by virtue of some public improvement that is not, or cannot be enjoyed by the public at large. Special assessment debt issues are those that finance such improvements and are repaid by the assessments charged to the benefiting property owners.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 202 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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DEBT MANAGEMENT POLICY

STANDARD & POOR'S CORPORATION (S&P)
A financial service company, a subsidiary of S&P Global, Inc. -Company. S&P provides ratings for municipal securities and other financial information to investors.

TAX ALLOCATION BONDS
Bonds secured by property tax increment (property taxes generated on assessed value in excess of the frozen property tax base) in a redevelopment project area. These bonds are issued to promote economic development.

Voter approval is not required.

TAX INCREMENT
Property tax revenues derived from the incremental assessed value increases from the redevelopment project area’s frozen tax base.

TERM BONDS
A bond issue in which the entire principal matures on one date. Term bonds also refer to a particularly large maturity of a bond issue that is created by aggregating a series of maturities. In the latter instance, provision is made for mandatory structuring fund installments in advance of the term bond's maturity to reduce the burden of a particular large debt service payment in any one fiscal year.

TRUE INTEREST COST (TIC)
An expression of the average interest cost in present value terms. The true interest cost is a more accurate measurement of the bond issue's effective interest cost and should be used to ascertain the best bid in a competitive sale.

UNDERWRITER'S COUNSEL
An attorney engaged by the underwriter(s) to represent its interests in a debt transaction. Generally underwriter's counsel prepares the bond purchase agreement between the issuer and the underwriter and, when more than one underwriter is involved, the agreement among underwriters.

VARIABLE RATE BOND
A bond on which the interest rate is reset periodically, usually no less often than semi-annually. The interest rate is reset either by means of an auction or through an index.

VENDOR LEASES
A vendor of equipment acts as the lessor and investor, and holds the lease for its full term or may assign the lease. The motivating factor to the vendor is usually to encourage future sales of its product.

YIELD CURVE
A graph that plots the market yields on securities with different maturities, at a given point in time. The vertical axis represents the yields, while the horizontal axis depicts the time to maturity. The term structure of interest rates, as reflected by the yield curve, will vary according to market conditions, resulting in a wide variety of yield curve configurations.

YIELD-TO-MATURITY
The rate of return that an investor will receive if the bond remains outstanding and the investor holds the bond to maturity. The investor must take into account the price paid for the bonds, the dates of purchase and maturity, and the coupon rate on the bonds. The "yield to maturity" assumes that interest payments will be re-invested at the same coupon rate borne by the bond.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 203 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
Policy #3.10

DEBT MANAGEMENT POLICY

ZERO COUPON
A bond which does not pay interest periodically. Investors receive interest on the scheduled principal maturity date of the obligation.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 204 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
Policy #3.10

DEBT MANAGEMENT POLICY
APPENDIX B: FORM OF FINANCING ASSISTANCE APPLICATION FOR CONDUIT DEBT I. PROPOSED OWNER OF THE PROJECT
A. Official Company Name:__________________________________________________________ DBAs (if applicable): _____________________________________________________________ Official Mailing Address:___________________________________________________________ ______________________________________________________________________________ Telephone:______________________ Fax:____________________________ Company Headquarters and address of primary operating location in California:______________________________________________________________________ B. Form of Ownership: Corporation ____________________________ Partnership:_________________ Sole Proprietorship________________________ Other (describe)__________________________________________________________ Is the proposed owner a subsidiary or affiliated directly or indirectly with any other organization? ___ If so, indicate relationship and name of related organization:
________________________________
If corporation, indicate state of incorporation:_____________________ and date qualified to do business in California (if incorporated elsewhere):_______________________ C. Officers Names & Home Address Other Business Affiliations President ___________________________ ________________________________ ___________________________ ________________________________ Vice President ___________________________ ________________________________ (Finance)
___________________________ ________________________________ Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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DEBT MANAGEMENT POLICY
Secretary ___________________________ ________________________________ Directors ___________________________ ________________________________ ___________________________ ________________________________ ___________________________ ________________________________ ___________________________ ________________________________ D. List name and home address of equity owners of 10% or more. If publicly held, indicate stock exchange traded on. If partnership, list General and Limited Partners and interest owned by each. If trust, list beneficiaries.
% of Equity
Name Home Address Interest Owned
_______________________ ______________________________ __________________ _______________________ ______________________________ __________________ _______________________ ______________________________ __________________ _______________________ ______________________________ __________________ E. Name, business address, and phone number of officer to whom all notices and communications concerning the project should be sent:

F. Principal Bank(s) of Account with name and phone number of contact person:

Name:___________________________ Contact:________________________________ Address:_______________________________________________________________________ Telephone:_______________________
Name:___________________________ Contact:________________________________ Address:_______________________________________________________________________ Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
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DEBT MANAGEMENT POLICY
Telephone:_______________________
G. Counsel to Applicant:

Name:_________________________________________________________________________ Address:_______________________________________________________________________ Telephone:___________________________ Fax:_____________________________ H. Bond Counsel on proposed project:

Name:_________________________________________________________________________ Address:_______________________________________________________________________ Telephone:___________________________ Fax:_____________________________ I. Investment Banker for proposed project:

Name:_________________________________________________________________________ Address:_______________________________________________________________________ Telephone:___________________________ Fax:_____________________________ J. Company History
List past tax-exempt financing transactions:
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Have any of these projects ever been in default? ________Yes ________No If yes, please provide particulars:

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 207 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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DEBT MANAGEMENT POLICY
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ K. Is the firm or any of its principals currently or in the past 10 years been engaged in any litigation involving financing of the type and nature of that being proposed to the City. _____Yes _____No.

If yes, please provide the names of the principals and details of the litigation. Use additional pages if necessary.
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ II. PROPOSED PROJECT
A. Give brief narrative explanation why project is being undertaken.

B. Narrative Description, including renderings if available of proposed project.

C. Proposed facilities to be constructed with bond proceeds (describe).

D. Does applicant now own the site of the proposed facility?_________ If not, has applicant entered into an option or commitment or other agreement to purchase it? E. Estimated useful life of buildings, equipment, or off-site improvements.

F. Does the proposed project involve, in whole or in part, any of the following: residential real property; sports facilities; commercial property; health care facilities; manufacturing facilities; entertainment facilities; or industrial land development activities? Yes_____ No_____ If yes, please explain. ______________________________________________________________________________ ______________________________________________________________________________ _____________________________________________________________________________ G. Estimated date on which facilities will:

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 208 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) City of Moreno Valley Fiscal
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DEBT MANAGEMENT POLICY
Start construction:_________________ Complete construction:_____________________ III. COST OF THE PROJECT
State the costs reasonably necessary to the acquisition or construction of the proposed project together with any machinery and equipment necessary or convenient in connection therewith, and including any utilities, access roads or apportionment facilities;
A. Land and Facilities $___________________________
B. Architectural and Engineering $___________________________ C. Construction Costs: $___________________________
D. Interest during construction: $___________________________ E. Financing, legal, miscellaneous
(from ______ to ______) $___________________________
(please specify)
F. Contingency (if appropriate) $___________________________ TOTAL $___________________________
IV. SIGNIFICANT PUBLIC BENEFITS
Please furnish a description of the significant public benefits that will arise from the issuance of bonds in the maximum amount proposed in the application.

A. Employment creation/displacement – will the completion of the project contribute to job creation? Explain.

B. Energy, mineral or natural or cultivated resource conservation – will the completion of the project lead to increased utilization of resources:

1. Estimate of increased utilization of resources.

2. Estimate of increases in cost to the public due to increased utilization.

C. Does construction of the project, or completion of the project, have any adverse environmental impacts, including additional waste disposal?

1. Estimate of the environmental impacts.

2. Include copies of any required Environmental Impact Reports.

Approved by: City Council & MVPFA
January 28, 2014
Revised: 2/7/17, 3/19/19, 4/21/20, 5/18/21, 6/20/23, 5/21/24 I.9.a
Packet Pg. 209 Attachment: Debt Management Policy - 5.21.24 (6629 : ANNUAL REVIEW OF THE DEBT MANAGEMENT POLICY) Report to City Council
ID#6630 Page 1
TO: Mayor and City Council
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: May 21, 2024
TITLE: ANNUAL STATEMENT OF INVESTMENT POLICY

RECOMMENDED ACTION
Recommendation:

1. Adopt the Annual Statement of Investment Policy.

SUMMARY
Staff recommends that the City council review and adopt the Annual Statement of Investment Policy. There are currently only minor changes proposed to the policy.

California Government Code Sections 53601 and 53646, respectively, delineate the types of investments allowed, define various restrictions governing these investments and suggest a periodic review of the investment report and investment policy by the governing body of the local agency. The City’s Investment Policy has established a review process whereby the Council reviews and adopts the policy annually. The policy identifies allowable investments, the reporting process related to the investments, safekeeping measures in maintaining assets and the roles of staff in the management of the investment program.

DISCUSSION
The City’s Investment Policy calls for the policy to be reviewed and adopted annually by the City Council. The policy was last revised in June 2023. The policy in its revised form has incorporated all of the most recent changes made to the California Government Code as well as the best practices which have been identified by the California Debt and Investment Advisory commission (CDIAC). The policy has been reviewed and certified by both the Association of Public Treasurers of the United States and Canada (APT US&C) and the California Municipal Treasurer’s Association (CMTA) in February 2020 and comments from that review process have been incorporated into I.10
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the current version of the policy.

The Investment Policy has been reviewed by both staff and our investment management firm, Chandler Asset Management. Based on this review, there have been only minor changes made to the policy to maintain recommended industry best practices.

This item was scheduled for review by the Finance Subcommittee at their April 23, 2024 meeting.

ALTERNATIVES

1. Adopt Annual Statement of Investment Policy. Staff recommends this alternative since this will allow for the timely review and adoption of the policy for the coming fiscal year.

2. Do not adopt Annual Statement of Investment Policy and provide staff with additional direction. Staff does not recommend this alternative since it will not allow for a timely review and adoption process prior to the start of the new fiscal year.

FISCAL IMPACT
No fiscal impact.

NOTIFICATION
Posting of Agenda

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Kimberly Ganimian Launa Jimenez
Deputy Finance Director Chief Financial Officer/City Treasurer

CITY COUNCIL GOALS
None

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
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ATTACHMENTS
To view large attachments, please click your “bookmarks” on the left hand side of this document for the necessary attachment.

1. Investment Policy - 5.21.24

APPROVALS
Budget Officer Approval ✓ Approved . 5/12/24 1:11 PM
City Attorney Approval ✓ Approved .

City Manager Approval ✓ Approved . 5/13/24 9:01 AM
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City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
PURPOSE: The City Council of the City of Moreno Valley (City) and its related authorities and agencies recognizes its responsibility to properly direct the investments of funds under its care. It is the purpose of this policy to provide guidelines for the prudent investment of unexpended funds in a manner which allows for maximum security, while at the same time providing the best investment return to meet the daily cash flow demands of the City, and conform to all applicable statutes pertaining to the investment of public funds. In instances in which the Policy is more restrictive than Federal or State law, the Policy supersedes.

This investment policy was endorsed and adopted by the City Council and is effective as of the 21st day of May, 2024, and replaces any previous versions.

I. Scope
A. Investments for the City and its related authorities and agencies will be made on a pooled basis including the City of Moreno Valley, the City of Moreno Valley Housing Authority, the Moreno Valley Community Services District, the Moreno Valley Public Facilities Financing Corporation, the Moreno Valley Public Financing Authority, and the Moreno Valley Industrial Development Authority. These funds are accounted for in the City’s Annual Comprehensive Financial Report and include:

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Project Funds

5. Internal Service Funds

6. Agency Funds

7. Enterprise Funds
B. The City Council has the authority to allow investments that do not follow this policy as long as such investments are recommended by the City Manager and City Treasurer, and expressly authorized by the City Council.

C. At the time this policy is adopted, the portfolio may hold investments which were made in the past and in accordance with previous policies and existing State law, but do not meet the provisions of this policy.

These past investments are grandfathered as permissible investments. The City may choose to hold these investments until maturity; however, their maturity cannot be extended without the expressed authorization of the City Council.

D. Funds excluded from this policy:

1. Bond Proceeds. Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy. The overriding policy for the investment of bond proceeds will be dictated by the bond documents governing such funds as long as the documents are approved by the City Council or related governing board.

2. Deferred Compensation Plans. Investments related to the City’s deferred compensation plans are not subject to this policy since third-party administrators manage them and the individual plan participant’s direct investment and mutual fund selection. Deferred compensation plans must be approved by the City Council.

3. Voluntary Employees’ Beneficiary Association (VEBA) plan: Funds deposited into VEBA plans on behalf of employees are managed under a separate investment policy and are held and managed by a third party fund manager.

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Packet Pg. 213 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
II. Prudence (Reference CA Govt. Code 53600 and 53646)
A. Prudent Investor Standard: Management of the City’s investments is governed by the Prudent Investor Standard as set forth in the California Government Code 53600.3:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” B. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments.

III. Objectives (Reference CA Govt. Code 53600.5)
A. The City’s investment philosophy sets the tone for its policies, practices, procedures and objectives that control the investment function. The investment of funds will be guided by the primary objectives of safety, liquidity and a reasonable market rate of return.

1. Safety – Safety of principal is the foremost objective of the investment program. The City will undertake investments in a manner that ensures the preservation of capital in the portfolio taken as a whole.

2. Liquidity – The City will maintain sufficient cash and short-term investment instruments which, together with projected revenues, will provide sufficient liquidity so that the City will be able to meet all operating requirements which might be reasonably anticipated including an amount to cover reasonably estimated contingencies.

3. Reasonable market rate of return (Yield) – The City’s investment portfolio will be designed with the objective to attain a benchmark rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk constraints and the cash flow characteristics of the portfolio.

B. The investment function will have the ongoing objectives of: assuring compliance with Federal, State and local laws governing the investment of public funds, maintaining reserves for long-term projects and contingencies, and establishing quality standards and limits related to the type of investments made and with which institutions investments are placed.

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Packet Pg. 214 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
IV. Delegation of Authority (Reference CA Govt. Code 41006 and 53607) A. The City of Moreno Valley Municipal Code specifies that the City Council will appoint the City Treasurer. By resolution, the City Council has appointed the Chief Financial Officer to serve as the City Treasurer. The Treasurer serves as the chief investment officer for the City and is authorized to invest or deposit the City’s funds in accordance with this policy, California Government Code Sections 53600 and 53630 et seq., and all other related Federal and State laws. The City Treasurer also serves as the Treasurer for the City of Moreno Valley Housing Authority, the Moreno Valley Public Financing Authority, the Moreno Valley Public Facilities Financing Corporation, the Moreno Valley Community Services District and other related City entities. In the absence of the City Treasurer, and unless otherwise delegated, the Deputy Finance Director will serve as the Acting Treasurer. The City Treasurer may appoint deputy treasurers to act on behalf of the City. The City Treasurer will provide written authorization when delegating any of his/her authority.

B. The City Manager will provide periodic oversight to the investment function which includes but is not limited to reviewing monthly investment reports issued by the City Treasurer.

C. The City Council’s primary responsibilities over the investment function include approving the Investment Policy, annually reviewing such policy, reviewing quarterly investment reports issued by the Treasurer, authorizing bond documents and other unique financing transactions, and authorizing any deviations from the City’s investment policies.

D. The Finance Sub-Committee of the City Council will provide oversight to the investment function through the quarterly review of the investment report at their committee meetings.

E. The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy. Such managers must be registered under the Investment Advisers Act of 1940.

V. Investment Procedures
A. The City Treasurer shall establish internal procedures for the operation of the investment program consistent with this policy. These procedures shall include, but are not limited to, the following items:

1. Safekeeping

2. Master repurchase agreements

3. Wire transfer agreements

4. Collateral/Depository agreements

5. Broker/Dealer relationships
B. Cash handling and cash management are integral components of an effective investment management program. In keeping with the Administrative Policy on Cash Control, the aforementioned procedure manual shall include references to the following:

1. Cash collection practices

2. Depository practices

3. Cash flow issues

4. Cash flow projections

5. Anti-theft/Anti-fraud practices

6. Banking agreements
I.10.a
Packet Pg. 215 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24

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

D. Allocation of Pool Interest

1. All interest earnings related to the investment pool will be allocated to the General Fund unless specifically directed by Federal or State statute, City Council directive or contractual agreement.

2. The allocation methodology will be maintained by the City Treasurer.

VI. Ethics and Conflict of Interest
A. All officials, staff members and consultants, involved in the investment functions will refrain from personal business activity that could conflict with the execution of the investment function or which may impair their ability to make impartial investment decisions. Officials, staff members, and consultants, will disclose to the City Manager any financial interests with a financial institution, provider, dealer or broker that conducts business with the City.

B. Officials, staff members and consultants will further disclose any personal financial positions that could be related to the City’s cash and investment portfolio.

C. All bond issue participants, including but not limited to, underwriters, bond counsel, financial advisors, brokers and dealers will disclose any fee sharing arrangements or fee splitting to the City Manager prior to the execution of any transactions. The providers must disclose the percentage share and approximate dollar amount share to the City prior to the execution of any transactions.

D. All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.

VII. Investment Controls
A. The City Manager shall oversee and ensure that the City Treasurer implements and maintains a system of internal investment controls and segregated responsibilities of the investment function in order to prevent the following:

1. Fraud

2. Theft

3. Loss of principal

4. Loss of control over funds

5. Inaccurate reporting

6. Negligence

7. Over-reliance on a single employee for investment decisions B. Internal controls should include but are not limited to (for a more specific list of internal controls see the investment management plan):

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Packet Pg. 216 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24

1. Segregation of duties (e.g., the purchaser of investments is different than the person recording the transaction)

2. Reconciliation of investment report and cash balances

3. Dual authorization of transactions
C. An external auditor will review the investment program annually in order to provide reasonable assurance that policy and procedures are complied with.

VIII. Authorized Financial Dealers and Institutions (Reference CA Govt. Code 53601) A. The City Treasurer will obtain financial information from qualified institutions to determine if the institution markets in securities appropriate to the City’s needs, can assign qualified sales representatives, and can provide written agreement to abide by the conditions set forth in the City of Moreno Valley Investment Policy.

1. The City may engage the services of investment advisory firms to assist in the management of the portfolio (discretionary portfolio management) and investment advisors may utilize their own list of approved broker/dealers. The list of approved firms maintained by the investment advisor shall be provided to the City on an annual basis or upon request. The investment advisor will certify that they have read and are willing to comply with the City’s investment policy.

2. In the event that an external investment advisor is not used in the process of recommending a particular transaction in the City’s portfolio, any authorized broker/dealer from whom a competitive bid is obtained for the transaction will meet the following criteria and provide the required information to the City Treasurer.

B. The City Treasurer will maintain a list of financial institutions and broker/dealers authorized to provide investment services to the City who are authorized to provide investment services in the State of California. An eligible designation does not guarantee that the City will do business with the firm or institution.

C. The following criteria will be used in determining investment providers

1. Broker/Dealers: The purchase by the City of any investment other than those purchased directly from the issuer shall be purchased from a broker/dealer firm designated as a “Primary Government Dealer” by the Federal Reserve Bank of New York or a regional dealer that qualifies under SEC Rule 15C3-1 (uniform net capital rule).

2. Banks: The City shall only purchase securities from banks which meet all of the following criteria:
a. Nationally or State chartered banks
b. Registered as investment securities dealers with the Securities and Exchange Commission c. Independently rated in the “A” rating category or higher by two nationally recognized statistical ranking organizations

3. Investment Bankers, Underwriters and Financial Advisors: The purchase by the City of any investments from these providers in the course of completing a bond transaction must be expressly authorized by the City Council after such a provider discloses their commission, spread or fee in approximate dollar amount. Otherwise, the acquisition of such investments must be procured from the broker/dealers customarily used by the City.

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Packet Pg. 217 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24

4. The Federal Reserve Bank: Direct purchases of Treasury bills, notes and bonds from the U.S.

Federal Reserve Banks branches are allowed and are exempt from quality requirements.

D. All financial institutions and broker/dealers who desire to become qualified bidders for investment transactions must provide the following information to the City Treasurer:

1. A completed City of Moreno Valley Broker/Dealer Questionnaire

2. Audited financial statements

3. Proof of Financial Industry Regulatory Authority (FINRA) certification

4. Trading resolution

5. Proof of state registration

6. Certification of having read and willingness to comply with City’s investment policy E. The City Treasurer will conduct an annual review of the financial condition and registrations of brokers/dealers on the City’s approved list.

F. A current audited financial statement is required to be on file for each financial institution and broker/dealer in which or with which the City invests.

G. Certificates of deposit will not be placed with an institution once it has received a Cease and Desist order from any bank regulatory agency.

IX. Authorized and Suitable Investments (with quality and limitation guidelines) (Reference CA Govt. Code 53601)
A. The California Government Code sections 53600 et seq. governs the allowable investments into which a local government agency can enter. These Government Code sections also stipulate as to the portfolio percentage limits and investment quality standards for some but not all permitted investments. The Government Code sections provide a starting point for establishing the City quality standards, percentage limits and maturity levels. Should the Government Code become more restrictive than this policy, the Government Code restrictions shall prevail.

B. Whenever a maximum allowable percentage of the portfolio is stipulated for any type of security as detailed below, the limit or maximum allowable is determined by the portfolio size or composition at the time of purchase.

C. Following is a table summarizing allowable investments for the City. This table summarizes and is consistent with California Government Code Sections 53600 and 53630 et seq.

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Packet Pg. 218 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24

INVESTMENT
TYPE

MAXIMUUM

REMAINING

MATURITY

MAXIMUM
SPECIFIED %

OF PORTFOLIO

MINIMUM

QUALITY

REQUIREMENTS
GOVT.

CODE

SECTION
Local Agency Bonds 5 years — none — — none — 53601(a)
U.S. Treasury Obligations 5 years — none — — none — 53601(b) State Obligations: CA and Others 5 years — none — — none — 53601(d) CA Local Agency Obligations 5 years — none — — none — 53601(e) U.S Agency Obligations 5 years — none — — none — 53601(f) Bankers’ Acceptances 180 days 40% — none — 53601(g)
Commercial Paper: Non-pooled Funds 270 days 40% of the agency’s invested funds (3)
“A-1/P-1/F-1”; if the
issuer has issued longterm debt it must be rated
at least in the “A” ratings
category
53601(h)(2)(C)
Negotiable Certificates of Deposit 5 years 30% — none — 53601(i) Placement Service Deposits 5 years 30% (2) — none — 53061.8 & 53635.8
Placement Service Certificates of Deposit 5 years 30% (2) — none — 53061.8 & 53635.8
Repurchase Agreements 1 year — none — — none — 53601(j) Medium-Term Notes 5 years 30% “A” rating category by a
NRSRO(1)
53601(k)
Supranational Securities
(Only International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank are approved issuers)
5 years 30%
“AA” rating category by
a NRSRO(1)
53601(q)
Mutual Funds and Money Market Mutual Funds n/a 20% Multiple 53601(l) and 53601.6(b)
Collateralized Bank Deposits 5 years — none — — none — 53630 et seq. and 53601(n)
Mortgage Pass-Through Securities/Asset Backed
Securities/Collateralized Mortgage Backed
Securities (not issued by US Treasury or U.S.

Agencies)
5 years 20% (1) “AA” rating category by
a NRSRO(1)
53601(o)
County Pooled Investment Funds n/a — none — — none — 27133 Joint Powers Authority Pool n/a —none — Multiple 53601(p) Local Agency Investment Fund (LAIF) n/a — none — — none — 16429.1 NRSRO = Nationally Recognized Statistical Rating Organization (1) The combination of Mortgage Pass-Through, Asset Backed and Collateralized Mortgage Backed securities may not exceed 20% of the portfolio. (2) No more than 30% of the agency’s money can be invested in deposits, including certificates of deposit through a placement service. (3) No more than 25 % of the Agency’s investment assets under management may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.

D. Investment Pools: A thorough investigation of an Investment Pool account is required prior to investing, and on a continual basis. The investigation must include information, if available, on the following items before investing:

1. A description of eligible investment securities, and a written statement of investment policy.

2. A description of interest calculations and distribution and how gains and losses will be treated.

3. A description of how the securities are safeguarded (including the settlement process), and how often the securities are priced and the program audited.

4. A description of who may invest in the program, how often and what is the allowable size of deposits and withdrawals, and any limitations as to number of transactions.

5. A schedule for receiving statements and portfolio listings.

6. Are reserves, retained earnings, etc. utilized by the pool?

7. Is the pool eligible for bond proceeds and/or will it accept such proceeds? E. Repurchase Agreements are legal and authorized by policy. In order to invest in repurchase agreements the City must obtain a signed Master Repurchase Agreement from the participating bank or broker/dealer.

F. Prohibited Investment Transactions and Derivatives:

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Packet Pg. 219 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24

1. The Government Code specifically prohibits certain types of investment instruments for municipalities. In addition to those prohibitions, the following investments are not permitted:
a. Reverse Repurchase Agreements
b. Financial futures or financial option contracts
c. Security lending
d. Securities with forward settlement date exceeding 45 days from the time of the investment is prohibited.

2. Additionally, the City shall not invest in any security that could result in zero interest accrual if held to maturity. Under a provision sunsetting on January 1, 2026, securities backed by the U.S.

Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.

3. Due to the complexity of the securities market and ever-changing market conditions, it is difficult to define derivatives and specifically prohibit their acquisition. Therefore, the City desires to limit the potential risk of derivatives by specifically prohibiting the most common types of derivatives with certain market exposures. These prohibited derivatives include but are not limited to:
inverse floaters, interest only securities derived from mortgages, residual securities, structured notes, forward based derivatives, forward contracts, forward rate agreements, futures contracts, interest rate futures contracts, foreign currency futures contracts, option based derivatives, option contracts, interest rate caps, interest rate floors, swap contracts, interest rate swaps, interest rate collars, foreign currency swaps, cross currency exchange agreements, fixed rate currency swaps, basis swaps, equity swaps, fixed rate equity swaps, floating rate equity swaps and commodity swaps.

4. Leveraging
a. The City may not purchase investments on a margin or through a margin account. b. The General Portfolio may not be leveraged by more than 30% through the issuance of tax and revenue anticipation notes (TRANS). The proceeds of any TRANS issue are to be invested in accordance with the guidelines in this policy, with investment maturities not to exceed the life of the TRANS.
c. The City may not leverage its investments through the use of reverse repurchase agreements.

X. Review of Investment Portfolio
A. The securities held by the City must be in compliance with paragraph IX Authorized and Suitable Investments and paragraph XIV Maximum Maturities at the time of purchase. At least quarterly the City Treasurer shall review the portfolio to identify any securities that do not comply with this policy. The City Treasurer shall establish procedures to report to the City Council major and critical incidences of noncompliance identified as a result of the portfolio review. (Also see paragraph XIII.E.) XI. Collateralization (Reference CA Govt. Code 53601)
A. Bank Deposits: Under provisions of the Government Code, California banks and savings and loan associations are required to secure the City’s deposits by pledging government securities with a value of 110% of principal and accrued interest. State law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits.

I.10.a
Packet Pg. 220 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
B. Certificates of Deposit:

1. The market value of securities that underlay certificates of deposit shall be valued at 110% of the market value of principal and accrued interest.

2. The City Treasurer, at his/her discretion may waive the collateral requirement for deposits up to the maximum dollar amount which are covered by the Federal Deposit Insurance Corporation.

C. Repurchase Agreements

1. The market value of securities that underlay certificates of deposit shall be valued at 102% of the market value of principal and accrued interest.

2. The value shall be adjusted no less than weekly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back to 102% no later than the next business day.

D. A clearly marked evidence of ownership, safekeeping receipt, must be supplied to the City and retained.

E. The City chooses to limit collateral to US Treasuries.

F. Collateral will always be held by an independent third-party with whom the entity has a current written custodial agreement.

G. The right of collateral substitution is granted based on the approval of the City Treasurer and City Manager.

XII. Safekeeping, Custody and Competitive Bids (Reference CA Govt. Code 53608) A. Third-party safekeeping is required for all investments. Securities may be maintained by a banking institution or a broker/dealer firm for safekeeping as long as the securities are held in the City’s name.

B. Third-party safekeeping arrangements will be approved by the City Treasurer and will be corroborated by a written custodial agreement.

C. All investment transactions of the City will be conducted using standard delivery vs. payment (DVP) procedures.

D. All securities held by the safekeeping custodian on behalf of the City shall have the City of Moreno Valley as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Moreno Valley as the payee.

E. All bank deposits will be FDIC insured or deposited with institutions that comply with the State collateral requirements for public funds.

F. Securities used as collateral for repurchase agreements with a maturity from one to seven days can be held in safekeeping by a third party bank trust department or by the broker/dealer’s safekeeping institution, acting as the agent for the City, under the terms of a custody agreement executed by the selling institution and by the City specifying the City’s “perfected” ownership of the collateral.

I.10.a
Packet Pg. 221 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
G. All investment transactions shall be conducted on a competitive basis with quotes from a minimum of three brokers or financial institutions when possible.

XIII. Diversification and Credit Risk Management
A. Investments contained within the portfolio will be diversified by security type, institution and maturity.

B. The diversification requirements included in Section IX are designed to mitigate credit risk in the portfolio.

C. No more than 5% of the total portfolio may be invested in securities of any single issuer, other than the US Government, its agencies and instrumentalities, Supranational issuers, investment pools and money funds or money market mutual funds.

D. The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to improve the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences; and,
E. If securities owned by City are downgraded by any nationally recognized statistical ratings organization to a level below the quality required by this Investment Policy, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

1. If a security is downgraded, the City Treasurer will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

2. If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported monthly to the City Council.

XIV. Maximum Maturities
A. The City Treasurer will maintain sufficient liquidity in cash and short-term investments, which together with projected revenue receipts will meet the cash flow requirements of the City for the upcoming six months.

B. The City will not directly invest in securities maturing more than five years away from the settlement date. In any case, where a cash flow is matched with an investment which exceeds the five year limit, the investment must be approved by the City Council at least 90 days prior to the purchase of the security(ies).

C. The average weighted maturity of the general portfolio shall not exceed 3 years. The general portfolio does not include bond proceeds or deferred compensation funds.

D. To the extent possible, longer-term investment maturities will be spaced so that a portion of such investments mature each year to cover unanticipated emergencies.

XV. Performance Standards
A. The investment portfolio shall be designed with the objective of obtaining a rate of return throughout budgetary and economic cycles, commensurate with the investment risk constraints.

I.10.a
Packet Pg. 222 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
B. The investment performance objective for the portfolio shall be to earn a total rate of return over a market cycle which is approximately equal to the return on a market benchmark Index of similar securities, as determined by the City Treasurer.

C. Market Return (Benchmark): The City’s investment strategy is active. Given this strategy, the basis used by the Treasurer to determine whether market return is being achieved shall be to identify a benchmark which reflects a portfolio structure that is comparable to the City’s portfolio. An example as it pertains to the long term portion of the portfolio would be the ICE Bank of America Merrill Lynch Index of 1to 5 Year Government securities.

XVI. Reporting (Reference CA Govt. Code 53607 and 53646(b)) A. The City Treasurer will provide a monthly report to the City Manager which will include the following information by security held at the end of the reporting period:

1. Investment Type

2. Issuer

3. Maturity Date

4. Par Value

5. Market Value

6. Book Value

7. Weighted Average Maturity

8. Source of Market Valuation

9. Monies maintained within the treasury

10. Funds, investments and loans that are under the management of contracted parties B. Quarterly, and within 45 days of the completion of the quarter, the City Treasurer will submit a report to the City Council in open public meeting with the same investment information provided to the City Manager on a monthly basis with the addition of the following data:

1. A description of the compliance with the statement of investment policy, or manner in which the portfolio is not in compliance.

2. A statement denoting the ability of the City to meet cash flow requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.

XVII. Investment Policy Adoption (Reference CA Govt. Code 53646(a)(2)) A. Annually, the City Treasurer will render to the City Council a Statement of Investment Policy, including any changes or revisions, to be reviewed and approved at a public meeting prior to or within 120 days of the end of the fiscal year.

XVIII. Record Retention
A. The following investment or cash management documents will be maintained in accordance with Chapter 2.60 of Title 2 of the City of Moreno Valley Municipal Code:

1. Investment Reports and supporting documentation

2. Third-party statements of assets held

3. Investment permanent files

4. Market pricing documentation
I.10.a
Packet Pg. 223 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24

INVESTMENT POLICY GLOSSARY
AGENCIES: See U.S. Agency Obligations
ANNUAL COMPREHENSIVE FINANCIAL REPORT: The official annual report for the city. It includes five combined statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP). It also includes supporting schedules necessary to demonstrate compliance with GAAP, finance-related legal and contractual provisions, extensive introductory material, and a detailed Statistical Section.

ASSET BACKED SECURITIES (ABS): A financial security collateralized by a pool of assets such as loans, leases, credit card debt, royalties or receivables. For investors, asset-backed securities are an alternative to investing in corporate debt. An ABS is similar to a mortgage-backed security, except that the underlying securities are not mortgage-based.

BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company.

The accepting institution guarantees payment of the bill and the issuer.

BANK/TIME DEPOSITS: A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). The deposited funds must remain in the account for the fixed term to receive the stated interest rate. Time deposits are an alternative to the standard savings account, and will usually pay a higher rate of interest.

BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio's investments.

BID: The price offered by a buyer of securities. (When selling securities, you ask for a bid.).

BROKER/DEALER: An individual or firm that brings buyers and sellers together in a securities transaction.

CALIFORNIA LOCAL AGENCY OBLIGATIONS: Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

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

Large-denomination CD's are typically negotiable. (See negotiable Certificates of Deposit) CERTIFICATE OF DEPOSIT PLACEMENT AGENCIES: Companies that allow an agency to combine the security of access to FDIC insurance above $250,000 with the convenience of working directly with just one financial institution by parceling out investments to participant banks in keeping with the FDIC requirements.

COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

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Packet Pg. 224 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
COLLATERALIZED BANK DEPOSITS: A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO): A type of mortgage-backed security that contains a pool of mortgages bundled together and sold as an investment. Organized by maturity and level of risk, CMOs receive cash flows as borrowers repay the mortgages that act as collateral on these securities.

In turn, CMOs distribute principal and interest payments to their investors based on predetermined rules and agreements.

COMMERCIAL PAPER: An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories and meeting short-term liabilities. Maturities on commercial paper rarely range longer than 270 days. Commercial paper is usually issued at a discount from face value and reflects prevailing market interest rates CORPORATE MEDIUM-TERM NOTE: Corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

COUPON: (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond evidencing interest due on a payment date.

DEALER: A dealer acts as a principal in all transactions, buying and selling for his own account.

DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of money.

DERIVATIVES: Financial products dependent for their value on (or derived from) an underlying financial instrument, a commodity, or an index.

DISCOUNT: The difference between the cost price of a security and its maturity when quoted at lower than face value. Asecurity selling below original offering price shortly after sale also is at a discount.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits up to$250,000 per deposit.

FEDERAL HOME LOAN BANKS (FHLB): Government sponsored wholesale banks (12 regional banks), which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank. (Also see Agencies)
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Packet Pg. 225 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): FNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages, second loans and fixed­ rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. (Also see Agencies)
FINANCIAL FUTURES/FINANCIAL OPTIONS CONTRACTS: A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future.

Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. The buyer of a futures contract is taking on the obligation to buy the underlying asset when the futures contract expires. The seller of the futures contract is taking on the obligation to provide the underlying asset at the expiration date.

GOVERNMENT CODE: The Government Code of the State of California.

LEVERAGING: The use of borrowed capital as a funding source when investing to expand the firm's asset base and generate returns on risk capital. Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets. When one refers to a company, property or investment as "highly leveraged," it means that item has more debt than equity.

INVESTMENT POOLS: A state or local government pool offered to public entities for the investment of public funds.

LIQUIDITY: A liquid asset can be converted easily and rapidly into cash without a substantial loss.

LOCAL AGENCY BONDS: Bonds issued by the City of Moreno Valley, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.

LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions placed in the custody of the State Treasurer for investment and reinvestment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MARKET RATE OF RETURN: A rate of return commensurate with the market for similar securities (maturity, credit rating, duration and liquidity) would be considered a market rate of return.

MATURITY: The date upon which the principal or stated value of an investment becomes due. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

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Packet Pg. 226 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
MEDIUM TERM NOTES (MTN): A note that usually matures in five to 10 years. A corporate MTN can be continuously offered by a company to investors through a dealer with investors being able to choose from differing maturities, ranging from nine months to 30 years, though most MTNs range in maturity from one to 10 years.

MONEY MARKET MUTUAL FUNDS: Open-ended mutual fund that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit and other highly liquid securities and pays money market rates of interest.

MORTGAGE PASS-THROUGH SECURITIES: Also called a pass-through, a security created when one or more mortgage holders form a collection (pool) of mortgages and sells shares or participation certificates in the pool. The cash flow from the collateral pool is "passed through" to the security holder as monthly payments of principal, interest, and prepayments. This is the predominant type of MBS traded in the secondary market.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO): Firms that review the creditworthiness of the issuers of debt securities and express their opinions in the form of letter rating categories (e.g. AAA, AA, A, BBB, etc). The primary rating agencies are the following; S&P Global Ratings, Moody's Investor Services, Inc.; Fitch Ratings, Inc. and DBRS, Inc.

PORTFOLIO: Collection of securities held by an investor.

PRIMARY DEALER: A group of government securities dealers that serve as trading counterparties of the New York Federal Bank in implementing monetary policy. This role includes the obligations to (i) participate consistently in open market operations to carry out U.S. monetary policy under the direction of the Federal Open Market Committee (FOMC) and (ii) provide the New York Federal Banks's trading desk with market information and analysis helpful in the formation and implementation of monetary policy. Primary dealers are also required to participate in all auctions of U.S. government debt and to make reasonable markets for the New York Federal Bank when it transacts for its foreign official account-holders.

RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond. The city calculates the rate of return based on the purchase price and the interest rate paid by the security when the Investment Report was prepared.

REPURCHASE AGREEMENT (repo): A form of short-term borrowing for dealers in government securities. In the case of a repo, a dealer sells government securities to investors, usually on an overnight basis, and buys them back the following day. (See Reverse Repurchase Agreement) REVERSE REPURCHASE AGREEMENTS: For the party selling the security and agreeing to repurchase it in the future, it is a repo; for the party on the other end of the transaction, buying the security and agreeing to sell in the future, it is a reverse repurchase agreement.

SAFEKEEPING: A service provided by banks and trust companies when the bank or trust company stores the securities, receives interest payments and redeems issues at maturity.

SECONDARY MARKET: A market made for the purchase and sale of outstanding following the initial distribution.

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Packet Pg. 227 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) City of Moreno Valley Fiscal
Policy #3.03

INVESTMENT POLICY
Approved by: City Council
December 17, 1996
Revised 1/13/98; 1/12/99; 2/8/00; 1/3/01; 5/14/02; 11/22/05; 2/26/08; 2/24/09; 3/23/10; 5/24/11; 4/24/12; 6/9/15; 6/9/16; 5/7/19; 5/18/20; 6/21/22; 6/20/23; 5/21/24
SEC RULE 15C3-1: See Uniform Net Capital Rule.

SECURITIES LENDING: The act of loaning a stock, derivative or other security to an investor or firm.

Securities lending requires the borrower to put up collateral, whether cash, security or a letter of credit.

When a security is loaned, the title and the ownership are also transferred to the borrower.

SETTLEMENT DATE: The date that city cash has been exchanged for an investment. This will be considered the date that the investment is owned by the City.

STATE OBLIGATIONS: Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

SUPRANATIONALS: Development banks that share the same goal of providing an improved standard of living in their member countries, but each having different mandates. There are three banks (supranationals) in which California local agencies can invest in their debt obligations: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank (IADB).

UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income returns on an investment, expressed as a percentage. There are nine methods of calculating yield identified by the California Debt and Investment Advisory Commission. The Treasurer shall select the method he or she thinks would be most informative to the reader of the report.

U.S. AGENCY OBLIGATIONS: A low-risk debt obligation that is issued by a U.S. governmentsponsored enterprise (GSE) or other federally related entity. Agency securities are issued by GSEs which include the Federal National Mortgage Association (FNMA), Federal Home Loan Bank, Federal Home Loan Mortgage Corporation (FHLMC), the Student Loan Marketing Association (SLMA).

U.S. TREASURY OBLIGATIONS: Debt obligations issued and backed by the full faith and credit of the US government. Because they are considered to have low credit or default risk, they generally offer lower yields relative to other bonds.

U.S. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

U.S. TREASURY BONDS: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of over 10 years.

U.S. TREASURY NOTES: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of one to 10 years.

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Packet Pg. 228 Attachment: Investment Policy - 5.21.24 [Revision 1] (6630 : ANNUAL STATEMENT OF INVESTMENT POLICY) Report to City Council
ID#6653 Page 1
TO: Mayor and City Council
FROM: Brian Mohan, Assistant City Manager
AGENDA DATE: May 21, 2024
TITLE: LIST OF PERSONNEL CHANGES

RECOMMENDED ACTION
Recommendation:

1. Ratify the list of personnel changes as described.

DISCUSSION
The attached list of personnel changes scheduled since the last City Council meeting is presented for City Council ratification.

Staffing of City positions ensures assignment of highly qualified and trained personnel to achieve Momentum MoVal priorities, objectives, and initiatives.

FISCAL IMPACT
All position changes are consistent with appropriations previously approved by the City Council.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Vanessa Leccese Brian Mohan
Assistant to the City Manager Assistant City Manager

CITY COUNCIL GOALS
Community Image, Neighborhood Pride and Cleanliness. Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.

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CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs

ATTACHMENTS
To view large attachments, please click your “bookmarks” on the left hand side of this document for the necessary attachment.

1. Personnel Changes

APPROVALS
Budget Officer Approval ✓ Approved . 5/14/24 7:09 AM
City Attorney Approval ✓ Approved .

City Manager Approval ✓ Approved . 5/14/24 8:45 AM
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City of Moreno Valley
Personnel Changes- 4/1/24 – 4/30/24
May 21, 2024
New Hires
Alma Esquivel, Management Aide, Capital Projects Divisions, Public Works Department Arturo Deluera, Parking Control Officer, Community Enhancement and Neighborhood Services, Community Development Department
Promotions
Micala Barber
From: Recycling Specialist, Purchasing & Sustainability Division, Financial and Management Services Department
To: Management Aide, Purchasing & Sustainability Division, Financial and Management Services Department
Janelle Bizzle
From: Management Assistant, Maintenance & Operations Division, Public Works Department To: Management Analyst, Maintenance & Operations Division, Public Works Department Eric Escobar
From: GIS Specialist, Technology Services Division, Financial and Management Services Department To: GIS Administrator, Technology Services Division, Financial and Management Services Department Sergio Garibay
From: Parks Maintenance Worker, Parks Maintenance Division, Parks & Community Services Department To: Facilities Maintenance Worker, Facilities Division, Public Works Department Roxana Loria
From: Management Aide, Purchasing and Sustainability Division, Financial and Management Services Department
To: Management Assistant, Capital Projects Division, Public Works Department Transfers
None
Separations
None
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Packet Pg. 231 Attachment: Personnel Changes (6653 : LIST OF PERSONNEL CHANGES) Report to City Council
ID#6614 Page 1
TO: Mayor and City Council
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: May 21, 2024
TITLE: APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL

TAXES FOR CERTAIN COMMUNITY FACILITIES
DISTRICTS FOR FISCAL YEAR 2024/25 (RESO NOS.
2024-__, 2024-__, 2024-__, AND 2024-__)

RECOMMENDED ACTION
Recommendations:

1. As the legislative body of Moreno Valley Community Facilities District No. 5, Adopt Resolution No. 2024-__, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 5 of the City of Moreno Valley Maximum and Applied Special Tax Rates for Fiscal Year 2024/25, and Calculation Thereof.

2. As legislative body of Moreno Valley Community Facilities District No. 7, Adopt Resolution No. 2024-__, a Resolution of The City Council of the City of Moreno Valley, California, Approving the Continuation of the Improvement Area No. 1 of Community Facilities District No. 7, of the City of Moreno Valley Maximum and Applied Special Tax Rates for Fiscal Year 2024/25, and Calculation Thereof.

3. As the legislative body of Moreno Valley Community Facilities District No. 4- Maintenance, adopt Resolution No. 2024-__, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 4-Maintenance of the City of Moreno Valley Maximum and Applied Special Tax Rates for Fiscal Year 2024/25, and Calculation Thereof.

4. As the legislative body of the Community Facilities District No. 2014-01 (Maintenance Services), adopt Resolution No. 2024-__, a Resolution of the City Council of the City of Moreno Valley, California, Approving the Continuation of the City of Moreno Valley Community Facilities District No. 2014-01 I.12
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(Maintenance Services) Maximum and Applied Special Tax Rates for Fiscal Year 2024/25, and Calculation Thereof.

5. Authorize the Chief Financial Officer to adjust the proposed special tax rates in the event there are any parcel changes, clerical errors, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax does not exceed the maximum special tax and is in compliance with the Rate and Method of Apportionment of Special Tax for the district.

SUMMARY
This report recommends adoption of resolutions (Attachments 1 - 4), which approve the calculation and set the fiscal year (FY) 2024/25 maximum and applied special tax rates against real property included within certain Community Facilities Districts (CFD) administered by the City and authorizes the levy of the applied special tax on the property tax roll. Adoption of the resolutions also acknowledges the filing of annual reports for each CFD. This is a routine process that occurs each year.

The proposed special taxes are a continuation of the special taxes currently, or authorized to be, levied on the property tax roll. There are no increases proposed to the maximum rates, other than an annual adjustment, provided the qualified electors (i.e., landowners or registered voters, depending upon the number of registered voters) previously authorized such adjustment. Revenue received from the special tax funds maintenance and administrative expenses for the service CFDs or debt service and administrative expense requirements for the bonded CFDs.

At the April 23, 2024 meeting, the Finance Subcommittee received an update on the annual inflationary adjustment process that will be applied to the maximum assessment rates, if previously authorized by the property owners.

DISCUSSION
The Mello-Roos Community Facilities Act of 1982 (the “Act”) allows the formation of CFDs to fund the operation and maintenance of public improvements and/or finance the construction of public infrastructure improvements by the issuance of bonds. The qualified electors within the boundaries of the CFDs approved the Rate and Method of Apportionment (RMA) and authorized the levy of a special tax on their properties to fund the services of the district or as security for repayment of bonds. The RMA establishes the special tax formula (e.g. rate of annual adjustment, if any, etc.) and how the special tax is apportioned to properties included in each CFD.

The special tax cannot be levied on the property tax roll nor can adjustments be made to the maximum and applied rates, as authorized by the qualified electors, unless the City Council authorizes such actions. Adoption of the resolutions sets the maximum and applied special tax rates, approves the calculation of the rates, and approves an Annual I.12
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Special Tax Report (“Report”) for each CFD. The resolutions also authorize the County to levy the special tax on the FY 2024/25 property tax roll.

The Report for each CFD includes a description of the formation proceedings, boundary map and identification of parcels included in the district, and the proposed maximum and applied special taxes per parcel to be levied on the property tax roll for FY 2024/25.

Reports for the service CFDs also include a description of the improvements being maintained and estimated operational and administrative costs to provide the service.

The reports for the bonded CFDs include debt service and administrative requirements.

In addition, the Reports for the bonded districts include the Annual Bond Accountability Reports, a requirement of California Government Code Section 53411 (“Government Code”). Boundary maps for the CFDs are also included (Attachment 6). The Reports are on file with the Chief Financial Officer/City Treasurer and accessible from the City’s website (www.moval.org/sd).

The maximum special tax rate is the maximum amount that can be used to calculate the special tax levied on the property tax roll. If the qualified electors have previously authorized an annual inflationary adjustment to the maximum rate, the Report recommends adjusting the maximum rate by the adjustment. Otherwise, it remains unchanged.

The applied special tax rate is the amount that is used to calculate the special tax actually levied on the property tax roll. It is the amount necessary to fund the services of each CFD, including administration and reserves for the upcoming fiscal year. The applied special tax rate cannot exceed the maximum special tax rate.

Conflict of Interest Analysis
Section 18702.2 of the Fair Political Practices Commission (FPPC) Regulations provides that if a Council Member has a financial interest in a parcel of land (other than a leasehold interest), the Council Member must recuse him or herself from voting on any proposal that would impose, repeal, or modify any taxes, fees, or assessments that apply to the parcel owned by the Council Member. However, there is an exception under Section 18703 of the FPPC Regulations, which provides that if a governmental decision's financial effect on a Council Member’s financial interest is indistinguishable from its effect on the public generally, then the Council Member is not disqualified from participating in the subject decision. In other words, if the Council Member can establish that a significant segment of the public is affected by the decision, and the effect on the Council Member’s financial interest is not unique compared to the effect on the public generally, then the subject Council Member may participate in the subject decision.

Section 18703 also includes a provision titled “Specific Rules for Special Circumstances,” which provides in part that there is no potential conflict of interest if the decision involves a proposal to set or adjust the amount of an assessment or tax for broadly provided public services that is applied equally, proportionally, or by the same percentage to the official's interest and all businesses, properties, or individuals subject to the assessment or tax. This exception, however, does not apply if the decision would I.12
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initially impose the assessment or tax, or determine the boundaries of a property or who is subject to the assessment or tax. Under this exception, a Council Member is only permitted to take part in setting or adjusting the amount of the assessment or tax, once the decisions to implement the assessment or tax, or determine which property or persons that will be subject to the assessment or tax have already been made.

Since the instant situation pertains to recommendations regarding whether to adjust the amounts of various assessments and taxes in a manner that will be the same across the board, which are associated with assessment and special tax districts that have already been established, any Council Member who owns property within any of the subject districts who are subject to payment of the assessments and/or special taxes may vote on the assessments and/or special taxes, whether it is recommended that the amounts remain the same or be increased.

With respect to those Council Members who rent or lease real property within any of the subject districts, there is a different rule which applies that suggests that there may be a potential conflict of interest that requires such Council Members to recuse themselves from voting on the proposed assessments and/or special taxes, whether it is recommended that the amounts remain the same or be increased.

Section 18702.2 of the FPPC Regulations, titled “Materiality Standard: Financial Interest in Real Property” provides that it is reasonably foreseeable that a governmental decision on any real property in which a Council Member has a leasehold interest is material if the governmental decision will increase or decrease the potential rental value of the property. In cases involving any proposed increase in an assessment or special tax that must be paid by the landlord as the property owner, it is foreseeable that the landlord may pass-through any such increase to anyone leasing the property that is subject to the assessment or special tax.

In light of the foregoing, it is recommended that each Council Member who rents property within a particular district that is subject to the taxes and assessments listed in this staff report should recuse themselves from participating in any decision to increase any tax or assessment that may be passed through by the landlord and consequently affect the potential rental value of the property rented by the Council Member. On the other hand, those who own property within the subject districts may vote on the proposed taxes and assessments since they will be applied equally across the board that presumably will not create a unique effect on the Council Member’s interest.

This action meets the Strategic Plan Priorities by providing the financial resources to manage and maximize Moreno Valley’s public infrastructure to ensure an excellent quality of life.

ALTERNATIVES

1. Adopt the resolutions and recommended actions as presented. Staff recommends this alternative as it will allow for the collection of revenue necessary to fund services or satisfy debt service obligations of the CFDs.

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It is also consistent with the bond covenants, if applicable, Act, and Government Code.

2. Do not approve the recommended actions. Staff does not recommend this alternative as it may prevent the City from levying the special taxes on the 2024/25 property tax roll and leave the CFDs without sufficient revenue to fund services or satisfy debt service obligations. This alternative may require a contribution from the General Fund. It will also require use of reserve funds to make debt service payments, which will trigger a “significant event” and affect the City’s reputation in the bond market.

Furthermore, failure to file the Reports is a violation of the Act and Government Code.

3. Continue the item to a future regular City Council meeting. Staff does not recommend this alternative as it may prevent the City from meeting the County of Riverside’s deadline to include the special taxes on the FY 2024/25 property tax roll.

FISCAL IMPACT
Property owners pay the special tax as part of their annual property tax bill. The special tax, including annual adjustments where applicable, has been approved by the affected qualified electors through prior proceedings. Funds received for the benefit of each CFD are restricted and can only be used to fund the services and obligations of each district.

The tables below provide a summary of the proposed maximum and applied special tax rates for FY 2024/25. Only those tax rate areas with annexed parcels are shown in the table for CFD 2014-01. The complete schedule can be found as part of the Report.

Maximum Applied Maximum1 Applied
$ 14,915.29 $ 14,123.88 $ 15,213.59 $ 14,559.34 2.00% $ 435.46 21 $ 419,600.04 $ 14,915.29 $ - $ 15,213.59 $ - 2.00% $ -
$ 3,500.00 $ 2,745.79 $ 3,500.00 $ 2,722.72 0.00% $ (23.07) 3 $ 200,637.50 $ 3,500.00 $ - $ 3,500.00 $ - 0.00% $ -
Adjustment to
Maximum1
Change in
Applied
Special Tax
Revenue
1 Maximum rates are based on a predetermined formula as outlined in the Rate and Method of Apportionment for each CFD. The Annual Adjustment Rate was approved by the Qualified Electors (landowners or registered voters).
2 Subject to an annual adjustment of the Maximum Special Tax equal to two percent (2%).

Proposed Annual Special Tax Rates
Undeveloped
IA No. 1 of CFD No. 7
Developed
Undeveloped
FY 2023/24 FY 2024/25
Bonded CFDs
per acre per acre
per acre per acre
No. of Parcels
District Levied
CFD No. 5 (Stoneridge)2
Developed
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$ 0.013413 $ 0.011659 $ 0.014389 $ 0.012296 13.249% $ 0.000637 17 $ 89,581.52 SL-01A $ 310.72 $ 31.50 $ 326.24 $ 31.50 $ - 1,200 $ 37,800.00 SL-01B $ 97.64 $ 9.73 $ 102.52 $ 8.27 $ (1.46) 527 $ 4,353.62 SL-02 $ 5.06 $ 0.55 $ 5.30 $ 1.00 $ 0.45 72 $ 41,735.74 LM-01A $ 21.22 $ - $ 21.22 $ - $ - $ -
LM-01B $ 66.96 $ 66.96 $ 70.30 $ 66.96 $ - 68 $ 4,553.28 LM-01C $ 122.84 $ 122.84 $ 128.98 $ 128.98 $ 6.14 102 $ 13,155.96 LM-01D $ 201.04 $ 201.04 $ 211.08 $ 211.08 $ 10.04 381 $ 80,421.48 LM-01E $ 301.60 $ 301.60 $ 316.68 $ 301.60 $ - $ -
LM-01F $ 424.50 $ 102.62 $ 445.72 $ 102.62 $ - 317 $ 32,530.54 LM-01G $ 569.76 $ 135.92 $ 598.24 $ 185.92 $ 50.00 416 $ 77,342.72 LM-01H $ 737.36 $ 347.68 $ 774.22 $ 397.68 $ 50.00 55 $ 21,872.40 LM-01K $ 1,374.26 $ 682.90 $ 1,442.96 $ 732.90 $ 50.00 86 $ 63,029.40 TC-01A $ 26.54 $ 26.54 $ 27.86 $ 27.86 $ 1.32 177 $ 4,931.22 LM-02A $ 17.16 $ 9.26 $ 17.16 $ 9.26 $ - 13 $ 30,629.10 LM-02B $ 8.56 $ 5.39 $ 8.56 $ 5.39 $ - 17 $ 15,645.18
TC-03 $ 40.92 $ 37.84 $ 42.96 $ 42.96 $ 5.12 9 $ 45,107.90 SD-01P $ 1,007.06 $ 1,007.06 $ 1,057.40 $ 1,007.06 $ - 270 $ 271,906.20 SD-01C $ 2.78 $ - $ 2.90 $ - $ - 270
District
Residential Landscaping
CFD No. 2014-01 (Maintenance Services)4,5
Tax Rate Area6
Proposed Annual Special Tax Rates
per parcel per parcel
per proportional front footage per proportional front footage Residential Street Lighting
Non-Residential Street Lighting
Maximum Applied Maximum1 Applied
FY 2023/24 FY 2024/25 No. of Parcels
Levied
Change in
Applied
Special Tax
Revenue
per proportional front footage per proportional front footage Adjustment to
Maximum1
Service CFDs
Non-Residential Landscaping
per square foot per square foot CFD No. 4-M (Centerpointe)2,3

5.00%
1Maximum rates are based on a predetermined formula as outlined in the Rate and Method of Apportionment for each CFD. The Annual Adjustment Rate was approved by the Qualified Electors (landowners or registered voters).
2Maintenance of certain storm drain facilities.
3Subject to an annual adjustment based on the annual percentage change in the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the calendar year, which ends in the previous fiscal year.
4Maintenance & operation of street lights, public landscaping, and streets and drainage. 5Subject to an annual escalation factor based on the greater of the increase in the annual percentage change in the CPI (3.47%) or five percent (5%). 6Only those Tax Rate Areas that have parcels annexed into it are shown. See the Report for a complete schedule.

Traffic Circle Landscaping Without Monument/Signage Features for Property Other than Single-Family
Residential
per angularly allocated landscape
foot
per angularly allocated landscape
foot
Street Maintenance and Drainage for
Single-Family Residential

NOTIFICATION
Posting of the agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Felicia London Launa Jimenez
Special Districts Division Manager Chief Financial Officer/City Treasurer Concurred By:

Melissa Walker
Public Works Director

CITY COUNCIL GOALS
Public Facilities and Capital Projects. Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

Positive Environment. Create a positive environment for the development of Moreno Valley's future.

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Packet Pg. 237

Community Image, Neighborhood Pride and Cleanliness. Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
See the Discussion section above for details of how this action supports the City Council’s Strategic Priorities.

ATTACHMENTS
To view large attachments, please click your “bookmarks” on the left hand side of this document for the necessary attachment.

1. CFD 5

2. CFD 7

3. CFD 4M

4. CFD 2014-01

5. Boundary Maps

APPROVALS
Budget Officer Approval ✓ Approved . 5/14/24 7:18 AM
City Attorney Approval ✓ Approved .

City Manager Approval ✓ Approved . 5/14/24 8:43 AM
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Packet Pg. 238
1 Resolution No. 2024-__
Date Adopted: May 21, 2024
RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, APPROVING THE

CONTINUATION OF THE COMMUNITY FACILITIES
DISTRICT NO. 5 OF THE CITY OF MORENO VALLEY

MAXIMUM AND APPLIED SPECIAL TAX RATES FOR
FISCAL YEAR 2024/25, AND CALCULATION THEREOF
WHEREAS, the City Council of the City of Moreno Valley, California, did form Community Facilities District No. 5 of the City of Moreno Valley (“CFD No. 5” or “District”) pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and
WHEREAS, following approval by the qualified electors of the District, the legislative body did adopt Ordinance No. 701 (“Ordinance”) to authorize a levy of a special tax within CFD No. 5; and
WHEREAS, on May 31, 2007, the City of Moreno Valley issued the Community Facilities District No. 5, 2007 Special Tax Bonds in the amount of $5,870,000; and WHEREAS, the legislative body of the District determined that it would be prudent in the management of the fiscal affairs of the District to issue bonds for the purpose of refunding the Original Bonds; and
WHEREAS, on December 7, 2021, the legislative body adopted Resolution No. 2021-81, which authorized the issuance of Special Tax Refunding Bonds for the District to accomplish a net reduction in the debt service requirement, and approved the Bond Indenture terms and conditions pertaining to the issuance of $4,795,000 for CFD No. 5; and
WHEREAS, the Ordinance authorizes the legislative body, by resolution, to annually determine the special tax to be levied in the District; provided, however, the special tax to be levied shall not exceed the maximum special tax rate authorized to be levied pursuant to the Rate and Method of Apportionment (“RMA”); and WHEREAS, the Riverside County Auditor-Controller’s Office requires the adoption of a resolution for submission with the annual special taxes for placement on the Riverside County property tax bills; and
WHEREAS, the maximum annual special tax for developed and undeveloped property has been established by the RMA at $10,652.00 per acre for fiscal year (FY) 2006/07. Per the RMA, the maximum annual special tax shall be increased by an I.12.a
Packet Pg. 239 Attachment: CFD 5 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 2 Resolution No. 2024-__
Date Adopted: May 21, 2024
amount equal to two percent (2%) each fiscal year in order to meet the annual special tax requirement; and
WHEREAS, the annual special tax requirement shall be applied first to developed properties based on the maximum special tax rate; and WHEREAS, if additional monies are required to fund the annual special tax requirement, then the special tax shall be applied proportionately to all undeveloped properties; and
WHEREAS, the City Council has determined that continuing the calculation of the applied special tax and application of the special tax, as previously approved by the qualified electors, for each applicable assessable parcel of real property within the District, consistent with the RMA, will provide the necessary and equitable revenue stream to fund the obligations of the District for FY 2024/25; and WHEREAS, the calculation of the special tax is in compliance with laws pertaining to the levy of the special taxes; and
WHEREAS, the special tax is levied without regard to property valuation; and WHEREAS, Government Code §53410 requires that on or after January 1, 2001, any bond measure that is subject to voter approval that would provide for the sale of bonds by a local agency shall provide accountability measures; and WHEREAS, Government Code §54311 requires the chief fiscal officer of the issuing local agency to file an Annual Bond Accountability Report with its governing body no later than January 1, 2002, and at least once a year thereafter; and WHEREAS, the City has prepared and submitted the Annual Special Tax and Bond Accountability Report (“Report”) for FY 2024/25, which identifies the maximum and applied special tax rates, in an amount not to exceed the maximum special tax, and the calculation thereof; and
WHEREAS, the Report is on file in the office of the City Treasurer/Chief Financial Officer (“CFO”) and is incorporated herein by this reference; and WHEREAS, the annual special taxes shall be submitted to the Riverside County Auditor-Controller’s Office, to be levied on the property tax bills of parcels subject to the special tax.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO
VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Incorporation of Recitals. The foregoing recitals are true and correct and incorporated herein by this reference.

I.12.a
Packet Pg. 240 Attachment: CFD 5 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 3 Resolution No. 2024-__
Date Adopted: May 21, 2024

2. Approval of Report. The above referenced Report, on file in the office of the City’s CFO, is approved as filed, as the Report may have been modified by order of the City Council.

3. Maximum Special Tax Rate. The FY 2024/25 maximum special tax rate for developed and undeveloped properties is set at $15,213.59 per acre.

4. Applied Special Tax Rate for Developed Properties. The FY 2024/25 applied special tax rate for developed properties is set at $14,559.34 per acre.

5. Applied Special Tax Rate for Undeveloped Properties. The FY 2024/25 applied special tax rate for undeveloped properties is set at $0 per acre.

6. Confirming the Rates. The maximum and applied special tax rates are hereby confirmed for each parcel of real property within the District, as set forth in the Report.

7. Collection of Special Taxes. The special taxes set forth in the Report, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedures, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.

8. Compliance with Government Code. This legislative body hereby submits the Report in compliance with the above mentioned Government Code Sections, and that the Report shall remain on file with the CFO for review by the public upon request.

9. Modifications. The CFO is authorized to adjust the special taxes levied on the property tax roll in the event there are parcel changes, clerical errors, new parcels annexed into the District, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax rate does not exceed the maximum special tax rate and is in compliance with the RMA.

10.Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

I.12.a
Packet Pg. 241 Attachment: CFD 5 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 4 Resolution No. 2024-__
Date Adopted: May 21, 2024

11.Certified Copy. The City Clerk is hereby ordered to forward a certified copy of this Resolution to the County of Riverside and to take such actions as are required for the collection of the tax.

12.Certification. The City Clerk shall certify to the adoption of this Resolution.

13.Effective Date. This Resolution shall become effective immediately upon its adoption.

I.12.a
Packet Pg. 242 Attachment: CFD 5 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 5 Resolution No. 2024-__
Date Adopted: May 21, 2024
APPROVED AND ADOPTED this 21st day of May 2024.
________________________________
Mayor of the City of Moreno Valley
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
City Attorney
I.12.a
Packet Pg. 243 Attachment: CFD 5 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 6 Resolution No. 2024-__
Date Adopted: May 21, 2024

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, Jane Halstead, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2024-___ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting thereof held on the 21st day of May 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)
___________________________________

CITY CLERK
(SEAL)
I.12.a
Packet Pg. 244 Attachment: CFD 5 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 1 Resolution No. 2024-___
Date Adopted: May 21, 2024
RESOLUTION NO. 2024-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, APPROVING THE
CONTINUATION OF THE IMPROVEMENT AREA NO. 1 OF
COMMUNITY FACILITIES DISTRICT NO. 7, OF THE CITY

OF MORENO VALLEY MAXIMUM AND APPLIED SPECIAL
TAX RATES FOR FISCAL YEAR 2024/25, AND

CALCULATION THEREOF
WHEREAS, the City Council of the City of Moreno Valley, California, did form Improvement Area No. 1 of Community Facilities District No. 7 of the City of Moreno Valley (“IA1 of CFD No. 7” or “District”) pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982”, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, following approval by the qualified electors of the District, the legislative body did adopt Ordinance No. 911 (“Ordinance”) to authorize a levy of a special tax within IA1 of CFD No. 7; and
WHEREAS, on September 15, 2016, the City of Moreno Valley issued the Improvement Area No. 1 of Community Facilities District No. 7 of the City of Moreno Valley Special Tax Bonds in the amount of $3,265,000; and WHEREAS, the Ordinance authorizes the legislative body, by resolution, to annually determine the special tax to be levied in the District; provided, however, the special tax to be levied shall not exceed the maximum special tax rate authorized to be levied pursuant to the Amended and Restated Rate and Method of Apportionment (“RMA”); and
WHEREAS, the Riverside County Auditor-Controller’s Office requires the adoption of a resolution for submission with the annual special taxes for placement on the Riverside County property tax bills; and
WHEREAS, the maximum annual special tax rate for developed and undeveloped property has been established by the RMA at $3,500 per acre. There is no escalator clause for the maximum special tax rate; and
WHEREAS, the City Council has determined that continuing the calculation of the applied special tax and application of the special tax, as previously approved by the qualified electors, for each applicable assessable parcel of real property within the District, consistent with the RMA, will provide the necessary and equitable revenue stream to fund the obligations of the District for fiscal year (FY) 2024/25; and I.12.b
Packet Pg. 245 Attachment: CFD 7 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 2 Resolution No. 2024-___
Date Adopted: May 21, 2024
WHEREAS, the City, acting for and on behalf of itself and the CFD, and the property owners entered into an Area Drainage Plan (“ADP”) Fee Agreement under which the City agreed to transfer local ADP fees paid by future annexation property owners, who made payment of the ADP fees in lieu of annexing into the CFD, to the CFD and such payments will be used to offset the special tax requirement; and WHEREAS, to satisfy the special tax requirement, the special tax shall be levied proportionately on (i) each assessor’s parcel of annexed property up to 100% of the applicable maximum special tax, and (ii) each assessor’s parcel of developed property up to 100% of the applicable maximum special tax; and
WHEREAS, if additional monies are required to fund the annual special tax requirement, then the special tax shall be applied proportionately to all undeveloped properties up to the maximum special tax; and
WHEREAS, the calculation of the special tax is in compliance with laws pertaining to the levy of the special taxes; and
WHEREAS, the special tax is levied without regard to property valuation; and WHEREAS, Government Code §53410 requires that on or after January 1, 2001, any bond measure that is subject to voter approval that would provide for the sale of bonds by a local agency shall provide accountability measures; and WHEREAS, Government Code §54311 requires the chief fiscal officer of the issuing local agency to file an Annual Bond Accountability Report with its governing body no later than January 1, 2002, and at least once a year thereafter; and WHEREAS, the City has prepared and submitted the Annual Special Tax and Bond Accountability Report (“Report”) for FY 2024/25, which identifies the maximum and applied special tax rates, in an amount not to exceed the maximum special tax rate, and the calculation thereof; and
WHEREAS, the Report is on file in the office of the City Treasurer/Chief Financial Officer (“CFO”) and is incorporated herein by this reference as if fully set forth; and WHEREAS, the annual special taxes shall be submitted to the Riverside County Auditor-Controller’s Office, to be levied on the property tax bills of parcels subject to the special tax.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO
VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Incorporation of Recitals. The foregoing recitals are true and correct and incorporated herein by this reference.

I.12.b
Packet Pg. 246 Attachment: CFD 7 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 3 Resolution No. 2024-___
Date Adopted: May 21, 2024

2. Approval of Report. The above referenced Report, on file in the office of the City’s CFO, is approved as filed, as the Report may have been modified by order of the City Council.

3. Maximum Special Tax Rate. The FY 2024/25 maximum special tax for developed and undeveloped properties is set at $3,500 per acre.

4. Applied Special Tax Rate for Developed Properties. The FY 2024/25 applied special tax for developed properties is set at $2,722.72 per acre.

5. Applied Special Tax Rate for Undeveloped Properties. The FY 2024/25 applied special tax for undeveloped properties is set at $0.00 per acre.

6. Confirming the Rates. The maximum and applied special tax rates are hereby confirmed for each parcel of real property within the District, as set forth in the Report.

7. Collection of Special Taxes. The special taxes set forth in the Report, shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in the case of delinquency as is provided for ad valorem taxes, unless another procedure is adopted by the City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to delinquent special tax payments. The CFO is hereby authorized and directed to provide all necessary information to the Treasurer and Tax Collector of Riverside County and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at the times necessary to satisfy the financial obligations of IA1 of CFD No. 7 in each FY.

8. Compliance with Government Code. This legislative body hereby submits the Report in compliance with the above mentioned Government Code Sections, and that the Report shall remain on file with the CFO for review by the public upon request.

9. Modifications. The CFO is authorized to adjust the special taxes levied on the property tax roll in the event there are parcel changes, clerical errors, new parcels annexed into the District, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax rate does not exceed the maximum special tax rate and is in compliance with the RMA.

10.Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid I.12.b
Packet Pg. 247 Attachment: CFD 7 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 4 Resolution No. 2024-___
Date Adopted: May 21, 2024
provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

11.Certified Copy. The City Clerk is hereby ordered to forward a certified copy of this Resolution to the County of Riverside and to take such actions as are required for the collection of the tax.

12.Certification. The City Clerk shall certify to the adoption of this Resolution.

13.Effective Date. This Resolution shall become effective immediately upon its adoption.

APPROVED AND ADOPTED this 21st day of May 2024.
________________________________
Mayor of the City of Moreno Valley
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
City Attorney
I.12.b
Packet Pg. 248 Attachment: CFD 7 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 5 Resolution No. 2024-___
Date Adopted: May 21, 2024

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, Jane Halstead, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2024-___ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting thereof held on the 21st day of May 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)
___________________________________

CITY CLERK
(SEAL)
I.12.b
Packet Pg. 249 Attachment: CFD 7 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 1 Resolution No. 2024-___
Date Adopted May 21, 2024
RESOLUTION NO. 2024-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, APPROVING THE

CONTINUATION OF THE COMMUNITY FACILITIES
DISTRICT NO. 4-MAINTENANCE OF THE CITY OF

MORENO VALLEY MAXIMUM AND APPLIED SPECIAL
TAX RATES FOR FISCAL YEAR 2024/25, AND

CALCULATION THEREOF
WHEREAS, the City Council of the City of Moreno Valley, California, did form Community Facilities District No. 4-Maintenance of the City of Moreno Valley (“CFD No. 4-M” or “District”) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and
WHEREAS, following approval by the qualified electors of the District, the legislative body did adopt Ordinance No. 697 (“Ordinance”) approving the rate and method of apportionment of special taxes (RMA) to authorize a levy of a special tax within CFD No. 4-M; and
WHEREAS, the Ordinance authorizes the legislative body, by resolution, to annually determine the special tax to be levied in the District; provided, however, the special tax to be levied does not exceed the maximum special tax authorized to be levied pursuant to the RMA; and
WHEREAS, the City Council adopted Resolution No. 2005-108 authorizing annexation of Territory in the future to CFD No. 4-M; and WHEREAS, annexations to CFD No. 4-M have been conducted by the City following formation of the District; and
WHEREAS, the Riverside County Auditor-Controller’s Office requires the adoption of a resolution for submission with the annual special taxes for placement on the Riverside County property tax bills; and
WHEREAS, the maximum annual special tax rate for developed and undeveloped property has been established by the RMA at $0.00737 per square foot of land area for fiscal year (FY) 2006/07. Per the RMA, the maximum annual special tax shall be increased each fiscal year thereafter, by an amount equal to the Engineering News-Record Building Cost Index for the City of Los Angeles, measured as of the end of the calendar year; and
WHEREAS, the qualified electors authorized an annual adjustment to the maximum special tax rate through prior proceedings; and I.12.c
Packet Pg. 250 Attachment: CFD 4M (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 2 Resolution No. 2024-___
Date Adopted: May 21, 2024
WHEREAS, the City Council has determined that continuing the calculation of the applied special tax and application of the special tax, as previously approved by the qualified electors, for each assessable parcel of real property within the District will provide the necessary and equitable revenue stream to fund the services of the District for FY 2024/25; and
WHEREAS, the City Council has determined that continuing the calculation of the maximum special tax rate, including an annual adjustment is necessary; and WHEREAS, the calculation of the special tax is in compliance with laws pertaining to the levy of the special taxes; and
WHEREAS, the special tax is levied without regard to property valuation; and WHEREAS, the City has prepared and submitted the Annual Special Tax Report (“Report”) for FY 2024/25, which identifies the maximum and applied annual special tax rates for each parcel, in an amount not to exceed the maximum special tax, and the calculation thereof; and
WHEREAS, the Report is on file in the office of the City Treasurer/Chief Financial Officer (“CFO”) and is incorporated herein by this reference; and WHEREAS, the annual special taxes shall be submitted to the Riverside County Auditor-Controller’s Office, to be levied on property tax bills of parcels subject to the special tax.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO
VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Incorporation of Recitals. The foregoing recitals are true and correct and incorporated herein by this reference.

2. Approval of Report. The above referenced Report, on file in the office of the City’s CFO, is approved as filed, as the Report may have been modified by order of the City Council.

3. Maximum Special Tax Rate. The FY 2024/25 maximum special tax rate is set at $0.014389 per square foot of land area.

4. Applied Special Tax Rate. The FY 2024/25 the applied special tax rate is set at $0.012296 per square foot of land area.

5. Confirming the Rates. The maximum and applied special tax rates are hereby confirmed for each parcel of real property within the District, as set forth in the Report.

I.12.c
Packet Pg. 251 Attachment: CFD 4M (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 3 Resolution No. 2024-___
Date Adopted: May 21, 2024

6. Collection of Special Taxes. The special taxes set forth in the Report, shall be collected on the Riverside County tax roll at the same time and in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the Riverside County tax roll or may, by resolution, elect to collect the taxes at a different time or in a different manner if necessary to meet its financial obligations.

7. Modifications. The CFO is authorized to adjust the special taxes levied on the property tax roll in the event there are parcel changes, clerical errors, new parcels annexed into the District, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax rate does not exceed the maximum special tax rate and is in compliance with the RMA.

8. Provision of Services. Nothing in this description of services or any Resolution or Ordinance of the City Council shall be construed as committing the City or the District to provide all of the proposed services. The provision of services shall be subject to the availability of sufficient funding through the collection of special tax revenue within the District.

9. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

10.Certified Copy. The City Clerk is hereby ordered to forward a certified copy of this Resolution to the County of Riverside and to take such actions as are required for the collection of the tax.

11.Certification. The City Clerk shall certify to the adoption of this Resolution.

12.Effective Date. This Resolution shall become effective immediately upon its adoption.

I.12.c
Packet Pg. 252 Attachment: CFD 4M (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 4 Resolution No. 2024-___
Date Adopted: May 21, 2024
APPROVED AND ADOPTED this 21st day of May 2024.
________________________________
Mayor of the City of Moreno Valley
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
City Attorney
I.12.c
Packet Pg. 253 Attachment: CFD 4M (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 5 Resolution No. 2024-___
Date Adopted: May 21, 2024

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, Jane Halstead, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2024-___ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting thereof held on the 21ST day of May 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)
___________________________________

CITY CLERK
(SEAL)
I.12.c
Packet Pg. 254 Attachment: CFD 4M (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 1 Resolution No. 2024-___
Date Adopted: May 21, 2024
RESOLUTION NO. 2024-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MORENO VALLEY, CALIFORNIA, APPROVING THE

CONTINUATION OF THE COMMUNITY FACILITIES
DISTRICT NO. 2014-01 (MAINTENANCE SERVICES)

MAXIMUM AND APPLIED TAX SPECIAL TAX RATES FOR
FISCAL YEAR 2024/25, AND CALCULATION THEREOF
WHEREAS, the City Council of the City of Moreno Valley, California, did form City of Moreno Valley Community Facilities District No. 2014-01 (Maintenance Services) (“CFD No. 2014-01” or “District”) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and WHEREAS, following approval by the qualified electors of the District, the legislative body did adopt Ordinance No. 874 approving the rate and method of apportionment of special tax (“RMA”) to authorize a levy of special taxes within CFD No. 2014-01; and
WHEREAS, on October 28, 2014, the legislative body did adopt Ordinance No. 882, providing for future annexation to the District and adopting the First Amended and Restated RMA which provides tax rates for single-family residential parcels served by typical street light and landscape improvements; and
WHEREAS, the legislative body did adopt Ordinance No. 889 on February 10, 2015, providing for future annexation to the District and adopting the Second Amended and Restated RMA which provides for the equitable apportionment of the tax with respect to single-family residential parcels and the equitable apportionment of the tax with respect to non-single-family residential parcels; and WHEREAS, the legislative body did adopt Ordinance No. 980 on April 20, 2021, providing for future annexation to the District and adopting the Third Amended and Restated RMA which provides for the equitable apportionment of taxes to fund services associated with perimeter street lights, traffic circles, drainage improvements and roads; and
WHEREAS, the Ordinance No. 874, Ordinance No. 882, Ordinance No. 889, and Ordinance No. 980 authorize the legislative body, by resolution, to annually determine the special tax to be levied in the District; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the RMA; and
WHEREAS, the Riverside County Auditor-Controller’s Office requires the adoption of a resolution for submission with the annual special taxes for placement on the Riverside County property tax bills; and
I.12.d
Packet Pg. 255 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 2 Resolution No. 2024-__
Date Adopted: May 21, 2024
WHEREAS, for fiscal year (FY) 2014/15, the maximum special tax rates for taxable property in SL-01A (Single-Family Residential Street Lighting) and SL-02 (Street Lighting for Property Other than Single-Family Residential) were as follows:

Tax Rate Area No. Rate
SL-01A (Single-Family Residential Street Lighting,
Perimeter and Interior Street Lighting)
$197.39 per Single-Family Residential Parcel
SL-02 (Street Lighting for Property Other than SingleFamily Residential) $3.25 per Proportional Front Footage WHEREAS, for FY 2021/22, the maximum special tax rates for taxable property in SL-01B (Single-Family Residential Street Lighting, Perimeter Street Lighting Only) is as follows:

Tax Rate Area No. Rate
SL-01B (Single-Family Residential Street Lighting,
Perimeter Street Lighting Only)
$87.28 per Single-Family Residential Parcel
WHEREAS, for FY 2014/15, the maximum special tax rates for taxable property in Tax Rate Area No. LM-01 (Single-Family Residential Landscaping) were as follows:

Maintenance
Category Maintenance Ratio
Rate per SingleFamily Residential
Parcel
LM-01A Less than or equal to 20 square feet per Single-Family Residential Parcel $14.19
LM-01B 21 - 40 square feet per Single-Family Residential Parcel $42.58 LM-01C 41 - 70 square feet per Single-Family Residential Parcel $78.06 LM-01D 71 - 110 square feet per Single-Family Residential Parcel $127.73 LM-01E 111 - 160 square feet per Single-Family Residential Parcel $191.60 LM-01F 161 - 220 square feet per Single-Family Residential Parcel $269.66 LM-01G 221 - 290 square feet per Single-Family Residential Parcel $361.91 LM-01H 291 - 370 square feet per Single-Family Residential Parcel $468.36 LM-01I 371 - 460 square feet per Single-Family Residential Parcel $589.00 LM-01J 461 - 560 square feet per Single-Family Residential Parcel $723.83 LM-01K 561 - 670 square feet per Single-Family Residential Parcel $872.85 LM-01L 671 - 790 square feet per Single-Family Residential Parcel $1,036.07 LM-01M 791 - 920 square feet per Single-Family Residential Parcel $1,213.48 LM-01N 921 – 1,060 square feet per Single-Family Residential Parcel $1,405.08 LM-01O 1,061 – 1,210 square feet per Single-Family Residential Parcel $1,610.87 LM-01P 1,211 – 1,370 square feet per Single-Family Residential Parcel $1,830.86 LM-01Q 1,371 – 1,540 square feet per Single-Family Residential Parcel $2,065.04 LM-01R 1,541 – 1,720 square feet per Single-Family Residential Parcel $2,313.41 LM-01S 1,721 – 1,910 square feet per Single-Family Residential Parcel $2,575.98 LM-01T 1,911 – 2,110 square feet per Single-Family Residential Parcel $2,852.73 I.12.d
Packet Pg. 256 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 3 Resolution No. 2024-__
Date Adopted: May 21, 2024
WHEREAS, for FY 2014/15, the maximum special tax rates for taxable property in Tax Rate Area No. LM-02 (Landscaping for Property Other than Single-Family Residential) were as follows:

WHEREAS, for FY 2021/22, the maximum special tax rates for taxable property in Tax Rate Area No. TC-01 (Traffic Circle Landscaping without Monument/Signage Features for Single-Family Residential) are as follows:

WHEREAS, for FY 2021/22, the maximum special tax rates for taxable property in Tax Rate Area No. TC-02 (Traffic Circle Landscaping with Monument/Signage Features for Single-Family Residential) are as follows:

Maintenance
Category Maintenance Description Rate per Proportional Front Footage LM-02A Median(s) (other than Medians-Shared) $10.94
LM-02B Median(s)-Shared $5.47
LM-02C Parkway(s) $13.48
Maintenance
Category Maintenance Ratio
Rate per SingleFamily Residential
Parcel
TC-01A Less than or equal to 20 square feet per Single-Family Residential Parcel $23.73
TC-01B 21 - 40 square feet per Single-Family Residential Parcel $71.28 TC-01C 41 - 70 square feet per Single-Family Residential Parcel $130.73 TC-01D 71 - 110 square feet per Single-Family Residential Parcel $213.93 TC-01E 111 - 160 square feet per Single-Family Residential Parcel $320.90 TC-01F 161 - 220 square feet per Single-Family Residential Parcel $451.65 TC-01G 221 - 290 square feet per Single-Family Residential Parcel $606.20 TC-01H 291 - 370 square feet per Single-Family Residential Parcel $784.50 TC-01I 371 - 460 square feet per Single-Family Residential Parcel $986.60 TC-01J 461 - 560 square feet per Single-Family Residential Parcel $1,212.48 TC-01K 561 - 670 square feet per Single-Family Residential Parcel $1,462.08 TC-01L 671 - 790 square feet per Single-Family Residential Parcel $1,735.50 TC-01M 791 - 920 square feet per Single-Family Residential Parcel $2,032.68 TC-01N 921 – 1,060 square feet per Single-Family Residential Parcel $2,353.63 I.12.d
Packet Pg. 257 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 4 Resolution No. 2024-__
Date Adopted: May 21, 2024
WHEREAS, for FY 2021/22, the maximum special tax rates for Traffic Circle Landscaping for Property Other than Single-Family Residential are as follows:

Tax Rate Area No. Rate
TC-03 (Without Monument/Signage Features) $36.58 per Angularly Allocated Landscape Foot TC-04 (With Monument/Signage Features) $43.89 per Angularly Allocated Landscape Foot WHEREAS, for FY 2021/22, the maximum special tax rates for taxable property in Tax Rate Area No. SD-01 (Street Maintenance and Drainage for Single-Family Residential) are as follows:

WHEREAS, per the RMA as amended and authorized by the qualified electors, the maximum annual special tax shall be increased annually, beginning the year following the base year, as defined in the RMA, by the greater of the increase in the annual percentage change in the Consumer Price Index (CPI) for All Urban Consumers for the Los Angeles-Riverside-Orange County Region as published by the Department of Labor’s Bureau of Labor Statistics or five percent (5%); and WHEREAS, the City Council has determined that continuing the calculation of the applied special tax and application of the special tax, as previously approved by the Maintenance
Category Maintenance Ratio
Rate per SingleFamily Residential
Parcel
TC-02A
Less than or equal to 20 square feet per Single-Family
Residential Parcel $37.96
TC-02B 21 - 40 square feet per Single-Family Residential Parcel $114.04 TC-02C 41 - 70 square feet per Single-Family Residential Parcel $209.16 TC-02D 71 - 110 square feet per Single-Family Residential Parcel $342.28 TC-02E 111 - 160 square feet per Single-Family Residential Parcel $513.44 TC-02F 161 - 220 square feet per Single-Family Residential Parcel $722.64 TC-02G 221 - 290 square feet per Single-Family Residential Parcel $969.92 TC-02H 291 - 370 square feet per Single-Family Residential Parcel $1,255.20 TC-02I 371 - 460 square feet per Single-Family Residential Parcel $1,578.56 TC-02J 461 - 560 square feet per Single-Family Residential Parcel $1,939.96 TC-02K 561 - 670 square feet per Single-Family Residential Parcel $2,339.32 TC-02L 671 - 790 square feet per Single-Family Residential Parcel $2,776.80 TC-02M 791 - 920 square feet per Single-Family Residential Parcel $3,252.28 TC-02N 921 – 1,060 square feet per Single-Family Residential Parcel $3,765.80 Maintenance
Category Maintenance Description Maximum Rate
SD-01 Street Maintenance and Drainage $900 per Taxable Parcel plus $2.50 per Proportional Curb Foot
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Packet Pg. 258 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 5 Resolution No. 2024-__
Date Adopted: May 21, 2024
qualified electors, for each assessable parcel of real property within the District will provide the necessary and equitable revenue stream to fund the services of the District for FY 2024/25; and
WHEREAS, the City Council has determined that continuing the calculation of the maximum special tax rate, including an annual adjustment is necessary; and WHEREAS, the calculation of the special tax is in compliance with laws pertaining to the levy of the special taxes; and
WHEREAS, the special tax is levied without regard to property valuation; and WHEREAS, the City has prepared and submitted the Annual Special Tax Report (“Report”) for FY 2024/25, which identifies the maximum and special tax rates, in an amount not to exceed the maximum special tax, and the calculation thereof; and WHEREAS, the Report is on file in the office of the City Treasurer/Chief Financial Officer (“CFO”) and is incorporated herein by this reference; and WHEREAS, the annual special taxes shall be submitted to the Riverside County Auditor-Controller’s Office, to be levied on the property tax bills of parcels subject to the special tax.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORENO
VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Incorporation of Recitals. The foregoing recitals are true and correct and incorporated herein by this reference.

2. Approval of Report. The above referenced Report, on file in the office of the City’s CFO, is approved as filed, as the Report may have been modified by order of the City Council.

3. Street Lighting Special Tax Rates. The FY 2024/25 maximum and applied special tax rates for taxable properties in Street Lighting Tax Rate Areas are identified in Exhibit “A” attached hereto and incorporated into this Resolution by this reference.

4. Landscaping Special Tax Rates for Single-Family Residential. The FY 2024/25 maximum special tax and applied special tax rates for taxable property in Tax Rate Area No. LM-01 (Single-Family Residential Landscaping) are identified in Exhibit “A”.

5. Landscaping Special Tax Rates for Property Other than Single-Family Residential. The FY 2024/25 maximum special tax and applied special tax rates for taxable property in Tax Rate Area No. LM-02 (Landscaping for Property Other I.12.d
Packet Pg. 259 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 6 Resolution No. 2024-__
Date Adopted: May 21, 2024
than Single-Family Residential) and TC (Traffic Circle Landscaping for Property Other than SFR) are identified in Exhibit “A”.

6. Street Maintenance and Drainage Special Tax Rates for Single-Family Residential. The FY 2024/25 maximum special tax and applied special tax rates for taxable property in Tax Rate Area No. SD-01 (Street Maintenance and Drainage for Single-Family Residential) are identified in Exhibit “A”.

7. Confirming the Rates. The maximum and applied special tax rates are hereby confirmed for each parcel of real property within the District, as set forth in the Report.

8. Collection of Special Taxes. The special taxes set forth in the Report, will be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

Notwithstanding the forgoing, any special taxes that cannot be collected on the County tax roll, or are not so collected, may be collected through direct billing by the City.

9. Modifications. The CFO is authorized to adjust the special taxes levied on the property tax roll in the event there are parcel changes, clerical errors, new parcels annexed into the District, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax rate does not exceed the maximum special tax rate and is in compliance with the RMA.

10.Provision of Services. Nothing in this description of services or any Resolution or Ordinance of the City Council shall be construed as committing the City or the District to provide all of the proposed services. The provision of services shall be subject to the availability of sufficient funding through the collection of special tax revenue within the District.

11.Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

12.Certified Copy. The City Clerk is hereby ordered to forward a certified copy of this Resolution to the County of Riverside and to take such actions as are required for the collection of the tax.

13.Certification. The City Clerk shall certify to the adoption of this Resolution.

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Packet Pg. 260 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 7 Resolution No. 2024-__
Date Adopted: May 21, 2024

14.Effective Date. This Resolution shall become effective immediately upon its adoption.

APPROVED AND ADOPTED this 21st day of May 2024.
________________________________
Mayor of the City of Moreno Valley
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
____________________________
City Attorney
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Packet Pg. 261 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 8 Resolution No. 2024-__
Date Adopted: May 21, 2024

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, Jane Halstead, City Clerk of the City of Moreno Valley, California, do hereby certify that Resolution No. 2024-___ was duly and regularly adopted by the City Council of the City of Moreno Valley at a regular meeting thereof held on the 21st day of May 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Council Members, Mayor Pro Tem and Mayor)
___________________________________

CITY CLERK
(SEAL)
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Packet Pg. 262 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 9 Resolution No. 2024-__
Date Adopted: May 21, 2024
Exhibit “A”
FY 2024/25 Special Tax Rates
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Packet Pg. 263 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 10 Resolution No. 2024-__
Date Adopted: May 21, 2024
Tax Rate
Area Description
Unit of
Calculation
LM-01 Single-Family Residential Landscaping per parcel
LM-01A Less than or equal to 20 square feet per Single-Family Residential Parcel 23.38 - LM-01B 21 - 40 square feet per Single-Family Residential Parcel 70.30 66.96 LM-01C 41 - 70 square feet per Single-Family Residential Parcel 128.98 128.98 LM-01D 71 - 110 square feet per Single-Family Residential Parcel 211.08 211.08 LM-01E 111 - 160 square feet per Single-Family Residential Parcel 316.68 301.60 LM-01F 161 - 220 square feet per Single-Family Residential Parcel 445.72 102.62 LM-01G 221 - 290 square feet per Single-Family Residential Parcel 598.24 185.92 LM-01H 291 - 370 square feet per Single-Family Residential Parcel 774.22 397.68 LM-01I 371 - 460 square feet per Single-Family Residential Parcel 973.68 - LM-01J 461 - 560 square feet per Single-Family Residential Parcel 1,196.60 - LM-01K 561 - 670 square feet per Single-Family Residential Parcel 1,442.96 732.90 LM-01L 671 - 790 square feet per Single-Family Residential Parcel 1,712.80 - LM-01M 791 - 920 square feet per Single-Family Residential Parcel 2,006.10 - LM-01N 921 – 1,060 square feet per Single-Family Residential Parcel 2,322.86 - LM-01O 1,061 – 1,210 square feet per Single-Family Residential Parcel 2,663.06 - LM-01P 1,211 – 1,370 square feet per Single-Family Residential Parcel 3,026.78 - LM-01Q 1,371 – 1,540 square feet per Single-Family Residential Parcel 3,413.96 - LM-01R 1,541 – 1,720 square feet per Single-Family Residential Parcel 3,824.58 - LM-01S 1,721 – 1,910 square feet per Single-Family Residential Parcel 4,258.64 - LM-01T 1,911 – 2,110 square feet per Single-Family Residential Parcel 4,716.20 - LM-02 Landscaping for Property Other than Single-Family Residential per proportional front foot LM-02A Median(s) (other than Median(s)-Shared) 18.00 9.26 LM-02B Median(s) Shared 8.98 5.39
LM-02C Parkway(s) 22.20 -
TC-01 Traffic Circle Landscaping without Monument for SFR per parcel TC-01A Less than or equal to 20 square feet per Single-Family Residential Parcel 27.86 27.86 TC-01B 21 - 40 square feet per Single-Family Residential Parcel 83.72 - TC-01C 41 - 70 square feet per Single-Family Residential Parcel 153.56 - TC-01D 71 - 110 square feet per Single-Family Residential Parcel 251.32 - TC-01E 111 - 160 square feet per Single-Family Residential Parcel 377.00 - TC-01F 161 - 220 square feet per Single-Family Residential Parcel 530.64 - TC-01G 221 - 290 square feet per Single-Family Residential Parcel 712.22 - TC-01H 291 - 370 square feet per Single-Family Residential Parcel 921.72 - TC-01I 371 - 460 square feet per Single-Family Residential Parcel 1,159.14 - TC-01J 461 - 560 square feet per Single-Family Residential Parcel 1,424.54 - TC-01K 561 - 670 square feet per Single-Family Residential Parcel 1,717.82 - TC-01L 671 - 790 square feet per Single-Family Residential Parcel 2,039.06 - TC-01M 791 - 920 square feet per Single-Family Residential Parcel 2,388.24 - TC-01N 921 – 1,060 square feet per Single-Family Residential Parcel 2,765.34 - TC-02 Traffic Circle Landscaping with Monument for SFR per parcel TC-02A Less than or equal to 20 square feet per Single-Family Residential Parcel 44.58 - TC-02B 21 - 40 square feet per Single-Family Residential Parcel 133.94 - TC-02C 41 - 70 square feet per Single-Family Residential Parcel 245.74 - TC-02D 71 - 110 square feet per Single-Family Residential Parcel 402.12 - TC-02E 111 - 160 square feet per Single-Family Residential Parcel 603.22 - TC-02F 161 - 220 square feet per Single-Family Residential Parcel 849.02 - TC-02G 221 - 290 square feet per Single-Family Residential Parcel 1,139.58 - TC-02H 291 - 370 square feet per Single-Family Residential Parcel 1,474.76 - TC-02I 371 - 460 square feet per Single-Family Residential Parcel 1,854.66 - TC-02J 461 - 560 square feet per Single-Family Residential Parcel 2,279.28 - TC-02K 561 - 670 square feet per Single-Family Residential Parcel 2,748.52 - TC-02L 671 - 790 square feet per Single-Family Residential Parcel 3,262.52 - TC-02M 791 - 920 square feet per Single-Family Residential Parcel 3,821.18 - TC-02N 921-1,060 square feet per Single-Family Residential Parcel 4,424.54 - TC Traffic Circle Landscaping for Property Other than SFR per angularly allocated landscape foot TC-03 Without Monument/Signage Features 42.96 42.96
TC-04 With Monument/Signage Features 51.52 -
SL-01 Single-Family Residential Street Lighting
SL-01A Perimeter and Interior Street Lighting 326.24 31.50 SL-01B Perimeter Street Lighting Only 102.52 8.27
Street Lighting for per front linear foot -
Property Other than Single-Family Residential 5.30 1.00 per parcel 1,057.40 1,007.06
per curb foot 2.90 -
per parcel
SD-01 Street Maintenance and Drainage
SL-02
Maximum Applied
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Packet Pg. 264 Attachment: CFD 2014-01 (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES CFD No. 5 Boundary Map
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Packet Pg. 265 Attachment: Boundary Maps [Revision 1] (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY I.12.e
Attachment: Boundary Maps [Revision 1] (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL I.12.e
Packet Pg. 267
Attachment: Boundary Maps [Revision 1] (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL I.12.e
Packet Pg. 268 Attachment: Boundary Maps [Revision 1] (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY I.12.e
Packet Pg. 269
Attachment: Boundary Maps [Revision 1] (6614 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL Report to City Council
ID#6615 Page 1
TO: Mayor and City Council Acting in its Capacity as
President and Members of the Board of Directors of the
Moreno Valley Community Services District (CSD)
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: May 21, 2024
TITLE: APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL

TAXES FOR CERTAIN COMMUNITY FACILITIES
DISTRICTS FOR FISCAL YEAR 2024/25 (RESO. NOS.

CSD 2024-__ AND CSD 2024-_)

RECOMMENDED ACTION
Recommendations:

1. Acting in its capacity as the Board of Directors for the CSD and as the legislative body of Community Facilities District No. 1, adopt Resolution No. CSD 2024-__, a Resolution of the Moreno Valley Community Services District of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 1 Maximum and Applied Special Tax Rates for Fiscal Year 2024/25, and Calculation Thereof.

2. Acting in its capacity as the Board of Directors for the CSD and as the legislative body of Community Facilities District No. 2021-01, adopt Resolution No. CSD 2024-__, a Resolution of the Moreno Valley Community Services District of the City of Moreno Valley, California, Approving the Continuation of the Community Facilities District No. 2021-01 Maximum and Applied Special Tax Rates for Fiscal Year 2024/25, and Calculation Thereof.

3. Authorize the Chief Financial Officer to adjust the proposed special tax rates in the event there are any parcel changes, clerical errors, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax does not exceed the maximum special tax and is in compliance with the Rate and Method of Apportionment of Special Tax for each district.

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SUMMARY
This report recommends adoption of the resolutions (Attachments 1 and 2), which approve the calculation and set the maximum and applied special tax rates against real property included within certain Community Facilities Districts (CFD) administered by the CSD and authorizes the levy of the applied special tax on the fiscal year (FY) 2024/25 property tax roll. Adoption of the resolutions also acknowledges the filing of an annual report for each CFD. This is a routine process that occurs each year.

The proposed special tax is a continuation of the special tax currently, or authorized to be, levied on the property tax roll. There is no increase proposed to the maximum rate other than an annual adjustment, as previously approved by the qualified electors (i.e., landowners or registered voters, depending upon the number of registered voters).

Revenue received from the special tax funds the maintenance and operation expenses for the CFD facilities.

At the April 23, 2024 meeting, the Finance Subcommittee received an update on the annual inflationary adjustment process that will be applied to the maximum assessment rates, if previously authorized by the property owners.

DISCUSSION
The Mello-Roos Community Facilities Act of 1982 (the “Act”) allows the formation of CFDs to fund the operation and maintenance of public improvements. The qualified electors within the boundaries of the CFDs approved the Rate and Method of Apportionment (RMA) and authorized the levy of a special tax on their properties to fund the services of the district or as security for repayment of bonds. The RMA establishes the special tax formula (e.g. rate of annual adjustment, if any, etc.) and how the special tax is apportioned to properties included in each CFD.

The special tax cannot be levied on the property tax roll nor can adjustments be made to the maximum and applied rates, as authorized by the qualified electors, unless the CSD Board authorizes such actions. Adoption of the resolutions sets the maximum and applied special tax rates, approves the calculation of the rates, and approves an Annual Special Tax Report (“Report”) for each CFD. The resolutions also authorize the County to levy the special tax on the FY 2024/25 property tax roll.

The Report for each CFD includes a description of the formation proceedings, a description of the park facilities, boundary maps and list of parcels in the CFD, estimated operational and administrative costs to provide the services, and the proposed maximum and applied special taxes per parcel to be levied on the property tax roll for FY 2024/25. Boundary maps for each CFD are included as Attachment 3.

The Reports are on file with the Chief Financial Officer/City Treasurer and accessible from the City’s website (www.moval.org/sd).

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The maximum special tax rate is the maximum amount that can be used to calculate the special tax levied on the property tax roll. The qualified electors have previously authorized an annual inflationary adjustment to the maximum rate. Therefore, the Reports recommend adjusting the maximum rate by the adjustment.

The applied special tax rate is the amount that is used to calculate the special tax actually levied on the property tax roll. The applied special tax is the amount necessary to fund the services of each CFD, including administration and reserves for the upcoming fiscal year. The special tax is calculated as described in the RMA for each CFD. The applied special tax rate cannot exceed the maximum special tax rate.

Conflict of Interest Analysis
Section 18702.2 of the Fair Political Practices Commission (FPPC) Regulations provides that if a Council Member has a financial interest in a parcel of land (other than a leasehold interest), the Council Member must recuse him or herself from voting on any proposal that would impose, repeal, or modify any taxes, fees, or assessments that apply to the parcel owned by the Council Member. However, there is an exception under Section 18703 of the FPPC Regulations, which provides that if a governmental decision's financial effect on a Council Member’s financial interest is indistinguishable from its effect on the public generally, then the Council Member is not disqualified from participating in the subject decision. In other words, if the Council Member can establish that a significant segment of the public is affected by the decision, and the effect on the Council Member’s financial interest is not unique compared to the effect on the public generally, then the subject Council Member may participate in the subject decision.

Section 18703 also includes a provision titled “Specific Rules for Special Circumstances,” which provides in part that there is no potential conflict of interest if the decision involves a proposal to set or adjust the amount of an assessment or tax for broadly provided public services that is applied equally, proportionally, or by the same percentage to the official's interest and all businesses, properties, or individuals subject to the assessment or tax. This exception, however, does not apply if the decision would initially impose the assessment or tax, or determine the boundaries of a property or who is subject to the assessment or tax. Under this exception, a Council Member is only permitted to take part in setting or adjusting the amount of the assessment or tax, once the decisions to implement the assessment or tax, or determine which property or persons that will be subject to the assessment or tax have already been made.

Since the instant situation pertains to recommendations regarding whether to adjust the amounts of various assessments and taxes in a manner that will be the same across the board, which are associated with assessment and special tax districts that have already been established, any Council Member who owns property within any of the subject districts who are subject to payment of the assessments and/or special taxes may vote on the assessments and/or special taxes, whether it is recommended that the amounts remain the same or be increased.

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With respect to those Council Members who rent or lease real property within any of the subject districts, there is a different rule which applies that suggests that there may be a potential conflict of interest that requires such Council Members to recuse themselves from voting on the proposed assessments and/or special taxes, whether it is recommended that the amounts remain the same or be increased.

Section 18702.2 of the FPPC Regulations, titled “Materiality Standard: Financial Interest in Real Property” provides that it is reasonably foreseeable that a governmental decision on any real property in which a Council Member has a leasehold interest is material if the governmental decision will increase or decrease the potential rental value of the property. In cases involving any proposed increase in an assessment or special tax that must be paid by the landlord as the property owner, it is foreseeable that the landlord may pass-through any such increase to anyone leasing the property that is subject to the assessment or special tax.

In light of the foregoing, it is recommended that each Council Member who rents property within a particular district that is subject to the taxes and assessments listed in this staff report should recuse themselves from participating in any decision to increase any tax or assessment that may be passed through by the landlord and consequently affect the potential rental value of the property rented by the Council Member. On the other hand, for those who own property within the subject districts may vote on the proposed taxes and assessments since they will be applied equally across the board that presumably will not create a unique effect on the Council Member’s interest.

This action meets the Strategic Plan Priorities by providing the financial resources to manage and maximize Moreno Valley’s public infrastructure to ensure an excellent quality of life.

ALTERNATIVES

1. Adopt the resolutions and recommended actions as presented. Staff recommends this alternative as it will allow for the collection of revenue necessary to fund the services of each CFD. It is also consistent with the Act.

2. Do not approve the recommended actions. Staff does not recommend this alternative as it may prevent the City from levying the special tax on the 2024/25 property tax roll and leave the CFDs without sufficient revenue to fund services each CFD was created to provide. Selection of this alternative may require a contribution from the General Fund.

Furthermore, failure to file the Report is a violation of the Act.

3. Continue the item to a future regular CSD Board meeting. Staff does not recommend this alternative as it may prevent the City from meeting the County of Riverside’s deadline to include the special taxes on the FY 2024/25 property tax roll.

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FISCAL IMPACT
Property owners pay the special tax as part of their annual property tax bill. The special tax, including annual adjustments, has been approved by the affected qualified electors through prior proceedings. Funds received for the benefit of each CFD are restricted and can only be used to fund the services of each district. The table below provides a summary of the proposed special tax rates for FY 2024/25.

Single Family 363 $ 335.22 $ 335.20 $ 351.98 $ 351.96 $ 16.76 $ 127,761.48 Multi-Family 716 $ 335.22 $ 335.20 $ 351.98 $ 351.96 $ 16.76 $ 252,003.36 Mobile Home 0 $ 335.22 $ 335.20 $ 351.98 $ 351.96 $ 16.76 $ - $ 21.49 $ 21.49 $ 22.56 $ 22.56 $ 1.07 $ 93,530.40
$ 35.78 $ 35.78 $ 37.56 $ 37.56 $ 1.78 $ -
$ 10.43 $ 10.43 $ 10.95 $ 10.95 $ 0.52 $ 2,953.18
$ - $ - $ - $ - $ -
Proposed Annual Special Tax Rates
1Maintenance services outlined in the Rate and Method of Apportionment for each CFD. 2Maximum rates are based on a predetermined formula as outlined in the Rate and Method of Apportionment for each CFD. 3Annual adjustment to maximum rate as approved by qualified electors (landowners or registered voters). Based on the greater of the percentage change calculated for the prior year in the Los Angeles-Long Beach-Anaheim Regional Consumer Price Index (CPI), as published by the Department of Labor’s Bureau of Labor Statistics (3.47%) or

2.0%.
4Annual adjustment to maximum rate as approved by qualified electors (landowners or registered voters). Based on the greater of the percentage change calculated for the prior year in the Riverside-San Bernardino-Ontario County Regional Consumer Price Index (CPI), as published by the Department of Labor’s Bureau of Labor Statistics (4.65%) or 5.0%.

3.47%3 $ 18.02 $ 2,149,153.16
Per Dwelling Unit Per Dwelling Unit
CFD No. 11
(Park Maintenance)
10,847 $ 207.12 $ 180.12 $ 214.31 $ 198.14
CFD No. 2021-011
(Parks Maintenance)
All
1,000 Ft. of Building Sq. Footage
Parcel

5.00%4 Non Residential Property 1,000 Ft. of Building Sq. Footage Undeveloped Property Parcel
Special Tax
Maximum Applied Maximum Revenue 2 Applied District # of Dwelling Units
FY 2023/24 FY 2024/25 Adjustment to
Maximum
Change in
Applied
Commercial
Office
Industrial
Residential Property Per Dwelling Unit Per Dwelling Unit

NOTIFICATION
Posting of the agenda.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Felicia London Launa Jimenez
Special Districts Division Manager Chief Financial Officer/City Treasurer Concurred By:

Jeremy Bubnik
Parks and Community Services Director

CITY COUNCIL GOALS
Public Facilities and Capital Projects. Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

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Positive Environment. Create a positive environment for the development of Moreno Valley's future.

Community Image, Neighborhood Pride and Cleanliness. Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
See the Discussion section above for details of how this action supports the City Council’s Strategic Priorities.

ATTACHMENTS
To view large attachments, please click your “bookmarks” on the left hand side of this document for the necessary attachment.

1. CFD 1

2. CFD 2021-01

3. Boundary Maps

APPROVALS
Budget Officer Approval ✓ Approved . 5/14/24 10:29 AM
City Attorney Approval ✓ Approved .

City Manager Approval ✓ Approved . 5/14/24 10:32 AM
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1 Resolution No. CSD 2024-___
Date Adopted: May 21, 2024
RESOLUTION NO. CSD 2024-__

A RESOLUTION OF THE BOARD FOR THE MORENO

VALLEY COMMUNITY SERVICES DISTRICT OF THE CITY

OF MORENO VALLEY, CALIFORNIA, APPROVING THE

CONTINUATION OF THE COMMUNITY FACILITIES
DISTRICT NO. 1 MAXIMUM AND APPLIED SPECIAL TAX
RATES FOR FISCAL YEAR 2024/25, AND CALCULATION

THEREOF
WHEREAS, the City Council for the City of Moreno Valley, California, acting in its capacity as the Board of Directors of the Moreno Valley Community Services District (“CSD Board”), did form Community Facilities District No. 1 (“CFD No. 1” or “District”) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and
WHEREAS, following approval by the qualified electors of the District, the CSD Board, acting as the legislative body, did introduce and adopt Ordinance No. CSD-40 (Urgency Ordinance) and CSD-41 (an Ordinance to authorize the levy of a special tax within CFD No. 1); and
WHEREAS, Ordinance No. CSD-41 authorizes the CSD Board, by resolution, to annually determine the special tax to be levied in the District; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the rates and method of apportionment of special tax (RMA); and WHEREAS, the CSD Board adopted Resolution No. CSD 2003-26 authorizing annexation of Territory in the future to CFD No. 1; and WHEREAS, annexations to CFD No. 1 have been conducted by the Community Services District following formation of the District; and WHEREAS, the County of Riverside requires the adoption of a resolution for submission with the annual special taxes for placement on the Riverside County property tax bills; and
WHEREAS, the maximum annual special tax for developed and undeveloped property has been established by the RMA at $115.00 per parcel/dwelling unit for fiscal year (FY) 2003/04. Per the RMA, beginning in FY 2004/05 and for each subsequent fiscal year, the maximum annual special tax shall be increased by the percentage increase in the Consumer Price Index (All Items), or by two percent (2%), whichever is greater; and WHEREAS, the qualified electors authorized an annual adjustment to the maximum special tax rate through prior proceedings; and WHEREAS, the CSD Board has determined that continuing the calculation of the I.13.a
Packet Pg. 276 Attachment: CFD 1 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 2 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024
applied special tax and application of the special tax, as previously approved by the qualified electors, for each assessable parcel of real property within the District will provide the necessary and equitable revenue stream to fund the services of the District for FY 2024/25; and
WHEREAS, the calculation of the special tax is in compliance with laws pertaining to the levy of the special taxes; and
WHEREAS, the special tax is levied without regard to property valuation; and WHEREAS, the City has prepared and submitted the Annual Special Tax Report (“Report”) for FY 2024/25, which identifies the maximum and applied special taxes, in an amount not to exceed the maximum special tax, and the calculation thereof; and WHEREAS, the Report is on file in the office of the City Treasurer/Chief Financial Officer (“CFO”) and is incorporated herein by this reference; and WHEREAS, the annual special taxes shall be submitted to the Riverside County Auditor-Controller’s Office, to be levied on the property tax bills of parcels subject to the special tax.

NOW, THEREFORE, THE BOARD FOR THE MORENO VALLEY COMMUNITY

SERVICES DISTRICT OF THE CITY OF MORENO VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Incorporation of Recitals. The foregoing recitals are true and correct and incorporated herein by this reference.

2. Approval of Report. The above referenced Report, on file in the office of the City’s CFO, is approved as filed, as the Report may have been modified by order of the CSD Board.

3. Maximum Special Tax Rate. The FY 2024/25 maximum special tax rate per parcel/dwelling unit is set at $214.31.

4. Applied Special Tax Rate. The FY 2024/25 applied special tax rate per parcel/dwelling unit is set at $198.14.

5. Confirming the Rates. The maximum and applied special tax rates are hereby confirmed for each parcel of real property within the District, as set forth in the Report.

6. Collection of Special Taxes. The special taxes set forth in the Report, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedures, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, the District may utilize a direct billing procedure for any special taxes that cannot be collected on the County I.13.a
Packet Pg. 277 Attachment: CFD 1 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 3 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024
tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations.

7. Modifications. The City’s CFO is authorized to adjust the special taxes levied on the property tax roll in the event there are parcel changes, clerical errors, new parcels annexed into the District, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax rate does not exceed the maximum special tax rate and is in compliance with the RMA.

8. Provision of Services. Nothing in this description of services or any Resolution or Ordinance of the CSD Board shall be construed as committing the CSD or the District to provide all of the proposed services. The provision of services shall be subject to the availability of sufficient funding through the collection of special tax revenue for the District.

9. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the CSD Board declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

10.Certified Copy. The Secretary of the CSD is hereby ordered to forward a certified copy of this Resolution to the County of Riverside and to take such actions as are required for the collection of the tax.

11.Certification. The Secretary of the CSD shall certify to the adoption of this Resolution.

12.Effective Date. This Resolution shall become effective immediately upon its adoption.

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Packet Pg. 278 Attachment: CFD 1 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 4 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024
APPROVED AND ADOPTED this 21st day of May 2024.
___________________________________
By:

Acting in the capacity of President of the
Moreno Valley Community Services District
ATTEST:
____________________________
Deputy City Clerk, acting in the capacity of
Secretary of the Moreno Valley
Community Services District
APPROVED AS TO FORM:
____________________________
City Attorney, acting in the capacity
of General Counsel of the Moreno
Valley Community Services District
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Packet Pg. 279 Attachment: CFD 1 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 5 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, Jane Halstead, Secretary of the Moreno Valley Community Services District, Moreno Valley, California do hereby certify that Resolution No. CSD 2024-___ was duly and regularly adopted by the Board of Directors of the Moreno Valley Community Services District at a regular meeting held on the 21st day of May 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Boardmembers, Vice-President and President)
_________________________________

SECRETARY
(SEAL)
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Packet Pg. 280 Attachment: CFD 1 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS 1 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024
RESOLUTION NO. CSD 2024-__

A RESOLUTION OF THE BOARD FOR THE MORENO

VALLEY COMMUNITY SERVICES DISTRICT OF THE CITY

OF MORENO VALLEY, CALIFORNIA, APPROVING THE

CONTINUATION OF THE COMMUNITY FACILITIES
DISTRICT NO. 2021-01 MAXIMUM AND APPLIED
SPECIAL TAX RATES FOR FISCAL YEAR 2024/25, AND

CALCULATION THEREOF
WHEREAS, the City Council for the City of Moreno Valley, California, acting in its capacity as the Board of Directors of the Moreno Valley Community Services District (“CSD Board”), did form City of Moreno Valley Community Facilities District No. 2021-01 (Parks Maintenance) (“CFD No. 2021-01” or “District”) pursuant to the terms and provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California; and
WHEREAS, following approval by the qualified electors of the District, the CSD Board acting as the legislative body, did introduce and adopt Ordinance No. CSD-55 (an Ordinance to authorize the levy of a special tax within CFD No. 2021-01) approving the rate and method of apportionment of special tax (“RMA”) to authorize a levy of special taxes within CFD No. 2021-01; and
WHEREAS, the Ordinance No. CSD-55 authorizes the CSD Board, by resolution, to annually determine the special tax to be levied in the District; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the RMA; and
WHEREAS, on December 21, 2021, the legislative body did adopt Ordinance No.

CSD-56, providing for future annexation to the District; and WHEREAS, the Riverside County Auditor-Controller’s Office requires the adoption of a resolution for submission with the annual special taxes for placement on the Riverside County property tax bills; and
WHEREAS, for fiscal year (FY) 2021/22, the maximum special tax rates for taxable property were as follows:

Property Type
Maximum Special
Tax Rate
Per
Single Family Property $291.59 Unit
Multi-Family Property 291.59 Unit
Mobile Home Property 291.59 Unit
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Packet Pg. 281 Attachment: CFD 2021-01 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 2 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024
Property Type
Maximum Special
Tax Rate
Per
Commercial Property 18.69 1,000 Feet of Building Square Footage Office Property 31.12 1,000 Feet of Building Square Footage Industrial Property 9.07 1,000 Feet of Building Square Footage Undeveloped Property 0 Parcel
WHEREAS, per the RMA as authorized by the qualified electors, the maximum annual special tax shall be increased annually, beginning the year following the base year, as defined in the RMA, by the greater of the increase in the annual percentage change in the Consumer Price Index (CPI) for All Urban Consumers for the RiversideSan Bernardino-Ontario County Region as published by the Department of Labor’s Bureau of Labor Statistics or five percent (5%); and
WHEREAS, the City Council has determined that continuing the calculation of the applied special tax and application of the special tax, as previously approved by the qualified electors, for each assessable parcel of real property within the District will provide the necessary and equitable revenue stream to fund the services of the District for FY 2024/25; and
WHEREAS, the City Council has determined that continuing the calculation of the maximum special tax rate, including an annual adjustment is necessary; and WHEREAS, the calculation of the special tax is in compliance with laws pertaining to the levy of the special taxes; and
WHEREAS, the special tax is levied without regard to property valuation; and WHEREAS, the City has prepared and submitted the Annual Special Tax Report (“Report”) for FY 2024/25, which identifies the maximum and special tax rates, in an amount not to exceed the maximum special tax, and the calculation thereof; and WHEREAS, the Report is on file in the office of the City Treasurer/Chief Financial Officer (“CFO”) and is incorporated herein by this reference; and WHEREAS, the annual special taxes shall be submitted to the Riverside County Auditor-Controller’s Office, to be levied on the property tax bills of parcels subject to the special tax.

NOW, THEREFORE, THE BOARD FOR THE MORENO VALLEY COMMUNITY

SERVICES DISTRICT OF THE CITY OF MORENO VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. Incorporation of Recitals. The foregoing recitals are true and correct and incorporated herein by this reference.

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Packet Pg. 282 Attachment: CFD 2021-01 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 3 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024

2. Approval of Report. The above referenced Report, on file in the office of the City’s CFO, is approved as filed, as the Report may have been modified by order of the CSD Board.

3. Maximum Special Tax Rates. The FY 2024/25 maximum and applied special tax rates for taxable properties shall be as follows:

Property Type
Maximum
Special Tax Rate
Applied Special Tax
Rate
Per
Single Family Property $351.98 351.96 Unit
Multi-Family Property 351.98 351.96 Unit
Mobile Home Property 351.98 351.96 Unit
Commercial Property 22.56 22.56 1,000 Feet of Building Square Footage Office Property 37.56 37.56 1,000 Feet of Building Square Footage Industrial Property 10.95 10.95 1,000 Feet of Building Square Footage Undeveloped Property 0 0 Parcel

4. Confirming the Rates. The maximum and applied special tax rates are hereby confirmed for each parcel of real property within the District, as set forth in the Report.

5. Collection of Special Taxes. The special taxes set forth in the Report, will be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

Notwithstanding the forgoing, any special taxes that cannot be collected on the County tax roll, or are not so collected, may be collected through direct billing by the City.

6. Modifications. The City’s CFO is authorized to adjust the special taxes levied on the property tax roll in the event there are parcel changes, clerical errors, new parcels annexed into the District, or other adjustments as may be necessary between the date the special taxes were calculated and the date the fixed charges are submitted to the County of Riverside, provided the applied special tax rate does not exceed the maximum special tax rate and is in compliance with the RMA.

7. Provision of Services. Nothing in this description of services or any Resolution or Ordinance of the CSD Board shall be construed as committing the CSD or the District to provide all of the proposed services. The provision of services shall be subject to the availability of sufficient funding through the collection of special tax revenue within the District.

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Packet Pg. 283 Attachment: CFD 2021-01 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 4 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024

8. Severability. If any provision of this Resolution or the application of any such provision is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable and that the CSD Board declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

9. Certified Copy. The Secretary of the CSD is hereby ordered to forward a certified copy of this Resolution to the County of Riverside and to take such actions as are required for the collection of the tax.

10.Certification. The Secretary of the CSD shall certify to the adoption of this Resolution.

11.Effective Date. This Resolution shall become effective immediately upon its adoption.

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Packet Pg. 284 Attachment: CFD 2021-01 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 5 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024
APPROVED AND ADOPTED this 21st day of May 2024.
_____________________________________
By:

Acting in the capacity of President of the
Moreno Valley Community Services District
ATTEST:
____________________________
Deputy City Clerk, acting in the capacity of
Secretary of the Moreno Valley
Community Services District
APPROVED AS TO FORM:
____________________________
City Attorney, acting in the capacity
of General Counsel of the Moreno
Valley Community Services District
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Packet Pg. 285 Attachment: CFD 2021-01 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES 6 Resolution No. CSD 2024-__
Date Adopted: May 21, 2024

RESOLUTION JURAT

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF MORENO VALLEY )
I, Jane Halstead, Secretary of the Moreno Valley Community Services District, Moreno Valley, California do hereby certify that Resolution No. CSD 2024-___ was duly and regularly adopted by the Board of Directors of the Moreno Valley Community Services District at a regular meeting held on the 21st day of May 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
(Boardmembers, Vice-President and President)
_________________________________

SECRETARY
(SEAL)
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Packet Pg. 286 Attachment: CFD 2021-01 (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES I.13.c
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Attachment: Boundary Maps (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR I.13.c
Packet Pg. 288 Attachment: Boundary Maps (6615 : APPROVAL OF THE MAXIMUM AND APPLIED SPECIAL TAXES FOR CERTAIN COMMUNITY FACILITIES DISTRICTS FOR FIS) Report to City Council
ID#6638 Page 1
TO: Mayor and City Council
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: May 21, 2024
TITLE: AWARD AGREEMENT FOR CITYWIDE NUISANCE

ABATEMENT AND WEED ABATEMENT SERVICES

RECOMMENDED ACTION
Recommendations:

1. Approve and award the Agreement for Citywide General Nuisance and Weed Abatement Services to Inland Empire Property Service, Inc., 18950 Newman Avenue, Riverside, CA 92508; and

2. Authorize the City Manager, or their designee, to execute the Agreement for OnSite and/or Professional Services for Citywide General Nuisance and Weed Abatement Services with Inland Empire Property Service, Inc. in the amount of $2,360,000, subject to the approval of the City Attorney; and

3. Authorize the City Manager to execute subsequent amendments to the Agreement with Inland Empire Property Services, Inc., including the authority to authorize associated purchase orders in accordance with the Agreement’s terms, subject to the approval of the City Attorney and within the budgetary amounts previously approved by Council as part of the adopted and/or amended budget process.

SUMMARY
This report recommends the approval and award of a five-year agreement with Inland Empire Property Service, Inc. for citywide general nuisance and weed abatement services.

DISCUSSION
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The City of Moreno Valley Municipal Code Chapter 6.04 addresses public nuisances threatening the community's well-being and safety. The City has established regulations that govern the usage and upkeep of the private property to bolster and protect the quality of life for all residents, employees, and visitors in Moreno Valley. Nuisance and weed abatement services are required throughout the City by various Divisions, including Community Enhancement & Neighborhood Services, Maintenance & Operations, Electric Utility, Parks & Landscape Services, and Fire Prevention.

Community Enhancement & Neighborhood Services Division is responsible for the enforcement of the City’s municipal codes relating to general neighborhood nuisances, health and safety, substandard housing, vehicle abatement, zoning/land use, illegal signs, parking control, business licenses, and illegal vendors on private property.

Property owners are required to remove public nuisances from their properties after being served with a "Notice to Abate" and given a reasonable time for compliance. If they fail to do so, the Community Enhancement & Neighborhood Services Division will perform nuisance abatements to remove hazardous and other nuisance conditions from the properties within the City. City-owned properties are also subject to nuisance abatement by Maintenance & Operations, Electric Utility, and Parks & Landscape Services.

On February 6, 2024, the City issued a Request for Proposals (RFP) seeking general, moderate, heavy, and specialized nuisance abatement services. A second RFP was issued simultaneously for weed abatement services. Both RFPs were advertised widely on the City's online bid portal, OpenGov, to ensure an open and competitive process.

On March 6, 2024, the City received one qualifying response for the nuisance abatement services and two responses for weed abatement services. According to the City’s Municipal Code requirements for professional services procurement and after a thorough evaluation of all proposals, it was determined that Inland Empire Property Services, Inc. could fulfill the City's requirements for citywide general nuisance abatement and weed abatement services.

This report recommends the award of an agreement to Inland Empire Property Service, Inc. Nuisance and weed abatement services will be provided citywide, as directed by City staff. The services will be billed at a pre-approved rate, including specialized abatements such as tire disposal, oil spill cleanup, retention basin erosion flow, and biohazard cleaning and disposal. In some instances, recovery of abatement fees may be addressed through property levies on the Riverside County Property Tax Roll.

ALTERNATIVES

1. Approve and authorize the recommended actions as presented in this report. Staff recommend this alternate as it will facilitate uninterrupted general nuisance and weed abatement services citywide.

2. Do not approve and authorize the recommended actions in this report. Staff does not recommend this alternative as it would interrupt the City’s general nuisance and I.14
Packet Pg. 290

weed abatement services.

FISCAL IMPACT
Citywide nuisance abatement and weed abatement services performed on properties vary from year to year. Estimated projections for the impact of the first and second years have been included in the FY23/24 & FY24/25 proposed budget, presented before Council for adoption. The remaining years will be budgeted in their respective budget cycles.

NOTIFICATION
Posting of the Agenda for the City Council meeting.

PREPARATION OF STAFF REPORT
Prepared By: Department Head Approval:

Anna Chacon Launa Jimenez
Purchasing & Sustainability Division Manager Chief Financial Officer/City Treasurer Concurred By:

Kimberly Ganimian
Deputy Finance Director

CITY COUNCIL GOALS
Public Facilities and Capital Projects. Ensure that needed public facilities, roadway improvements, and other infrastructure improvements are constructed and maintained.

Positive Environment. Create a positive environment for the development of Moreno Valley's future.

Community Image, Neighborhood Pride and Cleanliness. Promote a sense of community pride and foster an excellent image about our City by developing and executing programs which will result in quality development, enhanced neighborhood preservation efforts, including home rehabilitation and neighborhood restoration.

CITY COUNCIL STRATEGIC PRIORITIES

1. Economic Development

2. Public Safety

3. Library

4. Infrastructure

5. Beautification, Community Engagement, and Quality of Life

6. Youth Programs
Objective 4.3: Address deferred maintenance of City infrastructure assets.

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Objective 5.2: Promote the installation and maintenance of cost effective, low maintenance landscape, hardscape and other improvements which create a clean, inviting community.

ATTACHMENTS
To view large attachments, please click your “bookmarks” on the left hand side of this document for the necessary attachment.

1. Agreement for Services - Inland Empire Property Services Inc

APPROVALS
Budget Officer Approval ✓ Approved . 5/14/24 3:17 PM
City Attorney Approval ✓ Approved .

City Manager Approval ✓ Approved . 5/14/24 3:21 PM
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Revision: 12/20/23
City of Moreno Valley

AGREEMENT FOR ON-SITE AND/OR PROFESSIONAL SERVICES
This Agreement is made by and between the City of Moreno Valley, California, a municipal corpora�on, with its principal place of business at 14177 Frederick Street, Moreno Valley, CA 92552, hereina�er referred to as the “City”, and Inland Empire Property Services. Inc., an SCorpora�on, with its principal place of business at 18950 Newman Ave., Riverside, CA 92508, hereina�er referred to as the “Vendor,” based upon City policies and the following legal cita�ons:

RECITALS
A. Government Code Sec�on 53060 authorizes the engagement of persons to perform special services as independent Vendors;
B. Vendor desires to perform and assume responsibility for the provision of professional general nuisance and weed abatement services required by the City on the terms and condi�ons set forth in this Agreement. Vendor represents that it is experienced in providing professional general nuisance and weed abatement services and is licensed in the State of California, if applicable;
C. City desires to engage Vendor to render such services for the general nuisance and weed abatement services as set forth in this Agreement;
D. The public interest, convenience, necessity, and general welfare will be served by this Agreement; and
E. This Agreement is made and entered into effec�ve the date the City signs this Agreement.

TERMS

1. VENDOR INFORMATION:

Vendor’s Name: Inland Empire Property Services, Inc.

Address: 18950 Newman Avenue
City: Riverside, CA 92508
Business Phone: (951) 924-6905 Fax No: (951) 398-7185
Other Contact Number: ____________________________
Business License Number: _________________________
Federal Tax I.D. Number: 91-2157551

2. VENDOR SERVICES, FEES, AND RELEVANT DATES:

DRAFT
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Packet Pg. 293 Attachment: Agreement for Services - Inland Empire Property Services Inc [Revision 2] (6638 : AWARD AGREEMENT FOR CITYWIDE GENERAL Revision: 12/20/23
A. The Vendor’s scope of service is described in Exhibit “A.1” atached hereto and incorporated herein by this reference.

B. The Vendor’s price proposal is described in Exhibit “A.2,” atached hereto and incorporated herein by this reference.

C. The City’s responsibili�es, other than payment, are described in Exhibit “B” atached hereto and incorporated herein by this reference.

D. Payment terms are provided in Exhibit “C” atached hereto and incorporated herein by this reference.

E. The term of this Agreement shall be from July 1, 2024, to June 30, 2029, unless terminated earlier as provided herein. The City acknowledges that it will not unreasonably withhold approval of the Vendor’s requests for extensions of �me in which to complete the work required. The Vendor shall not be responsible for performance delays caused by others or delays beyond the Vendor’s reasonable control (excluding delays caused by non-performance or unjus�fied delay by Vendor, his/her/its employees, or subcontractors), and such delays shall extend the �me for performance of the work by the Vendor.

3. STANDARD TERMS AND CONDITIONS:

A. Control of Work. Vendor is solely responsible for the content and sequence of the work and will not be subject to control and direc�on as to the details and means for accomplishing the an�cipated results of services. The City will not provide any training to Vendor or his/her/its employees.

B. Intent of Par�es. Vendor is, and at all �mes shall be, an independent Vendor and nothing contained herein shall be construed as making the Vendor or any individual whose compensa�on for services is paid by the Vendor, an agent or employee of the City, or authorizing the Vendor to create or assume any obliga�on or liability for or on behalf of the City, or en�tling the Vendor to any right, benefit, or privilege applicable to any officer or employee of the City.

C. Subcontrac�ng. Vendor may retain or subcontract for the services of other necessary Vendors with the prior writen approval of the City. Payment for such services shall be the responsibility of the Vendor. Any and all subcontractors shall be subject to the terms and condi�ons of this Agreement, with the excep�on that the City shall have no obliga�on to pay for any subcontractor services rendered. Vendor shall be responsible for paying prevailing wages where required by law [See California Labor Code Sec�ons 1770 through 1777.7].

D. Conformance to Applicable Requirements. All work prepared by Vendor shall be subject to the approval of City.

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E. Subs�tu�on of Key Personnel. Vendor has represented to City that certain key personnel will perform and coordinate the services under this Agreement. Should one or more of such personnel become unavailable, Vendor may subs�tute other personnel of at least equal competence upon writen approval of City. In the event that City and Vendor cannot agree as to the subs�tu�on of key personnel, City shall be en�tled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the services in a manner acceptable to the City, or who are determined by the City to be uncoopera�ve, incompetent, a threat to the adequate or �mely comple�on of the project or a threat to the safety of persons or property, shall be promptly removed from the project by the Vendor at the request of the City. The key personnel for performance of this Agreement are as follows: Charles Maciel.

F. City’s Representa�ve. The City hereby designates the City Manager, or his or her designee, to act as its representa�ve for the performance of this Agreement (“City’s Representa�ve”). Vendor shall not accept direc�on or orders from any person other than the City’s Representa�ve or his or her designee.

G. Vendor’s Representa�ve. Vendor hereby designates Charles Maciel, or his or her designee, to act as its representa�ve for the performance of this Agreement (“Vendor’s Representa�ve”). Vendor’s Representa�ve shall have full authority to represent and act on behalf of the Vendor for all purposes under this Agreement. The Vendor’s Representa�ve shall supervise and direct the services, using his or her best skill and aten�on, and shall be responsible for all means, methods, techniques, sequences and procedures and for the sa�sfactory coordina�on of all por�ons of the services under this Agreement.

H. Legal Considera�ons. The Vendor shall comply with applicable federal, state, and local laws in the performance of this Agreement. Vendor shall be liable for all viola�ons of such laws and regula�ons in connec�on with services. If the Vendor performs any work knowing it to be contrary to such laws, rules and regula�ons and without giving writen no�ce to the City, Vendor shall be solely responsible for all costs arising therefrom.

Vendor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnifica�on provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regula�ons.

I. Standard of Care; Performance of Employees. Vendor shall perform all services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Vendor represents and maintains that it is skilled in the profession necessary to perform the services. Vendor warrants that all employees and subcontractor shall have sufficient skill and experience to perform the services assigned to them. Finally, Vendor represents that it, its employees and subcontractors have all licenses, permits, qualifica�ons and approvals of whatever nature that are legally DRAFT
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required to perform the services and that such licenses and approvals shall be maintained throughout the term of this Agreement. Any employee of the Vendor or its subcontractors who is determined by the City to be uncoopera�ve, incompetent, a threat to the adequate or �mely comple�on of the project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the services in a manner acceptable to the City, shall be promptly removed from the project by the Vendor and shall not be re-employed to perform any of the services or to work on the project.

J. Vendor Indemnifica�on. Vendor shall indemnify, defend and hold the City, the Moreno Valley Housing Authority, and the Moreno Valley Community Services District (CSD), their officers, agents and employees harmless from any and all claims, damages, losses, causes of ac�on and demands, including, without limita�on, the payment of all consequen�al damages, expert witness fees, reasonable atorney’s fees and other related costs and expenses, incurred in connec�on with or in any manner arising out of Vendor’s performance of the work contemplated by this Agreement and this Agreement.

Acceptance of this Agreement signifies that the Vendor is not covered under the City’s general liability insurance, employee benefits, or worker’s compensa�on. It further establishes that the Vendor shall be fully responsible for such coverage. Vendor’s obliga�on to indemnify shall survive expira�on or termina�on of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, the Moreno Valley Housing Authority, and the CSD, and their officers, agents and employees.

K. Addi�onal Indemnity Obliga�ons. Vendor shall defend, with counsel of City’s choosing and at Vendor’s own cost, expense and risk, any and all claims, suits, ac�ons or other proceedings of every kind covered by Sec�on “J” that may be brought or ins�tuted against City, the Moreno Valley Housing Authority, and the CSD, and their officers, agents and employees. Vendor shall pay and sa�sfy any judgment, award or decree that may be rendered against City, the Moreno Valley Housing Authority, and the CSD, and their officers, agents and employees as part of any such claim, suit, ac�on or other proceeding. Vendor shall also reimburse City for the cost of any setlement paid by City, the Moreno Valley Housing Authority, and the CSD, and their officers, agents and employees as part of any such claim, suit, ac�on or other proceeding. Such reimbursement shall include payment for City’s atorney’s fees and costs, including expert witness fees. Vendor shall reimburse City, the Moreno Valley Housing Authority, and the CSD, and their officers, agents and employees for any and all legal expenses and costs incurred by each of them in connec�on therewith or in enforcing the indemnity herein provided.

L. CalPERS Re�ree Disclosure. Vendor hereby expressly agrees to clearly and conspicuously disclose to City in wri�ng any and all persons working for Vendor who are re�rees under the California Public Employees’ Re�rement System (CalPERS) whom receives a monthly CalPERS re�rement allowance, and whom are, subject to City approval, assigned by Vendor to provide services to City under the Agreement, prior to such person performing DRAFT
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any services hereunder. Nothing herein shall be deemed or interpreted to limit a CalPERS re�ree’s obliga�ons under applicable law, rules or regula�ons.

M. CalPERS Indemnity. To the fullest extent permited by law, in addi�on to obliga�ons set forth in this sec�on, in the event that any person providing services under this Agreement is determined by a court of competent jurisdic�on or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, to the fullest extent of the law, Vendor shall indemnify, defend, and hold harmless City for any costs and expenses incurred by City, including without limita�on, payment that City is required as a result to make to CalPERS, whether in the form of employee and/or employer contribu�ons, taxes, or any similar obliga�ons, as well as for the payment of any penal�es and interest.

N. CalPERS Par�cipa�on. As set forth in this Agreement and in the Request for Qualifica�ons, City has an obliga�on to treat all persons working for or under the direc�on of Vendor as an independent Vendor of City and agents and employees of Vendor, and not as agents or employees of City. Vendor and City acknowledge and agree that City par�cipates in a defined benefit plan (“CalPERS”), and that it is possible that CalPERS may find that persons providing services pursuant to this Agreement are employees of City and should be registered with the CalPERS as employees of City.

O. Civil Code Sec�on 1542 Waiver. Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of Sec�on 1542 of the California Civil Code which reads as follows:
“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the �me of execu�ng the release and that, if known by him or her, would have materially affected his or her setlement with the debtor or released party.”
This waiver shall be effec�ve as a bar to any and all ac�ons, fees, damages, losses, claims, liabili�es and demands of whatsoever character, nature and kind that are known or unknown, or suspected or unsuspected, including, without limita�on, claims of en�tlements under CalPERS that are only afforded to employees and not independent contractors. Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified atorney before execu�ng this Agreement.

P. Joint Coopera�on. In the event that CalPERS ini�ates an inquiry that includes examina�on of whether individuals providing services under this Agreement to City are City’s employees, Vendor shall reply within five days and share all communica�ons and documents from CalPERS that it may legally share. In the event that either Vendor or City files an appeal or court challenge, Vendor and City each agree to cooperate with each other in responding to the inquiry and any subsequent administra�ve appeal or court challenge of an adverse determina�on.

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Q. Insurance Requirements. Throughout the life of this Agreement, Vendors shall pay for and maintain in full force and effect all insurance as required.

If at any �me during the life of this Agreement or any extension, Vendor or any of its subcontractors fail to maintain any required insurance in full force and effect, all services and work under this Agreement shall be discon�nued immediately, and all payments due or that become due to Vendor shall be withheld un�l no�ce is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period sa�sfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Agreement. No ac�on taken by City pursuant to this sec�on shall in any way relieve Vendor of its responsibili�es under this Agreement. The phrase "fail to maintain any required insurance" shall include, without limita�on, no�fica�on received by City that an insurer has commenced proceedings, or has had proceedings commenced against it, indica�ng that the insurer is insolvent.

The fact that insurance is obtained by Vendor shall not be deemed to release or diminish the liability of Vendor, including, without limita�on, liability under the indemnity provisions of this Agreement. The duty to indemnify City shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limita�on upon the amount of indemnifica�on to be provided by Vendor.

Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Vendor, its principals, officers, agents, employees, persons under the supervision of Vendor, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.

Upon request of City, Vendor shall immediately furnish City with a complete copy of any insurance policy and associated documenta�on required under this Agreement, including all endorsements, with said copy cer�fied by the underwriter to be a true and correct copy of the original policy. This requirement shall survive expira�on or termina�on of this Agreement.

Where determined applicable by the City, Vendor will comply with the following insurance requirements at its sole expense. Insurance companies shall be rated (A Minus:

VII-Admited) or beter in Best's Insurance Ra�ng Guide and shall be legally licensed and qualified to conduct business in the State of California.

Minimum Scope of Insurance: Coverage shall be at least as broad as:

1. The most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 covering on an “occurrence” basis, which shall include insurance for "bodily injury," "property damage" and "personal and adver�sing injury" with coverage for premises and opera�ons, products and completed opera�ons, and contractual liability.

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2. The most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01, which shall include coverage for all owned, hired, and non-owned automobiles or other licensed vehicles (Code 1- Any Auto).

3. Workers' Compensa�on insurance as required by the State of California, California Labor Code and Employer's Liability Insurance, with Statutory Limits, and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury or disease.

4. Professional Liability (Errors and Omissions) insurance appropriate to Vendor’s profession.

Minimum Limits of Insurance:
a. General Liability Insurance. Without limi�ng the generality of the forgoing, to protect against loss from liability imposed by law for damages on account of bodily injury, including death, and/or property damage suffered or alleged to be suffered by any person or persons whomever, resul�ng directly or indirectly from any act or ac�vi�es of the Vendor, sub-contractor, or any person ac�ng for the Vendor or under its control or direc�on. Such insurance shall be maintained in full force and effect throughout the terms of this Agreement and any extension thereof in the minimum amounts provided below:
• $1,000,000 per occurrence for bodily injury and property damage • $1,000,000 per occurrence for personal and adver�sing injury • $2,000,000 aggregate for products and completed opera�ons • $2,000,000 general aggregate
b. Automobile Liability
• $1,000,000 per accident for bodily injury and property damage c. Employer's Liability (Worker's Compensa�on)
• $1,000,000 each accident for bodily injury
• $1,000,000 disease each employee
• $1,000,000 disease policy limit
d. Workers' Compensa�on insurance policy: In such amounts as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Vendor and the City, HA, and CSD against any loss, claim or damage arising from any injuries or occupa�onal diseases happening to any worker employed by the Vendor in the course of carrying out this Agreement. Workers' Compensa�on insurance policy is to contain, or be endorsed to contain, the following DRAFT
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provision: Vendor and its insurer shall waive any right of subroga�on against City of Moreno Valley, CSD, Housing Authority and each of their officers, officials, employees, agents and volunteers.
e. Professional Liability (Errors and Omissions): Limits of no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.
f. Endorsements. Unless otherwise specified hereunder, each insurance policy required herein shall be with insurers possessing a Best’s ra�ng of no less than A,VII and shall be endorsed with the following specific language:
• The insurer waives all rights of subroga�on against the City, its appointed officials, officers, employees or agents.

Other Insurance Provisions: The General Liability, Automobile Liability and Workers Compensa�on insurance policies are to contain, or be endorsed to contain, the following provisions:
a. City of Moreno Valley, the City of Moreno Valley Community Services District, the Moreno Valley Housing Authority and each of their officers, officials, employees, agents and volunteers are to be covered as addi�onal insureds. b. The coverage shall contain no special limita�ons on the scope of protec�on afforded to City, CSD, Housing Authority and each of their officers, officials, employees, agents and volunteers.

All polices of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except a�er 30 calendar day writen no�ce by cer�fied mail, return receipt requested, has been given to the City. Upon issuance by the insurer, broker, or agent of a no�ce of cancella�on, non-renewal, or reduc�on in coverage or in limits, Vendor shall furnish the City with a new cer�ficate and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for the City, Vendor shall provide a new cer�ficate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar days prior to the expira�on date of the expiring policy.

Acceptability of Insurers: All policies of insurance required hereunder shall be placed with an insurance company(ies) admited by the California Insurance Commissioner to do business in the State of California and rated not less than "A- VII" in Best's Insurance Ra�ng Guide; or authorized by the City Manager or designee.

Verifica�on of Coverage: Vendor shall furnish City with all cer�ficates(s) and applicable endorsements effec�ng coverage required hereunder. All cer�ficates and applicable endorsements are to be received and approved by the City Manager or designee prior to City’s execu�on of this Agreement and before work commences. The following applicable endorsements will be required:

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1. Addi�onal Insured endorsement for ongoing opera�ons, completed opera�ons and primary & non-contributory endorsement for general liability coverage

2. Addi�onal Insured endorsement for auto liability coverage

3. Waiver of Subroga�on for workers compensa�on coverage R. Intellectual Property. Any system or documents developed, produced or provided under this Agreement, including any intellectual property discovered or developed by Vendor in the course of performing or otherwise as a result of its work, shall become the sole property of the City unless explicitly stated otherwise in this Agreement. The Vendor may retain copies of any and all material, including drawings, documents, and specifica�ons, produced by the Vendor in performance of this Agreement. The City and the Vendor agree that to the extent permited by law, un�l final approval by the City, all data shall be treated as confiden�al and will not be released to third par�es without the prior writen consent of both par�es.

S. En�re Agreement. This Agreement cons�tutes the en�re agreement between the par�es. There are no understandings, Agreements, or representa�ons of warran�es, expressed or implied, not specified in this Agreement. This Agreement applies only to the current proposal as atached. This Agreement may be modified or amended only by a subsequent writen Agreement signed by both par�es. Assignment of this Agreement is prohibited without prior writen consent.

T. Termina�on. The following clauses apply:

1. The City may terminate the whole or any part of this Agreement at any �me without cause by giving at least ten (10) days writen no�ce to the Vendor. The writen no�ce shall specify the date of termina�on. Upon receipt of such no�ce, the Vendor may con�nue work through the date of termina�on, provided that no work or service(s) shall be commenced or con�nued a�er receipt of the no�ce which is not intended to protect the interest of the City. The City shall pay the Vendor within thirty (30) days a�er receiving any invoice a�er the date of termina�on for all non-objected to services performed by the Vendor in accordance herewith through the date of termina�on.

2. Either party may terminate this Agreement for cause. In the event the City terminates this Agreement for cause, the Vendor shall perform no further work or service(s) under the Agreement unless the no�ce of termina�on authorizes such further work.

3. If this Agreement is terminated as provided herein, City may require Vendor to provide all finished or unfinished documents and data and other informa�on of any kind prepared by Vendor in connec�on with the performance of services under this Agreement. Vendor shall be required to provide such documents and other informa�on within fi�een (15) days of the request.

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4. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, similar to those terminated.

U. Payment. Payments to the Vendor pursuant to this Agreement will be reported to Federal and State taxing authori�es as required. The City will not withhold any sums from compensa�on payable to Vendor. Vendor is independently responsible for the payment of all applicable taxes. Where the payment terms provide for compensa�on on a �me and materials basis, the Vendor shall maintain adequate records to permit inspec�on and audit of the Vendor’s �me and materials charges under the Agreement.

Such records shall be retained by the Vendor for three (3) years following comple�on of the services under the Agreement.

V. Restric�ons on City Employees. The Vendor shall not employ any City employee or official in the work performed pursuant to this Agreement. No officer or employee of the City shall have any financial interest in this Agreement in viola�on of federal, state, or local law.

W. Choice of Law and Venue. The laws of the State of California shall govern the rights, obliga�ons, du�es, and liabili�es of the par�es to this Agreement, and shall govern the interpreta�on of this Agreement. Any legal proceeding arising from this Agreement shall be brought in the appropriate court located in Riverside County, State of California.

X. Delivery of No�ces. All no�ces permited or required under this Agreement shall be given to the respec�ve par�es at the following address, or at such other address as the respec�ve par�es may provide in wri�ng for this purpose:

Vendor:

Inland Empire Property Services, Inc.
18950 Newman Avenue
Riverside, CA 92508
Atn: Charles Maciel
City:

City of Moreno Valley
14177 Frederick Street
P.O. Box 88005
Moreno Valley, CA 92552
Atn: Purchasing & Sustainability Division
Such no�ce shall be deemed made when personally delivered or when mailed, fortyeight (48) hours a�er deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual no�ce shall be deemed adequate no�ce on the date actual no�ce occurred, regardless of the method of service.

Y. Time of Essence. Time is of the essence for each and every provision of this Agreement.

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Z. City’s Right to Employ Other Vendors. City reserves right to employ other Vendors in connec�on with this project.

AA.Amendment; Modifica�on. No supplement, modifica�on, or amendment of this Agreement shall be binding unless executed in wri�ng and signed by both par�es.

BB. Waiver. No waiver of any default shall cons�tute a waiver of any other default or breach, whether of the same or other covenant or condi�on. No waiver, such atempted assignment, hypotheca�on or transfer.

CC. Supplementary General Condi�ons (for projects that are funded by Federal programs).

The following provisions, pursuant to 44 Code of Federal Regula�ons, Part 13, Subpart C, Sec�on 13.36, as it may be amended from �me to �me, are included in the Agreement and are required to be included in all subcontracts entered into by Vendor for work pursuant to the Agreement, unless otherwise expressly provided herein. These provisions supersede any conflic�ng provisions in the General Condi�ons and shall take precedence over the General Condi�ons for purposes of interpreta�on of the General Condi�ons. These provisions do not otherwise modify or replace General Condi�ons not in direct conflict with these provisions. Defini�ons used in these provisions are as contained in the General Condi�ons.

1. VENDOR shall be subject to the administra�ve, contractual, and legal remedies provided in the General Condi�ons in the event VENDOR violates or breaches terms of the Agreement.

2. CITY may terminate the Agreement for cause or for convenience, and VENDOR may terminate the Agreement, as provided the General Condi�ons.

3. VENDOR shall comply with Execu�ve Order 11246 of September 24, 1965, en�tled Equal Employment Opportunity, as amended by Execu�ve Order 11375 of October 13, 1967, and as supplemented in Department of Labor regula�ons (41 CFR chapter 60). (All construc�on contracts awarded in excess of $10,000 by CITY and/or subcontracts in excess of $10,000 entered into by VENDOR.)

4. VENDOR shall comply with the Copeland An�-Kickback Act (18 U.S.C. 874) as supplemented in Department of Labor regula�ons (29 CFR Part 3) (All contracts and subcontracts for construc�on or repair.)

5. VENDOR shall comply with the Davis-Bacon Act (40 U.S.C. 276a to 276a7) as supplemented by Department of Labor regula�ons (29 CFR Part 5).

6. VENDOR shall comply with Sec�ons 103 and 107 of the Contract Work Hours and Safety Standards Act (40 U.S.C. 327330) as supplemented by Department of Labor regula�ons (29 CFR Part 5).

7. VENDOR shall observe CITY requirements and regula�ons pertaining to repor�ng included in the General Condi�ons.

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8. Patent rights with respect to any discovery or inven�on which arises or is developed in the course of or under the Agreement shall be retained by the CITY.

9. Copyrights and rights in data developed in the course of or under the Agreement shall be the property of the CITY. FEMA/CalOES reserve a royalty-free, nonexclusive, irrevocable license to reproduce, publish or otherwise use or authorize to others to use for federal purposes a copyright in any work developed under the Agreement and/or subcontracts for work pursuant to the Agreement.

10. VENDOR shall provide access by the City, the Federal grantor agency, the Comptroller General of the United States, or any of their duly authorized representa�ves to any books, documents, papers, and records of the Vendor which are directly per�nent to that specific contract for the purpose of making audit, examina�on, excerpts, and transcrip�ons.

11. VENDOR shall retain all required records for three years a�er CITY makes final payments and all other pending maters rela�ng to the Agreement are closed.

12. VENDOR shall comply with all applicable standards, orders, or requirements issued under sec�on 306 of the Clean Air Act (42 U.S.C. 1857(h)), sec�on 508 of the Clean Water Act (33 U.S.C. 1368), Execu�ve Order 11738, and Environmental Protec�on Agency regula�ons (40 CFR part 15). (This provision applies to contracts exceeding $100,000 and to subcontracts entered into pursuant to such contracts.)

13. VENDOR shall comply with mandatory standards and policies rela�ng to energy efficiency which are contained in the State energy conserva�on plan issued in compliance with the Energy Policy and Conserva�on Act (Pub. L. 94163, 89 Stat. 871).

DD. Authority To Execute. The representa�ve execu�ng this Agreement on behalf of each party hereby represents and warrants that he or she has full power and authority to execute this Agreement on behalf of such party and that all approvals and other ac�ons necessary in connec�on with the effec�ve execu�on by him or her have been obtained and are in full force and effect as of his or her execu�on hereof.

SIGNATURE PAGE TO FOLLOW
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IN WITNESS HEREOF, the par�es have each caused their authorized representa�ve to execute this Agreement.

City of Moreno Valley Inland Empire Property Service Inc.

BY: BY:

Mike Lee, City Manager Charles Maciel, President

________________________ ________________________
Date Date

INTERNAL USE ONLY
APPROVED AS TO LEGAL FORM:

City Atorney

Date
RECOMMENDED FOR APPROVAL:

Department Head

Date
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EXHIBIT A.1

VENDOR SCOPE OF SERVICES
A. The Contractor shall provide �mely general nuisance and weed abatement services including emergency abatements at specified loca�ons at the direc�on of the City and upon receipt of writen instruc�ons from the Community Enhancement & Neighborhood Services, Maintenance & Operations, Electric Utility, Parks & Landscape Services, Fire Prevention, or other duly authorized person(s) concerning the quality of materials and exper�se required to perform such abatement services. Unless otherwise restricted, minor dimension changes and detailed adjustments may be made in the interest of the abatement or for the ability to sa�sfy the abatement performance, provided that the general intent is maintained and the property is restored to its original state as nearly as possible. Such changes or recommenda�ons shall be made only upon the approval of the Community Enhancement & Neighborhood Services Official or their designee. To the extent so specified by the authorized department, the Contractor shall secure and pay for all necessary permits, governmental authoriza�ons, licenses, inspec�ons, and all other similar requirements.

B. The City of Moreno Valley reserves the right to u�lize one or more Contractors for general nuisance and weed abatement services. The Contractor must be able to complete the work within three (3) days of assignment. In the case of an emergency abatement, the Contractor must be able to respond within 24 hours of contact.

C. Upon prior approval and request of the Community Enhancement & Neighborhood Services Official or their designee, the Contractor shall work during such hours as may be necessary to provide the approved and requested services. The Contractor may determine when such hours will be worked, and may vary such hours from �me to �me within the Contractor’s sole discre�on, provided that the goals and objec�ves of the City are not thereby impeded or disrupted.

D. Contractor agrees to represent himself at City mee�ngs when and if the quality and/or cost of abatement services performed come into ques�on or is disputed by any party to the ac�on.

SPECIFIC REQUIREMENTS
A. Services requested include, but are not limited to:

1. General Abatement requiring use of hand tools
a. Handwork
b. Hand tools
c. Trash/debris removal
d. Tire disposal (transport 9 or fewer �res; exempt from waste and used �re hauler registra�on)
e. Weed abatement (developed and undeveloped lots).

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2. Moderate Abatement
a. Hourly Rate Services: these services are considered rou�ne, general work and will be billed at a standard man-hour rate, and may include:
i. Pa�o covers
ii. Storage shed < 120 sq. �.
b. Agreed Standard Rate Services: these services are considered specialized or �me/materials based and will be billed at the agreed, standard rate, and may include:
i. Requires heavy/med equipment (bobcat, backhoe)
ii. Board-ups (generators or compressors)
I. Board-ups must conform to established Community Enhancement & Neighborhood Services acceptable specifica�ons and standards (atached); to include historical property standards.
iii. Temporary/emergency fencing/repairs
iv. Windows/doors/garage doors
v. Pools/spas (drainage, pool pumps) billable by gallons of water pumped

3. Heavy Abatement/Structural Abatement
a. Required Class B – General Building Contractor
b. Required Class C21 – Building Moving/Demoli�on Contractor i. Note: environmental reports will be provided by the City before the project.

4. Specialized Abatement
a. EPA and industry cer�fica�ons required based on abatement product b. Tire disposal (transport 10 or more �res; requires waste and used �re hauler registra�on) c. Oil cleanup and disposal
d. Biohazard cleanup and disposal
e. Back-fill ruts and build shoulder of catch basin (as best the environment allows) and Hydro-spray (no seed)
f. Reten�on basin – cut a V-ditch at 45-degree angle to assist on erosion flow g. Install straw waddles

METHODS OF ABATEMENT
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A. Methods may include, but not be limited to the demoli�on, removal, repair, maintenance, construc�on, reconstruc�on, replacement, or recondi�oning of structures, appliances or equipment, installa�on of temporary chain link fencing, boarding up of windows, doors or other openings; or the pumping of stagnant water from pools; or the removal, transporta�on, disposal and treatment of waste and abandoned materials and equipment capable of harboring, breeding, or atrac�ng rodents or insects or producing odors or blight. When boarding up and securing buildings and other structures, the following methods shall be u�lized:

1. When applicable, all buildings ordered to be secured by the Community Development Department, Community Enhancement & Neighborhood Services Division will be with minimum 5/8” CDX type plywood. All windows will be secured with 5/8" carriage bolts with washers through the plywood secured with a minimum 2" x 4" bracing (inside) horizontally at the top and botom. When bol�ng is not permissible, nails will be acceptable provided a minimum 16d nail is used which is spaced at 6" intervals on the edge. Such edges shall have a relief of 4" overlap at the windows.

2. Sliding glass doors shall be secured in similar fashion. All rear and side entry doors shall be secured to prevent entry. Front doors will be framed on stock with a minimum of 3 hinges appropriately spaced with a hasp and lock. All locks used shall be Master Locks or of similar quality with two (2) keys provided to the Community Enhancement & Neighborhood Services Officer in charge of the abatement.

3. All exterior plywood used shall be painted with colors that best blend with the pre-exis�ng exterior paint, when specified by Community Enhancement & Neighborhood Services Officer or designee.

4. All exterior debris shall be removed to an authorized disposal site.

B. Methods for the emergency abatement of wells, sep�c tank systems, or excava�ons may include, but not be limited to, the placing of a well cap or similar device over the opening that cannot be readily removed. A 10' x 10' area shall be staked and taped off with cau�on tape or fenced with a chain link fence (minimum 7' in height with barb wire) minimum secured to the ground. Said method shall be dependent upon the extent of the poten�al danger such as the collapsing of walls, etc. and shall be installed to prevent trespassing or vandalism of the site. Danger signs shall be posted on all four (4) sides of the marked or fenced area.

1. Abatement of the well, sep�c tank system or excava�on shall be the ul�mate responsibility of the property owner in accordance with adopted procedures by local agencies and by a licensed C-57 well Contractor.

MATERIAL AND EQUIPMENT
The Contractor shall provide, at his own expense, all labor, material, and equipment necessary to safely and effec�vely perform general nuisance and weed abatement services. This includes, but is not limited to, the following:

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1. Plywood

2. Portable generator

3. Lawnmower

4. Weed Whacker or similar tool

5. Pump for pool/spa drain, removal of stagnant water, etc.

6. Temporary chain link fencing (minimum of 400 feet and 5' in height)

7. U�lity trailer or truck for hauling (minimum of 5 cubic yard capacity)

8. Trash containers

9. Lime

10. Shovels, rakes, hammers, nails, and other special equipment, materials or tools necessary to perform abatement services

11. One fully equipped backpack pump water-type fire ex�nguisher

12. Ladders

13. Ligh�ng

PROCESS AND AUTHORIZATION FOR WORK
General nuisance and weed abatement services shall be performed on both public and private property on a City-wide basis only as approved and directed by the City. All general nuisance and weed abatement services shall be performed by Contractor in accordance with writen request for service and the forwarding of “Writen No�ce for Request for Service” by the City of Moreno Valley in each instance. Upon such request for service, Contractor shall set an acceptable �me for the general nuisance and weed abatement services as approved by the City. The work shall be performed in a prompt, thorough, lawful and workmanlike manner. Contractor shall no�fy City immediately upon comple�on of each work assignment. The Contractor shall submit, within 7 days, copies of all properly executed abatement service worksheets with each invoice statement to the City a�er the abatement has been completed. Receipts of all materials purchased and any fees paid (e.g. landfill fees) shall also be submited with each invoice statement.

PROTECTION AND RESTORATION OF EXISTING IMPROVEMENTS
In respect to work performed under the Agreement, the Contractor shall be responsible for the protec�on of all improvements adjacent to the work, including, but not limited to, sprinkler systems, drainpipes, lawns, plan�ngs brickwork, masonry work, fences, walls, sidewalks, street paving, located on either public or private property. All abatement services shall be performed with maximum prac�cal considera�on for conserva�on of materials, energy, and water. Salvaging of materials is prohibited unless writen authoriza�on is obtained by the City DRAFT
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Representa�ve or their designee. Any profit that may be derived from such authorized salvaging shall be considered for offse�ng actual abatement costs, and will be determined on a case-bycase basis. If any improvements are removed or damaged, other than those designated for correc�on or abatement, then such improvements shall be repaired or replaced in kind at the Contractor’s expense.

SAFETY AND PROTECTION

1. Note: it is the Contractor’s responsibility to be fully self-informed regarding all legal and industry standard requirements regarding all applicable safety requirements.

2. Report immediately all safety concerns, incidents, or accidents to the City Representa�ve.

3. Exercise all necessary and reasonable precau�ons regarding safety of persons and property in performance of the contract requirements and while on site.

4. Ensure that all Personal Protec�ve Equipment (PPE) is provided as needed for all persons engaged in work.

5. Ensure an adequate number of workers are onsite to ensure adequate safety.

6. Provide all necessary signage, barricades, safety tapes, cones, plates, etc.

7. Maintain clear access to all entries and exits.

8. Provide all applicable traffic controls, including:
a. Perform all work, as required, according to the most current WATCH manual. b. Maintain clear ingress and egress areas, sidewalks, vehicle travel lanes, driveways, and the like at all �mes unless the immediate work prohibits it. c. Do not block traffic lanes during blackout dates unless authorized by the City Representa�ve.
d. Do NOT delineate traffic and do NOT close any traffic lanes between 3:30 pm and 8:00 am without prior authoriza�on by the City Representa�ve.

SECURITY

1. Provide temporary security measures for the work site, to secure all equipment and materials and discourage the�, vandalism, and unauthorized entry by public.

2. Do not admit any person into the work area who is not an employee of City, Contractor, or subcontractor.

3. Wear iden�fica�on at all �mes, which shall be furnished by Contractor.

LEVEL OF SERVICE
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A. The City of Moreno Valley reserves the right to u�lize one or more Contractors for general nuisance and weed abatement services.

B. The Contractor must provide �mely abatement of general public nuisances, including emergency abatements, at specified loca�ons on both public and private property on a City-wide basis at the direc�on of the City.

C. Payment will not be made to the Contractor for work accomplished that was not authorized by the City.

D. All general nuisance and weed abatement services must be performed in a prompt, thorough, lawful, and workman-like manner. All abatement must be performed by Contractor in accordance with accepted industry prac�ces and standards. Board ups must conform to established Community Enhancement & Neighborhood Services acceptable specifica�ons and standards.

E. Abatement may include, but not be limited to the demoli�on, removal, repair, maintenance, construc�on, reconstruc�on, replacement, or recondi�oning of structures, appliances or equipment, installa�on of temporary chain link fencing, boarding up of windows, doors or other openings; or the pumping of stagnant water from pools; or the removal, transporta�on, disposal and treatment of waste and abandoned materials and equipment capable of harboring, breeding, or atrac�ng rodents or insects or producing odors or blight.

F. Material and equipment: The Contractor must provide, at its own expense, all labor, material, tools, and equipment necessary to safely and effec�vely perform general nuisance and weed abatement services in accordance with accepted industry standards.

G. Unless otherwise restricted, minor dimension changes and detailed adjustments may be made in the interest of the abatement or for the ability to sa�sfy the abatement performance, provided that the general intent is maintained and the property is restored to its original state as nearly as possible. Such changes or recommenda�ons must be approved by the City in advance of any changes.

H. To the extent so specified by the City, the Contractor must secure at its own expense all necessary permits, governmental authoriza�ons, licenses, inspec�ons, and all other similar requirements.

I. All Contractors and sub-contractors performing abatement work requiring a City-issued building or demoli�on permit must have and maintain required Contractors’ License (Name on State Contractor License must agree with Contractor’s name).

J. The Contractor must be able to complete the work as outlined in the Request for Service at the �me of job assignment.

K. In the case of an emergency abatement, Contractor must be able to respond within 24 hours of contact.

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L. The Contractor must perform work during such hours as may be necessary to provide the approved and requested services. Regular hours for abatement are designated: Monday, Tuesday, Wednesday, Thursday, Friday, Saturday or Sunday, 8:00am to 5:00pm. Emergency/A�erHours abatement are designated: Monday, Tuesday, Wednesday, Thursday, Friday, Saturday or Sunday, 5:01pm to 7:59am.

M. Contractor agrees to represent himself at City mee�ngs when, and if, the quality and/or cost of abatement services performed come into ques�on or is disputed, or when requested by the City.

N. All debris must be removed to an authorized disposal site. Dump receipts must be submited with invoices as outlined below.

O. The Contractor will be responsible for the protec�on of all improvements adjacent to the work including, but not limited to: sprinkler systems; drain pipes; lawns; plan�ngs; brickwork; masonry work; fences; walls; sidewalks; street paving located on either public or private property.

P. If any improvements are removed or damaged, other than those designated for correc�on or abatement, then such improvements must be repaired or replaced in kind at the Contractor's expense.

Q. All abatement services must be performed with maximum prac�cal considera�on for conserva�on of materials, energy, and water.

R. Contractor must no�fy City immediately upon comple�on of each work assignment.

S. Within 10 working days of comple�ng an assigned work assignment, the Contractor will submit its invoice. Receipts of all materials purchased, and any fees paid (e.g. landfill fees), must also be submited with each invoice statement.

T. Contractor’s invoice must include:

1. Project loca�on (address or Assessor's Parcel Number)

2. Project start/comple�on date

3. Project start/comple�on �me

4. Name of the Community Enhancement & Neighborhood Services Officer reques�ng services

5. Case file number

6. City’s Request for Service

7. The scope of the abatement services performed including any approved change orders

8. Detail billing to include personnel and equipment used, dura�on/hours u�lized, and appropriate billing rate

9. Photographic evidence of abatement services performed:

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a. A minimum of four (4) unaltered, full-color, digital photographs of four different views clearly showing the area(s) to be abated.
b. The same number of unaltered, full-color, digital photographs taken of the same areas a�er the abatement. Before and a�er photos should be taken while standing at the same loca�on, at same angle, with same perspec�ve, for comparison purposes.
c. All photos must:
i. Be clearly iden�fied/marked with the date the photo was taken ii. Include a reference to "Before" or "A�er" and
iii. Include the address or Assessor’s Parcel Number (e.g. curb address in picture manual info sheet in foreground)

10. Include applicable dump receipts.

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EXHIBIT A.2
Inland Empire Property Services Pricing Proposal
Line Item Description
Unit of
Measure Unit Cost
Handwork
General clean up; grubbing, removal of trash and debris, weed whacking, yard mowing SF $.25
Weed Abatement
Discing: First Acre or any portion thereof (multiple passes on parcels will be added together for an aggregate total) each $285.00 Weed Abatement Discing: Each additional acre each $285.00 Weed Abatement
Mowing: First acre or any portion thereof (multiple passes on parcels will be added together for an aggregate total) each $285.00 Weed Abatement Mowing: Each additional acre each $285.00 Hauling of Trash and
Debris Junk, Trash and debris CY $200.00
Hauling of Trash and
Debris
Removal of concrete, asphalt, rubble removal and materials that cannot be achieved by hand CY $225.00
Hauling of Trash and
Debris Tires - Standard each $125.00
Hauling of Trash and
Debris Tires - Big rig each $250.00
Hauling of Trash and
Debris Tires - Tractor each $500.00
Water Removal Pool/spa pumping each $850.00
Board Ups Small Window (24"x24" or smaller) each $205.00 Board Ups Standard Window (48"x48" or smaller) each $275.00 Board Ups Large Window (48"x96" or smaller) each $375.00 Board Ups Extra Large Window (over 96"x96")
Time and
materials $0.00
Board Ups Minimum Charge each $750.00
Tree Trimming/Removal Tree Trimming/Removal CY $275.00
Abatement Package and
Photos
Abatement Package and Photos (No fewer than 4, 4"x6" color phots per job, 2 showing before work, 2 showing after work) each
packet $75.00
Special Equipment Bobcat use per hour $650.00
Special Equipment Dozer use per hour $1,200.00
Other Services
Other Nuisance Abatement Services not included above, to be negotiated by City Officers/Officials. Any abatement work/jobs that are projected to require an excess of four (4) man-hours of “handwork” will require prior approval by City Officers/Officials.

Emergency Services after-hours between 5:01 pm and 7:59 am, handwork man hours may be billed at time and a half with prior approval of City Officers/Officials. TBD $0.00
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EXHIBIT B

CITY RESPONSIBILITIES
A. The City of Moreno Valley is responsible for providing requests for service, access to sites to perform es�mates and/or work, and organizing site visits.

B. Provide escorts at sites that require the presence of a City employee during work periods.

C. Provide purchase orders or other writen authoriza�on to confirm the approval of work.

D. Provide materials when the scope of work so indicates.

E. Fund all required City permits, excluding a City of Moreno Valley business license.

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EXHIBIT C

TERMS OF PAYMENT

1. The Vendor's compensa�on shall not exceed $2,360,000.

2. The Vendor will obtain, and keep current during the term of this Agreement, the required City of Moreno Valley business license. Proof of a current City of Moreno Valley business license will be required prior to any payments by the City. Any invoice not paid because the proof of a current City of Moreno Valley business license has not been provided will not incur any fees, late charges, or other penal�es. Complete instruc�ons for obtaining a City of Moreno Valley business license are located at: htps://moval.gov/departments/financial-mgmt-svcs/svc-biz-license.html.

3. The Vendor will electronically submit an invoice to the City on a monthly basis for progress payments along with documenta�on evidencing services completed to date. The progress payment is based on actual �me and materials expended in furnishing authorized professional services since the last invoice. At no �me will the City pay for more services than have been sa�sfactorily completed and the City’s determina�on of the amount due for any progress payment shall be final. The Vendor will submit all original invoices to Accounts Payable staff at [email protected].
a. Accounts Payable ques�ons can be directed to (951) 413-3073. b. Copies of invoices may be submited to the Purchasing & Sustainability Division at [email protected] or calls directed to (951) 413-3190.

4. The Vendor agrees that City payments will be received via Automated Clearing House (ACH) Direct Deposit and that the required ACH Authoriza�on form will be completed prior to any payments by the City. Any invoice not paid because the completed ACH Authoriza�on Form has not been provided will not incur any fees, late charges, or other penal�es. The ACH Authoriza�on Form is located at: htp://www.moval.org/city_hall/forms.html.

5. The minimum informa�on required on all invoices is:
a. Vendor Name, Mailing Address, and Phone Number
b. Invoice Date
c. Vendor Invoice Number
d. City-provided Reference Number (e.g. Project, Ac�vity) e. Detailed work hours by class �tle (e.g. Manager, Technician, or Specialist), services performed and rates, explicit por�on of a contract amount, or detailed billing informa�on that is sufficient to jus�fy the invoice amount; single, lump amounts without detail are not acceptable.

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6. The City shall pay the Vendor for all invoiced, authorized professional services within thirty (30) days of receipt of the invoice for same.

7. Reimbursement for Expenses. Vendor shall not be reimbursed for any expenses unless authorized in wri�ng by City.

8. Maintenance and Inspec�on. Vendor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly iden�fiable. Vendor shall allow a representa�ve of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Vendor shall allow inspec�on of all work, data, documents, proceedings, and ac�vi�es related to the Agreement for a period of three (3) years from the date of final payment under this Agreement.

9. Non-Performance Damages/Penal�es. The Vendor have agreed to non-performance damages/penal�es with respect to Vendor’s failure to complete the Work within the Contract/Agreement Time intervals and/or frequencies as set forth in this agreement and/or in the Scope of Work, or as directed by the City. For each of the categories set forth hereinabove, the penal sum of 1% of the total contract/agreement amount per working day will be assessed for each working day the deficiencies remain uncorrected. If non-performance damages/penal�es are to be assessed, the Vendor will be no�fied immediately by writen email, facsimile transmission, leter, or by telephone. The Vendor will not be assessed non-performance damage/penal�es for delays caused by the City or are deemed outside the Vendor’s control by the City.

Vendor and City acknowledge and agree that the amount of such non-performance damages/penal�es are impossible to ascertain as of the date of execu�on hereof and have agreed to such non-performance damages/penal�es to fix the City's damages and to avoid later disputes. It is understood and agreed by Vendor that non-performance damages/penal�es payable pursuant to this Contract/Agreement and that such amounts are not manifestly unreasonable under the circumstances exis�ng as of the date of execu�on of this Contract/Agreement.

It is further mutually agreed that the City will have the right to deduct non-performance damages/penal�es against progress payments or retainage and that the City will issue a Change Order and reduce the Contract/Agreement Price accordingly. In the event the remaining unpaid Contract/Agreement Price is insufficient to cover the full amount of non-performance damages/penal�es, Vendor shall pay the difference to the City.

City may at any �me deduct non-performance damages/penal�es as are payable hereunder from money due or to become due to Vendor, or pursue any other legal remedy to collect such non-performance damages/penal�es from Vendor and/or its Insurance, Surety, etc. Neither the City's failure or delay in deduc�ng non-performing damages/penal�es from payments otherwise due Vendor, nor City's failure or delay in no�fying Vendor of the accrual of non-performance DRAFT
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damages/penal�es, shall be deemed a waiver of City's right to non-performance damages/penal�es.

City's rights under this Sec�on shall not be interpreted as precluding or limi�ng:
1) any right or remedy of City arising from an event of Vendor default other than a failure to complete the Work within the Contract/Agreement Time; or 2) City's right to order an accelera�on, at Vendor's expense, of performance of the Work to overcome delay, including, without limita�on, a delay for which City has the right to assess and/or accrue non-performance damages/penal�es.

The availability of non-performance damages/penal�es shall not limit City's right to terminate the Vendor's performance and accrual and/or assessment of non-performance damages/penal�es does not cons�tute a waiver of such rights.

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PREMIUM $

FAITHFUL PERFORMANCE BOND
(100% of Total Contract Price)

NUISANCE ABATEMENT SERVICES
KNOW ALL MEN AND WOMEN BY THESE PRESENTS:

THAT WHEREAS, the City Council of the City of Moreno Valley, State of California, known as "City," has awarded to , as Principal hereinafter designated as "Vendor" and have entered into an Agreement whereby the Vendor agrees to construct or install and complete certain designated public improvements, which said Agreement, effective on the date signed by the City of Moreno Valley, and identified as Nuisance Abatement Services, and all Contract Documents are hereby referred to and made a part hereof; and
WHEREAS, said Vendor under the terms of said Contract Documents is required to furnish a bond guaranteeing the faithful performance of said Agreement; NOW THEREFORE, we the undersigned Vendor and , as
Surety, are held and firmly bound unto the City of Moreno Valley, County of Riverside in the penal sum of dollars, ($ ), lawful money of the United States,
to be paid to the said City or its certain attorney, its successors and assigns; for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, and assigns, jointly and severally liable (CCP 995.320 (a)(1)), firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if the above bound Vendor, his or her or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions, and provisions in said Contract Documents and any alterations thereof made as therein provided, on his or her or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of Moreno Valley, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. In the event suit is brought upon this bond by the City and judgement is recovered, the Surety shall pay all costs incurred by the City in such suit, including a reasonable attorney fee to be fixed by the court.

Vendor and Surety agree that this Faithful Performance Bond shall not be considered a part of this Agreement between Vendor and the City (“Agreement”). Vendor and Surety further agree that this Faithful Performance Bond is a separate obligation of the Vendor and its Surety, and that any attorney’s fee provision contained in this Faithful Performance Bond shall not apply to the Agreement. In the event there is any litigation between the parties arising from the breach of the Agreement, each party will bear its own attorneys’ fees in the litigation.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract Documents or to the Work to be performed thereunder, or the Provisions accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract Documents or to the Work or the Provisions.
(SIGNATURE PAGE FOLLOWS)
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IN WITNESS WHEREOF, we have hereunto set our hands, and seals on this day of 20 .

CONTRACTOR (Principal) SURETY
Vendor Name: Name:

Address: Address:

Telephone No.: Telephone No.:

Print Name: Print Name:

Attorney-in-Fact
Signature: Signature:

Approved as to Form this
day of 20
City Attorney
City of Moreno Valley
NOTE:
• The bond shall be executed by a California admitted surety insurer (CCP 995.311). • The bond shall include an attached Notary Certificate for the Attorney-in-Fact. • The bond shall include an attached Notary Certificate for the Vendor. • The bond shall include an attached original Power of Attorney only authorizing the Attorneyin-Fact to act for the Surety. • The bond shall include the address at which the Principal (Vendor) and Surety may be served with notices, papers and other documents.
• The Vendor’s and Surety’s corporate seal may be affixed hereto.

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CALIFORNIA ALL-PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
State of California SAMPLE
County of ______________________
On _________________ before me, _____________________________________________________, (Here insert name and title of the officer)
personally appeared __________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledgement to me that he/she they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
___________________________________ (Notary Seal)
Signature of Notary Public

ADDITIONAL OPTIONAL INFORMATION

INSTRUCTIONS FOR COMPLETING THIS FORM
Any acknowledgment completed in California must contain verbiage exactly appears above in the notary section or a separate acknowledgment form must property completed and attached to that document. The only exception is if a document is recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer).

Please check the document carefully for proper notarial wording and attach this form if required.
• State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/they, is/are) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form.
• Signature of the notary public must match the signature on file with the office of the county clerk.
• Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. • Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document.

DESCRIPTION OF THE ATTACHED DOCUMENT

PERFORMANCE BOND SIGNATURE PAGE
(Title or description of attached document)

___________________________________________ (Title or description of attached document continued) Number of Pages _______
Document Date _______________
_____________________________________________
Additional Information

CAPACITY CLAIMED BY THE SIGNER
 Individual(s)
 Corporate Officer
_____________________________
(Title)
 Partner (s)
 Attorney-in-Fact
 Other __________________________________
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I.14.a
Packet Pg. 321 Attachment: Agreement for Services - Inland Empire Property Services Inc [Revision 2] (6638 : AWARD AGREEMENT FOR CITYWIDE GENERAL BOND No.

PREMIUM $

LABOR AND MATERIALS PAYMENT BOND
(100% of Total Contract Amount)

NUISANCE ABATEMENT SERVICES
KNOW ALL MEN AND WOMEN BY THESE PRESENTS:

THAT WHEREAS, the City Council of the City of Moreno Valley, State of California, known as "City", has awarded to , as Principal hereinafter designated as "Vendor" and have entered into an Agreement whereby the Vendor agrees to construct or install and complete certain designated public improvements, which said Agreement, effective on the date signed by the City of Moreno Valley, and identified as Nuisance Abatement Services, and Agreement Documents are hereby referred to and made a part hereof; and
WHEREAS, said Vendor under the terms of said Contract Documents is required to furnish a bond to secure the payment of claims of laborers, mechanics, materialmen, and other persons, as provided by law;
NOW, THEREFORE, we the undersigned Vendor and , as
Surety are held and firmly bound unto the City of Moreno Valley, County of Riverside, in the penal sum of dollars, ($ ), lawful money of the
United States, for which payment, well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors, and assigns, jointly and severally liable (CCP 995.320 (a)(1)), firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if said Vendor, his or her or its heirs, executors, administrator, successors, or assigns, or subcontractors, shall fail to pay any of the persons described in the State of California Civil Code, Section 9100, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the Vendor and his or her subcontractors, pursuant to Section 13020, of the Unemployment Insurance Code, with respect to such work and labor, that the Surety or Sureties herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. In the event suit is brought upon this bond by the City or other person entitled to bring such an action and judgement is recovered, the Surety shall pay all costs incurred by the City in such suit, including a reasonable attorney fee to be fixed by the court.

Vendor and Surety agree that this Labor and Materials Payment Bond shall not be considered a part of this Agreement between Vendor and the City (“Agreement”). Vendor and Surety further agree that this Labor and Materials Payment Bond is a separate obligation of the Vendor and its Surety, and that any attorney’s fee provision contained in this Labor and Materials Payment Bond shall not apply to the Agreement. In the event there is any litigation between the parties arising from the breach of the Agreement, each party will bear its own attorneys’ fees in the litigation.

This bond shall inure to the benefit of any of the persons described in the State of California Civil Code Section9100, to give a right of action to such persons or their assigns in any suit brought upon this bond. (SIGNATURE PAGE FOLLOWS)
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I.14.a
Packet Pg. 322 Attachment: Agreement for Services - Inland Empire Property Services Inc [Revision 2] (6638 : AWARD AGREEMENT FOR CITYWIDE GENERAL BOND No. ___________
IN WITNESS WHEREOF, we have hereunto set our hands, and seals on this day of 20 .

VENDOR (Principal) SURETY
Vendor Name: Name:

Address: Address:

Telephone No.: Telephone No.:

Print Name: Print Name:

Attorney-in-Fact
Signature: Signature:

Approved as to Form this
day of 20
City Attorney
City of Moreno Valley
NOTE:
• The bond shall be executed by a California admitted surety insurer (CCP 995.311). • The bond shall include an attached Notary Certificate for the Attorney-in-Fact. • The bond shall include an attached Notary Certificate for the Vendor. • The bond shall include an attached original Power of Attorney only authorizing the Attorneyin-Fact to act for the Surety. • The bond shall include the address at which the Principal (Vendor) and Surety may be served with notices, papers and other documents.
• The Vendor’s and Surety’s corporate seal may be affixed hereto.

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Packet Pg. 323 Attachment: Agreement for Services - Inland Empire Property Services Inc [Revision 2] (6638 : AWARD AGREEMENT FOR CITYWIDE GENERAL • CALIFORNIA ALL-PURPOSE

CERTIFICATE OF ACKNOWLEDGMENT
State of California SAMPLE
County of ______________________
On _________________ before me, _____________________________________________________, (Here insert name and title of the officer)
personally appeared __________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledgement to me that he/she they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
___________________________________ (Notary Seal)
Signature of Notary Public

ADDITIONAL OPTIONAL INFORMATION

INSTRUCTIONS FOR COMPLETING THIS FORM
Any acknowledgment completed in California must contain verbiage exactly appears above in the notary section or a separate acknowledgment form must property completed and attached to that document. The only exception is if a document is recorded outside of California. In such instances, any alternative acknowledgment verbiage as may be printed on such a document so long as the verbiage does not require the notary to do something that is illegal for a notary in California (i.e. certifying the authorized capacity of the signer).

Please check the document carefully for proper notarial wording and attach this form if required.
• State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment.
• Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed. • The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). • Print the name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/they, is/are) or circling the correct forms. Failure to correctly indicate this information may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form.
• Signature of the notary public must match the signature on file with the office of the county clerk.
• Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. • Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document.

DESCRIPTION OF THE ATTACHED DOCUMENT

PAYMENT BOND SIGNATURE PAGE
(Title or description of attached document)

___________________________________________ (Title or description of attached document continued) Number of Pages _______
Document Date _______________
_____________________________________________
Additional Information

CAPACITY CLAIMED BY THE SIGNER
 Individual(s)
 Corporate Officer
_____________________________
(Title)
 Partner (s)
 Attorney-in-Fact
 Other __________________________________
DRAFT
I.14.a
Packet Pg. 324 Attachment: Agreement for Services - Inland Empire Property Services Inc [Revision 2] (6638 : AWARD AGREEMENT FOR CITYWIDE GENERAL Report to City Council
ID#6637 Page 1
TO: Mayor and City Council
FROM: Launa Jimenez, Chief Financial Officer
AGENDA DATE: May 21, 2024
TITLE: ADOPT RESOLUTION AUTHORIZING AMENDMENT NO.
11 TO THE LOAN AGREEMENT BETWEEN THE CITY OF

MORENO VALLEY AND THE POLICE FACILITIES
DEVELOPMENT IMPACT FEE FUND (RESO. NO. 2024-
XX)

RECOMMENDED ACTION
Recommendation:

1. Adopt a Resolution of the City Council of the City of Moreno Valley, California, authorizing Amendment No. 11 to the loan agreement between the City of Moreno Valley and the Police Facility Development Impact Fee fund.

SUMMARY
Staff recommends that the City Council adopt the proposed resolution approving Amendment No. 11 to the interfund loan agreement between the General Fund and the Police Facilities Development Impact Fee Fund (Police DIF) for $6,000,000.

Due to the timing of development impact revenues, the Police Facility DIF is currently reporting a cash balance, which will require a loan from the General Fund to comply with Generally Accepted Accounting Principles. These loans will be updated annually until such time as the revenues received by the Development Impact Fee funds are sufficient to extinguish the loan balances.

DISCUSSION
The City Council has approved the levy of a fee to mitigate the impacts of new development on various public facilities pursuant to the California Mitigation Fee Act.

These fees are collected and recorded in separate funds pending the allocation of available funds for capital projects or to pay debt service on public facilities or I.15
Packet Pg. 325