CITY OF MURRIETA
GENERAL OPERATING ACCOUNT
1 TOWN SQ
MURRIETA CA 92562-7922
Account Number - DDA
1643979121
10-01-2023 Beginning Balance 69,925,081.02
10-02-2023 Next Day Sweep Purchase 345,710.82
10-03-2023 Next Day Sweep Purchase 786,842.73
10-04-2023 Sweep Funds Return To DDA 49,671.16
10-05-2023 Sweep Funds Return To DDA 1,275,292.40
10-06-2023 Next Day Sweep Purchase 145,201.03
10-10-2023 Next Day Sweep Purchase 24,398,854.46
10-11-2023 Sweep Funds Return To DDA 2,189,291.69
10-12-2023 Sweep Funds Return To DDA 500,882.66
10-13-2023 Sweep Funds Return To DDA 548,053.64
10-16-2023 Sweep Funds Return To DDA 78,075.54
10-17-2023 Sweep Funds Return To DDA 305,985.58
10-18-2023 Sweep Funds Return To DDA 2,431,460.93
10-19-2023 Sweep Funds Return To DDA 85,079.96
10-20-2023 Sweep Funds Return To DDA 8,615.32
10-23-2023 Sweep Funds Return To DDA 202,503.51
10-24-2023 Sweep Funds Return To DDA 290,656.75
10-25-2023 Next Day Sweep Purchase 3,716,456.71
10-26-2023 Sweep Funds Return To DDA 59,280.85
10-27-2023 Sweep Funds Return To DDA 17,052.90
10-30-2023 Next Day Sweep Purchase 1,484,236.93
10-31-2023 Sweep Funds Return To DDA 681,854.27
10-31-2023 Ending Balance 92,078,626.54
FUND SUMMARY
Dividends Earned YTD 3,672,549.39
Federal Withholding YTD .00
7-Day Simple Yield 5.28297 %
Federal Withholding .00
Beginning Balance 69,925,081.02
Shares Purchased 30,877,302.68 +
Shares Redeemed 8,723,757.16 -
Ending Balance 92,078,626.54
Prior Month Dividends Paid to Checking 336,254.99
Dividends Earned in Current Month 379,346.53
Funds Pending Redemption 509,620.69-
222
STAGECOACH SWEEP
Date Investment Balance Annualized Fund Yield Daily Dividend Factor Daily Accrual 10-04 71,007,963.41 5.280 % .000144683 10,273.65
10-05 69,732,671.01 5.253 % .000143922 10,036.07
10-06 69,877,872.04 5.291 % .000144979 10,130.82
10-07* 69,877,872.04 5.291 % .000144979 10,130.82
10-08* 69,877,872.04 5.291 % .000144979 10,130.82
10-09* 69,877,872.04 5.291 % .000144979 10,130.82
10-10 94,276,726.50 5.262 % .000144188 13,593.57
10-11 92,087,434.81 5.270 % .000144400 13,297.43
10-12 91,586,552.15 5.270 % .000144392 13,224.37
10-13 91,038,498.51 5.314 % .000145611 13,256.21
10-14* 90,960,422.97 5.314 % .000145611 13,244.84
10-15* 90,960,422.97 5.314 % .000145611 13,244.84
10-16 90,960,422.97 5.251 % .000143866 13,086.11
10-17 90,654,437.39 5.305 % .000145358 13,177.35
10-18 88,222,976.46 5.274 % .000144501 12,748.31
10-19 88,137,896.50 5.284 % .000144790 12,761.49
10-20 88,129,281.18 5.278 % .000144618 12,745.08
10-21* 87,926,777.67 5.278 % .000144618 12,715.79
10-22* 87,926,777.67 5.278 % .000144618 12,715.79
10-23 87,926,777.67 5.271 % .000144432 12,699.44
10-24 87,636,120.92 5.281 % .000144706 12,681.47
10-25 91,352,577.63 5.291 % .000144986 13,244.84
10-26 91,293,296.78 5.281 % .000144710 13,211.05
10-27 91,276,243.88 5.285 % .000144804 13,217.17
10-28* 91,276,243.88 5.285 % .000144804 13,217.17
10-29* 91,276,243.88 5.285 % .000144804 13,217.17
10-30 92,760,480.81 5.286 % .000144832 13,434.69
10-31 92,078,626.54 5.285 % .000144804 13,333.35
TOTAL MTD 379,346.53
* Indicates non-business day
THANK YOU FOR BANKING WITH WELLS FARGO.
MONEY MARKET MUTUAL FUNDS (EACH, A "MMMF") ARE NOT FDIC INSURED, HAVE NO BANK GUARANTY AND MAY LOSE VALUE.
An Investment in a MMMF is not insured by the Federal Deposit Insurance Corporation or any other government agency. Although the MMMF's seek to preserve the value of customer's investment at $1.00 per share, it is possible to lose money by investing in a MMMF.
Allspring Funds Management, LLC, a wholly owned subsidiary of Allspring Global Investments Holdings, LLC ("Allspring Global"), provides investment advisory and administrative services for the Allspring Funds?. Other subsidiaries of Allspring Global provide sub-advisory and other services for the funds. The funds are distributed by Allspring Funds Distributor, LLC, Member FINRA/SIPC, a subsidiary of Allspring Global.
This material must be accompanied or preceded by a current prospectus for name of the Fund(s) selected. Please read the prospectus carefully before investing.
10/01/2023 - 10/31/2023
Account Number - DDA
1643979121
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CITY OF MURRIETA
City Council Meeting Agenda
Report
11/22/2023
Agenda Item No. 5.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Tiffany Israel, City Attorney
PREPARED BY: Diego Chavez, Administrative Services Director SUBJECT: Adoption of an Ordinance Relating to the Issuance of Subpoenas Before the City Council
RECOMMENDATION
Conduct the second reading and adopt Ordinance No. 599-23 entitled: An Ordinance of the City Council of the City of Murrieta, California, Adding Chapter 1.30 to the Murrieta Municipal Code Relating to the Issuance of Subpoenas Before the City Council; and
Find the Ordinance exempt from the California Environmental Quality Act (“CEQA”)under Section 15061(b)(3) of the CEQA Guidelines.
PRIOR ACTION/VOTE
On November 21, 2023, the City Council introduced and conducted the first reading of ordinance No. 599-23 (Vote: 4-1).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
In addition to its role in establishing policy and adopting legislation, the Murrieta City Council also serves in a quasi-judicial capacity in public hearings and appeals. When serving in this manner, it is occasionally necessary to be able to compel the appearance of individuals to provide needed testimony and/or the production of documents for evidentiary purposes. When witnesses do not appear voluntarily and/or provide required evidentiary materials, it is necessary to issue a subpoena to compel such an appearance or production.
California Government Code Sections 37401, et seq., provide the authority for the City Council to issue subpoenas to compel the attendance of witnesses and/or the production of documents in hearings before the Council. The proposed Ordinance provides the framework for the City Council to issue subpoenas, when necessary, and when authorized by a vote of the Council. Once properly issued, an individual who fails to appear at a hearing and/or produce the requested documents may be subject to an attachment (similar to a CITY OF MURRIETA Printed on 12/1/2023Page 1 of 2
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Agenda Item No. 5.
appear at a hearing and/or produce the requested documents may be subject to an attachment (similar to a warrant) and contempt proceedings before a judge in the superior court.
FISCAL IMPACT
None.
ATTACHMENTS
1. Ordinance No. 599-23
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01375.0001/920206.1 - 1 -
ORDINANCE NO. 599-23
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA , ADDING CH APTER 1.30 TO THE
MURRIETA MUNICIPAL CODE RELATING TO THE ISSUANCE OF
SUBPOENAS BEFORE THE CITY COUNCIL
Summary: This ordinance establishes the pr ocedures through which the City Council may authorize the issuance of subpoenas for testimony and/or the production of documents at hearings held before the City Council.
WHEREAS, California Government Code Section s 37 104 et seq. provide for the subpoena of witnesses and doc uments b y the City Council for public hearings held by the Council; and
WHEREAS, the City Cou ncil desires to provide for the subpoena of such witne sses and/or documents when necessary and approved by the Council.
NOW, THEREFORE , THE CITY COUN CIL OF THE CI TY OF MURRIETA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Chapter 1.30 is hereby added to the Murrieta Municipal Code to read as follows:
“1.30.010 Purpose.
This chapter is adopted for the purpose and intent of establishing a uniform procedure for issuing subpoenas to compel the attendance of witnesses and /or the production of books or other documents for evidence or testimony at proceedings before the City Council.
1.30.020 Authority.
The procedures set forth he rein are auth orized by California Government Code Section 37104, et seq.
1.30.030 Issuance of subpoena.
Upon authorization by the City Council, a subpoena may issue if authorized under this code or if related to any proceeding within the City Council’s jurisdiction. The subpoena shall be signed by the Mayor and attested to by the City Clerk. It may thereaf ter be served in the same manner as in civil actions.
1.30.040 Enforcement.
Upon a finding that any person or legal entity has neglected or refused to obey a subpoena issued pursuant to Section 1. 30.030, or, appearing, refuses to testify or answer any questions which a majority of the legislative body decide is proper and pertinent, the Mayor shall report the fact to the ju dge of the Superior Court of Riverside County for further proceedings in the form and manner prescribed by law.
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1.30.050 Form of subpoena.
City-issued subpoenas shall be issued on a form approved by the City Attorney.”
SECTION 2. This Ordinance is exempt from the Califor nia Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment.
Where, as he re, it can be seen with cert ainty that there i s no possibility that the act ivity in question would have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 3. If any section, subsection, sentence, clause, or phrase of t his Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsectio n, sentence, clause and phrase thereof not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 4. This Ordinance shall become effective on the thi rty-first (31st) day after its passage and adoption, and within fifteen (15) days after its final passage and the City Clerk shall cause it to be posted and published in a newspaper of general circulation, printed, published and circulated in the City in the manner required by law and shall cause a copy of this Ordinance and its certification, to be entered in the Book of Ordinances of the City.
PASSED AND ADOPTED this ___ day of ________, 2023.
Lisa DeForest, Mayor
ATTEST:
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
Tiffany J. Israel, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the fore going Ordinance No. 599-23 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the ___th day of _______, 2023, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Cristal McDonald, City Clerk
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 599-23 was duly published according to law a nd the o rder of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):
Adopted Ordinance: , 2023.
In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2023.
Cristal McDonald, City Clerk
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CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 6.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Diego Chavez, Administrative Services Director
PREPARED BY: Diane Kohanyi, Management Analyst
SUBJECT: Ninth Amendment to TriTech Software Systems Agreement
RECOMMENDATION
Approve the Ninth Amendment to the System Implementation Agreement with TriTech Software Systems for services relating to the Computer-Aided Dispatch and Records Management System; Approve a one-time service fee in the amount of $100,000 and an annual software fee of $525,000 in year two, with a 5% increase for each subsequent year for the term of the agreement, for a total contract amount not to exceed $2,362,815.63;
Authorize the City Manager to execute the agreement; and Amend the Fiscal Year 2023/24 and 2024/25 Operating Budgets as outlined in the Fiscal Impact section of this report.
PRIOR ACTION/VOTE
On June 6, 2017, the City Council adopted Resolution No. 17-3739, authorizing the purchase of a Computer- Aided Dispatch and Records Management System for a total initial cost of $1,796,175, ongoing cost of $236,533 and annual debt repayment of $209,241
(Vote: 5-0).
On November 15, 2022, the City Council authorized the Seventh Amendment to the TriTech Software Systems Agreement for a total increase of $115,680 (Vote: 5-0).
On April 18, 2023, the City Council authorized the Eighth Amendment to the TriTech Software Systems Agreement (Vote: 4-0-1).
CITY COUNCIL GOAL
Provide a high level of innovative public safety.
BACKGROUND
On June 6, 2017, the City of Murrieta entered into an agreement with TriTech Software Systems, a CITY OF MURRIETA Printed on 12/1/2023Page 1 of 2
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12/5/2023
Agenda Item No. 6.
On June 6, 2017, the City of Murrieta entered into an agreement with TriTech Software Systems, a CentralSquare Technologies, LLC Company, for a Police and Fire Computer-Aided Dispatch (CAD) and Police Records Management System (RMS). The contract term was 60 months from the go-live date of August 28, 2018. The Seventh Amendment extended the contract to August 28, 2024.
Since implementation, additional features have been added, and work has been done to improve the system, resulting in eight previous amendments to the initial agreement. The proposed Ninth Amendment to the agreement (Attachment 1) requests the following new item:
· Migration from the on-premises deployment of CAD and RMS to cloud-hosted deployments of CAD and RMS. This cloud migration will allow Murrieta to maintain resiliency, security, and modernization of the public safety infrastructure. By migrating to the cloud, Murrieta can quickly and effectively add system resiliency and accessibility, simultaneously reducing security concerns and requirements for patching to the latest software versions and minimizing downtime during upgrades. All these items are critical to the continued function and effectiveness of the CAD/RMS system, which Murrieta Police and Fire and Menifee Police use.
The Ninth Amendment also sets forth a new Solutions Agreement with CentralSquare that represents an amended and restated agreement, revoking and replacing previous agreements.
FISCAL IMPACT
Approval of the proposed Ninth Amendment will increase the total agreement amount to $2,362,815.63. There is a one-time service fee of $100,000 due upon execution of the agreement. This cost is in addition to what was budgeted for in Fiscal Year 2023/24. A budget appropriation is requested to establish an expenditure budget of $100,000 in account 4037500-71020.
The Fiscal Year 2024/25 Adopted Budget includes a budget of $197,409.74 for on-premises Software Subscription fees. The ongoing annual cloud-hosted Software Subscription fee for Fiscal Year 2024/25 will be $525,000. A budget appropriation is requested to establish an expenditure budget of $212,843 in account 7268340-62160 and $114,747 in account 1103130-62160 (a total increase of $327,590) to cover the increased costs for the higher level of service. Each subsequent year for the term of the agreement will increase automatically by 5%.
ATTACHMENTS
1. Ninth Amendment
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NINTH AMENDMENT TO SYSTEM IMPLEMENTATION AGREEMENT BETWEEN
TRITECH SOFTWARE SYSTEMS, A CENTRALSQUARE TECHNOLOGIES LLC
COMPANY, AND THE CITY OF MURRIETA
This Ninth Amendment to the Agreement (“Amendment”), made this 3 rd day of October,
2023 by and between the CITY OF MURRIETA, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California (“ CITY”), and CENTRALSQUARE TECHNOLOGIES, LLC, a Delaware limited liability company, as parent organization of TRITECH SOFTWARE SYSTEMS, a California corporation (“CONSULTANT”, “TriTech”, or “CentralSquare”), with reference to the following facts which are acknowledged by each party as true and correct:
RECITALS
A. CITY is a general law city, formed and existing pursuant to the provisions of the California Government Code.
B. CITY is authorized to enter into consultant agreements under the provisions of Government Code Section 53060.
C. CITY desires or is in need of software and services related to its Computer Aided Dispatch (“CAD”) and Records Management System (“RMS”) systems.
D. On June 6, 2017, CITY and CONSULTANT entered into a System Implementation Agreement for the purchase, implementation, and subsequent support of CAD and RMS (“Purchase Agreement”).
E. On August 10, 2021, CITY and CONSULTANT entered into a CentralSquare Support and Maintenance Agreement for renewed support on the CAD and RMS systems (“Support Agreement”).
F. CITY now desires, and CONSULTANT agrees to move from the on-premises deployment of CAD and RMS to cloud-hosted deployments of CAD and RMS.
AMENDMENT
NOW, THEREFORE, it is agreed by and between the parties as follows:
1. CITY and CONSULTANT agree to amend both the Purchase Agreement and Support Agreement as set forth in the Solutions Agreement attached hereto as Exhibit 1.
2. The Solutions Agreement shall take precedence over both the Purchase Agreement and Support Agreement by revoking and replacing in its entirety.
3. The Solutions Agreement (referred to herein as “Agreement”) will represent an amended and restated agreement. No other agreements shall have any force or effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed the day and year first above written.
(Signature Page to Follow)
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City of Murrieta, CA City of Murrieta, CA
Accepted By (Signature) Accepted By (Signature)
Printed Name Printed Name
Title Title
Date Date
City of Murrieta, CA TriTech Software Systems
Accepted By (Signature) Accepted By (Signature)
Printed Name Printed Name
Title Title
Date Date
232
ATTACHMENT 1
CentralSquare Solutions Agreement
CentralSquare Solutions Agreement
Early Adopter Cloud CAD
TriTech and Customer agree to work in partnership in order to transition customer’s current on-premise deployment of CAD to a cloud deployment. Client acknowledges and agrees to be an early adopter of this cloud deployment. Customer acknowledges that, as an early adopter, the software may have limited features, may not be fully functional, and may contain bugs, errors, or defects. TriTech expressly disclaims all representations and warranties, whether express or implied, including but not limited to any warranties of merchantability, fitness for a particular purpose, or non-infringement. Customer understands and agrees that the Software is provided “as -is” and “as available”. Customer agrees to test and evaluate the software and promptly provide feedback, including any identified issues, errors, or defects. The parties will work in good faith to address any identified issues and may explore options such as bug fixes, updates, or alternative solutions. In the event the software and/or cloud deployment fails to meet either party’s expectations, or the software encounters significant issues, the parties agree t o meet and confer within thirty (30) days of written notice from either party to discuss potential remedies and next steps , including, but not limited to, brining the Customer’s CAD software back to the original on -premise deployment state and configuration as it was before the migration to the cloud deployment.
As an early adopter, Customer agrees to make itself available, as reasonable, as a reference customer. This includes, but is not limited to, press release s, testimonials, case studies , webinars, and speaking opportunities. Customer grants CentralSquare Technologies the right to use Customer’s name, logo, and description of use case on CentralSquare's website, social media, and in sales pursuits following the execution of this Agreement.
As part of th is cloud migration, TriTech does not assume any risks associated with the use of end of life ( “EOL”) third-party software solutions to include, but not limited to the use of Microsoft Windows Server 2012 and Microsoft SQL Server 2012, by the Customer . Customer acknowledges and inherits all risks associated with continuing to utilize on- premises systems on Microsoft Windows Server 2012 and Microsoft SQL Server 2012 during the duration of the migration and assumes all responsibility for the non-compliant use of the Microsoft Windows Server 2012 and Microsoft SQL Server 2012. TriTech will not perform any development or support for the CAD, Mobile, or Records Enterprise applications to ensure compatibility with an unsupported version of Microsoft Windows Server 2012 and Microsoft SQL Server 2012. Customer acknowledges that it is solely responsible for the servers and the Microsoft Windows Server 2012 and Microsoft SQL Server 2012 versions installed. Customer assumes all security risks associated with using an unsupported version of the Microsoft Windows Server 2012 and Microsoft SQL Server 2012 products. TriTech strongly recommends that the agency upgrade to a supported version of Microsoft Windows Server and Microsoft SQL via TriTech’s rehost procedure.
Solution: Enterprise CAD & RMS
Term.
Initial Term. The Initial Term of this Agreement commences as of the Effective Date and will continue in effect for five (5) years from such date unless terminated earlier pursuant to any of the Agreement’s express provisions (the “Initial Term”).
Renewal Term. This Agreement may be renewed for additional terms by Customer and TriTech agreeing to extend this Agreement by mutual writing (a “Renewal Term” and, collectively, with the Initial Term, the “Term”).
Fees.
In consideration of the rights and services granted by CentralSquare to Customer under this Agreement, Customer shall make payments to CentralSquare pursuant to the amounts and payment terms outlined in Exhibit 1 (the Solutions(s) and Services Fee Schedule).
All invoices shall be billed and paid in U.S dollars (USD) and in accordance with the terms set forth in Exhibit 1. If Customer delays an invoice payment for any reason, Customer shall promptly notify CentralSquare in writing the reasons for such delay. Unless otherwise agreed by both Parties, CentralSquare may apply any payment received to any delinquent amount outstanding.
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Standard Terms and Conditions
1. Definitions. Capitalized terms not otherwise defined in this Agreement have the meanings set forth below:
1.1. "Affiliate" means any other Entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Entity.
1.2. "Authorized User" means Customer's employees, consultants, contractors, and agents who are authorized by Customer to access and use the Solutions pursuant to this Agreement, and for whom access to the Solutions has been purchased.
1.3. “Baseline Solution” means the version of a Solution updated from time to time pursuant to CentralSquare’s warranty services and maintenance, but without any other modification.
1.4. "CentralSquare Systems" means the information technology infrastructure used by or on behalf of CentralSquare to deliver the Solutions, including all computers, software, hardware, databases, electronic systems (including database management systems), and networks, whether operated directly by CentralSquare or through the use of third-party services.
1.5. "Customer Data" means information, data, and content, in any form or medium, collected, downloaded, or otherwise received, directly or indirectly from Customer, an Authorized User or end-users by or through the Solutions, provided the data is not personally identifiable and not identifiable to Customer.
1.6. "Customer Systems" means the Customer's information technology infrastructure, including computers, software, hardware, databases, electronic systems (including database management systems), and networks, whether operated by Customer or through the third-party services.
1.7. “Defect” means a material deviation between the Baseline Solution and its Documentation, for which Customer has given CentralSquare sufficient information to enable CentralSquare to replicate the deviation on a computer configuration that is both comparable to the Customer Systems and that is under CentralSquare’s control. Further, with regard to any custom modification, Defect means a material deviation between the custom modification and the CentralSquare generated specification and Documentation for such custom modification, and for which Defect Customer has given CentralSquare sufficient information to enable CentralSquare to replicate the deviation on a computer configuration that is both comparable to the Customer Systems and that is under CentralSquare’s control.
1.8. “Delivery” means:
1.8.1. For on-premise Solutions, Delivery shall be when CentralSquare delivers to Customer the initial copies of the Solutions outlined in Exhibit 1 by whichever the following applies and occurs first (a) electronic delivery, by posting it on CentralSquare’s network for downloading, or similar suitable electronic file transfer method, or (b) physical shipment, such as on a disc or other suitable media transfer method, or (c) installation, or (d) delivery of managed services server. Physical shipment is on FOB - CentralSquare’s shipping point, and electronic delivery is at the time CentralSquare provides Customer with access to download the Solutions.
1.8.2. For cloud-based Solutions Delivery shall be whichever the following applies and occurs first when Authorized Users have (a) received log-in access to the Solution or any module of the Solution or (b) received access to the Solution via a URL.
1.9. "Documentation" means any manuals, instructions, or other documents or materials that CentralSquare provides or makes available to Customer in any form or medium and which describe the functionality, components, features, or requirements of the Solution(s), including any aspect of its installation, configuration, integration, operation, use, support, or maintenance.
1.10. “End User Training” means the process of educating general users of the Software on the operation of the Software.
1.11. “Entity” means an individual, corporation, partnership, joint venture, limited liability entity, governmental authority, unincorporated organization, trust, association, or other organization.
1.12. “Hardware” means any equipment, computer systems, servers, storage devices, peripherals, and any other tangible assets purchased under this Agreement.
1.13. "Intellectual Property Rights" means any and all registered and unregistered rights granted, applied for, or otherwise now or hereafter in existence under or related to any patent, copyright, trademark, trade secret, database protection, or other intellectual property rights laws, and all similar or equivalent rights or forms of protection, in any part of the world.
1.14. “Managed Services Hardware” means any equipment, computer systems, servers, peripherals, and any other tangible asset purchased as a subscription under this Agreement.
1.15. “Maintenance” means optimization, error correction, modifications, and Updates (defined herein) to CentralSquare Solutions to correct any known Defects and improve performance. Maintenance will be provided for each Solution, the hours and details of which are described in Exhibit 2 (Maintenance and Support) or Exhibit 8 (Managed Services Provisions).
1.16. “New or Major Releases” means new versions of a Baseline Solution (e.g., version 4.0, 5.0 etc.) not provided as part of Maintenance.
1.17. "Personal Information" means any information that does or can identify a specific individual or by or from which a specific individual may be identified, contacted, or located. Personal Information includes all "nonpublic personal information" as defined under the Gramm -Leach-Bliley Act, "protected health information" as defined under the Health and Insurance Portability and Accountability Act of 1996, "Personal Data" as defined in the EU General Data Protection Regulation (GDPR 234
2018), "Personal Information" as defined under the Children's Online Privacy Protection Act of 1998, and all rules and regulations issued under any of the foregoing.
1.18. “Professional Services” means configuration, installation, implementation, development work, training or consulting services including custom modification programming, support relating to custom modifications, on-site support services, assistance with data transfers, system restarts and reinstallations provided by CentralSquare.
1.19. “Project Kickoff” is a meeting to occur shortly after contract execution between CentralSquare and Customer in which goals and objectives are set forth, all parties relevant team members are identified, and scope, timelines, and milestones are reviewed.
1.20. “Reliability Period” is the time period in which the Software is tested and confirmed reliable by successfully completed fifteen (15) continuous days in a live environment with no repeatable Priority 1 or Priority 2 issues as defined in Exhibit 2, unless otherwise agreed in a statement of work.
1.21. “Software” means the software program(s) (in object code format only) identified on Exhibit 1 (Solution(s) and Services Fee Schedule). The term “Software” excludes any Third-Party Software.
1.22. “Software Version” means the base or core version of the Solution Software that contains significant new features and significant fixes and is available to the Customer. The nomenclature used for updates and upgrades consists of major, minor, build, and fix and these correspond to the following digit locations of a release, a,b,c,d. An example of which would be 7.4.1.3, where the 7 refers to the major release, the 4 refers to the minor release, the 1 refers to the build, and the 3 refers to a fix.
1.23. "Solutions" means the software, Documentation, development work, CentralSquare Systems and any and all other information, data, documents, materials, works, and other content, devices, methods, processes, hardware, software, technologies and inventions, including any deliverables, technical or functional descriptions, requirements, plans, or reports, provided or used by CentralSquare or any Subcontractor in connection with Professional Services or Support Services rendered under this Agreement.
1.24. “Support Services” means Maintenance, Enhancements, implementation of New Releases, and general support efforts to respond to incidents reported by Customer in accordance with Exhibit 2 (Maintenance & Support) and Exhibit 8 (Managed Services Provisions), if applicable.
1.25. "Third-Party Materials" means materials and information, in any form or medium, including any software, documents, data, content, specifications, products, related services, equipment, or components of or relating to the Solutions that are not proprietary to CentralSquare.
2. License, Access, and Title.
2.1. License Grant. For any Solution designated as a “license” on Exhibit 1, Customer is granted a perpetual (unless terminated as provided herein), nontransferable, nonexclusive right and license to use the Software for Customer’s own internal use for the applications described in the Statement of Work, in the applicable environment (e.g., production, test, training, or disaster recovery system) and in the quantity set forth in Exhibit 1. Additional software licenses purchased after the execution of this Agreement shall also be licensed in accordance with the provisions of this section. Customer shall not use, copy, rent, lease, sell, sublicense, modify, create derivative works from/of, or transfer any software, or permit others to do said acts, except as provided in this Agreement. Any such unauthorized use shall be void and may result in immediate and automatic termination of the applicable license. In such event, Customer shall not be entitled to a refund of any license fees paid. Notwithstanding, Customer shall be entitled to use software at the applicable designated location for the purpose of the application(s) described in the Statement of Work to provide services for itself and other Affiliate governmental agencies/entities, provided that the Software is installed and operated at only one physical location. The Software license granted in this Agreement or in connection with it are for object code only and do not include a license or any rights to source code whatsoever.
2.2. A
ccess Grant . For any Solution designated as a “subscription” on Exhibit 1, so long as subscription fees are paid and current, (unless terminated as provided herein), Customer is granted a nontransferable, nonexclusive right to use the software for the Customer’s own internal use for the applications described in the Statement of Work, in the applicable environment (e.g., production, test, training, or disaster recovery system) and in the quantity set forth in Exhibit 1. Additional CentralSquare software subscriptions purchased after the execution of this Agreement shall also be accessed in accordance with the provisions of this section. Customer shall not use, copy, rent, lease, sell, sublicense, modify, create derivative works from/of, or transfer any software, or permit others to do said acts, except as provided in this Agreement. Any such unauthorized use shall be void and may result in immediate and automatic termination of the applicable access. In such event, Customer shall not be entitled to a refund of any subscription fees paid. Notwithstanding, Customer shall be entitled to use software at the applicable designated location for the purpose of the application(s) described in the Statement of Work to provide services for itself and other Affiliate governmental agencies/entities. The subscription access granted in this Agreement or in connection with it are for object code only and do not include a license or any rights to source code whatsoever. 235
2.3. Documentation License. CentralSquare hereby grants to Customer a non-exclusive, non -sublicensable, non-transferable license to use the Documentation during the Term solely for Customer's internal business purposes in connection with its use of the Solutions.
2.4. H ardware. Subject to the terms and conditions of this Agreement, CentralSquare agrees to deliver, through hardware vendors, the Hardware itemized on Exhibit 1. The risk of loss or damage will pass to Customer upon the date of delivery to the Customer specified facility. Upon delivery and full satisfaction of the Hardware payment obligations, Hardware shall be deemed accepted and Customer will acquire good and clear title to Hardware. All Hardware manufacturer warranties will be passed through to Customer. CentralSquare expressly disclaims, and Customer hereby expressly waives all other Hardware warranties, express or implied, without limitation, warranties of merchantability and fitness for a particular purpose.
2.5. M
anaged Services Hardware. Subject to the terms and conditions of this Agreement, CentralSquare agrees to deliver the Managed Services Hardware itemized on Exhibit 1. So long as the applicable subscription fees are paid and current, Customer shall maintain a limited right in possessory interest in the Managed Services Hardware. No title in the Managed Services Hardware will pass to Customer at any time or for any reason. Customer agrees to maintain adequate insurance against fire, theft, or other loss for the Managed Services Hardware full insurable value. CentralSquare shall coordinate any defect or warranty claims in accordance with Exhibit 8.
2.6. R
eservation of Rights. Nothing in this Agreement grants any right, title, or interest in or to any Intellectual Property Rights in or relating to the Solutions, or Third-Party Materials, whether expressly, by implication, estoppel, or otherwise. All right, title, and interest in the Solutions, and the Third-Party Materials are and will remain with CentralSquare and the respective rights holders.
3. U
se Restrictions. Authorized Users shall not:
3.1. copy, modify, or create derivative works or improvements of the Solutions, or rent, lease, lend, sell, sublicense, assign, distribute, publish, transfer, or otherwise make available any Solutions to any Entity, including on or in connection with th e internet or any time-sharing, service bureau, software as a service, cloud, or other technology or service;
3.2. reverse engineer, disassemble, decompile, decode, adapt, or otherwise attempt to derive or gain access to the source code of the Solutions, in whole or in part;
3.3. bypass or breach any security device or protection used by Solutions or access or use the Solutions other than by an Authorized User through the use of his or her own then valid access;
3.4. input, upload, transmit, or otherwise provide to or through the CentralSquare Systems, any information or materials that are unlawful or injurious, or contain, transmit, or activate any harmful code (any software, hardware, device, or other technology, including any virus, worm, malware, or other malicious computer code, the purpose or effect of which is to (a) permit unauthorized access to, or to destroy, disrupt, disable, distort, or otherwise harm or impede any (i) computer, software firmware, hardware, system or network; or (ii) any application or function of any of the foregoing or the security, integrity, confidentiality, or use of any data processed thereby; or (b) prevent Customer or any Authorized User from accessing or using the Solutions as intended by this Agreement;
3.5. damage, destroy, disrupt, disable, impair, interfere with, or otherwise impede or harm in any manner the CentralSquare Systems, or CentralSquare's provision of services to any third-party, in whole or in part;
3.6. remove, delete, alter, or obscure any trademarks, specifications, Documentation, warranties, or disclaimers, or any copyright, trademark, patent, or other intellectual property or proprietary rights notices from any Documentation or Solutions, including any copy thereof;
3.7. access or use the Solutions in any manner or for any purpose that infringes, misappropriates, or otherwise violates any Intellectual Property Right or other right of any third-party, or that violates any applicable law;
3.8. access or use the Solutions for purposes of competitive analysis of the Solutions, the development, provision, or use of a competing software service or product or any other purpose that is to CentralSquare's detriment or commercial disadvantage or otherwise access or use the Solutions beyond the scope of the authorization granted in Section 2.
4. Audit.
4.1. CentralSquare shall have the right to audit Customer’s use of the Software to monitor compliance with this Agreement.
Customer shall permit CentralSquare and its directors, officers, employees, and agents to have on- site access at Customer’s premises (or remote access as the case may be) during normal business hours to such systems, books, and records for the purpose of verifying license counts, access counts, and overall compliance with this Agreement. Customer shall render reasonable cooperation to CentralSquare as requested. If as a result of any audit or inspection CentralSquare substantiates a deficiency or non-compliance or if an audit reveals that Customer has exceeded the restrictions on use, Customer shall promptly reimburse CentralSquare for all its costs and expenses incurred to conduct such audit or inspection and be required to pay for any delinquencies in compliance and prompt payment of any underpayment of Fees. 236
5. Customer Obligations.
5.1. Customer Systems and Cooperation. Customer shall at all times during the Term: (a) set up, maintain, and operate in good repair all Customer Systems on or through which the Solutions are accessed or used; (b) provide CentralSquare Personnel with such access to Customer's premises and Customer Systems as is necessary for CentralSquare to perform the Support Services in accordance with the Support Standards and specifications and if required by CentralSquare, remote access in accordance with Exhibit 3 (CentralSquare Access Management Poli cy); and (c) provide all cooperation as CentralSquare may reasonably request to enable CentralSquare to exercise its rights and perform its obligations under this Agreement.
5.2. E
ffect of Customer Failure or Delay. CentralSquare is not responsible or liable for any delay or failure of performance caused in whole or in part by Customer's delay in performing, or failure to perform, any of its obligations under this Agreement.
5.3. Corrective Action and Notice. If Customer becomes aware of any actual or threatened activity prohibited by Section 6, Customer shall, and shall cause its Authorized Users to, immediately: (a) take all reasonable and lawful measures within their respective control that are necessary to stop the activity or threatened activity and to mitigate its effects (including, where applicable, by discontinuing and preventing any unauthorized access to the Solutions and permanently erasing from their systems and destroying any data to which any of them gained unauthorized access); and (b) notify CentralSquare of any such actual or threatened activity.
5.4. M
aintaining Current Versions of CentralSquare Solutions. In accordance with Exhibit 2 (Maintenance & Support) and Exhibit 8 (Managed Services Provisions) if applicable, Customer shall install and/or use any New or Major Release within one year of being made available by CentralSquare to mitigate a performance problem, ineligibility for Support Services, or an infringement claim.
6. Professional Services.
6.1. Compliance with Customer Policies. While CentralSquare personnel are performing services at Customer's site, CentralSquare personnel will comply with Customer’s reasonable procedures and site policies that are generally applicable to Customer’s other suppliers providing similar services and that have been provided to CentralSquare in writing or in advance.
6.2. C ontributed Material. In the process of CentralSquare’s performing Professional Services, Customer may, from time to time, provide CentralSquare with designs, plans, or specifications, improvements, works or other material for inclusion in, or making modifications to, the Solutions, the Documentation or any other deliverables (“ Contributed Material”). Customer grants to CentralSquare a nonexclusive, irrevocable, perpetual, transferable right, without the payment of any royalties or other compensation of any kind and without the right of attribution, for CentralSquare, CentralSquare’s Affiliates and CentralSquare’s licensees to make, use, sell and create derivative works of the Contributed Material.
7. C
onfidentiality .
7.1. Nondisclosure. The Parties agree, unless otherwise provided in this Agreement or required by law, not to use or make each other's Confidential Information available to any third party for any purpose other than as necessary to perform under this Agreement. “Confidential Information” means the Solution(s), Software, and customizations in any embodiment, and either Party’s technical and business information relating to inventions or software, research and development, future product specifications, engineering processes, costs, profit or margin information, marketing and future business plans as well as any and all internal Customer and employee information, and any information exchanged by the Parties that is clearly marked with a confidential, private or proprietary legend or which, by its nature, is commonly understood to be confidential.
7.2. Confidential Information shall be designated as confidential at the time of disclosure and if disclosed orally, shall be redu ced to writing within ten (10) business days. The recipient shall protect the Confidential Information from disclosure by using t he same degree of care, but no less than a reasonable degree of care, that it uses to protect its own confidential information of a like nature to prevent its unauthorized use, dissemination or publication by its employees or agents. Customer further agrees that it will not allow any form or variation of the Software to enter the public domain. Both Parties acknowledge that any breach of its obligations with respect to Confidential Information may cause the other irreparable injury for which there are inadequate remedies at law and that the non-disclosing Party shall be entitled to equitable relief in addition to all other remedies available to it. Customer shall not disclose the results of any performance or functionality tests of the Software to any third party without CentralSquare’s prior written approval.
7.3. Exceptions. A Party's Confidential Information shall not include information that: (a) is or becomes publicly available through no act or omission of the recipient; (b) was in the recipient’s lawful possession prior to the disclosure and was not obtained by the recipient either directly or indirectly from the disclosing Party; (c) is lawfully disclosed to the recipient by a third party without restriction on recipient’s disclosure, and where recipient was not aware that the information was the confidential information of discloser; (d) is independently developed by the recipient without violation of this Agreement; or (e) is required to be disclosed by law.
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8. Security.
8.1. CentralSquare will implement commercially reasonable administrative, technical and physical safeguards designed to ensure the security and confidentiality of Customer Data, protect against any anticipated threats or hazards to the security or integrity of Customer Data, and protect against unauthorized access or use of Customer Data. CentralSquare will review and test such safeguards on no less than an annual basis.
8.2. Customer shall maintain, in connection with the operation or use of the Solutions, adequate technical and procedural access controls and system security requirements and devices, necessary for data privacy, confidentiality, integrity, authorization, authentication, non-repudiation, virus detection and eradication.
8.3. To the extent that Authorized Users are permitted to have access to the Solutions, Customer shall maintain agreements with such Authorized Users that adequately protect the confidentiality and Intellectual Property Rights of CentralSquare in the Solutions and Documentation and disclaim any liability or responsibility of CentralSquare with respect to such Authorized Users.
9. Personal Data. If CentralSquare processes or otherwise has access to any personal data or Personal Information on Customer’s behalf when performing CentralSquare’s obligations under this Agreement, then:
9.1. Customer shall be the data controller (where “data controller” means an entity which alone or jointly with others determines purposes for which and the manner in which any personal data are, or are to be, processed) and CentralSquare shall be a data processor (where “data processor” means an entity which processes the data only on behalf of the data controller and not for any purposes of its own);
9.2. Customer shall ensure that it has obtained all necessary consents and it is entitled to transfer the relevant personal data or Personal Information to CentralSquare so that CentralSquare may lawfully use, process and transfer the personal data and Personal Information in accordance with this Agreement on Customer’s behalf, which may include CentralSquare processing and transferring the relevant personal data or Personal Information outside the country where Customer and the Authorized Users are located in order for CentralSquare to provide the Solutions and perform its other obligations under this Agreement; and
9.3. CentralSquare shall process personal data and information only in accordance with lawful and reasonable written instructions given by Customer and as set out in and in accordance with the terms of this Agreement; and
9.4. CentralSquare shall take reasonable steps to ensure that its employees, agents and contractors who may have access to Personal Information are persons who need to know / access the relevant Personal Information for valid business reasons; and
9.5. each Party shall take appropriate technical and organizational measures against unauthorized or unlawful processing of the personal data and Personal Information or its accidental loss, destruction or damage so that, having regard to the state of technological development and the cost of implementing any measures, the measures taken ensure a level of security appropriate to the harm that might result from such unauthorized or unlawful processing or accidental loss, destruction or damage in relation to the personal data and Personal Information and the nature of the personal data and Personal Information being protected. If necessary, the Parties will cooperate to document these measures taken.
10. Representations and Warranties.
10.1. Intellectual Property Warranty. CentralSquare represents and warrants that (a) it is the sole and exclusive owner of (or has the right to license) the software; (b) it has full and sufficient right, title and authority to grant the rights and/or licenses granted under this Agreement; (c) the software does not contain any materials developed by a third party used by CentralSquare except pursuant to a license agreement; and (d) the software does not infringe any patent, or copyright.
10.2. Intellectual Property Remedy. In the event that any third party asserts a claim of infringement against the Customer relating to the software contained in this Agreement, CentralSquare shall indemnify and defend the Customer pursuant to section
13.1 of this Agreement. In the case of any such claim of infringement, CentralSquare shall either, at its option, (1) procure for Customer the right to continue using the software; or (2) replace or modify the software so that that it becomes non-infringing, but equivalent in functionality and performance.
10.3. Software Warranty . CentralSquare warrants to Customer that: (i) for a period of one year from the Effective Date (the “Warranty Period”) the Software will substantially conform in all material respects to the specifications set forth in the Documentation, when installed, operated and used as recommended in the Documentation and in accordance with this Agreement; and (ii) at the time of delivery the Software does not contain any virus or other malicious code.
10.4. S
oftware Remedy . If, during the Warranty Period a warranty defect is confirmed in the Software, CentralSquare shall, at its option, reinstall the Software or correct the Defects. Defects that occur in the Software after the Warranty Period will be corrected pursuant to Exhibit 2 (Maintenance & Support) and Exhibit 8 (Managed Services Provisions), if applicable.
10.5. Se
rvices Warranty . CentralSquare warrants that the Professional Services delivered will substantially conform to the deliverables specified in the applicable statement of work and that all Professional Services will be performed in a professional 238
and workmanlike manner consistent with industry standards for similar work. If Professional Services do not substantially conform to the deliverables, Customer shall notify CentralSquare of such non-conformance in writing, within 10 days from completion of Professional Service, and CentralSquare shall promptly repair the non-conforming deliverables.
10.6. Disclaimer of Warranty. EXCEPT FOR THE EXPRESS LIMITED WARRANTIES SET FORTH ABOVE,
CENTRALSQUARE MAKES NO WARRANTIES WHATSOEVER, EXPRESSED OR IMPLIED, WITH REGARD TO THE
INTELLECTUAL PROPERTY, SOFTWARE, PROFESSIONAL SERVICES, AND/OR ANY OTHER MATTER RELATING
TO THIS AGREEMEN T, AND THAT CENTRALSQUARE DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS,
IMPLIED, STATUTORY, OR OTHERWISE, INCLUDING ALL WARRANTIES ARISING FROM COURSE OF DEALING,
USAGE OR TRADE PRACTICE, AND SPECIFICALLY DISCLAIMS IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR TITLE. FURTHER, CENTRALSQUARE EXPRESSLY DOES NOT
WARRANT THAT A SOLUTION, ANY CUSTOM MODIFICATION OR ANY IMPROVEMENTS WILL BE USABLE BY
CUSTOMER IF THE SOLUTION OR CUSTOM MODIFICATION HAS BEEN MODIFIED BY ANYONE OTHER THAN
CENTRALSQUARE PERSONNEL, OR WILL BE ERROR FREE, WILL OPERATE WITHOUT INTERRUPTION OR WILL
BE COMPATIBLE WITH ANY HARDWARE OR SOFTWARE EXCEPT TO THE EXTENT EXPRESSLY SET FORTH IN THE DOCUMENTATION. ALL THIRD-PARTY MATERIALS ARE PROVIDED “AS-IS” AND ANY REPRESENTATION OR WARRANTY OF OR CONCERNING ANY OF THEM IS STRICTLY BETWEEN CUSTOMER AND THE THIRD-PARTY.
THIS AGREEMENT DOES NOT AMEND, OR MODIFY CENTRALSQUARE’S WARRANTY UNDER ANY AGREEMENT OR ANY CONDITIONS, LIMITATIONS, OR RESTRICTIONS THEREOF.
11. Notices. All notices and other communications required or permitted under this Agreement must be in writing and will be deemed given when delivered personally, sent by United States registered or certified mail, return receipt requested; transmitted by facsimile or email confirmed by first class mail, or sent by overnight courier. Notices must be sent to a Party at its address shown below, or to such other place as the Party may subsequently designate for its receipt of notices in writing by the other Party.
If to CentralSquare:
CentralSquare Technologies, LLC
1000 Business Center Dr.
Lake Mary, FL 32746
Phone: 407-304-3235
Attention: Legal/Contracts
If to Customer:
Phone:
email:
Attention:
12. Force Majeure. Neither Party shall be responsible for failure to fulfill its obligations hereunder, or be liable for damages resulting from delay in performance as a result of war, fire, strike, riot or insurrection, natural disaster, pandemic or epidemic, delay of carriers, governmental order or regulation, complete or partial shutdown of plant, unavailability of equipment, software, or services f rom suppliers, default of a subcontractor or vendor to the Party if such default arises out of causes beyond the reasonable control of such subcontractor or vendor, the acts or omissions of the other Party, or its officers, directors, employees, agents, contractors, or elected officials, and/or other occurrences beyond the Party’s reasonable control (“Excusable Delay” hereunder). In the event of such Excusable Delay, performance shall be extended on a day for day basis or as otherwise reasonably necessary to compensate for such delay.
13. Indemnification.
13.1. CentralSquare Indemnification. CentralSquare shall indemnify, defend, and hold harmless Customer from any and all Claims or liability, including attorneys' fees and costs, brought by a third party, allegedly arising out of, in connection with, or incident to any loss, damage or injury to persons or property or arising solely from a wrongful or negligent act, error or omission of CentralSquare, its employees, agents, contractors, or any subcontractor as a result of CentralSquare’s or any subcontractor’s performance pursuant to this Agreement; however, CentralSquare shall not be required to indemnify Customer for any claims caused to the extent of the negligence or wrongful act of Customer, its employees, agents, or contractors. Notwithstanding anything to the contrary in the foregoing, if a Claim, or liability results from or is contributed to by the actions or omissions of Customer, or its employees, agents or contractors, CentralSquare’s obligations under this provision shall be reduced to the extent of such actions or omissions based upon the principle of comparative fault.
13.2. Customer Indemnification. To the extent allowable by law, Customer shall indemnify, defend, and hold harmless CentralSquare from any and all Claims or liability, including attorneys' fees and costs, allegedly arising out of, in connect ion 239
with, or incident to any loss, damage or injury to persons or property or arising solely from a wrongful or negligent act, error or omission of Customer, its employees, agents, contractors, or any subcontractor as a result of Customer’s or any subcontractor’s performance pursuant to this Agreement; however, Customer shall not be required to indemnify CentralSquare for any Claims or actions caused to the extent of the negligence or wrongful act of CentralSquare, its employees, agents, or contractors. Notwithstanding anything to the contrary in the foregoing, if a Claim or liability results from or is contributed to by the actions or omissions of CentralSquare, or its employees, agents or contractors, Customer’s obligations under this provision shall be reduced to the extent of such actions or omissions based upon the principle of comparative fault.
13.3. "Claim" in this Section 13 means any claim, cause of action, demand, lawsuit, dispute, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or other, whether at law, in equity, or otherwise.
14. T ermination .
14.1. Either Party may terminate this Agreement for a material breach in accordance with this subsection. In such event, the disputing Party shall deliver written notice of its intent to terminate along with a description in reasonable detail of the problems for which the disputing Party is invoking its right to terminate and the specific requirement within this Agreement or any exhibit or schedule hereto that the disputing Party is relying upon. Following such notice, the Parties shall commence dispute resolution procedures in accordance with the dispute resolution procedure pursuant to Section 17.
14.2. CentralSquare shall have the right to terminate this Agreement based on Customer’s failure to pay undisputed amounts due under this Agreement more than ninety (90) days after delivery of written notice of non-payment.
14.3. Customer shall have the right to terminate if the proper appropriation of funds for the continuation of this Agreement is not available for any fiscal year after the first fiscal year during the Term, then this Agreement may be terminated. To effectth e termination of this Agreement, Customer shall, within forty -five (45) days following the beginning of the fiscal year for which the proper appropriation is not available, provide CentralSquare with written notice of the failure to obtain the proper appropriation of funds. Such notice shall be accompanied by the payment of all sums then owed CentralSquare under this Agreement, if any.
14.4. Customer may also terminate for convenience, in whole or in part, at any time by providing thirty (30) days written notice.
Should Customer terminate for convenience during any twelve (12) month term, CentralSquare shall provide a pro-rated refund for any on-premise subscription asset designated on Exhibit 1, with “(OP)”. Should Customer terminate for convenience, in whole or in part, any cloud-hosted subscription asset, no pre-paid fees shall be returned, or pro-rated refund be given, for any remaining months on the then current term. Should Customer terminate for convenience, in whole or in part, any third-party asset, no pre-paid fees shall be returned, or pro-rated refund be given, for any remaining months on the then current term.
15. Effe
ct of Termination or Expiration . On the expiration or earlier termination of this Agreement:
15.1. All rights, licenses, and authorizations granted to Customer hereunder will immediately terminate and Customer shall immediately cease all use of CentralSquare’s Confidential Information and the Solutions, and within thirty (30) days deliver to CentralSquare, or at CentralSquare’s request destroy and erase CentralSquare’s Confidential Information from all systems Customer directly or indirectly controls; and
15.2. All licenses, access or subscription fees, services rendered but unpaid, and any amounts due by Customer to CentralSquare of any kind shall become immediately payable and due no later than thirty (30) days after the effective date of the termination or expiration, including anything that accrues within those thirty (30) days.
15.3. The provisions set forth in the following sections, and any other right or obligation of the Parties in this Agreement that, by its nature (including but not limited to: Use Restrictions, Confidential Information, Warranty Disclaimers, Indemnifications, & Limitations of Liability), will survive any expiration or termination of this Agreement.
15.4. In the event that Customer terminates this Agreement or cancels any portions of a project (as may be set forth in a Statement of Work) prior to Go Live (which shall be defined as “first use of a Solution or module of a Solution in a production environment, unless otherwise agreed by the Parties in a statement of work”), Customer shall pay for all Professional Services actually performed by CentralSquare on a time and materials basis, regardless of the payment terms in Exhibit 1.
15.5. Return of Customer Data. If Customer requests in writing at least ten (10) days prior to the effective date of expiration or earlier termination of this Agreement, CentralSquare shall within sixty (60) days following such expiration or termination, deliver to Customer in CentralSquare’s standard format the then most recent version of Customer Data maintained by CentralSquare, provided that Customer has at that time paid all Fees then outstanding and any amounts payable after or as a result of such expiration or termination.
15.6. Deconversion. In the event of (i) expiration or earlier termination of this Agreement, or (ii) Customer no longer purchasing certain Solutions (including those indicated to be Third-Party Materials), if Customer requests assistance in the transfer of Customer Data to a different vendor’s applications (“Deconversion”), CentralSquare will provide reasonable assistance. 240
CentralSquare and Customer will negotiate in good faith to establish the relative roles and responsibilities of CentralSquare and Customer in effecting Deconversion, as well as the appropriate date for completion. CentralSquare shall be entitled to receive compensation for any additional consultation, services, software, and documentation required for Deconversion on a time and materials basis at CentralSquare’s then standard rates.
15.7. Termination of this Agreement shall not relieve either Party of any other obligation incurred one to the other prior to termination.
16. Assignment. Neither this Agreement nor any rights or obligations hereunder shall be assigned or otherwise transferred by either Party without the prior written consent of the other Party, which consent will not be unreasonably withheld; provided however , that in the event of a merger or acquisition of all or substantially all of CentralSquare’s assets, CentralSquare may assign this Agreement to an entity ready, willing and able to perform CentralSquare’s executory obligations hereunder.
17. D ispute Resolution . Any dispute, controversy or claim arising out of or relating to this Agreement (each, a “Dispute”), including the breach, termination, or validity thereof, shall be resolved as follows:
17.1. G ood Faith Negotiations. The Parties agree to send written notice to the other Party of any Dispute (“Dispute Notice”). After the other Party receives the Dispute Notice, the Parties agree to undertake good faith negotiations to resolve the Dispute. Each Party shall be responsible for its associated travel and other related costs.
17.2. E scalation to Mediation . If the Parties cannot resolve any Dispute through good faith negotiations, the dispute will be escalated to non-binding mediation, with the Parties acting in good faith to select a mediator and establishing the mediation process. The Parties agree the mediator’s fees and expenses, and the mediator’s costs incidental to the mediation, will be shared equally between the Parties. The Parties shall bear their own fees, expenses, and costs.
17.3. C
onfidential Mediation. The Parties further agree all written or oral offers, promises, conduct, and statements made in the course of the mediation are confidential, privileged, and inadmissible for any purpose in any litigation, arbitration or other proceeding involving the Parties. However, evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation.
17.4. L
itigation . If the Parties cannot resolve a Dispute through mediation, then once an impasse is declared by the mediator either Party may pursue litigation in a court of competent jurisdiction.
18. W aiver/Severability. The failure of any Party to enforce any of the provisions hereof will not be construed to be a waiver of the right of such Party thereafter to enforce such provisions. If any provision of this Agreement is found to be unenforceable, that provision will be enforced to the maximum extent possible, and the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby.
19. LIA
BILITY . NOTWITHSTANDING ANY PROVISION WITHIN THIS AGREEMENT TO THE CONTRARY, AND REGARDLESS OF THE NUMBER OF LOSSES, WHETHER IN CONTRACT, EQUITY, STATUTE, TORT, NEGLIGENCE, OR OTHERWISE:
19.1. NEITHER PARTY SHALL HAVE LIABILITY TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL,
PUNITIVE, EXEMPLARY, LIQUIDATED, OR CONSEQUENTIAL DAMAGES OF ANY KIND INCLUDING BUT NOT
LIMITED TO, REPLACEMENT COSTS, AND NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR
LOSSES OF PROFIT, REVENUE, INCOME, BUSINESS, ANTI CIPATED SAVINGS, DATA, AND REPUTATION, AND
MORE GENERALLY, ANY LOSSES OF AN ECONOMIC OR FINANCIAL NATURE, REGARDLESS OF WHETHER SUCH
LOSSES MAY BE DEEMED AS CONSEQUENTIAL OR ARISING DIRECTLY AND NATURALLY FROM THE INCIDENT
GIVING RISE TO THE CLAIM, AND REGARDLESS OF WHETHER SUCH LOSSES ARE FORESEEABLE OR WHETHER EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES; AND
19.2. CENTRALSQUARE’S TOTAL LIABILITY ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT
EXCEED THE AMOUNT(S) ACTUALLY PAID BY CUSTOMER TO CENTRALSQUARE HEREUNDER FOR THE LAST TWELVE (12) MONTHS PRIOR TO THE DATE THE CLAIM AROSE.
20. I nsurance. During the term of this Agreement, CentralSquare shall maintain insurance coverage covering its operations in accordance with Exhibit 4 (Certificate of Insurance (Evidence of Coverage)). Upon request by Customer, CentralSquare shall include Customer as an additional insured on applicable insurance polic ies provided under this Agreement. CentralSquare shall provide proof of current coverage during the term of this Agreement.
21. T hird-Party Materials. CentralSquare may, from time to time, include third parties to perform services, provide software, or provide equipment. Customer acknowledges and agrees CentralSquare provides front-line support services for these Third-Party Materials, but these third parties assume all responsibility and liability in connection with the Third-Party Materials. CentralSquare is not authorized to make any representations or warranties that are binding upon the third-party or to engage in any other acts that are binding upon the third-party, except specifically that CentralSquare is authorized to represent third-party fees and to accept payment of such amounts from Customer on behalf of the third-party for as long as such third-party authorizes CentralSquare to do so. As a condition precedent to installing or accessing certain Third-Party Materials, Customer may be required to execute a click-through, shrink-wrap End User License Agreement (“EULA”) or similar agreement provided by the 241
Third-Party Materials provider. If mapping information is supplied with the CentralSquare Software, CentralSquare makes no representation or warranty as to the completeness or accuracy of the mapping data provided with the CentralSquare Software.
The completeness or accuracy of such data is solely dependent on the information supplied by the Customer or the mapping database vendor to CentralSquare. All third-party materials are provided “as-is” and any representation or warranty concerning them is strictly between Customer and the third-party.
22. Subcontractors. CentralSquare may from time to time, in its discretion, engage third parties to perform services on its behalf including but not limited to Professional Services, Support Services, and/or provide software (each, a "Subcontractor").
CentralSquare shall be fully responsible for the acts of all subcontractors to the same extent it is responsible for the acts of its own employees.
23. E
ntire Agreement . This Agreement, and any Exhibits specifically incorporated therein by reference, constitute the entire agreement between the Parties with respect to the subject matter. These documents supersede and merge all previous and contemporaneous proposals of sale, communications, representations, understandings and agreements, whether oral or written, between the Parties with respect to the subject hereof.
24. A
mendment . Either Party may, at any time during the term, request in writing changes to this agreement. The Parties shall evaluate and, if agreed, implement all such requested changes. No requested changes will be effective unless and until memorialized in either a CentralSquare issued add-on quote signed by Customer, or a written change order or amendment to this Agreement signed by both Parties.
25. N o Third -Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer on any other person any legal or equitable right, benefit, or remedy of any nature under or by reason of this Agreement.
26. C ounterparts . This Agreement, and any amendments hereto, may be executed in several counterparts, each of which when so executed shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. The Agreemen t (and any amendments) shall be considered properly executed by a Party if executed by that Party and transmitted by facsimile or other electronic means such as DocuSign, Tagged Image Format Files (TIFF), or Portable Document Format (PDF).
27. M
aterial Adverse Change. If any l aw, regulation, applicable standard, process, OEM requirement is changed or comes into force after the Effective Date, including but not limited to PCI standards or Americans with Disabilities Act compliance (collectiv ely, a “Material Adverse Change”), which is not explicitly addressed within this Agreement and results in significant extra costs for either Party in relation to the performance of this Agreement, both Parties shall promptly meet, discuss in good faith, and agree upon reducing the technical, operational, and/or commercial impact of such Material Adverse Change.
28. C
ooperative Purchases. This Agreement may be used by Customer Affiliates. CentralSquare agrees to offer similar services to other Affiliates under the same terms and conditions as stated herein except that the Fees may be negotiated between CentralSquare and other Affiliates based on the specific revenue expectations, agency reimbursed costs, and other Affiliate requirements. The Customer will in no way whatsoever incur any liability in relation to specifications, delivery, payment, or any other aspect of purchases by such Affiliates. CentralSquare and the Affiliate will enter into any such arrangement with an amendment to this Agreement.
29. O
rder of Precedence.
29.1. In the event of any conflict or inconsistency between this Agreement, the Exhibits, or any purchase order, then the following priority shall prevail:
29.1.1. The main body of this Agreement and any associated amendments, statements of work (including Exhibit 5 (Statement of Work)), or change orders and then the attached Exhibits to this Agreement in the order in which they appear.
29.2. Customer’s purchase terms and conditions or CentralSquare’s sales terms and conditions are not applicable and shall have no force or effect, whether referenced in any document in relation to this Agreement.
29.3. Incorporated Exhibits to this Agreement:
Exhibit 1: Solution(s) and Services Fee Schedule
Exhibit 2: Maintenance & Support
Exhibit 3: CentralSquare Access Management Policy
Exhibit 4: Certificate of Insurance (Evidence of Coverage) Exhibit 5: Statement of Work
Exhibit 6: Using/Accessing Agency Guidelines (if applicable) Exhibit 7: Service Level Commitments
242
EXHIBIT 1
Solutions(s) and Services Fee Schedule
SOFTWARE
CAD
PRODUCT NAME QUANTITY UNIT PRICE DISCOUNT TOTAL
1. Enterprise CAD Archive Server Annual
Subscription Fee
1 1,000.00 - 562.80 437.20
2. Enterprise CAD Archive Server View
(OP) Annual Subscription
Fee
1 500.00 - 281.40 218.60
3. Enterprise CAD Browser Annual
Subscription Fee
1 4,000.00 - 2,251.20 1,748.80
4. Enterprise CAD GISLink
Position Annual Subscription Fee
2 1,900.00 - 2,138.64 1,661.36
5. Enterprise CAD Mapping Annual
Subscription Fee
9 200.00 - 1,013.04 786.96
6. Enterprise CAD Mapping
Test/Training Annual Subscription
Fee
1 200.00 - 112.56 87.44
7. Enterprise CAD Position Annual
Subscription Fee
9 3,900.00 - 19,754.28 15,345.72
8. Enterprise CAD Replicated Archive
Server Subscription Fee
1 12,000.00 - 6,753.60 5,246.40
9. Enterprise CAD Routing Server
Annual Subscription Fee
2 7,300.00 - 8,216.88 6,383.12
10. Enterprise CAD Server Annual
Subscription Fee
1 13,400.00 - 7,541.52 5,858.48
11. Enterprise CAD/Mobile: Add-on
8hrs/day Train/Test Env. Annual
Subscription Fee
1 21,000.00 21,000.00
12. Enterprise CAD/Mobile: Std. Base
Env. AWS GovCloud
Annual Subscription Fee
1 161,500.00 161,500.00
13. Enterprise Common Identity
Management (CIM) Annual
Subscription Fee
1 0.00 0.00
243
14. NCIC/State Query Position for
Enterprise CAD Subscription
9 200.00 - 1,013.04 786.96
CAD Software Subtotal 270,700.00 USD
CAD Software Discount - 49,638.96 USD
CAD Software Total 221,061.04 USD
INTERFACES
PRODUCT NAME QUANTITY UNIT PRICE DISCOUNT TOTAL
15. CentralSquare Message Switch (OP)
Annual Subscription Fee
1 9,500.00 - 5,348.50 4,151.50
16. Enterprise CAD API - Customer
Annual Subscription Fee
1 1,900.00 - 1,069.70 830.30
17. Enterprise CAD Auto Dispatch Annual
Subscription Fee
1 4,900.00 - 2,758.70 2,141.30
18. Enterprise CAD Caller Location
Query Subscription (CL) Annual
Subscription Fee
1 2,500.00 - 1,407.50 1,092.50
19. Enterprise CAD MCC7500
Radio Interface Annual Subscription
1 5,000.00 - 2,815.00 2,185.00
20. Standard Alpha Numeric Paging
Interface Subscription Fee
1 3,500.00 - 1,970.50 1,529.50
21. Standard ANI/ALI Interface Annual
Subscription Fee
1 3,500.00 - 1,970.50 1,529.50
22. Standard Crossroads Citation
Importer - California Annual
Subscription Fee
1 3,700.00 - 2,083.10 1,616.90
23. Standard Crossroads Crash
Importer - California Annual
Subscription Fee
1 3,700.00 - 2,083.10 1,616.90
24. Standard EMD Integration Annual
Subscription Fee
9 200.00 - 1,013.40 786.60
25. Standard Pictometry Integration
Annual Subscription Fee
1 2,900.00 - 1,632.70 1,267.30
26. Standard Station Alert Interface
Annual Subscription Fee
1 7,800.00 - 4,391.40 3,408.60
27. Std Enterprise CAD to External
System Incident Data Transfer
Annual Subscription Fee -
Imagetrend
1 5,800.00 - 3,265.40 2,534.60
Interfaces Software Subtotal 56,500.00 USD
Interfaces Software Discount - 31,809.50 USD
Interfaces Software Total 24,690.50 USD
MOBILE
PRODUCT NAME QUANTITY UNIT PRICE DISCOUNT TOTAL
28. Enterprise Mobile Base Position w/
CJIS/NCIC Subscription
115 400.00 - 25,898.00 20,102.00
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29. Enterprise Mobile Mapping Annual
Subscription Fee
115 100.00 - 6,474.50 5,025.50
30. Enterprise Mobile Mapping
Test/Training Annual Subscription
1 100.00 - 56.30 43.70
31. Enterprise Mobile Server Annual
Subscription Fee
1 19,000.00 - 10,697.00 8,303.00
32. Field Ops - Fire/EMS (CL) Annual
Subscription Fee
37 120.00 - 2,499.72 1,940.28
33. Field Ops (CL) Annual Subscription
Fee
20 120.00 - 1,351.20 1,048.80
Mobile Software Subtotal 83,440.00 USD
Mobile Software Discount - 46,976.72 USD
Mobile Software Total 36,463.28 USD
RMS
PRODUCT NAME QUANTITY UNIT PRICE DISCOUNT TOTAL
34. Enterprise Replicated
Arch./Reporting Server Annual
Subscription Fee
1 12,000.00 - 6,756.00 5,244.00
35. Enterprise RMS NIBRS Module
Annual Subscription
1 9,700.00 - 5,461.10 4,238.90
36. Records Enterprise Cloud Annual
Subscription Fee
1 250,000.00 - 16,700.00 233,300.00
RMS Software Subtotal 271,700.00 USD
RMS Software Discount - 28,917.10 USD
RMS Software Total 242,782.90 USD
SOFTWARE SUMMARY
Software Subtotal
682,340.00 USD
Software Discount - 157,342.28
USD
Software Total 524,997.72 USD
SERVICES
SERVICES
DESCRIPTION TOTAL
1. Public Safety Project Management Services - Fixed Fee 50,115.00
2. Public Safety Technical Services - Fixed Fee 50,115.00 245
Services Subtotal 100,230.00 USD
Services Discount - 231.30 USD
Services Total 99,998.70 USD
SERVICES SUMMARY
Services Subtotal 100,230.00 USD
Services Discount - 231.30 USD
Services Total 99,998.70 USD
SUMMARY
Software Subtotal
682,340.00 USD
Services Subtotal
100,230.00 USD
Quote Subtotal
782,570.00 USD
Discount
- 157,573.58 USD
Total 624,996.42 USD
246
WHAT ARE THE RECURRING FEES?
TYPE AMOUNT
FIRST YEAR MAINTENANCE TOTAL 0.00
FIRST YEAR SUBSCRIPTION TOTAL 524,997.72
FIRST YEAR RECURRING SERVICES TOTAL 0.00
Payment Terms:
Subscriptions:
- The first Annual Subscription Fee shall be due one (1) year from Go Live in the amount of $524,997.72. The annual subscription shall continue to be due annually on the anniversary of the Go Live date. - Annual Subscription Fees shall increase by 5% each year after the 5th annual subscription fee.
Services:
- Fixed Fee Services shall be 100% due upon execution of the Agreement. - If applicable, non-fixed fee professional services shall be due as incurred on a time and materials basis. Non-fixed fee professional services are not included in the percentages outlined in the above Payment Schedule. - If applicable, non-fixed fee travel expenses shall be due as incurred, invoiced monthly for the travel expenses of the preceding month. Non-fixed fee travel expenses are not included in the percentages outlined in the above Payment Schedule.
Hardware:
- If applicable, Non-subscription Hardware Fees are due on the Effective Date.
Licenses:
- If applicable, License Fees are due on the Delivery Date.
Support & Maintenance
- If applicable, Support & Maintenance Fees are due annually, starting prior to the first anniversary of the Delivery Date and annually thereafter.
- Annual Software Maintenance Fees shall increase by 5% each year. - L egacy support and maintenance shall continue to be due until one (1) year from Go Live of the applicable replacement software. Any unused pre-paid support and maintenance shall be credited as a pro-rated amount towards the next applicable subscription software invoice due under this Agreement, or future invoice.
Third Party:
- If applicable, Third-Party Software Fees are due on the Effective Date. Third-Party software subscriptions and/or support fees shall be due annually thereafter on the anniversary of the Effective Date. Third-Party Software fees are subject to increase each year.
- If applicable, Third-Party Services shall be due 50% at Effective Date, 25% at completion of 1st End User Training Session, and 25% at Go Live.
Invoice Terms:
CentralSquare shall provide an invoice for the items in the schedule above no less than thirty (30) days prior to the due date.
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ANCILLARY FEES
a. Customer is responsible for paying all taxes relating to this Agreement. Applicable tax amounts (if any) are not included in the fees set forth in this Agreement. If Customer is exempt from the payment of any such taxes, Customer must provide CentralSquare valid proof of exemption; otherwise, CentralSquare will invoice Customer and Customer will pay to CentralSquare all such tax amounts.
b. To the extent allowable by law, if Customer fails to make any payment when due, then CentralSquare may charge interest on the past due amount at the rate of 1.5% per month calculated daily and compounded monthly, or, if lower, the highest rate permitted under applicable law; and if such failure continues for 90 days following written notice thereof, CentralSquare may suspend performance or access until past due amounts have been paid.
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EXHIBIT 2
Maintenance & Support
This Maintenance & Support Exhibit describes support and maintenance relating to technical support that CentralSquare will provide to Customer during the Term of the Agreement.
1. Product Updates and Releases
1.1. Software Version. “Software Version” means the base or core version of the Software that contains significant new features and significant fixes and is available to the Customer. Software Versions may occur as the Software architecture changes or as new technologies are developed. The nomenclature used for updates and upgrades consists of major, minor, build, and fix and these correspond to the following digit locations of a release, a,b,c,d. An example of which would be 7.4.1.3, where the 7 refers to the major release, the 4 refers to the minor release, the 1 refers to the build, and the 3 refers to a fix. All Software Versions are provided and included as part of this Agreement.
1.2. U
pdates. From time to time CentralSquare may develop permanent fixes or solutions to known problems or bugs in the Software and incorporate them in a formal “Update” to the Software. If Customer is receiving technical support from CentralSquare on the general release date for an Update, CentralSquare will provide the Customer with the Update and related Documentation at no extra charge. Updates for custom configurations will be agreed upon by the Parties and outlined in a Statement of Work or Change Order.
1.3. Releases. Customer shall agree to install and/or use any New or Major Release within one year of being made available by CentralSquare to avoid or mitigate a performance problem, ineligibility for Support and Maintenance Services or infringement claim. All modifications, revisions and updates to the Software shall be furnished by means of new Releases of the Software and shall be accompanied by updates to the Documentation whenever CentralSquare determines, in its sole discretion, that such updates are necessary.
2. Support
2.1. CentralSquare shall provide to Customer support via toll -free phone number 833-278-7877 or via the CentralSquare Support Portal. CentralSquare shall provide to Customer, commercially reasonable efforts in solving errors reported by the Customer as well as making available an online support portal. Customer shall provide to CentralSquare reasonably detailed documentation and explanation, together with underlying data, to substantiate errors and to assist CentralSquare in its efforts to diagnose, reproduce and correct the error. Should either Party not be able to locate the error root cause and Customer and CentralSquare agree that on- site services are necessary to diagnose or resolve the problem CentralSquare shall provide a travel estimate and estimated hours in order to diagnose the reported error.
2.2. If after traveling onsite to diagnose a reported error and such reported error did not, in fact, exist or was not attributable to a defect in the Software provided by CentralSquare or an act or omission of CentralSquare, then Customer shall pay for CentralSquare's investigation, travel, and related services in accordance with provided estimate. Customer must provide CentralSquare with such facilities, equipment and support as are reasonably necessary for CentralSquare to perform its obligations under this Exhibit, including remote access in accordance with the Remote Access Policy.
3. Online Support Portal
Online support is available via https://support.centralsquare.com/s/contact-us, offering Customer the ability to resolve its own problems with access to CentralSquare’s most current information. Customer will need to enter its designated username and password to gain access to the technical support areas on CentralSquare’s website. CentralSquare’s technical support areas allow Customer to: (i) search an up-to -date knowledge base of technical support information, technical tips, and featured functions; and (ii) access answers to frequently asked questions (FAQ).
4. E
xclusions from Technical Support Services
CentralSquare shall have no support obligations to provide Support or Maintenance for Solutions that are not kept current to one version prior to the then current version of the Solution. CentralSquare shall have no support obligations with respect to any third-party hardware or software product not licensed or sold to Customer by CentralSquare (“Nonqualified Product”). Customer shall be solely responsible for the compatibility and functioning of Nonqualified Products with the Software.
5. Customer Responsibilities
In connection with CentralSquare’s provision of technical support as described herein, Customer acknowledges that Customer has the responsibility to do each of the following:
5.1 Provide hardware, operating system and browser software that meets technical specifications, as well as a fast, stable, high-speed connection and remote connectivity for accessing the Solution.
5.2 Maintain any applicable computer system and associated peripheral equipment in good working order in accordance with the manufacturers’ specifications, and ensure that any problems reported to CentralSquare are not due to hardware malfunction;
5.3 For CentralSquare Solutions that are implemented on Customer Systems, maintain the designated operating system at the latest code revision level reasonably deemed necessary by CentralSquare for proper operation of the Software;
5.4 Supply CentralSquare with access to and use of all information and facilities reasonably determined to be necessary by CentralSquare to render the technical support described herein; 249
5.5 Perform any test or procedures reasonably recommended by CentralSquare for the purpose of identifying and/or resolving any problems;
5.6 At all times follow routine operator procedures as specified in the Documentation or any error correction guidelines of CentralSquare posted on the CentralSquare website;
5.7 Customer shall remain solely responsible at all times for the safeguarding of Customer’s proprietary, confidential, and classified information contained within Customer Systems; and
5.8 Reasonably ensure that the Customer Systems are isolated and free from viruses and malicious code that could cause harm before requesting or receiving remote support assistance.
6. Priorities and Support Response Matrix
The following priority matrix relates to software errors covered by this Agreement. Causes secondary to non- covered causes - such as hardware, network, and third-party products - are not included in this priority matrix and are outside the scope of this Exhibit. CentralSquare will make commercially reasonable efforts to respond to Software incidents for live remote based production systems using the following guidelines:
Priority Issue Definition Response Time
Priority 1 –
Urgent
The software is completely down and will not
launch or function.
Priority 1 issues must be called in via 833-278-7877 and will be immediately answered and managed by the first
available representative.
Priority 2 –
Critical
A high -impact problem that disrupts the
customer’s operation but there is capacity to
remain productive and maintain necessary
operations.
Priority 2 issues must be called in via 833-278-7877 and will be immediately answered and managed by the first
available representative.
Priority 3 –
Non-Critical
A Software Error related to a user function which
does not negatively impact the User from the use
of the system. This includes system administrator
functions or restriction of user workflow but does
not significantly impact their job function.
Priority 3 issues called in via 833 -278-7877 will be
immediately answered and managed by the first
available representative.
Non-Critical Priority 3 issues may also be reported via Https://support.centralsquare.com/s/contact-us
Priority 4 –
Minor
Cosmetic or documentation errors, including
Customer technical questions or usability
questions.
Priority 4 issues called in via 833 -278-7877 will be
immediately answered and managed by the first
available representative.
Minor Priority 4 issues may also be reported via
Https://support.centralsquare.com/s/contact-us
7. Exceptions. CentralSquare shall not be responsible for failure to carry out its Support and Maintenance obligations under this Exhibit if the failure is caused by adverse impact due to:
7.1. defectiveness of the Customer’s Systems (including but not limited to environment, hardware or ancillary systems), or due to Customer corrupt, incomplete, or inaccurate data reported to the Solution, or documented defect.
7.2. denial of reasonable access to Customer’s System or premises preventing CentralSquare from addressing the issue.
7.3. material changes made to the usage of the Solution by Customer where CentralSquare has not agreed to such changes in advance and in writing or the modification or alteration, in any way, by Customer or its subcontractors, of communications links necessary to the proper performance of the Solution.
7.4. a Force Majeure event (as outlined in Section 12), or the negligence, intentional acts, or omissions of Customer or its agents.
8. Incident Resolution. Actual response times and resolutions may vary due to issue complexity and priority. For critical impact level and above, CentralSquare provides a continuous resolution effort until the issue is resolved. CentralSquare will make commercially reasonable eff orts to resolve Software incidents for live remote based production systems using the following guidelines:
250
Priority Resolution Process Resolution Time
Priority 1 – Urgent CentralSquare will provide a
procedural or configuration
workaround or a code correction that
allows the Customer to resume live
operations on the production
System.
CentralSquare will work continuously to provide the Customer with a solution that allows the Customer to resume live operations on the production system.
CentralSquare will either resolve the issue or provide a resolution plan as soon as possible and not later than twenty-four (24) hours after notification.
Priority 2 –
Critical
CentralSquare will provide a
procedural or configuration
workaround or a code correction that
allows the Customer to resume
normal operations on the production
System.
CentralSquare will work continuously to provide the Customer with a solution that allows the Customer to resume normal operations on the production System.
CentralSquare will either resolve the issue or provide a resolution plan as soon as possible and not later than thirty-six (36) hours after notification.
Priority 3 – Non –
Critical
CentralSquare will provide a
procedural or configuration
workaround that allows the Customer
to resolve the problem.
CentralSquare will work to provide the Customer with a
resolution which may include a workaround or code correction within a timeframe that takes into consideration the impact of the issue on the Customer and CentralSquare’s User base.
Priority 3 issues have priority scheduling in a subsequent release.
Priority 4 – Minor If CentralSquare determines that a
reported Minor Priority error
requires a code correction, such
issues will be addressed in a
subsequent release when
applicable.
CentralSquare will work to provide the Customer with a
resolution which may include a workaround or code correction in a future release of the software. Priority 4 issues have no defined resolution time.
9. Non-Production Environments. CentralSquare will make commercially reasonable efforts to provide fixes to non- production environment(s). Non-production environments are not included under the response or resolution tables provided in this Exhibit.
9.1. Maintenance. All non -production environment resolution processes will follow the structure and schedules outlined above for production environments.
9.2. I ncidents and service requests . Non -production environment incidents are considered priority 3 or 4, dictated by circumstances and will be prioritized and scheduled subordinate to production environment service requests.
10. Training. Outside the scope of training services purchased, if any, Customer is responsible for the training and organization of its staff in the operation of the Software.
11. Development Work. Software support and maintenance does not include development work either (i) on software not licensed from CentralSquare or (ii) development work for enhancements or features that are outside the documented functionality of the Software, except such work as may be specifically purchased and outlined in the Agreement.
CentralSquare retains all intellectual property rights in development work performed and Customer may request consulting and development work from CentralSquare as a separate billable service.
12. Technology Life Expectancy . Customer understands, acknowledges and agrees that the technology upon which the Hardware, Solution and Third-Party Software is based changes rapidly. Customer further acknowledges that CentralSquare will continue to improve the functionality and features of the Solution to improve legal compliance, accuracy, functionality and usability. As a result, CentralSquare does not represent or warrant that the Hardware, Solution and/or Third-Party Software provided to Customer under this Agreement or that the Customer Systems recommended by CentralSquare will function for an indefinite period of time. Rather, CentralSquare and Customer may, from time to time, analyze the functionality of the Hardware, Solution, Third-Party Software and Customer Systems in response to changes to determine whether Customer must upgrade the same. Customer upgrades may include without limitation, the installation of a new Release, additional disk storage and memory, and workstation and/or server upgrades. Customer upgrades may also include the installation and/or removal of Third-Party Software. Customer is solely responsible for all costs associated with future resources and upgrades. 251
EXHIBIT 3
CentralSquare Access Management Policy
In order to provide secure, federally compliant connections to agency systems CentralSquare Technologies (“CentralSquare”) requires BeyondTrust or SecureLink as the only approved methodology of connection. BeyondTrust and Securelink provide the necessary remote access in order to service and maintain CentralSquare products while adhering to the Federal Bureau of Investigations Criminal Justice Information Services requirements. Both solutions utilize two-factor authentication Federal Information Processing Standard Publication (“FIPS”) 140 -2 validated cryptographic modules and AES encryption in 256-bit strengths.
BeyondTrust and Securelink are addressed in turn via this Access Management Policy; Customers may choose which remote privileged access management solution will be utilized by CentralSquare.
BeyondTrust
The BeyondTrust remote support solution may be utilized via escorted session or a jump Customer. As for an escorted session, when an agency needs assistance from CentralSquare, the agency employee requesting assistance will receive verbal or email communication with a session key necessary to enable remote access. If a verbal key is provided, the user enters the session key after visiting https://securesupport.centralsquare.com .
Jump Customers are a Windows service that can be stopped/started to facilitate a support session. Connections made via jump Customer can be active or passive. An active jump Customer is always available. A passive connection is enabled for a specific purpose and then disabled when not used. Regardless of the option selected, CentralSquare’s support team will arrange a BeyondTrust session to establish the jump Customer.
The jump Customer resides on the agency side on the installed device, where an agency administrator can manage.
Instructions on how to enable/disable jump Customers can be provided upon request. A sample workflow of a passive jump Customer is provided below:
Should an agency require support from CentralSquare, a call would be placed and/or a support ticket opened in the portal on the CentralSquare customer support website. Before accessing the agency’s system and/or environment, the CentralSquare representati ve would send a notice of connection from the CentralSquare support portal instance. This notice can be sent to the individual at the agency that the CentralSquare representative is working with or other designated contacts as necessary. Upon receipt of the notice of connection, the agency personnel would enable the BeyondTrust jump Customer. The CentralSquare representative would then be admitted to the agency’s system and/or environment to perform the necessary task. Upon completion of the task, the CentralSquare representative sends a notice of disconnection from the CentralSquare support portal instance. Upon receipt of the notice of disconnection, the agency personnel would then disable the BeyondTrust jump Customer.
Securelink
Similar to BeyondTrust’s escorted session, Securelink may be utilized via “quick connect”. To enable a quick connect session when an agency needs assistance from CentralSquare, the Agency employee requesting assistance will enter a key code in order to connect for screen sharing on a device.
Similar to the jump Customer methodology, SecureLink may also be utilized via “gatekeeper”. The sample workflow description for a jump Customer provided above is substantially similar to the workflow for gatekeeper.
Summation
BeyondTrust and Securelink allow customers the ability to monitor connectivity to the customer’s network and maintain CJIS compliance while enabling CentralSquare to perform the necessary support functions. 252
City of Murrieta, CA Amendment Ten
EXHIBIT 4
Certificate of Insurance (Evidence of Coverage)
253
City of Murrieta, CA Amendment Ten
EXHIBIT 5
Statement of Work
254
City of Murrieta, CA Amendment Ten
EXHIBIT 6
Using/Accessing Agency Guidelines (If Applicable)
The following agencies are authorized to use the Customer’s system in the quantities specified in Exhibit 1. Customer acknowledges and agrees to be responsible for these authorized agencies use of the System and to bind each authorized agency to all terms of the Agreement as reasonably applicable. In the event of breach, or threatened breach of the provisions of the Agreement, Supplier has no adequate contractual remedy with the Authorized agencies and accordingly shall be entitled to pursue remedy direct from the Customer. The Customer shall be the point of contact for each of these authorized agencies in the event that support services are required or requested by said authorized agency. Customer agrees to be responsible for all payment obligations incurred by any authorized agency inclusive of support and any additional purchases under the Change Order/Amendment processes as described in the Agreement.
Accessing Agencies
255
City of Murrieta, CA Amendment Ten
EXHIBIT 7
Service Level Commitments (if applicable)
The following applies to any non-OPS designated Software Subscriptions on Exhibit 1 as a cloud hosted Solution.
1. Service Level Commitments
A. Availability. During any calendar month, the availability of the Solution shall be no less than 99.9%, excluding scheduled maintenance. CentralSquare shall provide Customer with prompt notification as soon as it becomes aware of any actual or potential unscheduled downtime of the Solution, as well as continual periodic updates during the unscheduled downtime regarding CentralSquare’s progress in remedying the unavailability and estimated time at which the Solution shall be available.
B. Measurement. Service availability is measured as the total time that the solutions are available during each calendar month for access by Customer (“Service Availability”). Service Availability measurement shall be applied to the production environment only, and the points of measurement for all monitoring shall be the servers and the internet connections at CentralSquare’s hosted environment.
C. Calculation. Service availability for a given month shall be calculated using the following calculation:
I. The total number of minutes which the service was not available in a given month shall be subtracted from the total number of minutes available in the given month. The resulting figure is divided by the total number of minutes available in the given month.
II. Service availability targets are subject to change due to the variance of the number of days in a month.
III. The total number of minutes which the service was not available in a given month shall exclude minutes associated with scheduled or emergency maintenance.
D. Remedy. If the service period target measurement is not met, then the customer shall be entitled to a credit calculated as follows:
Service availability Credit percentage
Less than 99.9% but greater than or equal to 99.0% 5%
Less than 99.0% but greater than or equal to 95.0% 10%
Less than 95% 20%
Service Availability in the relevant
Service Period
Percentage Reduction in Monthly Fee for the
Subsequent Service Period
Less than 99.9% but greater than or equal to 99.0% 5%
Less than 99.0% but greater than or equal to 95.0% 10%
Less than 95% 20%
E. Credit must be requested by the customer within sixty (60) days of the failed target. Any credit awarded shall be applied to the next applicable invoice. Customer shall not be eligible for credits where customer is more than thirty (30) days past due on their account.
2. Server Performance & Capacity. The total included provisioning of storage for the cloud hosted CAD and RMS solutions is 2.5 terabytes. If Customer requests to add additional Software, increase storage or processing requirements, and/or request additional environments, these requests will be evaluated and if additional resources are required to support modifications, additional fees may apply at per unit (gigabyte, hour, license, etc).
3. Non-Production Environments. Included in the subscription fee is access to the training environment during the hours of 8:00am – 4:00pm EST, Monday through Friday. Should the Customer require extended access for items such as internal training, CentralSquare can make exceptions provi ded that Customer provide reasonable advance written notice. CentralSquare will then work with the Customer to enable access in accordance with an agreed upon schedule.
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CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 7.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Director of Community Services
PREPARED BY: Brian Crawford, Senior Program Manager - Parks & Recreation SUBJECT: Change Order for Glen Arbor Dog Park Civil Design Services
RECOMMENDATION
Approve the change orders to increase Purchase Order P03571 with Michael Baker International for additional civil design services for the Glen Arbor Dog Park project, CIP 8273, in the amount of $57,750; Amend the Fiscal Year 2023/24 Capital Improvement Budget for an additional appropriation of $57,750 to CIP 8273.
PRIOR ACTION/VOTE
On February 21, 2023, the City Council approved a purchase order with Michael Baker International for Glen Arbor Dog Park project, CIP 8273, for civil design services in the amount of $190,500 (Vote: 5-0).
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
BACKGROUND
Capital Improvement Plan (CIP) project 8273, known as Glen Arbor Dog Park (Project) is located at the corner of Jackson Avenue and Nutmeg Street. The Project, which is partially funded by a State grant, will create a designated zone for off-leash dog use with fenced-in separation for small and large dogs. The dedicated zones for dogs will improve safety in the park and create a cohesive environment for park patrons, homeowners in the area, and maintenance services of the park. Park features will include Americans with Disabilities Act (ADA) compliant pathways, pedestrian access, and separate drinking fountains for dogs and people.
City staff conducted community outreach sessions at Glen Arbor Park in August 2023. A top request from park users and residents in the adjacent neighborhood was having a dedicated parking lot to use when visiting the park. Currently, many users park on neighborhood streets on the northern border of the park, which creates traffic on those streets and frustration for those homeowners.
City staff requested a proposal from Michael Baker International (MBI), the firm designing civil improvements for the Project, to add the design of a parking lot and ADA improvements to a curb ramp at the southwest corner of Nutmeg Street and Via De Gema Linda to their scope of work for civil design services. MBI provided CITY OF MURRIETA Printed on 12/1/2023Page 1 of 2
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12/5/2023
Agenda Item No. 7.
corner of Nutmeg Street and Via De Gema Linda to their scope of work for civil design services. MBI provided costs for these services in two proposals. The first proposal (Attachment 1), in the amount of $17,000, addressed improvements to the curb ramp and provided a conceptual design exhibit and cost analysis (Attachment 2) for adding a 12-space parking lot with an entrance and exit on Nutmeg Street. The second proposal (Attachment 3), in the amount of $40,750, provides costs for taking the concept design to final plans for the improvement.
The current total budget for this project is $925,000, including design and construction. The early estimated additional cost for construction of the parking lot is approximately $170,000, plus associated soft costs. Thirty- three percent of this project will be funded by the grant, up to $247,000, with the balance of funding from the Park Land Development Impact Fee Fund.
It is anticipated that the construction drawings and bid specifications for this project will be ready in April 2024, followed by the public bidding process, which takes approximately three months. Following the estimated City Council award of a construction contract in June 2024, construction is anticipated to begin in Summer 2024.
FISCAL IMPACT
Appropriate $57,750 from Park Land Development Impact Fee Fund 133, Job Ledger 08273133-100.
ATTACHMENTS
1. MBI Change Order 1 Proposal
2. MBI Glen Arbor Parking Lot Concept Design & Costs
3. MBI Change Order 2 Proposal
CITY OF MURRIETA Printed on 12/1/2023Page 2 of 2
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Baker JN: 194745
Request No.: 01 Rev01
Date: August 30, 2023
ADDITIONAL WORK REQUEST SUMMARY
Client: City of Murrieta
Work Requested By: Bryan Tuschhoff
Summary of Additional Work:
Curb Ramp Replacement and Preliminary Parking Lot
Exhibit
TASK 1.0 CURB RAMP DETAIL
Michael Baker shall prepare one (1) curb ramp replacement design and detail to replace the existing ramp located at the south westerly corner of Nutmeg Street and Via De Gema Linda. This detail shall be depicted on the Glen Arbor Dog Park Precise Grading Plan as a separate plan view only detail at a scale of 1” = 10’.
A total of five (5) sheets are anticipated to be impacted / updated:
• Title sheet, Sheet 1
• Construction Notes, Sheet 2
• Precise Grading Plan, Sheet 3
o Detail to be depicted on this sheet.
• Erosion Control Plan, Sheet 8
• Horizontal Control Plan, Sheet 9
The curb ramp detail shall depict proposed ramp grad es, proposed elevations, dimensions, construction notes, limits of removal, existing elevations, and existing facilities to be protected in place. Quantities and cost estimate are included in this scope.
The proposed curb ramp design and transition to existing sidewalks shall be made in accordance with the Americans with Disabilities Act (ADA) and standard requirements of the City of Murrieta.
Michael Baker shall use either City of Murrieta Department of Public Works Standard Drawing Access Ramp for All Intersections (City preferred choice), if the City standard detail cannot accommodate the design required then Caltrans standard ramp detail shall be used.
The updates required to the cost estimate and technical specifications are included in this scope of work.
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AWR 01 Rev01
August 29, 2023
Assumptions:
The Curb Ramp Design shall be included in the 60% and Bid Ready Deliverable packages. Dry utility coordination / relocations are not anticipated and not included in this scope. The current project disturbance footprint has been updated in August 2023 to include this ramp area; additional disturbance is not anticipated.
Deliverables:
• The Curb Ramp Design shall be included in the Precise Grading Plan 60% and Bid Ready Deliverable packages.
o One (1) Curb Ramp Detail.
o Five (5) Updated sheets listed above.
TASK 2.0 CONCEPTUAL PARKING LOT EXHIBIT
Michael Baker shall prepare one (1) conceptual parking lot exhibit for the Glen Arbor Dog Park.
The parking lot is anticipated to be located adjacent to Nutmeg Avenue, south -east of the Nutmeg/Via De Gema intersection with ingress and egress to Nutmeg Street. The parking lot shall include approximately twelve to sixteen parking stalls, including one (1) standard accessible stall and one (1) van accessible stall. Conceptual vertical elevations and grades shall be provided.
Assumptions:
One (1) round of city comments are anticipated.
TASK 3.0 PRELIMINARY ENGINEER’S COST ESTIMATE
Michael Baker shall prepare one preliminary (1) engineer’s cost estimate for the conceptual parking lot, per task 2.0 . Costs shall be per the City of Murrieta’s construction cost worksheet, Grading and On-site Improvements, with a minimum of a twenty percent contingency.
Assumptions:
One (1) round of city comments are anticipated.
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Additional Services:
Services which are not specifically identified herein as services to be performed by Michael Baker or its consultants are considered "Additional Services" for purposes of this Agreement. The Client may request that Michael Baker perform services which are Additional Services. However, Michael Baker is not obligated to perform such Additional Services unless an amendment to this Agreement has been fully executed setting forth the scope, schedule, and fee for such Additional Services. In the event Michael Bak er performs Additional Services before receipt of such executed amendment, the Client acknowledges its obligation to pay for such services at Michael Baker's standard rates, within 30 days of receipt of Michael Baker's invoice.
Exclusions
• Electrical Engineering Services
• Landscape Architectural Services
• Survey Services
• Mapping Services
• Earthwork Calculations
• Dry Utility Coordination Services
• Signing and Striping Plan
• Traffic Control Plan
• Site Distance Analysis
• Structural Services
• As Built / Delta Revisions
• Any other services not specifically set forth in the above Scope of Services.
Client Initials_________
Date________
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Michael Baker shall complete the work outlined above in accordance with the fee schedule identified below and shall invoice Client on a monthly basis based on the percentage of completion, unless otherwise noted. Client agrees to compensate Michael Baker for such services as follows:
Fee for Additional Work:
ITEM WORK TASK FEE
Task 1.0 Curb Ramp Detail ................................ ................................ ....................... $9,050 Task 2.0 Conceptual Parking Lot Exhibit ................................ ................................ ... $6,150 Task 3.0 Preliminary Engineer’s Cost Estimate ................................ ......................... $1,800
TOTAL FEES $17,000
*These tasks shall be billed hourly on a time and materials basis. The budget amount shown is for authorization purposes only. Should the total of the monthly billings reach eighty percent (80%) of the budget amount, Client and Michael Baker will review the status of the work to determine the need for an increase in the budget amount, and whether additional budget authorization to complete the project is appropriate. Progress billings will be forwarded to the Owner on a monthly basis. These billings will include the fees earned for the billing period plus all direct costs advanced by Michael Baker.
The Client shall make every reasonable effort to review invoices within fifteen (15) working days from the date of receipt of the invoices and notify Michael Baker in writing of any particular item that is alleged to be incorrect.
The fees proposed herein shall apply until December 1, 2023. Due to ever-changing costs, Michael Baker may increase those portions of the contract fee for which work must still be completed after Decemberr 1, 2023 by ten percent (10%).
Prepared By:
Candice Fenton, Senior Project Manager Date:
Authorized By:
Date:
275
276
DATE:
GRADING PLAN CHECK GRADING BOND:
(Applicable % of Estimated
Construction Costs or Minimum,
whichever is greater)
(Based on 30% of project cost
Street/Drainage + = $ cut or fill volume, 50% of on-site, *Flood Control $ non-City maintained drainage
Erosion $ and 100% of the cost of erosion
Grading $ control facilities.)
Total $ $
Maintenance Retention (10%) $ $
DESIGN ENGINEER'S CALCULATION OF PLAN CHECK AND BOND
Construction items and their quantities, as shown on the attached sheets, are accurate for the improvements required to construct the above project and the mathmatical extensions, using City of Murrieta's unit costs, are accurate for determining plan check costs
Signature Date
Name Typed or printed RCE# Exp. Date
Civil Engineer's Stamp
*Flood Control Construction Cost Estimate to be provided by Flood Control District. Provide a copy of Flood Control District letter stating cost estmate.
1. Quantities are to be taken from the Grading Plans. Unit cost are to be as provided on the City of Murrieta's Construction Cost Worksheet.
2. For Construction items not covered by the City of Murrieta's Construction Cost Worksheet, the Design Engineer is to provide his opinion of construction cost and use of the cost. If the City of Murrieta 's Unit Costs are determined to be too low, in the opinion of the design engineer, the higher costs provided by the Design Engineer should be used.
*** PLEASE READ INSTRUCTIONS BELOW ***
116,037.50
0.00 22,500.00
33,343.75
171,881.25
17,188.13 0.00
9/20/2023
CITY OF MURRIETA ENGINEERING DEPARTMENT
CONSTRUCTION COST WORKSHEET
Grading and On Site Improvements
Glen Arbor Dog Park Conceptual Parking Lot
GRADING AND
ONSITE IMPROVEMENTS:
PARCEL MAP OR TRACT
MAP
Engineer Construction Worksheet - Conceptual Parking Lot.xlsx9/20/20231:40 PM 277 PROJECT: DATE:
L.S. $ 3,000.00$ 0.00
C.Y. $ 18.00$ 0.00
S.F. Balance Street Grade and Parkways $ 0.50$ 0.00
C.Y. Import / Export Dirt $ 9.00$ 0.00
C.Y. Base Material Class II (6" Thickness) $ 60.00$ 5,700.00 TON A.C. Pavement ( 4" Thickness) 144 lbs/Cu. Ft$ 90.00$ 10,980.00 S.F. Asphalt Overlay (0.10') $ 0.90$ 0.00
TON Asphaltic Emulsion (Fog Seal) $ 600.00$ 0.00
S.F. Decorative Pavement / Stamped Concrete$ 10.00$ 0.00 L.F. P.C.C. Curb and Gutter (Type A-6) $ 15.00$ 0.00
L.F. P.C.C. Curb and Gutter (Type A-8) $ 17.00$ 0.00
L.F. P.C.C. Curb and Gutter (Type C) $ 15.00$ 0.00
L.F. P.C.C. Curb (Type D-1) $ 13.00$ 0.00
L.F. P.C.C. Curb (Type D) $ 16.00$ 4,960.00
S.F. P.C.C. Cross Gutter and Spandrels $ 12.00$ 0.00
S.F. $ 6.00$ 2,160.00
S.F. P.C.C. Drive Approach $ 8.25$ 7,590.00
EA. $ 1,500.00$ 0.00
L.F. A.C. Dike (8") $ 12.00$ 0.00
L.F. A.C. Dike (6") $ 10.00$ 0.00
EA. A.C. Overside Drain $ 750.00$ 0.00
EA. Adjust Manhole to Grade $ 500.00$ 0.00
EA. Adjust Water Valve Can to Grade $ 150.00$ 150.00
L.F. Sawcut - Asphalt $ 1.50$ 330.00
L.F. Sawcut - Concrete $ 5.00$ 0.00
S.F. Grind A.C. Pavement (.10') $ 1.00$ 0.00
S.F. Remove A.C. Pavement $ 5.00$ 1,100.00
L.F. Remove Curb and Gutter $ 12.00$ 1,008.00
S.F. Remove P.C.C. Ditch $ 12.00$ 720.00
S.F. Remove Sidewalk $ 8.00$ 4,032.00
L.F. Remove Barricade $ 10.00$ 0.00
L.F. Install Barricade $ 35.00$ 0.00
EA. Delineators (Class 2) $ 45.00$ 0.00
L.S. $ 10,000.00$ 10,000.00
EA. Parking Lot Lighting $ 5,000.00$ 20,000.00
EA. Street Trees (15 Gallon ) with Root Barriers$ 250.00$ 0.00 L.S. Landscaping and Irrigation Removal and Replacement$ 3,000.00$ 3,000.00 L.F. Remove Chain Link Fence $ 7.50$ 0.00
L.F. Relocate Chain Link Fence $ 12.00$ 0.00
L.F. Title 8 Accessible Stair Railing $ 30.00$ 1,200.00 EA. Remove Curb Ramp $ 1,500.00 0.00
EA. Construct Curb Ramp $ 3,500.00$ 0.00
270 SF Masonry Retaining Wall $ 60.00 16,200.00
25 SF $ 8.00 200.00
1 L.S. Signing and Striping $ 3,500.00 3,500.00
Subtotal $ 92,830.00
25% Contingency $ 23,207.50
Total $ 116,037.50
P.C.C. Stairs
P.C.C. Sidewalk (includes ADA Access Ramp)
Relocate Monument
95 40
122
310
360
920
Move-In's
Roadway Excavation
CITY OF MURRIETA ENGINEERING DEPARTMENT
CONSTRUCTION COST WORKSHEET
COST
ON SITE STREET IMPROVEMENTS
UNIT
Glen Arbor Dog Park Conceptual Parking Lot 9/20/2023
QUANTITY UNIT ITEM AMOUNT
1 220
220
84 60
504
1 4
1 Engineer Construction Worksheet - Conceptual Parking Lot.xlsx9/20/20231:40 PM 278
PROJECT: DATE:
L.F. $ 150.00 $ 0.00
L.F. $ 165.00 $ 0.00
EA. $ 185.00 $ 0.00
EA. $ 210.00 $ 0.00
EA. $ 246.00 $ 0.00
EA. $ 261.00 $ 0.00
EA. $ 300.00 $ 0.00
EA. $ 380.00 $ 0.00
EA. $ 402.00 $ 0.00
L.F. $ 40.00 $ 0.00
L.F. $ 50.00 $ 0.00
L.F. $ 60.00 $ 0.00
L.F. $ 70.00 $ 0.00
EA. $ 3,700.00 $ 0.00
EA. $ 4,845.00 $ 0.00
EA. Catch Basin W=10' $ 5,800.00 $ 0.00
EA. Catch Basin W=14' $ 7,080.00 $ 0.00
EA. Catch Basin W=21' $ 8,820.00 $ 0.00
EA. Catch Basin W=28' $ 11,760.00 $ 0.00
EA. Manhole #1 - 33" or smaller pipes $ 5,768.00 $ 0.00 EA. Manhole #2 - 36" or larger pipes $ 6,695.00 $ 0.00
EA. Manhole #3 - Box $ 5,768.00 $ 0.00
EA. Manhole #4 $ 6,695.00 $ 0.00
EA. Adjust Manhole to Grade $ 500.00 $ 0.00
EA. Junction Structure #1 - pipe to box $ 3,500.00 $ 0.00 EA. Junction Structure #2 - pipe to pipe $ 4,900.00 $ 0.00 EA. Junction Structure #4 - pipe to pipe $ 5,500.00 $ 0.00 EA. Junction Structure #6 - concrete channel $ 6,000.00 $ 0.00 EA. Transition Structure No. 1 (Pipe to Box) $ 15,500.00 $ 0.00 EA. Transition Structure No. 2 (Box to Box) $ 12,500.00 $ 0.00 EA. Transition Structure No. 3 (Pipe to Pipe) $ 5,700.00 $ 0.00 C.Y. Rip Rap (1/4 Ton) $ 40.00 $ 0.00
C.Y. Rip Rap (1/2 Ton) $ 45.00 $ 0.00
EA. Rip Rap (1 Ton) $ 50.00 $ 0.00
L.F. Rip Rap (2 Ton) $ 55.00 $ 0.00
C.Y. Grouting Concrete $ 83.00 $ 0.00
EA. Concrete Headwall and Wingwalls $ 5,000.00 $ 0.00
EA. 2'x2' Down Drain to Pipe Transition $ 5,000.00 $ 0.00 EA. Down Drain Catch Basin with Splashwall $ 3,700.00 $ 0.00 EA. Basin Perforated CMP Riser $ 3,000.00 $ 0.00
EA. CMP Riser Inlet $ 3,000.00 $ 0.00
EA. Concrete Splashwall $ 2,500.00 $ 0.00
EA. Impact dissipator $ 5,000.00 $ 0.00
C.Y. 3" Non-Grouted Cobble Stone $ 120.00 0.00
Subtotal $ 0.00
25% Contingency $ 0.00
Total $ 0.00
18" C.M.P. HDPE or Equal
24" C.M.P. HDPE or Equal
30" C.M.P. HDPE or Equal
36" C.M.P. HDPE or Equal
Catch Basin W=4'
Catch Basin W=7'
24" R.C.P.
30" R.C.P.
36" R.C.P.
42" R.C.P.
48" R.C.P.
54" R.C.P.
60" R.C.P.
66" R.C.P.
9/20/2023
COST
18" R.C.P.
UNITQUANTITY UNIT ITEM AMOUNT
Glen Arbor Dog Park Conceptual Parking Lot
Engineer Construction Worksheet - Conceptual Parking Lot.xlsx9/20/20231:40 PM 279
PROJECT: DATE:
EA. $ 1,000.00 $ 0.00
C.Y. Structural Reinforced Concrete $ 400.00 $ 0.00
EA. Slope Anchors for Pipe $ 800.00 $ 0.00
EA. Concrete Collars $ 1,500.00 $ 0.00
L.F. Cut Off Wall (Stnd 2') $ 27.00 $ 0.00
EA. $ 3,000.00 $ 0.00
EA. Private Drain through Curb Std. 426 $ 250.00 $ 0.00 EA. $ 1,500.00 $ 0.00
EA. $ 3,300.00 $ 0.00
EA. Type X Inlet - grate top $ 3,300.00 $ 0.00
L.F. $ 450.00 $ 0.00
L.F. $ 500.00 $ 0.00
L.F. $ 250.00 $ 0.00
L.F. $ 800.00 $ 0.00
EA. $ 1,000.00 $ 0.00
EA. Modified Drop Inlet $ 6,250.00 $ 0.00
L.S. $ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ 0.00
$ 0.00
Subtotal $ 0.00
25% Contingency $ 0.00
Total $ 0.00
COST
Concrete Bulkhead
UNIT ITEM AMOUNT UNIT
Glen Arbor Dog Park Conceptual Parking Lot 9/20/2023
QUANTITY
Traffic Control
36"x96" RCB Storm Drain Culvert
48"x96" RCB Storm Drain Culvert
36"x60" RCB Storm Drain Culvert
2-84"x36" RCB Storm Drain Culvert
Remove Concrete Bulkhead and Connect to Ex.
Parkway Culvert
CMP Overside Drain
Type IX Inlet - checkered plate top
Engineer Construction Worksheet - Conceptual Parking Lot.xlsx9/20/20231:40 PM 280
PROJECT: DATE:
EROSION CONTROL
L.S. $ 6,000.00 $ 6,000.00
EA. $ 2.50 $ 0.00
L.F. $ 5.10 $ 0.00
L.F. Gravelbag Checkdam (6 bags 3-2-1) $ 10.20 0.00
L.F. $ 3.00 $ 0.00
L.F. $ 5.70 $ 0.00
L.F. $ 3.54 $ 0.00
S.F. Straw Matt - double sided $ 0.30 0.00
S.F. Straw Bales $ 9.90 0.00
S.F. Jute Netting $ 0.36 0.00
S.F. Polymer Soil Binder / Tackifier $ 0.04 0.00
S.F. Hydro Mulch -2000#/ac + 200#/ac binder $ 0.06 0.00 S.F. Blown Fiber Mix - prepkg'd. 3500 #/ac $ 0.17 0.00
S.F. Blown Fiber Mix - w/ Hydroseed $ 0.21 0.00
E.A. Temporary Riser Sediment Check Dam 250.00 0.00
S.F. Stabilzed Const. Entrance (30'x50' rock & fabric) $ 2,100.00 $ 0.00 TON No. 2 Course Aggregate $ 26.00 $ 0.00
MONTH Shaker Plates (2 each per month rental) $ 240.00 $ 0.00 E.A. $ 800.00 $ 0.00
S.F. $ 0.10 $ 0.00
C.Y. $ 10.00 $ 0.00
4 HR $ 480.00 $ 0.00
4 HR $ 600.00 $ 0.00
4 HR $ 864.00 $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
WATER QUALITY BMP's
L.F. $ 40.00 $ 0.00
L.F. $ 28.00 $ 0.00
E.A. Dry Well $ $ 0.00
L.S. $ $ 0.00
L.F. Vegetated Bio Swale $ 8.80 $ 0.00
S.F. $ 6.00 $ 0.00
S.F. $ 9.00 $ 0.00
S.F. Porous Landscape Detention Basin $ $ 0.00
E.A. $ 800.00 $ 0.00
E.A. $ 4,000.00 $ 0.00
E.A. $ 95.00 $ 0.00
E.A. $ 12,000.00 $ 12,000.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
Subtotal $ 18,000.00
25% Contingency $ 4,500.00
Total $ 22,500.00
CITY OF MURRIETA ENGINEERING DEPARTMENT
CONSTRUCTION COST WORKSHEET
EROSION CONTROL & WATER QUALITY BMP's
UNIT
COST
1 Erosion Control Measures
Gravelbag Barrier (2 bags on bottom, 1 bag top)
Gravel Bags (1-foot length)
Concrete Washout (6.5 CY bin)
Silt Fencing - wire reinforced
Fiber Roll / Straw Wattle
Visquene (10 mil)
Export Sediment
Water Truck (4hr minimum)
Silt Fencing
Street Sweeper (4hr minimum)
Maintenance (4 man crew, 4 hr minimum)
Underground Infiltration / Detention Chambers
Sand Filter Trench w/ PVC Drain Pipe
Infiltration Trench w/o PVC Drain Pipe
1 Tree Well
ON SITE EROSION CONTROL IMPROVEMENTS
Clearwater Solutions CB Insert
Inlet Stencil "No Rain in the Drain"
Porous Ashpalt
Porous Concrete Pavers
Kristar Drop Inlet Insert
Glen Arbor Dog Park Conceptual Parking Lot 9/20/2023
QUANTITY UNIT ITEM AMOUNT
Engineer Construction Worksheet - Conceptual Parking Lot.xlsx9/20/20231:40 PM 281
PROJECT: DATE:
UNIT
L.S. Mobilization / Demobilization $ 10,000.00 $ 10,000.00 S.F. Heavy Vegetation Removal $ 100.00 $ 5,000
EA. Remove existing tree above 6" $ 250.00 $ 1,000.00
L.F. Remove existing fence $ 5.00 $ 0.00
L.F. Remove Existing Concrete Drain $ 10.00 $ 0.00
E.A. Cap Well $ 2,500.00 $ 0.00
L.S. Remove Septic Tank $ $ 0.00
L.S. Demo / Remove Existing Structure $ $ 0.00
L.S. $ $ 0.00
$ $ 0.00
C.Y. $ 5.00 $ 10,000
C.Y. Over-excavation / Remedial $ 1.75 $ 0
S.F. Balance Street Grade / Parkways $ 0.50 $ 0.00
C.Y. Import / Export Dirt $ 9.00 $ 0
L.F. 6' Wide Trapezoidal Graded Ditch per detail $ 35.00 $ 0.00 $ $ 0.00
L.F. 6" Subdrain $ 20.00 $ 0.00
L.F. 8" Subdrain $ 25.00 $ 0.00
L.F. Interceptor Drain Std. 432 $ 25.00 $ 0.00
L.F. Terrace Drain Std. 415a $ 30.00 $ 0.00
L.F. Down Drain Std. 415b $ 25.00 $ 0.00
EA. Terrace & Down Drain Intersection Std. 415c $ 200.00 $ 0.00 S.F. Masonry Splash Wall Std. 415a $ 15.00 $ 0.00
EA. Down Drain & Pipe transition Std. 431 $ 1,000.00 $ 0.00 L.F. 1' Wide "V" Ditch behind ret. wall per detail $ 15.00 $ 675.00 C.Y. Rip Rap (1/4 Ton) $ 40.00 $ 0.00
L.F. Gabion drop structure per detail $ 60.00 $ 0.00
S.F. Turf Block all weather access $ 6.50 $ 0.00
S.F. Concrete Slope Protection per detail $ 5.00 $ 0.00 L.F. Minor Drainage Channel per SDRSD D-70 $ 30.00 $ 0.00 L.F. Relocate Chain Link Fence $ 12.00 $ 0.00
L.F. Remove Chain Link Fence $ 7.50 $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
$ $ 0.00
Subtotal $ 26,675.00
25% Contingency $ 6,668.75
Total $ 33,343.75
45 COST
1 2,000 Cut / Fill (Larger of the two) (RAW)
Asbestos Study & Removal
50 4
CITY OF MURRIETA ENGINEERING DEPARTMENT
CONSTRUCTION COST WORKSHEET
ON SITE GRADING
QUANTITY ITEM UNIT AMOUNT
Glen Arbor Dog Park Conceptual Parking Lot 9/20/2023
Engineer Construction Worksheet - Conceptual Parking Lot.xlsx9/20/20231:40 PM 282
Baker JN: 194745
Request No.: 02
Date: October 18, 2023
ADDITIONAL WORK REQUEST SUMMARY
Client: City of Murrieta
Work Requested By: Bryan Tuschhoff
Summary of Additional Work: Parking Lot Improvements
FINAL ENGINEERING
TASK 1.0 PARKING LOT IMPROVEMENTS
Michael Baker shall incorporate the proposed parking lot improvements into the Glen Arbor Dog Park Precise Grading Plan Set. All parking lot improvements shall be in accordance with the standard requirements and guidelines of the City of Murrieta. Incorporation of the parking lot into the site will require parking lot design, driveway improvements, ADA path of travel design, grading refinements, cross section and detail updates. Quantity and cost estimates are included as part of this scope.
The following items are anticipated due to the Parking Lot Improvement addition:
• Parking Lot Final Engineering
• Grading refinements
• Earthwork Quantities / Takeoffs
• Accessible Path of travel
• Two (2) Commercial Driveways
• Signing and Striping
• Typical Cross Sections
• Details
• Erosion Control
• Horizontal Control
• Cost Estimate
Assumptions:
The parking lot layout shall be per the City of Murrieta approved conceptual parking lot exhibit dated September 20th, 2023. Michael Baker anticipates two (2) rounds of City plan reviews.
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AWR 02
October 18, 2023
TASK 2.0 RETAINING WALL DESIGN
Michael Baker shall prepare a retaining wall design for the approximate 60 LF retaining wall as indicated on the conceptual parking lot exhibit. Michael Baker shall prepare a plan view only Retaining Wall Improvement Sheet to be incorporated into the Dog Park Precise Grading Plan.
Top of wall, finish grade, and top of footing elevations shall be depicted on the retaining wall plan.
A maximum of two cross sections shall be provided. The retaining wall design shall be prepared in accordance with the City of Murrieta Building Department “Retaining Walls” Detail.
The retaining wall shall be masonry block with an anticipated 6’-0” maximum retained height.
Assumptions:
Retaining Wall Profiles are not anticipated and not included in this scope of work. Structural design and calculations are not anticipated and not included in this scope of work.
ENVIRONMENTAL
TASK 3.0 DRAFT CATEGORICAL EXEMPTION UPDATES
Michael Baker shall revise the Draft Categorical Exemption Report submitted to the City of Murrieta on September 12, 2023 to reflect the new site plan and remove the Class 4 (Minor Alterations to Land) analysis since the proposed parking lot redesign would require tree removal.
Instead, the document will be revised to function solely as a Class 3 (New Construction or Conversion of Small Structures) Exemption Report pursuant to CEQA Guidelines Section 15303.
STORMWATER
TASK 4.0 WATER QUALITY MANAGEMENT PLAN UPDATES
PRELIMINARY WATER QUALITY MANAGEMENT PLAN UPDATES
Per the direction of the Client, Micheal Baker shall update the Preliminary WQMP (Water Quality Management Plan) to include additional impervious surfaces as discussed in task(s) a bove.
Michael Baker shall amend the Preliminary Water Quality Management Plan (WQMP) for the proposed project in accordance with the 2018 Water Quality Management Plan for the Santa Margarita Region of Riverside County (SMR WQMP).
The project type identification per Exhibit D of the SMR WQMP is “Parking Lots” defined as “The creation, addition, or replacement of 5,000 square feet or more of impervious surfaces (collectively over the entire project site) and supports land area or a facility for the temporar y parking or storage of motor vehicles used personally for business or commerce.”
The Preliminary WQMP will be prepared using the SMR WQMP Exhibit B – Model Project Specific WQMP Template and will show how Low Impact Development (LID) principles and structural LID Best Management Practices (BMPs) applicable to the project are implemented to reduce and/or eliminate the discharge of pollutants from the completed project into the public storm drain system or receiving waters. BMP selection and sizing will be performed for the development, the preliminary design of BMPs will be prepared sufficiently for cost estimating and BMP footprint 284
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determination. BMP sizing will be based upon local Regional Water Quality Control Board and local agency NPDES criteria, and the design will incorporate applicable hydromodification requirements. Development of the Preliminary WQMP will include a site visit to identify site opportunities for structural BMPs and implementation of non-structural measures.
The water quality volume based BMPs (e.g. tree wells) shall be sized according to the required water quality volume sizing criteria established by the Regional Water Quality Control Board.
The task includes development and submittal of a Preliminary WQMP, one set of revisions of the Preliminary WQMP based on comments from the City of Murrieta.
FINAL WATER QUALITY MANAGEMENT PLAN
Michael Baker shall prepare a Final Water Quality Management Plan (WQMP) based on preliminary WQMP updates listed in Task 4 above, the approved Preliminary Grading Plan, the Final Site Plan approved by the client, the Final Precise Grading and Drainage Plans, and the on- site Final Hydrology and Hydraulics Study. The WQMP shall be processed through the City of Murrieta for review.
This task includes development and submittal of a draft Final WQMP, one round of revisions of the Final WQMP based on comments from the City of Murrieta.
PROJECT MANAGEMENT
TASK 5.0 PROJECT COORDINATION, MANAGEMENT AND MEETINGS
Michael Baker shall attend regularly bi-weekly scheduled meetings with the City to review the progress of the work included within this contract and to provide consulting services. This scope shall include updates to the Project Schedule. The hours have been provided for budget purposes. It is understood that the Client explicitly un derstands that project management, meetings, coordination, as well as travel expenses, will be billed on a time and material basis.
A maximum of forty (40) hours are included within this Scope of Work. Therefore, four (4) hours have been budgeted for a Principal Engineer/Department Manager, twenty-two (22) hours for the Project Manager and an additional fourteen (14) hours for the Assistant Project Manager .
Additional meetings and consulting services will be performed, if required, on an hourly basis for an additional fee.
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Additional Services:
Services which are not specifically identified herein as services to be performed by Michael Baker or its consultants are considered "Additional Services" for purposes of this Agreement. The Client may request t hat Michael Baker perform services which are Additional Services. However, Michael Baker is not obligated to perform such Additional Services unless an amendment to this Agreement has been fully executed setting forth the scope, schedule, and fee for such Additional Services. In the event Michael Baker performs Additional Services before receipt of such executed amendment, the Client acknowledges its obligation to pay for such services at Michael Baker's standard rates, within 30 days of receipt of Michael Baker's invoice.
Exclusions
Any other services not specifically set forth in the above Scope of Services.
Client Initials_________
Date________
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Michael Baker shall complete the work outlined above in accordance with the fee schedule identified below and shall invoice Client on a monthly basis based on the percentage of completion, unless otherwise noted. Client agrees to compensate Michael Baker for such services as follows:
Fee for Additional Work:
ITEM WORK TASK FEE
FINAL ENGINEERING
Task 1.0 Parking Lot Improvements ................................ ................................ ........ $19,800 Task 2.0 Retaining Wall Design ................................ ................................ ................. $3,900
ENVIRONMENTAL
Task 3.0 Draft Categorical Exemption Updates ................................ ......................... $4,850
STORMWATER
Task 4.0 Water Quality Management Plan Updates ................................ .................. $2,700
PROJECT MANAGEMENT
Task 5.0* Project Coordination, Management, and Meetings (40 hours) ..................... $9,500
TOTAL FEES $40,750
*These tasks shall be billed hourly on a time and materials basis. The budget amount shown is for authorization purposes only. Should the total of the monthly billings reach eighty percent (80%) of the budget amount, Client and Michael Baker will review the status of the work to determine the need for an increase in the budget amount, and whether additional budget authorization to complete the project is appropriate. Progress billings will be forwarded to the Owner on a monthly basis. These billings will include the fees earned for the billing period plus all direct costs advanced by Michael Baker.
The Client shall make every reasonable effort to review invoices within fifteen (15) working days from the date of receipt of the invoices and notify Michael Baker in writing of any particular item that is alleged to be incorrect.
The fees proposed herein shall apply until January 1, 2024. Due to ever-changing costs, Michael Baker may increase those portions of the contract fee for which work must still be completed after January 1, 2024 by ten percent (10%).
Prepared By:
Candice Fenton, Senior Project Manager Date:
Authorized By:
Date:
10/19/2023
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City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 8.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Director of Community Services
PREPARED BY: Brian Crawford, Senior Program Manager - Parks & Recreation SUBJECT: Construction Contract Sykes Ranch Park Improvement Project
RECOMMENDATION
Award the construction contract for the Sykes Ranch Park Improvement Project, CIP 22010, to the lowest responsible bidder, Land Forms Landscape Construction, Inc., in the amount of $183,226.00 with a 15% contingency;
Authorize the Mayor to execute the agreement; and
Authorize an additional budget appropriation to CIP 22010 for additional project costs.
PRIOR ACTION/VOTE
On August 15, 2023, the City Council adopted Resolution No. 23-4699, approving the Fiscal Years 2023/24 to 2027/28 Capital Improvement Plan (Vote: 5-0).
CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.
BACKGROUND
Sykes Ranch Park (Park), located at the corner of Hayes Avenue and Semillon Lane, is a site of importance for the City of Murrieta as the vestiges of the Sykes family ranch can still be seen on the property today. The recreation park was originally built by the developer over 15 years ago and contains walking paths, a tot lot, and is a popular gathering place for local families.
To pay homage to the original windmill, which no longer exists, that once used to pump water to the property, a modern windmill was installed at the park in April 2023, adjacent to the original pump house that still stands on the property. The current project will complete planned improvements to the park and includes adding sidewalks to create a walking path tour of the historic relics at the site, fencing, furnishings, additional landscape, new signage at the entry to the park, as well as historical markers that will provide historic information to park guests (Project).
The City publicly advertised the Project in a regional newspaper on October 9, 2023; and again, on October CITY OF MURRIETA Printed on 12/1/2023Page 1 of 2
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Agenda Item No. 8.
The City publicly advertised the Project in a regional newspaper on October 9, 2023; and again, on October 16, 2023, and received nine (9) construction bids on November 6, 2023, as follows:
Contractor Total Base Bid
RG General Engineering, Inc. $169,710
Land Forms Landscape Construction $183,226
Roadway Engineering & Construction Corp. $199,878
Wakeco, Inc. $209,680
ACS Construction $211,565
Leonida Builders, Inc. $243,610
Gentry General Engineering, Inc. $250,740
Williamson Development Group $291,890
Sudweeks Construction, Inc. $292,500
The bids were reviewed, and it was determined that the item prices are consistent with today’sconstruction market. However, the contractor that submitted the initial lowest bid, RG General Engineering, Inc., was deemed non-responsive because they, as the prime contractor, indicated in their proposal that their subcontractors would perform work that amounts to eighty-six percent (86%) of the Contract Price of the Project. The 2015 Edition of the Standard Specifications for Public Works Construction (Section 2 - Scope and Control of the Work, Subsection 2-3.2 Self Performance), commonly known as the “GreenBook”,states that prime contractors bidding on a Public Works project “…shall perform, with its own organization, Contract work amounting to at least 50 percent of the Contract Price…” Subsequently, staff recommends that the contract be awarded to the lowest responsible bidder, Land Forms Landscape Construction, in the amount of $183,226, plus a fifteen percent (15%) contingency. No bid protests were received for the Project.
FISCAL IMPACT
CIP No. 22010 has a remaining budget of $180,387.12. However, to cover the cost of permit and inspection fees, construction management, construction, construction contingency, and administration, an additional appropriation of $73,290 is necessary from Parkland DIF Unassigned Fund Balance. The allocation of the proposed budget is listed below.
Description Job Ledger String Amount
Administration 22010133-400 $43,005.00
Construction 22010133-500 $19,901.10
Construction Contingency 22010133-600 $10,383.90
Total Proposed Budget Request $73,290.00
ATTACHMENTS
1. Land Forms Landscape Construction, Inc. Construction Contract and Bid Response CITY OF MURRIETA Printed on 12/1/2023Page 2 of 2
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CITY OF MURRIETA, COMMUNITY SERVICES DEPARTMENT
CONTRACT C 1 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
CONTRACT
SYKES RANCH PARK IMPROVEMENT PROJECT
CITY PROJECT No. 23-465 CIP No. 22010
THIS CONTRACT, made and entered into the 5th day of December, 2023, by and between the City of Murrieta, a municipal corporation, hereinafter referred to as "CITY," and Land Forms Landscape Construction, Inc., hereinafter referred to as "CONTRACTOR." WITNESSETH:
That CITY and CONTRACTOR, for the consideration hereinafter named, mutually agree as follows:
1. CONTRACT DOCUMENTS . The complete Contract includes all of the Contract Documents, to wit: Notice Inviting Bids, Instructions to Bidders, Proposal, Performance Bond, Labor and Materials Bond, Plans and Special Provisions entitled {SYKES RANCH PARK IMPROVEMENT PROJECT}, Insurance Forms, this Contract, and all modifications and amendments thereto, and the latest version of the Standard Specifications for Public Works Construction, Parts 1 through 6, with the exception of Section 307, "Street Lighting and Traffic Signals," and the addition of the Standard Specifications, Department of Transportation, State of California State Standard Specifications, Section 86, "Signals, Lighting and Electrical Systems," and Section 56, "Signs," dated May 2006.
The Plans consist of:
NV5 Civil Plans, Sheets C-1 to C-4
Alhambra Group Landscape Plans, Sheet’s L-1 to L-6
Copies of the Standard Specifications for Public Works Construction are available from the publisher:
Building News, Inc. (BNi)
990 Park Center Drive, Suite E
Vista, CA 92081
(760) 734-1113
www.bnibooks.com
The aforementioned Standard Specifications will control the general provisions, construction materials, and construction methods for this Contract except as amended by the Plans and Specifications of this Contract.
In case of conflict between the Standard Specifications for Public Works Construction or State Standard Specifications, and the remaining Contract Documents, the remaining Contract Documents shall take precedence over and be used in lieu of such conflicting portions.
Where the Plans or Specifications describe portions of the work in general terms, but not in complete detail, it is understood that the item is to be furnished and installed completed and in place and that only the best general practice is to be used. 290
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CONTRACT C 2 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
Unless otherwise specified, CONTRACTOR shall furnish all labor, materials, tools, equipment, and incidentals, and do all the work involved in executing the Contract.
The Contract Documents are complementary, and what is called for by anyone shall be as binding as if called for by all. Any conflict between this Contract and any other Contract Document shall be resolved in favor of this Contract.
2. SCOPE OF WORK. CONTRACTOR shall perform the work as shown on the Contract Drawings, shall furnish all the labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the completion of the following project:
SYKES RANCH PARK IMPROVEMENT PROJECT
CITY PROJECT No. 23-465 CIP No. 22010
All of said work to be performed and materials to be furnished shall be in strict accordance with the Drawings and Specifications and the provisions of the Contract Documents hereinabove enumerated and adopted by CITY.
3. CITY APPROVAL . All labor, materials, tools, equipment, and services shall be furnished and work performed and completed under the direction and supervision and subject to the approval of CITY or its authorized representatives.
4. CONTRACT AMOUNT AND SCHEDULE . CITY agrees to pay and Contractor agrees to receive and accept the prices set forth in the proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder.
Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance, including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.
CONTRACTOR agrees to complete the work on SYKES RANCH PARK IMPROVEMENT PROJECT in a period not to exceed Forty-Five (45) working days per Section 6-7 of the Standard Specifications for Public Works Construction, commencing upon the date stated in the Notice to Proceed by CITY. Construction shall not commence until bonds and insurance are approved by CITY.
5. CHANGE ORDERS. All change orders shall be approved by the City Council, except that the City Manager or his designee is hereby authorized by the City Council to make, by written order, changes or additions to the work in an amount not to exceed fifteen (15) percent of this Contract amount and the City Manager or his designee shall notify City Council in a public meeting if changes or additions to the work exceed ten (10) percent of this Contract amount.
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CONTRACT C 3 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
6. PAYMENTS/ACCEPTANCE OF WORK. The text of Subsection 9- 3.2 of the Standard Specifications for Public Works Construction is hereby deleted and replaced with the following:
The closure date for the purpose of making partial progress payments will be the last day of each month. CONTRACTOR shall prepare the approximate measurement of the work performed through the closure date and submit it to CITY for approval by the tenth (10th) day of the following month. Payments will be withheld pending receipt of any outstanding reports required by the Contract Documents. A full five percent (5%) retention will be deducted from all progress payments. Partial payments on the Contract price shall not be considered as an acceptance of any part of the work.
Upon completion of the work, CONTRACTOR shall so notify Engineer, in writing, submit satisfactory evidence of payment for equipment, materials and labor, submit "CONTRACTOR'S AFFIDAVIT." Upon receipt of the notification, Engineer shall promptly, by personal inspection, determine the actual status of the work in accordance with the terms of the Contract. If he finds materials, equipment, or workmanship that do not meet the terms of the Contract, he shall prepare a preliminary punch list of such items and submit it to CONTRACTOR. Final determination of acceptability shall be made by CITY. Upon acceptance of the work, CITY shall file a Notice of Completion.
The conditions of the guarantee shall commence on the date that CITY files a Notice of Completion. CITY shall make final payment to CONTRACTOR in the manner provided by law following the expiration of thirty-five (35) days after filing the Notice of Completion.
The final payment shall include the entire sum found to be due hereunder after deducting all previous payments and such other lawful amounts as the terms of this Contract describe.
7. LI QUIDATED DAMAGES; EXTENSION OF TIME. In accordance with Government Code Section 53069.85, CONTRACTOR agrees to forfeit and pay to CITY the sum of five hundred dollars ($500) per day for each calendar day completion is delayed beyond the time allowed pursuant to paragraph 4 of this Contract.
Such sum shall be deducted from any payments due to or to become due to CONTRACTOR. CONTRACTOR will be granted an extension of time and will not be assessed liquidated damages for unforeseeable delays beyond the control of and without the fault or negligence of CONTRACTOR, including delays caused by CITY.
CONTRACTOR is required to promptly notify CITY of any such delay.
8. WAIVER OF CLAIMS. Unless a shorter time is specified elsewhere in this Contract, on or before making final request for payment under paragraph 6 above, CONTRACTOR shall submit to CITY, in writing, all claims for compensation under or arising out of this Contract; the acceptance by CONTRACTOR of the final payment shall constitute a waiver of all claims against CITY under or arising out of this Contract except those previously made in writing and request for payment. CONTRACTOR shall be required to execute an affidavit, release, and indemnify agreement with each claim for payment.
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CONTRACT C 4 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
9. PREVAILING WAGES. Pursuant to provisions of Section 1773 of the Labor Code of the State of California, the City Council has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contract, from Director of the Department of Industrial Relations. These rates are on file with the City Clerk.
Copies may be obtained at cost at the City Clerk's office of Murrieta. CONTRACTOR shall post a copy of such rates at the job site and shall pay the adopted prevailing wage rates as a minimum. CONTRACTOR shall comply with the provisions of Sections 1773.8, 1775, 1776, 1777.5, 1777.6, and 1813 of the Labor Code.
Pursuant to the provisions of 1775 of the Labor Code, CONTRACTOR shall forfeit to CITY, as a penalty, the sum of fifty dollars ($50.00) for each calendar day, or portion thereof, for each laborer, worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this Contract, by him or by any subcontractor under him, in violation of the provisions of the Contract.
10. WORKERS' COMPENSATION LIABILITY INSURANCE . CONTRACTOR, by executing this Agreement, hereby certifies:
"I am aware of the provision of Section 3700 of the Labor Code that requires every employer to be insured against liability for Workers' Compensation or undertake self- insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract."
11. TIME OF THE ESSENCE. Time is of the essence in this Contract.
12. INDEMNIFICATION. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR agrees to save, indemnify, hold harmless, and defend CITY, its officers, employees, and agents against any and all liability, injuries, or death of persons (CONTRACTOR's employees included) and damage to property, arising directly or indirectly out of the obligations herein undertaken or out of the operations conducted by CONTRACTOR, save and except claims or litigations arising through the sole active negligence or sole willful misconduct of CITY.
13. CONTRACTOR'S INDEPENDENT INVESTIGATION. No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution of the work under this Contract, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by CITY for purposes of letting this Contract out to bid will be accepted as an excuse for any failure or omission on the part of CONTRACTOR to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
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CITY OF MURRIETA, COMMUNITY SERVICES DEPARTMENT
CONTRACT C 5 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
14. GRATUITIES. CONTRACTOR warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities or promises to CITY's employees, agents, or representatives with a view toward securing this Contract or securing favorable treatment with respect thereto.
15. CONFLICT OF INTEREST. CONTRACTOR warrants that he has no blood or marriage relationship, and that he is not in any way associated with any City officer or employee, or any architect, engineer, or other preparer of the Drawings and Specifications for this project.
CONTRACTOR further warrants that no person in his employ has been employed by CITY within one (1) year of the date of Notice Inviting Bids.
16. CONTRACTOR'S AFFIDAVIT. After completion of the work contemplated by this Contract, CONTRACTOR shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provisions of the laws of the State of California.
17. SIGNATURE OF CONTRACTOR
Corporations:
The signature must contain the name of the corporation, must be signed by the President and Secretary or Assistant Secretary, and the corporate seal must be affixed. Other persons may sign for the corporation in lieu of the above if a certified copy of a resolution of the corporate board of directors so authorizing them to do so is on file in the City Clerk's office.
Partnerships:
Names of all persons comprising the partnership or co-partnership must be stated. Bid must be signed by all partners comprising the partnership unless proof in the form of a certified copy of a certificate of partnership acknowledging signer to be a general partner is presented to the City Clerk, in which case the general partner may sign.
Joint Ventures:
Bids submitted as joint ventures must so state and be signed by each joint venturer.
Individuals:
Bids submitted by individuals must be signed by the bidder, unless an up-to-date power of attorney is on file in the City Clerk's office, in which case said person may sign for the individual.
The above rules also apply in the case of the use of a fictitious firm name. In addition, however, where the fictitious name is used, it must be so indicated in the signature. 294
CITY OF MURRIETA, COMMUNITY SERVICES DEPARTMENT
CONTRACT C 6 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
18. SUBSTITUTED SECURITY. In accordance with Section 22300 of the Public Contracts Code, CONTRACTOR may substitute securities for any monies withheld by CITY to ensure performance under the Contract.
At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with CITY or with a State or Federally chartered bank or an escrow agent who shall pay such monies to CONTRACTOR upon notification by CITY of CONTRACTOR's satisfactory completion of the Contract. The type of securities deposited and the method of release shall be approved by the City Attorney's office.
19. RESOLUTION OF CLAIMS. Any dispute or claim arising out of this Contract shall be arbitrated pursuant to Section 10240 of the California Public Contracts Code.
20. NOTICE TO CITY OF LABOR DISPUTES. Whenever CONTRACTOR has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, CONTRACTOR shall immediately give notice thereof, including all relevant information with respect thereto, to CITY.
21. BOOKS AND RECORDS. CONTRACTOR's books, records, and plans or such part thereof as may be engaged in the performance of this Contract, shall at all reasonable times be subject to inspection and audit by any authorized representative of CITY.
22. UTILITY LOCATION. CITY acknowledges its responsibilities with respect to locating utility facilities pursuant to California Government Code Section 4215.
23. REGIONAL NOTIFICATION CENTERS . CONTRACTOR agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.
24. TRENCH PROTECTION AND EXCAVATION . CONTRACTOR shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705.
A. CONTRACTOR shall, without disturbing the condition, notify CITY, in writing, as soon as CONTRACTOR, or any of CONTRACTOR's
subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
(1) The presence of any material that CONTRACTOR believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;
(2) Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or
(3) Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract. 295
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CONTRACT C 7 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
B. Pending a determination by CITY of appropriate action to be taken, CONTRACTOR shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.
C. CITY shall promptly investigate the reported conditions. If CITY, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in CONTRACTOR's cost of, or time required for, performance of any part of the work, then CITY shall issue a change order.
D. In the event of a dispute between CITY and CONTRACTOR as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in CONTRACTOR's cost of, or time required for, performance of any part of the work, CONTRACTOR shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. CONTRACTOR shall retain any and all rights that pertain to the resolution of disputes and protests between the parties.
25. INSPECTION. The work shall be subject to inspection and testing by CITY and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of CONTRACTOR and any of its suppliers. CONTRACTOR shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the work.
26. DISCRIMINATION. CONTRACTOR represents that it has not, and agrees that it will not, discriminate in its employment practices on the basis of race, creed, religion, national origin, color, sex, age, or handicap.
27. GOVERNING LAW . This Contract and any dispute arising hereunder shall be governed by the law of the State of California.
28. WRITTEN NOTICE. Any written notice required to be given in any part of the Contract Documents shall be performed by depositing the same in the U.S. Mail, postage prepaid, directed to the address of CONTRACTOR as set forth in the Contract Documents, and to CITY addressed as follows:
Brian Crawford
Senior Program Manager
City of Murrieta
1 Town Square
Murrieta, CA 92562
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CONTRACT C 8 CITY PROJECT 23-465, SYKES RANCH PARK IMPROVEMENTS
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the date first above written.
DATED: LAND FORMS LANDSCAPE CONSTRUCTION, INC.:
By:
Jeff Tracy
Print or type NAME
Chief Executive Officer
Print or type TITLE
(714) 606-4002
Phone Number
By:
Sandy Wallace
Print or type NAME
Chief Financial Officer
Print or type TITLE
(949) 842-1780
Phone Number
DATED:
APPROVED AS TO FORM:
________________________
Tiffany J. Israel, City Attorney
ATTEST:
Cristal McDonald, City Clerk
CITY OF MURRIETA
By:
Lisa DeForest, Mayor
297
298
19,300.00 19,300.00
9,200.00 9,200.00
10,000.00 10,000.00
5,800.00 5,800.00
46.00 13,616.00
18.00 33,120.00
1,100.00 1,100.00
39.00 7,800.00
134.00 9,380.00
27,700.00 27,700.00
35,813.00 35,813.00
434.00 3,906.00
510.00 510.00
884.00 884.00
294.00 294.00
383.00 1,149.00
42.00 3,654.00
183,226.00
One hundred eighty three thousand two hundred twenty six dollars and zero cents
299
ONE HUNDRED EIGHTY-THREE THOUSAND TWO HUNDRED TWENTY-SIX ZERO 183,226.00
300
6,7,17 Canelo Construction - Concrete 28052 Camino Capistrano,suite 210 Laguna Niguel, Ca. 92677
(949) 309-9955
301
302
303
304
305
306
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Report
12/5/2023
Agenda Item No. 9.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Ambrose, Director of Community Services
PREPARED BY: Brian Crawford, Senior Program Manager - Parks & Recreation SUBJECT: Notice of Completion for Murrieta Library Roof Replacement Project, CIP 21023
RECOMMENDATION
Accept the improvements for the Murrieta Library Roof Replacement Project, CIP 21023, as complete; and Direct the City Clerk to record a Notice of Completion and release bonds in accordance with State law and City ordinances.
PRIOR ACTION/VOTE
On August 16, 2022, the City Council adopted Resolution No. 22-4601, approving the Fiscal Year 2022/23 to Fiscal Year 2026/27 Capital Improvement Plan, which included the Library Building Roof Project, CIP 21023 (Vote: 5-0).
On August 15, 2023, the City Council awarded the construction contract for the Murrieta Library Roof Replacement Project, CIP 21023, to the lowest responsible bidder, Best Contracting Services, Inc., in the amount of $348,421 (Vote: 5-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
Construction for the Murrieta Library Roof Replacement Project consisted of preparing the existing 4-ply built- up roof for the installation of a new single-ply, PVC membrane roofing system. PVC membrane roofing systems provide better insulation, and water and fire protection. With regular maintenance provided by certified technicians, this type of roofing system should last 25-30 years.
Mobilization for the project began on Friday, October 6, 2023, and construction activities were substantially completed by Friday, November 10, 2023. There were no construction contract change orders.
The Contractor is providing a two-year preventative maintenance program, serviced annually, that will allow CITY OF MURRIETA Printed on 12/1/2023Page 1 of 2
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Agenda Item No. 9.
The Contractor is providing a two-year preventative maintenance program, serviced annually, that will allow the City of Murrieta to qualify for an extension of the standard 20-year warranty to a 25-year warranty.
FISCAL IMPACT
The total construction cost of $348,421 was funded by Measure T.
ATTACHMENTS
1. Notice of Completion
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RECORDING REQUESTED BY: City of Murrieta
When recorded return to:
City of Murrieta
Attn: City Clerk
1 Town Square
Murrieta, CA 92562
Space above for Recorder’s Use
NOTICE OF COMPLETION
Construction of
Murrieta Library Roof Replacement Project, CIP No. 21023
Notice is hereby given that: No Fee Per Government Code 27383
1) The undersigned is owner of the interest or estate stated below in the property hereinafter described.
2) The full name of the undersigned is City of Murrieta, a municipal corporation. 3) The full address of the undersigned is 1 Town Square, Murrieta, CA 92562. 4) The nature of the title of the undersigned is: In Fee. 5) A work of improvement on the described property was substantially completed on November 10, 2023.
6) The name of the contractor for such work of improvement is Best Contracting Services, Inc.
The property on which said work of improvement was completed is in the City of Murrieta, County of Riverside, State of California, and is described as follows: The City of Murrieta Library, 8 Town Square , Murrieta, CA 92562.
CITY OF MURRIETA
______________________________
Brian Crawford
Senior Program Manager
VERIFICATION OF CITY CLERK
I, the undersigned, say:
I am the City Clerk of the City of Murrieta; the City Council of said City on December 5, 2023, accepted the above described work as completed and ordered that a Notice of Completion be filed.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on ________________, 2023, at Murrieta, California.
CITY OF MURRIETA
______________________________
Cristal McDonald
City Clerk
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CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 10.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David Chantarangsu, AICP, Development Services Director PREPARED BY: Carl Stiehl, City Planner
SUBJECT: Murrieta Housing Authority SB 341 Annual Report for FY 2022/23
RECOMMENDATION
Find that the action is not a “project”as defined in California Environmental Quality Act (CEQA) Guidelines Section 15378; and
Receive the Murrieta Housing Authority Senate Bill 341 Annual Report for Fiscal Year 2022/23 and direct staff to file the document with the State Department of Housing and Community Development and place it on the City’s website.
PRIOR ACTION/VOTE
In 2011, the Dissolution Act was passed by the California State Legislature (Assembly Bills X1 26 and 1484), dissolving all redevelopment agencies throughout the State, as of February 1, 2012.
On April 5, 2011, the City Council adopted Resolution No. 11-2699, establishing the Murrieta Housing Authority and transferring the assets of the former Redevelopment Agency to the Housing Authority (Vote: 4-0-1).
In October 2013, Senate Bill 341 was signed into law requiring Housing Successor Agencies to annually report on their respective low and moderate-income housing asset fund.
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
In 2011, the State legislature dissolved all redevelopment agencies, including the Murrieta Redevelopment Agency. As a result, local successor agencies and oversight boards were established to wind down the business of the dissolved agencies. During the dissolution process, the City Council designated the Murrieta Housing Authority as the successor entity for carrying out the housing functions of the City of Murrieta Redevelopment Agency. Responsibilities of the Housing Authority include maintaining the City’saffordable housing units and annual reporting obligations, which are primarily performed via contract with RSG Consulting.
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12/5/2023
Agenda Item No. 10.
Senate Bill 341 requires successor agencies to prepare an annual report of their housing activities by December 31 of each year. The attached report itemizes the assets of the Murrieta Housing Authority (Authority), both real property and funds. The ending balance for Fiscal Year 2022/23 in the Housing Asset Fund is approximately $5,766, after the Authority made a significant loan this fiscal year. These funds may only be utilized for affordable housing and administration of the Authority and cannot be utilized for General Fund purposes. The Authority closed a land lease, financial loan, and regulatory agreement this year in June as part of the approval of the Adams Avenue Affordable Project with National CORE to provide a loan of $6.142 million for the first phase of the project for the development of affordable housing.
The Housing Successor Portfolio currently includes two properties (three others were previously sold) and six loans receivable, with a portfolio value of approximately $14.4 million. The attached report provides the current status of these assets. Per Government Code Sections 33334.16 and 34176.1(e), the Authority was required to initiate activities to develop affordable housing on its properties within five years ending in September 2022, such as have an approved development project and allocated funding, or these properties had to be sold and the proceeds deposited into the Housing Authority Fund to fund other affordable housing activities. The Authority met the September 2022 deadline, and the disposition of the properties is described below.
In January 2019, staff brought forward for the Authority’sconsideration and direction options for the disposition of the properties pursuant to the above-referenced Government Code sections. The Authority’sdirection was to move forward with the disposition of the B Street and Jefferson South Properties to generate additional funding in the Housing Authority Fund to support and assist with the construction of affordable housing development on the Adams Avenue property. Both the Jefferson South and B Street properties dispositions closed in November 2021, and February 2022, respectively. The proceeds from the sales of these properties were deposited into the Housing Authority Fund to be allocated for the development of affordable housing on the Adams Avenue property with National CORE. The Adams Avenue Affordable Housing Project with National CORE, including the Disposition and Development Agreement (DDA) was approved by the City Council on June 7, 2022. The finalized DDA was signed on August 5, 2022, in advance of the September 2022 due date to initiate activities to develop affordable housing on the site pursuant to State law. Therefore, the provisions of SB 341 related to the property dispositions, and the September 2022 due date were satisfied, and no further actions are necessary related to dispositions by the Authority provided the project at Adams Avenue with National CORE is fully funded and built. The project has received low-income tax credits, and the first phase of the project is now fully funded, broke ground in June 2023, and is under construction.
Environmental
The proposed action is not a "project" as defined in CEQA Guidelines Section 15378 because the action involves accepting and filing an annual financial and property asset report with a state agency as required under State law (Senate Bill 341). This determination is predicated on Section 15004 of the CEQA Guidelines, which provides direction to lead agencies on the appropriate timing for environmental review. Any future development of the property assets referenced in the report may require the preparation of an environmental document in accordance CEQA.
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
ATTACHMENT
1. Murrieta Housing Authority Housing Successor Annual Report for Fiscal Year 2022/23
2. Appendix 2 - Housing Asset Transfer Form
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HOUSING SUCCESSOR ANNUAL REPORT
Murrieta Housing Authority
Fiscal Year 2022-23
312
TABLE OF CONTENTS
TABLE OF CONTENTS ................................ ................................ ................................ ..................... 1 INTRODUCTION ................................ ................................ ................................ ............................... 1 HOUSING SUCCESSOR RE QUIREMENTS ................................ ................................ ........................ 1 ASSETS TRANSFERRED T O HOUSING SUCCESSOR ................................ ................................ ...... 2 HOUSING ASSET FUND A CTIVITY ................................ ................................ ................................ ... 3 EXPENDITURE LIMIT CO MPLIANCE ................................ ................................ ................................ . 4 SENIOR HOUSING LIMIT COMPLIANCE ................................ ................................ ........................... 5 DEPOSITS AND FUND BA LANCE ................................ ................................ ................................ ..... 6 EXCE SS SURPLUS ................................ ................................ ................................ ........................... 7 TRANSFERS TO OTHER H OUSING SUCCESSORS ................................ ................................ .......... 7 HOUSING SUCCESSOR PO RTFOLIO ................................ ................................ ............................... 7 LOANS RECEIVABLE ................................ ................................ ................................ ........................ 8 PROPERTY DESCRIPTION S AND DISPOSITION ST ATUS ................................ ................................ 9 HOMEOWNERSHIP UNIT I NVENTORY ................................ ................................ ........................... 11 APPENDIX 1 - HOUSING SUCCESSOR ANNUAL RE PORT REQUIREMENTS ................................ . 13 APPENDIX 2 – HOUSING ASSET TRANSFER FORM ................................ ................................ ...... 14 APPENDIX 3 – HOUSING ASSET FUND EXPENDIT URE REQUIREMENTS ................................ ..... 15
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INTRODUCTION
The Murrieta Housing Authority (“Housing Authority”) is the Housing Successor Agency to the former Murrieta Redevelopment Agency (“Agency”). The Housing Authority is responsible for maintaining housing assets transferred from the former Agency. Its main goal is to pr ovide affordable housing for City of Murrieta (“City”) residents.
This Housing Successor Agency Annual Report (“Annual Report”) contains information on Fiscal Year (“FY”) 2022-23 finances and activities as required by Health and Safety Code (“HSC”) Section 34176.1(f).
FY 2018-19 marked the end of the first five -year compliance period for income proportionality. This Annual Report details how the Housing Authority met all requirements for expenditures by income level since the beginning of the second five -year compliance period, which runs from July 1, 2019 through June 30, 2024.
The Annual Report is due to the California Department of Housing and Community Development (“HCD”) by December 31 annually and must be accompanied by an independent financial audi t. The City’s audited financial statements will be posted on the City’s website when available. This report is an addendum to the Housing Authority Annual Report required by HSC Section 34328, which is submitted to HCD by October 1 annually.
HOUSING SUCC ESSOR REQUIREMENTS
Senate Bill (“SB”) 3411 and subsequent legislation enacted several requirements for housing successor agencies. Housing successors must comply with three major requirements pursuant to HSC Section 34176.1:
1. Expenditures and housing production are subject to income and age targets.
2. Housing successors may not accumulate an “excess surplus,” or a high balance based on certain thresholds.
1 2013-14 legislative session
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Murrieta Housing Successor Annual Report 2022-23 2
3. Properties must be developed with affordable housing within five to ten years of the California Department of Finance approving the Housing Asset Transfer Form.
The requirements are designed to ensure that housing successors are actively utilizing former Agency housing assets to produce affordable housing. Appendix 1 provides a detailed summary of the reporting requirements that are addressed in this Annual Report.
ASSETS TRANSFERRED T O HOUSING SUCCESSOR
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with th e housing activities of the Agency were transferred to the Housing Authority. The Housing Authority prepared a Housing Asset Transfer Form (“HAT”) that provided an inventory of all housing assets transferred from the Agency to the Housing Authority. This included:
1. Real properties;
2. Low and Moderate Income Housing Fund (“LMIHF”) encumbrances; and
3. Loan receivables.
All items on HAT were approved by the California Department of Finance (“DOF”) on September 5, 2012.
It is important to distinguish that Housing Authority assets that were not transferred from the former Agency, or generated by or purchased with assets from the former Agency, are not subject to HSC Section 34176.1. A copy of the HAT is provided as Appendix 2.
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Murrieta Housing Successor Annual Report 2022-23 3
HOUSING ASSET FUND A CTIVITY
Former Agency assets, and the revenues generated by those assets, are maintained in a Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”).2 Housing Asset Funds may be spent on:
Administrative costs up to $200,000 per year adjusted for inflation, or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater. The FY 2022-23 limit for the Housing Authority was $722,125 (5% of the Portfolio value of $14,442,491). Homeless prevention and rapid rehousing services up to $250,000 per year if the former Agency did not have any outstanding housing inclusionary or replacement housing production requirements. The Housing Authority qualifies because the former Agency had a surplus of affordable housing production units upon dissolution.
Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets.
Five-Year Incom e Proportionality: If any Housing Asset Funds are spent on affordable housing development, it triggers a requirement to spend at least 30 percent of such expenses assisting extremely low income households (30% AMI) and no more than 20 perc ent on low income households (between 60-80% AMI) per five-year compliance period. The current five- year compliance period runs from July 1, 2019 through June 30, 2024.
Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period.
Ten-Year Age Proportionality: If more than 50% of the total aggregate number of rental units produced by the City, Housing Authority, or former Agency during the past 10 years are
2 The Housing Asset Fund replaced the former Agency’s Low and Moderate Income Housing Fund. 316
Murrieta Housing Successor Annual Report 2022-23 4
restricted to seniors, the Housing Authority may not spend more Housing Asset Funds on senior rental housing.
Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.
EXPENDITURE LIMIT COMPLIANCE
The Housing Au thority complied with all Housing Asset Fund spending restrictions in FY 2022-23, including five-year compliance period income targeting requirements:3 Administrative costs of $43,151 did not exceed the $722,125 maximum amount for FY 2022-23. No homeless prevention or rapid rehousing expenses were made in FY 2022-23. Affordable housing development -related expenditures totaling $6,142,807. Of this amount, 31 percent assisted extremely low income households and 20 percent assisted low income households.
3 The Housing Asset Fund figures in this Annual Report are based on unaudited numbers that were available at the time this report was prepared. They might vary sligh tly from audited numbers once the Housing Authority’s annual audit is complete.
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Murrieta Housing Successor Annual Report 2022-23 5
The Housing Authority will ensure it continues to meet all expenditure requirements going forward, including throughout the current five-year compliance period of July 1, 2019 through June 30, 2024.
Failure to comply with the extremely low income requirement in any five-year compliance period will result in the Housing Authority having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance. Exceeding the expenditure limit for low income households earning between 60 -80% AMI in any five -year reporting period will result in the Housing Authority not being able to expend any funds on these income categories until in compliance.
SENIOR HOUSING LIMIT COMPLIANCE
The Housing Authority complies with the limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. The Housing Authority, City, and former Agency assisted 118 deed-restricted rental units in the last ten years, none of which are restricted to seniors. Table 1 details units assisted by project. 318
Murrieta Housing Successor Annual Report 2022-23 6
DEPOSITS AND FUND BALANCE
The Housing Authority deposited $151,767 into the Housing Asset Fund during FY 2022-23. The deposits made in FY 2022-23 include $103,495 in interest revenue, $41,772 from repayment on the Monte Vista I residual receipts loan, and $6,500 Monte Vista I audit and maintenance fee revenue.
The Housing Asset Fund balance as of June 30, 2023 was $5,766 as summarized in Table 2.
Property1 Senior Units % Non-Senior
Units % Total Units
24960 Adams Ave (APN 906-080-018) 0 0% 118 100% 118
Total 0 118 118
Total Deed-Restricted Senior Units: 0%
1 This list only includes units that had a regulatory agreement executed within the last 10 years.
Table 1
Deed-Restricted Senior Units Assisted Prior Ten Years
Balance Type Amount
Cash 150,122
Accounts Receivable -
Accrued Revenues -
Interest Receivable 706,722
Deferred Loans Receivable 8,953,917
Prepaid Costs 171
Land Held for Resale 3,515,665
Accounts Payable (2,516)
Deferred Revenue (706,722)
Advance to Redevelopment Agency -
Reserved Prepaid Inventory (171)
Reserved for Deferred Loans Receivable (8,978,900)
Reserved for Encumbrances (116,857)
Reserved for Land Held for Resale (3,515,665)
Ending Balance 5,766
Table 2
Housing Asset Fund Ending Balance FY 2022-23
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Murrieta Housing Successor Annual Report 2022-23 7
EXCESS SURPLUS
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered amount that exceeds the greater of $1 million, or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing.
The Housing Authority did not have an excess surplus as of FY 2022-23, as shown in Table 3.
The Housing Authority will continue monitoring its deposits and fund balance to avoid an excess surplus.
TRANSFERS TO OTHER H OUSING SUCCESSORS
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1.
HOUSING SUCCESSOR PO RTFOLIO
The Housing Successor Portfolio includes two properties and six loans receivable transferred from the former Agency. The Portfolio had a value of $14,442,491 as of June 30, 2023, as detailed in Table 4.
Table 3
Excess Surplus Calculation
Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23
Deposits 222,745$ 71,896$ 321,341$ 829,241$ 151,767$ FY 2022-23 Beginning Cash Balance 6,113,211$
Less: Encumbered Funds (Adams Ave) 6,142,807$
Unencumbered Amount1 -$
Step 1
$1 Million, or 1,000,000$
Last 4 Deposits 1,445,223$
Result: Larger Number 1,445,223$
Step 2
Unencumbered Amount -$
Larger Number From Step 1 1,445,223$
Excess Surplus -$
1 As of July 1, 2022.
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Murrieta Housing Successor Annual Report 2022-23 8
LOANS RECEIVABLE
Six loan agreements were transferred from the former Agency to the Housing Authority as part of the Housing Asset List approved by DOF on September 5, 2012, one of which one was paid off in FY 2018-
19. The five remaining loans and an additional loan issued in FY 2022-23 are described below, including the outstanding loan balances as of June 30, 2023.
Three First-Time Homebuyer Down Payment Assistance Loans for $20,000 each ($60,000 total) with a 3 percent annual interest rate. Loan repayments are due upon the sale, transfer, or failure to occupy the property. One of the loans was paid off in FY 2018 -19. There are two remaining loans with an outstanding balance totaling $54,012 as of June 30, 2023. A Participation Agreement with Murrieta Family Housing Partners, LP was issued in 2003 to construct 64 residential units at Monte Vista I. The principal amount was $610,046 with a 3 percent annual interest rate. The outstanding balance as of June 30, 2023 was $534,674. A Development Cost Gap Assistance Loan issued in 2010 to Monte Vista II Family Housing LLC to construct 40 units at Monte Vista II. The principa l amount was $2.2 million with a 3 percent annual interest rate. The outstanding balance as of June 30, 2023 was $2,846,197. A deferred loan issued in 2009 as part of a CFD Special Assessment Districts Payoff Program.
The outstanding amount due is $14,214 with a zero percent interest rate.
Asset Amount
Real Properties
Monte Vista I Land, 24740 Jefferson Ave (APN 949-600-031)1 1,321,594
24960 Adams Ave (APN 906-080-018) 3,515,665
Subtotal 4,837,259
Loans Receivable
First-Time Homebuyer Loans (2) 54,012
CFD Special Assessment District Payoff Program 14,214
Murrieta Family Housing Partners, LP 534,674
Monte Vista II Family Housing, LLC 2,846,197
National Community Renaissance of California 6,156,135
Subtotal $9,605,232
Total Portfolio Value $14,442,491
Table 4
Portfolio Value of Real Properties and Loans Receivable 1 This property was transferred on the Housing Asset Form but its value is not in the General Ledger
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Murrieta Housing Successor Annual Report 2022-23 9
A Development Loan issued in 2023 to National Community Renaissance of California to construct 118 affordable units and one manager's unit at Oak View Ranch. The principal amount was $6,142, 807 with a 3% interest rate. The outstanding balance as of June 30, 2023 was $6,156,135.
PROPERTY DESCRIPTION S AND DISPOSITION ST ATUS
The Agency transferred five properties to the Housing Authority, consisting of one multi-family affordable housing property and four lots of vacant land:
Monte Vista I, 24740 Jefferson Avenue (APN 949-600-031) – Multi-family Residential Jefferson South (APN 909-030-032 & 909-030-033) – Vacant Land Sold November 30, 2021___ 24960 Adams Ave. (APN 906-080-018) – Vacant Land
42310 B Street (APNs listed below) 4– Vacant Land Sold February 18, 2022____ Vacant Lot (APN 910-140-044) – Vacant Land Sold September 2015 HSC Section 34176.1(e) requires all real properties acquired by the Agency prior to February 1, 2012 and transferred to the Housing Authority to be developed pursuant to the requirements detailed in HSC Section 33334.16. All property that falls within in these parameters must be developed for affordable housing purposes or sold within five years from the date DOF approved the Housing Asset Transfer Form, or September 5, 2017. If the Authority is unable to develop or dispose of these properties within the five-year period, the law allows for a five-year extension via adoption of a resolution.
The Housing Authority adopted a re solution for a five -year extension, September 5, 2022, due to the difficulty of initiating development on the remaining three properties consisting of vacant land (42310 B St, Jefferson South, and 24960 Adams Ave). In FY 2018-19, the Housing Authority prepared a Property Disposition Strategy to evaluate options that best maximize and leverage the remaining housing assets.
As part of the Housing Authority’s strategy implementation efforts, the Housing Authority disposed of two properties compri sed of eight parcels (42310 B St and Jefferson South) in 2021 -22. The Housing Authority has also entered into a Disposition and Development Agreement with a developer to ground
4 APNs associated with 42310 B Street: 906-193-001, 906-200-001, 906-200-002, 906-212-001, 906-221-001, and 906-221-002.
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lease 24960 Adams Ave and construct an affordable housing rental project on the parcel. Proceeds from the sale of 42310 B St and Jefferson South were contributed towards the 24960 Adams Ave development in accordance with LMIHF requirements in FY 2022-23.
Descriptions of the properties and their disposition statuses are below.
MONTE VISTA I, 24740 JEFFERSON AVENUE (APN 949-600-041) The Housing Authority owns the land under Monte Vista I, a 64 -unit apartment building restricted to families earning 30 to 100% of the Area Median Income (“AMI”) (including one manager’s unit). The Authority leases the land to the owner of the apartment complex. Monte Vista I is adjacent to the affordable community known as Monte Vista II. Built to seamlessly blend, the communities share a swimming pool, on site management, free Wi-Fi, on site laundry facilities, and covered parking. Additional on-site amenities available to the tenants include garden plots, a covered tot lot, computer room, and residential services such as computer skills workshops, after school programs and more. The apartment complexes are conveniently located within walking distance to a public park, a school, public transit, and numerous other amenities. The property has a 55 -year affordability covenant that expires in 2059. In 2020, the owner of Monte Vista I refinanced the permanent loan used to finance the project.
JEFFERSON SOUTH (APN 909-030-032 & 909-030-033)
This site includes two contiguous vacant parcels totaling approximately 2 acres. The Authority sold the Jefferson South site on November 30, 2021 for $1.1 million. Housing will be developed on the subject property.
42310 B STREET (APN 906-193-001)5
This site consists of 6 parcels totaling approximately 21 acres of vacant land. The Authority sold the 42310 B Street site on February 18, 2022 for $1.7 million . Housing will be developed on the subject property.
5 There are 5 additional APNs associated with 42310 B Street: 906-200-001, 906-200-002, 906-212-001, 906- 221-001, and 906-221-002.
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24960 ADAMS AVE (APN 906-080-018)
This 6-acre parcel is in the western half of the City in the Historic Murrieta Specific Plan area. The former Agency purchased the site with the intention of developing affordable housing. The Authority issued a Request for Proposals (“RFP”) to develop an affordable housing rental project on 24960 Adams Ave in October 2019. The Authority entered into a DDA with a Developer on June 7, 2022 to construct the affordable housing rental project and issued a $6,142,807 loan to facilitate the development in accordance with housing successor law in FY 2022-23.
VACANT LOT (APN 910-140-044)
This 10-acre lot of vacant land was sold in September 2015 for $2.1 mill ion to be developed for non - housing purposes.
HOMEOWNERSHIP UNIT I NVENTORY
Table 5 presents an inventory of homeownership units assisted by the Housing Authority that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies. 324
Murrieta Housing Successor Annual Report 2022-23 12
Project Name / Address Unit
No.
Bedroom
Size
Year Built/
Rehab
Covenant
Expiration
Affordability
Period (Yrs)
41543 King Palm Ave 2 3 2006 1/26/51 45
41536 Blue Canyon Ave 5 3 2006 5/31/51 45
25031 Quince Hill St 2 3 2006 3/29/51 45
25039 Quince Hill St 2 3 2006 4/6/51 45
25039 Quince Hill St 5 3 2006 2051 45
41410 Juniper St 624 2 2005 8/15/51 45
41410 Juniper St 1213 2 2005 5/11/51 45
41410 Juniper St 1614 1 2005 7/13/50 45
41410 Juniper St 1623 1 2005 7/22/50 45
41410 Juniper St 1713 2 2005 3/24/51 45
41410 Juniper St 1722 2 2005 3/15/51 45
41410 Juniper St 2313 1 2005 2/6/51 45
41410 Juniper St 2423 2 2005 5/16/51 45
41410 Juniper St 2424 2 2005 6/27/51 45
41410 Juniper St 2514 2 2005 9/1/51 45
41410 Juniper St 2613 1 2005 11/9/50 45
41410 Juniper St 2614 1 2005 10/21/50 45
41410 Juniper St 2623 1 2005 10/28/52 45
41410 Juniper St 3013 2 2005 5/4/51 45
41410 Juniper St 3113 1 2005 8/31/51 45
41410 Juniper St 3114 1 2005 8/31/51 45
41410 Juniper St 3123 1 2005 8/30/51 45
41410 Juniper St 3124 1 2005 8/31/51 45
Source: AB 987 database dated 11-12-13
Amberwalk
Reserves at Madison Park
Table 5
Homeownership Unit Inventory
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APPENDIX 1 - HOUSING SUCCESSOR AN NUAL REPORT
REQUIREMENTS
Housing Successor Reporting Requirements
Health and Safety Code Section 34176.1(f)
Housing Asset Fund
Revenues & Expenditures
Other Assets and Active
Projects Obligations & Proportionality
Total amount deposited in the
Housing Asset Fund for the fiscal
year
Amount of deposits funded by a
Recognized Obligation Payment
Schedule (“ROPS”)
Description of any project(s)
funded through the ROPS
Description of any outstanding
production obligations of the
former Agency that were
inherited by the Housing
Authority
Statement of balance at the
close of the fiscal year
Update on property
disposition efforts (note that
housing successors may only
hold property for up to five
years, unless it is already
developed with affordable
housing)
Compliance with proportionality
requirements (income group
targets), which must be upheld
on a five year cycle
Description of Expenditures for
the fiscal year, broken out as
follows:
Homeless prevention and
rapid rehousing
Administrative and
monitoring
Housing development
expenses by income level
assisted
Other “portfolio” balances,
including:
Statutory value of any
real property either
transferred from the
former Agency or
purchased by the
Housing Asset Fund
Value of loans and
grants receivable
Percentage of deed-restricted
rental housing restricted to
seniors and assisted by the
former Agency, the Housing
Authority, or the City within the
past ten years compared to the
total number of units assisted by
any of those three agencies
Description of any transfers to
another housing successor for a
joint project
Inventory of homeownership
units assisted by the former
Agency or the housing
successor that are subject to
covenants or restrictions or to
an adopted program that
protects the former Agency’s
investment of monies from the
Low and Moderate Income
Housing Fund
Amount of any excess surplus,
and, if any, the plan for
eliminating it
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Murrieta Housing Successor Annual Report 2022-23 14
APPENDIX 2 – HOUSING ASSET TRANSFER FORM
The Housing Asset Transfer Form is attached as a separate document. 327
Murrieta Housing Successor Annual Report 2022-23 15
APPENDIX 3 – HOUSING ASSET FUN D EXPENDITURE
REQUIREMENTS
Housing Asset Fund Expenditure Requirements
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Administration
and
Compliance
Monitoring
$722,125
maximum for
FY 2022-23
(limit varies
each year)
Administrative activities such as:
Professional services (consultant fees, auditor fees, etc.) Staff salaries, benefits, and overhead for time spent on Housing Successor administration
Compliance monitoring to ensure compliance with affordable housing and loan agreements
Property maintenance at Housing Successor -owned
properties
Capped at $200,000 adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater.
Homeless
Prevention
and
Rapid
Rehousing
Solutions
$250,000
maximum per
fiscal year
Services for individuals and families who are homeless or would be homeless but for this assistance, including:
Contributions toward the construction of local or regional homeless shelters
Housing relo cation and stabilization services including housing search, mediation, or outreach to property owners Short-term or medium-term rental assistance
Security or utility deposits
Utility payments
Moving cost assistance
Credit repair
Case management
Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.
Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
New construction
Acquisition and rehabilitation
Substantial rehabilitation
Acquisition of long-term affordability covenants on multifamily units
Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years
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Murrieta Housing Successor Annual Report 2022-23 16
Housing Asset Fund Expenditure Requirements
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Income
Targets
Every five years (currently FY 2020 -2024), Housing Asset Funds must meet income targets:
At least 30% on extremely low income rental households (up to 30% AMI or “Area Median Income”)
No more than 20% on low income households (60-80% AMI)
Moderate and above moderate income households may not be assisted (above 80% AMI).
Failure to comply with the extremely low income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance.
Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income
categories until in compliance.
Age Targets For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.
If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.
329
Former Redevelopment Agency: City of Murrieta Redevelopment Agency Successor Agency to the Former
Redevelopment Agency: City of Murrieta
Entity Assuming the Housing Functions
of the former Redevelopment Agency: Murrieta Housing Authority Entity Assuming the Housing Functions
Contact Name: Joy Canfield Title Finance Director Phone (951)461-6437 Entity Assuming the Housing Functions
Contact Name: Londa Bock-Helms Title Accounting Manager Phone (951)461-6439 The following Exhibits noted with an X in the box are included as part of this inventory of housing assets:
Exhibit A - Real Property X
Exhibit B- Personal Property
Exhibit C - Low-Mod Encumbrances X
Exhibit D - Loans/Grants Receivables X
Exhibit E - Rents/Operations
Exhibit F- Rents
Exhibit G - Deferrals
Prepared By: Londa Bock-Helms
Date Prepared: 7/31/2012
E-Mail Address
E-Mail Address
All assets transferred to the entity assuming the housing functions between February 1, 2012 and the date the exhibits were created are included in this housing assets list.
DEPARTMENT OF FINANCE
HOUSING ASSETS LIST
ASSEMBLY BILL X1 26 AND ASSEMBLY BILL 1484
(Health and Safety Code Section 34176)
330
Exhibit A - Real Property
Item #
Carrying Value
of Asset
Total
square
footage
Is the property
encumbered by
a low-mod
housing
covenant?
Source of low-
mod housing
covenant b/
Date of
transfer to
Housing
Successor
Agency
Construction
or acquisition
cost funded
with Low-Mod
Housing Fund
monies
Construction
or acquisition
costs funded
with other
RDA funds
Construction
or acquisition
costs funded
with non-RDA
funds
Date of
construction
or
acquisition
by the
former RDA
Interest in
real property
(option to
purchase,
easement,
etc.)
1 $1,321,594 132,224 yes DDA 31-Jan-12 $1,321,594 $0 $0 3/24/2003 Fee title 2 $3,849,803 444,785 No n/a 31-Jan-12 $3,849,803 $0 $0 10/11/2004 Fee title 3 $820,680 45,738 No n/a 31-Jan-12 $820,680 $0 $0 1/11/2007 Fee title 4 $820,679 45,738 No n/a 31-Jan-12 $820,679 $0 $0 1/11/2007 Fee title 5 $3,515,665 270,943 No n/a 31-Jan-12 $3,515,665 $0 $0 6/30/2009 Fee title 6 $951,979 936,104 No n/a 31-Jan-12 $951,979 $0 $0 10/13/2010 Fee title 7 8
9 10
11 12
13 14
15 16
17 18
19 20
Vacant Land
Vacant Land
Land for Low/Mod
Land for Low/Mod
Low/Mod Income Housing
APN 906-080-018 24960 Adams Ave.
APN 906-212-001 42310 B Street, +5
APN 909-030-033
132,224
270,943
936,104
Square footage
reserved for low-
mod housingLegal Title and Description
0 0
0 APN 910-140-044
APN 909-030-032
APN 949-600-031
a/ Asset types may include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space.
City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Type of Asset a/
Vacant Land
b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
331
Exhibit B - Personal Property
Item #
Carrying Value
of Asset
Date of
transfer to
Housing
Successor
Agency
Acquisition
cost funded
with Low-Mod
Housing Fund
monies
Acquisition
costs funded
with other RDA
funds
Acquisition
costs funded
with non-
RDA funds
Date of
acquisition by
the former RDA
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
a/ Asset types any personal property provided in residences, including furniture and appliances, all housing-related files and loan documents, office supplies, software licenses, and mapping programs, that were acquired for low and moderate income housing purposes, either by purchase or through a loan, in whole or in part, with any source of funds.
City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Type of Asset a/ Description
332
Exhibit C - Low-Mod Encumbrances
Item #
Contractual
counterparty
Total amount
currently
owed for the
Enforceable
Obligation
Is the property
encumbered by
a low-mod
housing
covenant?
Source of low-
mod housing
covenant b/
Current owner
of the property
Construction or
acquisition cost
funded with
Low-Mod
Housing Fund
monies
Construction or
acquisition costs
funded with
other RDA funds
Construction
or acquisition
costs funded
with non-RDA
funds
Date of
construction or
acquisition of
the property
1 Monte Vista II
Family Housing $ 1,212,387 yes
CRA Law, Tax
Credits, DDA
Monte Vista II
Family Housing
Acquisition
$1,331,353 $0 $0
Acquisition
12/26/2008
2 3
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Date contract for
Enforceable
Obligation was
executed
Type of housing built or
acquired with enforceably
obligated funds a/
40 Low/Mod Residential
rental units (under
Deferred Loan
4/6/2010
a/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space.
b/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
333
Exhibit D - Loans/Grants Receivables
Item #
Amount of the loan
or grant
Date the
loan or grant
was issued
Purpose for which the funds were loaned or
granted
Are there
contractual
requirements
specifying the
purposes for which
the funds may be
used? Repayment date, if the funds are for a loan
Interest rate
of loan
Current outstanding
loan balance
1 610,046$ 2/4/2003
Participation agreement-construction of 64
residental units Yes 55 years 3% 610,046$
3 20,000$ 10/18/2006 First Time Homebuyers Down Payment Assistance Yes Upon sale, transfer or failure to occupy 3% 20,000$ 4 20,000$ 10/18/2006 First Time Homebuyers Down Payment Assistance Yes Upon sale, transfer or failure to occupy 3% 20,000$ 5 20,000$ 9/21/2006 First Time Homebuyers Down Payment Assistance Yes Upon sale, transfer or failure to occupy 3% 20,000$ 6 14,214$ 10/10/2009 CFD Speical Assessments Payoff Program Yes 42.5 years or upon Event of Acceleration 0%, highest
rate allowed 14,214$
7 2,222,222$ 4/6/2010 Development cost Gap Assistance Loan Yes 55 years 3% 1,009,835$ 8 9
10 11
12 13
14 15
16 17
18 19
20 *names are available for DOF review
Murrieta Family
Housing Partners, LP
Deferred Loan
Deferred Loan
Deferred Loan
Property Owner*-
41536 Blue Canyon #5
Property Owner*-
25031 Quince Hill St.
Property Owner*-
41524 Blue Canyon
Deferred Loan
Deferred Loan
Was the Low-Mod
Housing Fund
amount issued for
a loan or a grant?
Person or entity to
whom the loan or
grant was issued
Property Owner*-
25056 Driftoak St. #2
Deferred Loan
Monte Vista II Family
Housing LLC
City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) 334
Exhibit E - Rents/Operations
Item #
Type of property
with which the
payments are
associated b/
Property
owner
Entity that
collects the
payments
Entity to which
the collected
payments are
ultimately
remitted
Purpose for
which the
payments are
used
Is the property
encumbered
by a low-mod
housing
covenant?
Source of low-
mod housing
covenant c/
Item # from
Exhibit A the
rent/operation
is associated
with (if
applicable)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. a/ May include revenues from rents, operation of properties, residual receipt payments from developers, conditional grant repayments, costs savings and proceeds from refinancing, and principal and interest payments from homebuyers subject to enforceable income limits.
Type of payment a/
335
Exhibit F - Rents
Item #
Type of property
with which the
payments are
associated b/
Property
owner
Entity that
collects the
payments
Entity to which
the collected
payments are
ultimately
remitted
Purpose for
which the
payments are
used
Is the property
encumbered
by a low-mod
housing
covenant?
Source of low-
mod housing
covenant c/
Item # from
Exhibit A the rent
is associated
with (if
applicable)
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) b/ May include low-mod housing, mixed-income housing, low-mod housing with commercial space, mixed-income housing with commercial space. c/ May include California Redevelopment Law, tax credits, state bond indentures, and federal funds requirements.
Type of payment a/
a/ May include rents or home loan payments.
336
Exhibit G - Deferrals
Item #
Fiscal year in
which funds
were deferred
Amount
deferred
Interest rate
at which
funds were
to be repaid
Current
amount owed
Date upon which
funds were to be
repaid
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
City of Murrieta Housing Authority
Inventory of Assets Received Pursuant to Health and Safety Code section 34176 (a) (2) Purpose for which funds were deferred
337
CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 11.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Geovanny Calvopina, Financial Analyst
SUBJECT: Annual Adoption of the Investment Policy for Fiscal Year 2023/24
RECOMMENDATION
Adopt Resolution No. 23-4718 entitled: A Resolution of the City Council of the City of Murrieta, California, Adopting the Fiscal Year 2023/24 Investment Policy.
PRIOR ACTION/VOTE
On April 18, 2023, the City Council adopted Resolution 23-4657, approving the Fiscal Year 2022/23 investment policy (Vote: 4-0-1).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
California Government Code Section 53646 (Government Code) requires that the Treasurer of a local agency annually submit a statement of investment policy to the City Council at a public meeting for their approval.
The investment policy establishes the procedures and guidelines for investing to ensure the prudent management of the City of Murrieta’s(City) excess funds and to ensure compliance with the requirements of the Government Code. Additionally, the City’sinvestment policy is consistent with Government Code Section 53600, et seq., which provides standards regarding investment policies and reports, securities, and repurchase agreements for local agencies.
The City has four primary goals with respect to its investments, which are listed below in priority order. · Safety - Protect and preserve the City’s capital investments; · Liquidity - Ensure readily available cash and mitigate the need to sell securities to obtain cash; · Yield - Provide the highest level of earnings, without sacrificing safety and liquidity, while complying with the Government Code; and
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12/5/2023
Agenda Item No. 11.
· Diversification - Avoid incurring unreasonable market risk.
The City contracts with investment advisor Chandler Asset Management (CAM) to assist in the administration of the City’sinvestment portfolio. CAM reviews the City’sinvestment policy on an annual basis and makes suggestions as to how the policy can evolve. The review includes a comparison against any actions adopted by the California legislature that might affect the investment policy, with recommendations for revisions as needed.
In collaboration with CAM, Finance Department staff ensures the inclusion of the latest best practices from recognized industry groups such as the Government Finance Officers Association (GFOA), California Society of Municipal Finance Officers (CSMFO), California Municipal Treasurers Association (CMTA), and the Association of Public Treasurers of the United States and Canada (APTUSC).
There are no recommended changes to the Investment Policy (Attachment 1) or the City’sinvestment strategy for Fiscal Year 2023/24. Of note, there is a legislative change that will impact investments as of January 1, 2024. Senate Bill 882 will bring clarity on how Federal Agency-securitized debt obligations are treated.
Fortunately, the City’s policy (section VII.D - Mortgage-Backed Securities) is already aligned with this clarification.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action.
ATTACHMENTS
1. Resolution No. 23-4718
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RESOLUTION NO. 23 - 4718
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2023/24 INVESTMENT POLICY
WHEREAS, California Government Code section 53646 provides for the treasurer or chief financial officer of a local agency to present to the legislative body of that agency a statement of the agency’s investment policy; and
WHEREAS, on April 18, 2023, the City Council of the City of Murrieta (“City”) adopted Resolution 23-4657 approving the Fiscal Year 2022/23 City’s Investment Policy (“Policy”); and
WHEREAS, the Policy should be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends; and
WHEREAS, the Treasurer of the City has, through its agent, Chandler Asset Management (“CAM”), reviewed the current Policy, as well as any actions taken by the Legislature of the State of California that would have affected the City’s Policy; and
WHEREAS, the Treasurer is recommending that no changes be made to the Policy, attached as Exhibit A, at t
his time.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The recitals above are true and correct and incorporated herein by this reference.
PASSED AND ADOPTED this 5th day of December 2023.
______________________________
Lisa DeForest, Mayor
ATTEST:
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
Tiffany J. Israel, City Attorney
340
Resolution No. 23-4718
01375.0007/937518.1
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 23-4718 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 5th day of December 2023, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Cristal McDonald, City Clerk
341
City of Murrieta Investment Policy Page 1 Adopted December 5 2023 01375.0007/937519.1
I - INTRODUCTION
The City Council of the City of Murrieta (City) has adopted this Investment Policy (Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting requirement s, internal controls, eligibl e investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All suc h funds will be invested in accordance with this Policy and with applicable sections of the California Government Code. This Policy was endorsed and adopted by the City and is e ffective as of the 5 th day of December 2023, and replaces any previous versions.
II - SCOPE
This Policy applies to all operating funds of the City. Non-operating funds may be subject to other prevailing documents, such as a governing bond indenture. This policy excludes Employees Retirement and Deferred Compensation Funds. Additional funds that may be created from time to time shall be added to the City’s investme nt portfolio (portfolio) and managed in accordance with the provisions of this Policy.
All cash shall be pooled for inve stment purposes. The investment income derived from the pooled investment account sha ll be allocated to the contrib uting funds based upon the proportion of the respective average balances relative to t he total pooled balance in the portfolio. Investment income shall be distributed to the individual funds not less than annually.
III - OBJECTIVES
The City’s funds shall be invest ed in accordance with the City’ s Municipal Code and all applicable State statutes and F ederal regulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:
1. Preservation of capital and pr otection of investment principal.
2. Maintenance of sufficient liqui dity to meet anticipated cash flows.
3. Attainment of a market value rate of return.
4. Diversification to avoid incurring unreasonable market risks .
IV - DELEGATION OF AUTHORITY
The management responsibility for the City’s investment program is delegated by the City Council to the Treasurer pursuant to California Government Code Section 53607 and Section 2.20.030 of the City’s Municipal Code. The City Manager serves as the Treasurer. The Treasurer has delegated the authority to conduct investment transactions
CITY OF MURRIETA
INVESTMENT POLICY
342
City of Murrieta Investment Policy Page 2 Adopted December 5 202301375.0007/937519.1 and to manage the operation of the portfolio to the Finance Director. These officers shall meet regularly to discuss economic and market conditions, and t o plan investment strategy to meet the City’s fiscal objectives. No person may en gage in an investment transaction except as expressly provided under the terms of this Policy.
V - PRUDENCE
The standard of prudence to be used for managing the City’s inv estments shall be California Government Code Se ction 53600.3, the prudent investo r standard, which states that “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 prevaili ng, 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 co nduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”
The City’s overall investment program shall be designed and man aged with a degree of professionalism that is worthy of the public trust. The City re cognizes that no investment is totally without risk and that t he investment activities of t he City are a matter of public record. Accordingly, the City re cognizes that occasional measured losses may occur in a diversified portfolio and shal l be considered within the cont ext of the overall portfolio’s return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City.
If, due to market changes or fluctuations in the size of the Ci ty’s portfolio, a percentage of portfolio limitation is exceeded, the affected securities ma y be held to their maturity if the Treasurer believes it is prudent to do so.
The Treasurer and authorized inve stment personnel exercising du e diligence shall be relieved of personal responsibilit y for an individual security’s credit risk or market price changes, provided that the deviations from expectations are rep orted in a timely fashion to the City Council and appropriate action is taken to control adverse developments.
VI - ETHICS AND CONFLICTS OF INTEREST
Elected officials and employees involved in the City’s investme nt program shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair or create the appearance of an impairment of their ability to make impartial investment decisions. These individuals shall disclose to the City Manager any material interests t hey have in financial instituti ons that conduct business with the City and they shall subor dinate their personal investm ent transactions to those of the City.
The Treasurer and the Finance Director shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.
343
City of Murrieta Investment Policy Page 3 Adopted December 5 202301375.0007/937519.1
VII - AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accor dance with California Government Code Sections 1 6429.1, 53600-53609 and 53630-53686, except that, pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to s ecure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of the above referenced code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to th ese sections conflict with this Policy and past City in vestment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. In such instances, after consultation with the City’s attorney, the Tre asurer will present a recommended course of action to the City Council for approval. Percentage holding limits and credit quality minimums listed in this section apply at the time the security is purchased.
The City has further restricted the eligible types of securities and transactions as follows:
A. United States Treasury bills, bonds, and notes with a final maturity not exceeding five years from the date of tr ade settlement. There is no limit ation as to the percentage of the portfolio that can be invested in this category.
B. Federal Agency Obligations for which the faith and credit of the United States are pledged for the payment of principal and interest, and which have a final maturity not exceeding five years from the dat e of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category.
C. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable securities and step-up securities with a final maturity not exceeding five years from the date of trade settlement. No more than 30% of the portfolio may be invested in any single Federal Instrumentality/GSE issuer. The maximum percentage of callable agency securities in the portfolio is 20%.
D. Mortgage-backed Securities, Collateralized Mortgage Obligations and Asset- backed Securities limited to m ortgage-backed pass-through secur ities issued by a US government agency or consumer receivable pass-through certifica tes or bonds with a final maturity not exceeding five years from the date of trade settlement. The securities are rated in a rating category of “AA” or its equivalent or higher by a NRSRO. The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio with no more than 5% held in any one issuer that is not a US government agency.
E. Repurchase Agreements with a final termination date not exceeding one year collateralized with securities authorized under California Gove rnment Code. For the purpose of this section, the term collateral shall mean purchas ed securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value 344
City of Murrieta Investment Policy Page 4 Adopted December 5 202301375.0007/937519.1 of the funds borrowed. Collateral shall be held in the City’s c ustodian bank, as safekeeping agent, and the market value of the collateral secur ities shall be marked-to- the-market daily.
Repurchase Agreements shall be ent ered into only with broker/dealers who are recognized as Primary Dealers by the Federal Reserve Bank of Ne w York or with firms that have a primary d ealer within their holding company structu re. The Treasurer shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers who have executed same.
The aggregate investment in Repur chase Agreements shall not exc eed 20% of the portfolio.
F. Prime Commercial Paper with a maturity not exceeding 270 days from the date of trade settlement with the hi ghest ranking or of the highest letter and number rating assigned by a NRSRO. The entity that issues the commercial paper shall meet all of the conditions in either sub-paragraph 1) or sub-paragraph 2) below:
1) The entity shall (a) be organi zed and operating in the Unite d States as a general corporation, (b) have total a ssets in excess of $500,000,000, a nd (c) have debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by a NRSRO.
2) The entity shall (a) be organi zed within the United States a s a special purpose corporation, trust, or limited liability company, (b) have program-wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (c) have commercial paper that is rated in a rating category of “A-1” or its equivalent or higher by a NRSRO.
Not more than 5% of the portfolio may be invested in the commercial paper and medium- term notes of any issuer and the aggregate investment in commer cial paper shall not exceed 25% of the portfolio. Under a provision sunsetting on Ja nuary 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.
G. Eligible Bankers Acceptances issued by Federal Deposit Insurance Corporation (FDIC) insured commercial banks, rated at least “A-1” or the equivalent by a NRSRO with maturities not exceeding 180 days from the date of trade settle ment. If issuers have senior debt outstanding, it shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO. No more than 5% of the portfolio shall be in vested in bankers acceptances of any one commercial bank, and the aggregate inves tment in bankers acceptances shall not exceed 30% of the portfolio.
H. Medium-Term Notes 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 Un ited States. Medium-Term Notes shall hav e a final maturity not exceeding five years from the date of trade settlement and must be rated in a rating category
of “A” or its equivalent or higher by a NRSRO at the time of purchase. Not more than 5% of the City’s total portfo lio shall be invested in the Medium-Term Notes and 345
City of Murrieta Investment Policy Page 5 Adopted December 5 202301375.0007/937519.1 commercial paper of any one issuer and the aggregate investment in Medium-Term Notes may not exceed 30% of the portfolio.
I. Supranational Securities that are United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstru ction and Development, Internat ional Finance Corporation, or Inter-American De velopment Bank, with a maximum remaining maturity of five years or less, and elig ible for purchase and sale withi n the United States.
Investments under this subdivision shall be rated in a rating c ategory of “AA” or its equivalent or higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 10% invested in any one issuer.
J. State of California’s Local Agency Investment Fund (LAIF), The City may invest up to the maximum amount permitted by LAIF, pursuant to California Government Code Section 16429.1. LAI F’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow th e Treasurer to adequately judge the risk inherent in LAIF’s portfolio.
K. Municipal Bonds , State of California register ed warrants or treasury notes or bonds, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a de partment, board, agency, or authority of the state.
Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
Bonds, notes, warrants, or other evidences of indebtedness of a local agency within California including bonds payable solely out of the revenues f rom a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.
In addition, these securities must be rated in a rating categor y of “A” or its equivalent or higher by a NRSRO with maturities not exceeding five years from the date of trade settlement. No more than 5% of the portfolio shall be invested in any one municipal issuer and the aggregate investment in municipal bonds shall not exceed 30% of the portfolio.
L. Money Market Funds registered under the Investment Company Act of 1940 that are (1) “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1 .00; (3) invest only in the securities and obligations authorized in the applicable Califor nia statute; and (4) have a rating in a rating category of “AAA” or its equivalent by at least two NRSROs. Investment in any individual fund may not exceed 10% of the fund, and the aggregate investment in any combination of Money Market Funds and Mutual Funds shall not exceed 20% of the portfolio.
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City of Murrieta Investment Policy Page 6 Adopted December 5 202301375.0007/937519.1 M. Mutual Funds registered under the Investment Company Act of 1940 that are (1) “no-load” (meaning no commissi on or fee shall be charged on pur chases or sales of shares); (2) invest only in the securities and obligations auth orized in the applicable California statute; and (3) have a rating in a rating category of “AAA” or its equivalent by at least two NRSROs. The investm ent in any individual Mutual Fu nd shall not exceed 10% of the portfolio. In addition, investment in any individual fund may not exceed 10% of the fund, and the aggregate investment in any combination of Mutual Funds and money market funds shall not exceed 20% of the portfolio.
N. Negotiable Certificates of Deposit (NCDs) , issued by a nationally or state- chartered bank, a savings associ ation or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
The amount of the NCD insured up to the FDIC limit does not req uire any credit ratings; Any amount above the FDIC insured limit must be issued by institutions which have short- term debt obligations rated “A-1” or its equivalent or better b y at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or higher by at least one NRSRO; No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS); No more than 5% of the portfolio may be invested in any single issuer; The maximum maturity does not exceed five (5) years.
O. Federally Insured Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: (1) The amount per institution is limited to the maximum covered under federal insurance; (2) No more than 20% of the portfolio will be invested in a combina tion of federally insured and collateralized time deposits; and (3) The maximum maturity does not exceed five (5) years.
P. Collateralized Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, sav ings and loans, or credit unio ns in excess of insured amounts which are fully collater alized with securities in accor dance with California law, provided that: No more than 20% of the portfolio will be invest ed in a combination of federally insured and collateralized time deposits; The maximum maturity does not exceed five (5) years.
Q. Certificate of Deposit Placement Service (CDARS) provided that: No more than 30% of the total portfolio may be invested in a combination of Certificates of Deposit, including CDARS; The maximum maturity does not exceed five (5) years.
R. Collateralized Bank Deposits. The City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.
There are no limits on the dolla r amount or percentage that the City may invest in collateralized bank deposits.
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City of Murrieta Investment Policy Page 7 Adopted December 5 202301375.0007/937519.1 Summary of Allowable Investments
State Code CGC 53601 City of Murrieta Policy
Max % Required Max % Required
Investment Type Maturity Limit Rating Maturity Limit Rating
US Treasury
5 years
None
None
5 years
None
None
US Agency 5 years None None 5 years None None
US Instrumentality 5 years None None 5 years None None
Mortgage and Asset Backed 5 years 20% “AA” 5 years 20% “AA” Securities2
Repurchase Agreement4 1 year None None 1 year 20% None
Commercial Paper1 270 days 25% 7 A-1/P-1 270 days 25% 7 A-1/P-1 Bankers Acceptances1 180 days 40% A-1/P-1 180 days 30% A-1/P-1 Corporate Notes1 5 years 30% “A” 5 years 30% “A”
Supranational1 5 years 30% “AA” 5 years 30% “AA”
LAIF N/A LAIF None N/A LAIF None
Max Max
Cal. Local Agency1 5 years None None 5 years 30% “A”
State Bonds1 5 years None None 5 years 30% ”A”
Money Market Fund3 N/A 20% Multiple N/A 20% “AAA”
Mutual Fund3 N/A 20% Multiple N/A 20% Multiple
Negotiable CDs5 5 years 30% None 5 years 30% A-1/P-1
FDIC Insured TD6 5 years None None 5 years 20% None
Time Deposits (TD)6 5 years None None 5 years 20% “A”
CDARS5 5 years 30% None 5 years 30% None
1) All non-federal governmental securities are limited to no more than 5% per issuer, with the exception of money market funds, mutual funds, supranationals, LAIF, or unless otherwise specified in this investment policy. 2) Total of all asset backed and mortgage backed securities may not exceed 20% of the portfolio. 3) Money Market Funds must be rated “AAA” by two NRSROs, no fund can have more than 10% of the portfolio and the total of all money market and mutual funds cannot exceed 20% of the portfolio. 4) Securities held as collateral must have a value that is more than 102% of the funds invested in the repo. 5) No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS) 6) No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits 7) 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. 348
City of Murrieta Investment Policy Page 8 Adopted December 5 202301375.0007/937519.1 VIII – MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will los e some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
The diversification requirement s included in the “Authorized Securities and Transactions” section of this policy are designed to mitigate c redit risk in the portfolio.
The City may elect to sell a security prior to its maturity an d record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.
If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purc hases, the following steps will be taken:
o Any actions taken related to the downgrade by the investment m anager will be communicated to the Treasurer in a timely manner.
o If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.
The foregoing list of authorized securities and transactions sh all be strictly interpreted.
Any deviation from the list must be preapproved by the City Council.
IX – PROHIBITED INVESTMENT VEHICLES AND TRANSACTIONS
State law notwithstanding, any investments not specifically de scribed herein are prohibited, including, but not limited to futures and options. In accordance with California Go vernment Code, Section 53601.6 , investment in inverse floaters, range notes, or mortgage-derived interest-only strips is prohibited. Investment in any security that could result in a zero interes t accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or n egative-interest accrual if held to maturity are permitted.
Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
Purchasing or selling securities on margin is prohibited. The use of reverse repurchase agreements, securities lending o r any other form of borrowing or leverage is prohibited.
The purchase of foreign currency denominated securities is pro hibited. Securities with forward settlement date exceeding 45 days from the time of the investment is prohibited.
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City of Murrieta Investment Policy Page 9 Adopted December 5 202301375.0007/937519.1
X - INVESTMENT DIVERSIFICATION
The City shall diversify the portfolio to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. The asset allocation in the portfolio should, however, be flexible depending upon the outlook for the economy, the securities market, and the City’s anticipated cash flow needs.
XI - PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with antic ipated cash flow requirements and known future liabilities. The City will not in vest in securities maturing more than five years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment at least three months prior to the date of the investment.
XII - SELECTION OF BROKERS/DEALERS
The Treasurer shall maintain a list of broker/dealers approved for investment purposes, and it shall be the policy of the City to purchase securities only from those brokers and the firms they represent. Each approved broker/dealer must poss ess an authorizing certificate from the California Commissioner of Corporations as required by Section 25210 of the California Corporations Code. The firms they repre sent must:
1. be recognized as Primary Dealers by the Federal Reserve Bank of New York or have a primary dealer within their holding company structure, or
2. report voluntarily to the Federal Reserve Bank of New York, or
3. qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).
The City may engage the services of investment advisory firms t o assist in the management of the portfolio and investment advisors may utilize t h e i r o w n l i s t o f approved Broker/Dealers. Such Broker/Dealers will comply with t he selection criteria above and the list of approved firms shall be provided to the C ity on an annual basis or upon request.
In the event that an external investment advisor is not used in t h e p r o c e s s o f recommending a particular transaction in the City’s portfolio e ach authorized broker/dealer shall be required to submit and annually update a City approved Broker/Dealer Information Request form that includes the firm's most recent financial statements.
The City may purchase Commercial Paper from direct issuers even though they are not on the approved broker/dealer list as long as they meet the cri teria outlined in Item F of the Authorized Securities and Transactions section of this Policy. 350
City of Murrieta Investment Policy Page 10 Adopted December 5 202301375.0007/937519.1 XIII – COMPETITIVE TRANSACTIONS
All investment transactions shall be conducted competitively wi th authorized broker/dealers. At least three br oker/dealers shall be contacted for each transaction and their bid or offering prices shall be recorded. When purchasing original issue securities, no competitive offerings will be required as all dealers in the selling group offer at the same new issue price.
If the City is offered a security for which there is no other r eadily available competitive offering, then the Treasurer wi ll document quotations for comparable or alternative securities.
XIV - SAFEKEEPING AND CUSTODY
To protect against potential losses due to failure of individua l securities dealers, and to enhance access to securities, int erest payments and maturity pr oceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the City under the terms o f a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment gener ated from the trade. A monthly r eport will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.
The only exceptions to the for egoing shall be depository accoun ts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and (iii) mutual funds and money market mutual funds, since these securities are not deliverable.
The purchase and sale of securi ties and repurchase agreement tr ansactions shall be settled on a delivery-versus-payment basis.
XV - PORTFOLIO PERFORMANCE
The portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevailing market conditions, risk constraints for eligible securities, and cash flow requirements. The performanc e of the portfolio shall be compared to the performance of the ICE BofAML 1-3 year Treasury Index. The duration of the portfolio will be approximately equal (+/- 20%) of the benchmark.
XVI - REPORTING
Monthly transaction reports will be submitted by the Treasurer to the City Council in accordance with California Government Code Section 53607.
Quarterly, the Treasurer shall s ubmit to the City Council a rep ort of the investment earnings and performance results of the portfolio within 45 day s after the end of the quarter. The report shall include the following information:
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City of Murrieta Investment Policy Page 11 Adopted December 5 202301375.0007/937519.1
1. Investment type, issuer, date of maturity, par value and dollar amount invested in all securities, and investments and monies held by the City;
2. A description of the funds, in vestments or programs under th e management of contracted parties, including securities lending programs;
3. A market value as of the date of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;
4. Overall portfolio yield based on historical cost;
5. Weighted average maturity;
6. A statement of the portfolio’s compliance with this Investment Policy or an explanation for non-compliance; and
7. A statement of the ability or inability to meet expenditure requirements for six months, as well as an explanation of why money will not be available if that is the case.
XVII - POLICY REVIEW
This Investment Policy shall be adopted by resolution of the City Council annually. It shall be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, yield and diversification and its relevance to current law and economic trends. Any amendments to this Investment Policy s hall be forwarded to the City Council for approval.
G
LOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US gover nment. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidi ty in the agricultural industry. FFCB issues discount notes and bonds.
FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddi e Mac”, issues discount notes, bonds and mortgage pass-through securities.
FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Associ ation was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass- through securities.
GNMA. The Government National Mortgage Association, known as “GinnieM ae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority pr ovides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mi ssissippi River valleys. TVA currently issues discount notes and bonds. 352
City of Murrieta Investment Policy Page 12 Adopted December 5 202301375.0007/937519.1 ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
AVERAGE LIFE. In mortgage-related investments, including CMOs, the average ti me to expected receipt of principal payments, weighted by the amount of principal expected.
BANKER’S ACCEPTANCE. A money market instrument creat ed to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obli gation to pay the investor.
BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
B
ROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.
CALLABLE. A callable security gives the issu er the option to call it from the investor prior to its maturity. The main cause of a call is a decline in inter est rates. If interest rates decline, the issuer will lik ely call its current securities and reissue them at a lower rate of interest.
CERTIFICATE OF DEPOSIT (CD). A time deposit with a specif ic maturity evidenced by a certificate.
CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating instituti on of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.
COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collatera lized using assets set aside by the issuer such as Treasury securities or other qualif ied collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underly ing mortgage securities.
COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are co llateralized using assets set aside by the issuer such as Treasury securities or o ther qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.
C
OMMERCIAL PAPER. The short-term unsecured debt of corporations.
COUPON. The rate of return at which interest is paid on a bond.
CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. 353
City of Murrieta Investment Policy Page 13 Adopted December 5 202301375.0007/937519.1 DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
DEBENTURE. A bond secured only by the general credit of the issuer.
DELIVERY VS . PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.
DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial in strument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a d iscount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
D
IVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
DURATION. The weighted average time to mat urity of a bond where the weigh ts are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an i ndependent federal agency insuring de posits in U.S. banks and thrifts in the event of bank failures. The FDIC was c reated in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.
FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD).
These deposits are limited to f unds insured in accordance with FDIC insurance deposit limits.
LEVERAGE. Borrowing funds in order to invest in securities that have th e potential to pay earnings at a rate higher than the cost of borrowing.
LIQUIDITY. The speed and ease with which an asset can be converted to cash.
LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California tha t is managed by the State Treasurer’s Office.
LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the s ame SEC rules applicable to money market mutual funds.
MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole c all provision, the issuer makes a lump sum payment that equals the net present val ue (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
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City of Murrieta Investment Policy Page 14 Adopted December 5 202301375.0007/937519.1 MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.
MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
MARKET VALUE. The price at which a security can be traded.
MATURITY. The final date upon which the principal of a security becomes due and payable.
The investment’s term or remaining maturity is measured from the settlement date to final maturity.
MEDIUM TERM NOTES. Unsecured, investment-grade seni or debt securities of major corporations which are sold in r elatively small amounts on eith er a continuous or an intermittent basis. MTNs are highly flexible debt instrument s t h a t c a n b e structured to respond to market opportunities or to investor preferences.
MODIFIED DURATION. The percent change in price for a 100-basis point change in yie lds.
Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.
MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds are c ertificates of deposit and U.S. Treasury securities. Money market funds attemp t to keep their net asset values at $1 per share.
MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a spec ified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capita l and operating expenses.
MUTUAL FUND. An entity which pools the funds o f investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or internation al stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an indivi dually managed portfolio.
NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).
A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies pro vide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.
NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.
PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.
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City of Murrieta Investment Policy Page 15 Adopted December 5 202301375.0007/937519.1 PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and d iligence, under the circumstance s then prevailing, that a prudent person, acting in a like capacity and familiar w ith such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.
SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.
SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formati on. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.
S
ECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing o bligations. This is defined as having a certain amount of liquidity as a percentage o f t h e broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.
STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest ra tes, commodities or indices. E xamples include inverse floating rate notes which have coupons that increase wh en other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest bas ed on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note mi nus the Libor rate.
Issuers of such notes lock in a reduced cost of borrowing by pu rchasing interest rate swap agreements.
SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or int erests to share in the deci sion making to promote economic development in the member countries.
TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized g ains, and losses in the portfolio.
U.S.
TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the Unit ed States. Treasuries are cons idered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities an d fixed coupon notes and bonds.
TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and ar e called Treasury bills. The Tr easury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash 356
City of Murrieta Investment Policy Page 16 Adopted December 5 202301375.0007/937519.1 management” bills as needed to smooth out cash flows.
TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. 357
CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 12.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Jennifer Terry, Finance Manager
SUBJECT: Approve the Recognized Obligation Payment Schedule and Administrative Budget for Fiscal Year 2024/25
RECOMMENDATION
Adopt Resolution No. RSA 23-31 entitled: A Resolution of the Successor Agency to the Murrieta Redevelopment Agency Approving A Recognized Obligation Payment Schedule for the Period From July 1, 2024, through June 30, 2025, Approving the Successor Agency’sProposed Administrative Budget for Fiscal Year 2024/25, and Authorizing Posting and Transmittal Thereof.
PRIOR ACTION/VOTE
On February 21, 2012, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency (Successor Agency), adopted Resolution No. RSA 12-02, approving and adopting a Recognized Enforceable Obligation Payment Schedule pursuant to ABX1 26 (Vote: 3-0-2).
On April 17, 2012, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency, adopted Resolution No. RSA 12-03, approving and adopting the Recognized Obligation Payment Schedule from July 1, 2012, to December 31, 2012, pursuant to ABX1 26 (Vote: 4-0-1).
On August 21, 2012, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency, adopted Resolution No. RSA 12-05, approving and adopting the Recognized Obligation Payment Schedule from January 1, 2013, to June 30, 2013, pursuant to AB X1 26 (Vote: 5-0).
On December 6, 2022, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency, adopted Resolution No. RSA 22-28, approving and adopting the Recognized Obligation Payment Schedule and Administrative Budget for July 1, 2023, to June 30, 2024, pursuant to ABX1 26 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
CITY OF MURRIETA Printed on 12/1/2023Page 1 of 4
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12/5/2023
Agenda Item No. 12.
BACKGROUND
On December 29, 2011, the California Supreme Court issued its decision in CRA v. Matosantos, upholding Assembly Bill (AB) X1 26, which dissolved all redevelopment agencies in California, and overturning AB X1 27, the “voluntaryalternative redevelopment program.”With the voluntary redevelopment program provided for in ABX1 27 being ruled unconstitutional by the Court, all California redevelopment agencies were deemed dissolved on February 1, 2012. Thus, as of February 1, 2012, redevelopment agencies throughout the state began the process to wind down.
As ABX1 26 was later modified by AB 1484 and Senate Bill 107 and codified in the State Health and Safety Code (HSC), successor agencies must wind down the affairs of their respective, now-dissolved redevelopment agencies. The City of Murrieta (City) elected to serve as the Successor Agency (Successor Agency) to the dissolved Murrieta Redevelopment Agency (Former RDA).
As part of the dissolution process, the Successor Agency must prepare a Recognized Obligation Payment Schedule (ROPS) showing all the obligations of the Former RDA and the sources of funds for the repayments.
The Successor Agency must also prepare an administrative budget for the upcoming Fiscal Year (FY). Both documents must be submitted to the Riverside Countywide Consolidated Oversight Board (Oversight Board) and the California Department of Finance (DOF) for approval.
Discussion
The Successor Agency is being asked to approve the ROPS for the period July 1, 2024, through June 30, 2025 (ROPS 24/25). Once approved, ROPS 24/25 will then go before the Oversight Board for approval, following which, it will be transmitted by the February 1, 2024, deadline to the DOF, California State Controller, and Riverside County Auditor-Controller (CAC) for their review. Descriptions of items on the ROPS 24/25 follow.
Item 9, Administrative Allowance
HSC Section 34177(j) requires the Successor Agency to prepare an Administrative Budget and submit it to the Oversight Board for approval. Pursuant to HSC Section 34171 (b), the administrative allowance is limited to the greater of $250,000 per year, or three percent (3%) of the Redevelopment Property Tax Trust Fund (RPTTF) distributed in the prior FY, excluding the administrative allowance and any City/Former Agency loan repayments. The Successor Agency anticipates needing an administrative allowance in the amount of $46,800 in the 2024/25 FY. Administrative activities for the 2024/25 FY include preparation and legal review of the ROPS, Prior Period Adjustment (PPA) reconciliation, cash balance reconciliation, agenda reports and resolutions, payment of enforceable obligations, attendance at Successor Agency and Oversight Board meetings, and other activities detailed in Exhibit B attached to the accompanying resolution.
Items 57-59, Bonds Debt Service and Fiscal Agent Fees
The Successor Agency refunded the 2002, 2005, and 2007 Tax Allocation Bonds with an issue of 2017 Tax Allocation Refunding Bonds to take advantage of lower interest rates and to reduce the sum of total future debt service payments. The 2017 Series A and B bonds appear on the ROPS 24/25 as items 57-59, including associated fiscal agent fees and continuing disclosure costs. The Successor Agency requests $1,177,881 for the 2017 Series A bond, $1,629,625 for the Series B bond, and $8,875 for fiscal agent fees and continuing disclosure costs on the ROPS 24/25.
Cash Balances
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Agenda Item No. 12.
The Report of Cash Balances in the current ROPS represents the Successor Agency’scash balance as of June 30, 2022. It shows the inflow and outflow of funds held by the Successor Agency and assists the Successor Agency in identifying other funds available to spend on enforceable obligations in place of RPTTF.
In FY 2021/22, Successor Agency staff and its consultant, RSG, Inc., performed a cash balance reconciliation to analyze the Successor Agency’strue cash balance and determined that the Successor Agency does not have any available cash on hand to spend on enforceable obligations in place of RPTTF for FY 2024/25. The Successor Agency has also retained revenue from previous FYs to fund debt service obligations in future years, as detailed below:
· The Successor Agency has retained $13,685 in property tax revenues received, but not spent, for obligations in FY 2019/20 for expenditures in FY 2022/23. This amount is also known as the 19/20 PPA.
· The Successor Agency has retained $13,500 in property tax revenues received, but not spent, for obligations in FY 2020/21 for expenditures in FY 2023/24. This amount is also known as the 20/21 PPA.
The Successor Agency had a negative cash balance as of June 30, 2022. The Successor Agency will continue to reconcile the cash balances, will request RPTTF to ensure the Successor Agency’sobligations are paid in a timely manner, and will cover the negative cash balance with accrued interest revenue.
ROPS 21-22 Prior Period Adjustment
As required by HSC Section 34186(c), the Successor Agency prepared a reconciliation between approved and actual payments on enforceable obligations from the ROPS covering FY 2021/22 and submitted this reconciliation to the CAC prior to the October 1, 2023, deadline. There was a $12,746 difference between approved and actual payments.
Last and Final ROPS
Pursuant to HSC Section 34191.6(a), beginning January 1, 2016, agencies that have received a Finding of Completion may submit a Last and Final ROPS if all the following conditions are met:
1) The remaining debt is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules, including, but not limited to, debt service, loan agreements, and contracts.
2) All remaining obligations have been previously listed on the ROPS and approved for payment by DOF pursuant to HSC Section 34177(m) or (o).
3) The agency is not a party to outstanding/unresolved litigation, except as specified in HSC Section 34191.6(a)(3).
A Last and Final ROPS will reduce the administrative burden on the Successor Agency and eliminate the need for annual Oversight Board meetings to approve the ROPS. The Successor Agency can amend the Last and Final ROPS twice. The Successor Agency meets the required conditions; however, prefers to maintain an annual ROPS at this time. Furthermore, DOF has oversight over all Last and Final ROPS approvals and has been limiting the Successor Agency administrative allowance to approximately $5,000 per enforceable obligation.
Riverside Countywide Oversight Board
As of July 1, 2018, the Riverside County Consolidated Oversight Board (Oversight Board) was established pursuant to HSC Section 34179(j). This Oversight Board reviews actions taken by all successor agencies CITY OF MURRIETA Printed on 12/1/2023Page 3 of 4
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Agenda Item No. 12.
pursuant to HSC Section 34179(j). This Oversight Board reviews actions taken by all successor agencies within the County and can direct successor agencies to perform certain actions.
The Oversight Board has scheduled its general meetings to occur in the Riverside County Board Chambers on the first floor at 4080 Lemon Street in Riverside. The deadline for the Successor Agency to submit its ROPS 24/25 to the Oversight Board for the January 18, 2024, meeting is December 28, 2023. This deadline allows for County staff to review the submission and provide feedback, as well as for the Successor Agency to incorporate feedback, if necessary. With the consolidation of the Oversight Boards, expenditures are being more stringently monitored, and successor agencies have to provide additional supporting documentation, especially for the administrative allowance. Upon approval of the recommended action, Successor Agency staff will submit the ROPS along with supporting documentation to the Oversight Board for the January 18, 2024, meeting.
FISCAL IMPACT
The ROPS 24/25 must be approved by the Murrieta Successor Agency and the Oversight Board. Upon approval, the ROPS will be forwarded to the DOF by February 1, 2024, for the Murrieta Successor Agency to receive RPTTF, administered by the CAC, to pay enforceable obligations during the ROPS 24/25 period. The FY 2024/25 administrative and debt service budgets for the Successor Agency will be included in the biennial budget.
ATTACHMENTS
1. Resolution No. RSA 23-31
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SUCCESSOR AGENCY
RESOLUTION NO. RSA 23-31
A RESOLUTION OF THE SUCCESSOR AGENCY TO THE MURRIETA
REDEVELOPMENT AGENCY APPROVING A RECOGNIZED
OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD FROM JULY
1, 2024 THROUGH JUNE 30, 2025, APPROVING THE SUCCESSOR
AGENCY’S PROPOSED ADMINISTRATIVE BUDGET FOR FISCAL
YEAR 2024/25, AND AUTHORIZING POSTING AND TRANSMITTAL
THEREOF
WHEREAS, the Murrieta Redevelopment Agency (the “ Former RDA ”) was a public body, corporate and politic, duly created, established, and authorized to transact business and exercise its powers under and pursuant to the provisions of the Community Redevelopment Law (Part 1 of Division 24 of the California Health and Safety Code ), and the powers of the Former RDA included the power to issue bonds for any of its corporate purposes; and
WHEREAS, on June 28, 2011, the California Legislature adopted Assembly Bill s x1 26 ( the “Dissolution Act”) and x1 27 (the “Opt-in Bill”); and
WHEREAS, the California Supreme Court subsequently upheld the provisions of the Dissolution Act and invalidated the Opt -in Bill, resulting in the dissolution of the Former RDA as of February 1, 2012; and
WHEREAS, the redevelopment powers, assets , and obligations of the Former RDA were transferred on February 1, 2012 , to the Successor Agency to the Murrieta Redevelopment Agency (“Successor Agency”); and
WHEREAS, on June 27, 2012, A ssembly Bill 1484 was adopted as a trailer bill in connection with the Fiscal Year 2012-13 California Budget, and Senate Bill 107 was adopted on September 22, 2015, both to modify certain provisions of the Dissolution Act; and
WHEREAS, among the duties of successor agencies under the Dissolution Act as amended is the preparation of an annual Recognized Obligation Payment Schedule (ROPS), per H ealth and Safety Code section 34177(l), that includes the ensuing fiscal year for consideration by a consolidated oversight board and the California Department of Finance (DOF) for purposes of administering the wind-down of financial obligations of the former redevelopment agency; and
WHEREAS, section 34177(l) of the Dissolution Act further requires that the proposed ROPS be transmitted to the oversight board, after which time the oversight board may approve the ROPS and the Successor Agency’s transmittal of the adopted ROPS to DOF, the County Auditor - Controller, and the State Controller’s Office for their consideration; and
362
Resolution No. RSA 23-31
WHEREAS, the Riverside County wide Consolidated Oversight Board ("Oversight Board"), formed July 1, 2018, has jurisdiction over the Successor Agency; and
WHEREAS, the Successor Agency’s proposed ROPS covering the period from July 1, 2024, through June 30, 2025 (“ROPS 24/25”), attached hereto as Exhibit “A,” has been prepared and is consistent with the provisions of the Dissolution Act and in the format made available by DOF; and
WHEREAS, section 34177(j) of the Dissolution Act requires the Successor Agency to prepare a proposed administrative budget and submit it to the Oversight Board for approval; and
WHEREAS, the Successor Agency prepared the Fiscal Year 2024/25 Administrative Budget in accordance with the Dissolution Act, attached hereto as Exhibit “B” (the “Administrative Budget”); and
WHEREAS, the Oversight Board will review the ROPS 24/25 and Administrative Budget on January 18, 2024; and
WHEREAS, the Successor Agency desires to approve the ROPS 24/25 and the Fiscal Year 2024/25 Administrative Budget and transmit them to various parties as required by the Dissolution Act.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS: by the Successor Agency to the Murrieta Redevelopment Agency, as follows:
Section 1. The above recitals are true and correct and are a substantive part of this Resolution.
Section 2. The proposed ROPS 24/25 covering the period of July 1, 2024, to June 30, 2025, substantially in the form attached hereto as Exhibit “A ,” is approved and adopted. Successor Agency staff is hereby authorized and directed to submit a copy to the Oversight Board for approval. The Successor Agency accepts administrative revisions made to the ROPS 24/25 in order to enable the Successor Agency to submit the ROPS 24/25 to DOF by the deadline of February 1, 2024.
Section 3. The Fiscal Year 2024/25 Administrative Budget for the period July 1, 2024 to June 30, 2025, submitted herewith as Exhibit “B,” is hereby approved.
Section 4. The officers of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including requesting additional review by the DOF and an opportunity to meet and confer on any disputed items, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. Specifically, the officers of the Successor Agency are hereby authorized and directed to post a copy of the ROPS 24/25 on the City’s website and transmit a copy of the ROPS 24/25 to the Riverside Countywide 363
Resolution No. RSA 23-31
Consolidated Oversight Board, the Riverside County Auditor -Controller, the State Controller’s Office, and the State of California Department of Finance.
PASSED AND ADOPTED this 5th day of December 2023 by the Successor Agency to the Murrieta Redevelopment Agency.
_____________________________________
Lisa DeForest, Chair
ATTEST:
_________________________________
Cristal McDonald, Secretary
APPROVED AS TO FORM:
_________________________________
Tiffany Israel, Agency Counsel
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Successor Agency Resolution No. RSA 23-31was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 5th day of December 2023 and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Cristal McDonald, City Clerk
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A B C D E F G H I J K L M N O P Q R S T U V W X Y
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Notes Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Notes 39,225,709.00$ 2,863,181$ -$ -$ -$ 2,282,409$ 46,800$ 2,329,209$ -$ -$ -$ 533,972$ -$ 533,972$ 9 City administration Admin Costs 7/1/2015 6/30/2038 City of Murrieta Payroll & Operating costs Combined Project Area 700,000 N 46,800$ 46,800$ 46,800$ -$ -$ 26 Retiree Medical Trust
Unfunded Liabilities
6/1/2009 6/30/2037 CalPERS medical Contribution towards unfunded post employment retirement health
Combined Project Area
- N -$ -$ -$ 57 2017 Tax Allocation Refunding Bonds,
Series A
Refunding Bonds Issued
After 6/27/12
10/5/2017 8/1/2035 Union Bank Debt Service Payments for Refunding of 2002, 2005, and 2007 Bonds
Combined Project Area
12,312,209 N 1,177,881$ 987,328$ 987,328$ 190,553$ 190,553$ 58 2017 Tax Allocation Refunding Bonds,
Series B
Refunding Bonds Issued
After 6/27/12
10/5/2017 8/1/2037 Union Bank Debt Service Payments for Refunding of 2002, 2005, and 2007 Bonds
Combined Project Area
26,089,250 N 1,629,625$ 1,286,206$ 1,286,206$ 343,419$ 343,419$ 59 2017 Bonds Fiscal Agent Fees and
Continuing Disclosure Costs
Fees 10/5/2017 8/1/2037 Union Bank Fiscal agent fees, annual continuing disclosure costs
Combined Project Area
124,250 N 8,875$ 8,875$ 8,875$ -$ -$ Murrieta Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1,2024 through June 30, 2025
(Report Amounts in Whole Dollars)
Item # Project Name/Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Contract/Agreement
Termination Date Payee Description/Project Scope Project Area Total Outstanding
Debt or Obligation Retired
ROPS 24-25
Total
24-25A (July - December)
24-25A
Total
24-25B (January - June)
24-25B
Total
Fund Sources Fund Sources
365
Expense Category Responsibility Budget
Amount
Personnel Costs
City Manager Department • Provide direction to other staff and consultants as needed $ 4,000 City Attorney Department • Provide general legal services as needed • Review staff reports and resolutions 3,000 Finance Department
• Process payment of enforceable obligations
• Maintain documentation of Agency records
• Coordinate with consultant to answer questions and provide documentation as requested by Oversight Board, County
Auditor-Controller, and Department of Finance
• Answer questions and provide documentation as requested by consultant to prepare the PPA
10,000
Successor Agency Staff • Administration and implementation of Agency wind-down 4,700 Total Personnel Costs $ 21,700
Services
Consultants
• Prepare ROPS, PPA, staff reports, and resolutions
• Coordinate with and answer questions for Oversight Board, County Auditor-Controller, and Department of Finance
• Attend Successor Agency and Oversight Board meetings • Monitor and project cash flow to ensure sufficient revenues for obligations and to inform Agency staff of expected
revenues
$ 15,000
Financial Services • Audits and other financial services as needed 10,100 Total Services Costs $ 25,100
Total Budget
Total Budget Costs $ 46,800
EXHIBIT B
Successor Agency to the Murrieta Redevelopment Agency
Administrative Budget
July 1, 2024 – June 30, 2025
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CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 13.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Director of Public Works
PREPARED BY: Garrett Strang, Civil Engineering Assistant SUBJECT: Notice of Completion of Pedestrian Safety Enhancements 2020/21 and 2021/22 Projects
RECOMMENDATION
Accept the improvements for the Pedestrian Safety Enhancements 2020/21 project, CIP No. 13040, and Pedestrian Safety Enhancements 2021/22 project, CIP No. 13045, as complete; Direct the City Clerk to record a Notice of Completion and release bonds in accordance with State law and City Ordinances; and
Release any remaining retention from CIP Nos. 13040 and 13045 in accordance with State law and City Ordinances.
PRIOR ACTION/VOTE
On November 19, 2019, the City Council adopted Resolution No. 19-4183, authorizing the allocation of Community Development Block Grants funds for Fiscal Year 2020/21, and authorized the City Manager to execute the required supplemental agreements with the County of Riverside (Vote 5-0).
On December 1, 2020, the City Council adopted Resolution No. 20-4341, authorizing the allocation of Community Development Block Grants funds for Fiscal Year 2021/22, and authorized the City Manager to execute the required supplemental agreements with the County of Riverside (Vote 5-0).
On December 7, 2021, the City Council adopted Resolution No. 21-4502, authorizing the allocation of Community Development Block Grants funds for Fiscal Year 2022/23, and authorized the City Manager to execute the required supplemental agreements with the County of Riverside (Vote 5-0).
On June 20, 2023, the City Council awarded a Construction Contract for the 2020/21 Pedestrian Safety Enhancement Project, Capital Improvement Plan No. 13040; and the 2021/22 Pedestrian Safety Enhancement Project, Capital Improvement Plan No. 13045 to the lowest responsible bidder, LC Paving & Sealing, Inc., in the amount of $681,105.00, plus fifteen percent (15%) contingency (Vote 3-0-1-1).
On August 15, 2023, the City Council conducted a public hearing and adopted Resolution No. 23-4699, approving the Fiscal Year 2023/24 to Fiscal Year 2027/28 CIP budget, which included the 2020/21 Pedestrian CITY OF MURRIETA Printed on 12/1/2023Page 1 of 2
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Agenda Item No. 13.
Safety Enhancement Project, CIP No. 13040 and the 2021/22 Pedestrian Safety Enhancement Project, CIP No. 13045 (Vote: 5-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
Construction began on July 24, 2023, and was completed on October 20, 2023. The project consisted of the installation of pedestrian curb ramps, sidewalks, and crosswalk striping at various intersections to improve access for disabled persons under the Americans with Disabilities Act (ADA). The Project is funded utilizing Community Development Block Grant (CDBG) and Gas Tax funds. CDBG funds are federally funded through the Housing and Urban Development (HUD) and are administered by the County of Riverside Department of Housing Workforce Solutions (HWS). The project included improvements at the following intersections:
1. California Oaks Road at Clinton Keith Road;
2. California Oaks Road at Bladen Avenue;
3. California Oaks Road at Hancock Avenue;
4. Whitewood Road at Avenida Acacias;
5. Whitewood Road at Willowbend Drive;
6. Whitewood Road at Calle De Tres Amigos;
7. Whitewood Road at Blackthorne Drive;
8. Whitewood Road at Day Lily Drive;
9. Whitewood Road at Via Temprano (N);
10. Whitewood Road at Via Monserate (N); and
11. Whitewood Road at Alta Murrieta Apartments.
Final payment has been made to the contractor and the project was successfully completed just under the original contract value.
City forces have inspected the improvements and found them to be satisfactory. Staff recommends formal acceptance by City Council.
FISCAL IMPACT
The total construction costs of $681,102.90 were provided from CDBG funds in CIP Nos. 13040 and 13045.
The City will be responsible for ongoing maintenance of the public improvements. The annual cost to maintain these improvements will be covered in the Public Works-Maintenance Operating Budget.
ATTACHMENTS
1. Notice of Completion
2. Vicinity Map
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RECORDING REQUESTED BY: City of Murrieta
When recorded return to:
City of Murrieta
Attn: City Clerk
1 Town Square
Murrieta, CA 92562
Space above for Recorder’s Use
NOTICE OF COMPLETION
Construction of
Pedestrian Safety Enhancements 2020/21 and 2021/22, CIP No.(s) 13040 and 13045
Notice is hereby given that: No Fee Per Government Code 27383
1) The undersigned is owner of the interest or esta te stated below in the property hereinafter described.
2) The full name of the undersigned is City of Murrieta, a municipal corporation. 3) The full address of the undersigned is 1 Town Square, Murrieta, CA 92562. 4) The nature of the title of the undersigned is: In Easement. 5) A work of improvement on the described property was substantially completed on October 20
th , 2023.
6) The name of the contractor for such work of improvement is L.C. Paving & Sealing, Inc.
The property on which said work of improvement was completed is in the City of Murrieta, County of Riverside, State of California, and is described as follows: Pedestrian Safety Enhancements 2020/21 and 2021/22, CIP No.(s) 13040 and 13045. 7) The street address of said project is the intersect ions of: California Oaks Road and Clinton Keith Road, Bladen Avenue and Hancock Avenue; White wood Road and Avenida Acacias, Willowbend Drive, Calle De Tres Amigos, Bl ackthorne Drive, Day Lily Drive, Via Temprano (N), Via Monserate (N) and Alta Murrieta Apartments Drive.
CITY OF MURRIETA
______________________________
Robert K. Moehling
Director of Public Works
VERIFICATION OF CITY CLERK
I, the undersigned, say:
I am the City Clerk of the City of Murrieta; the Ci ty Council of said City on __________________, 20____, accepted the above described work as completed and ordered that a Notice of Completion be filed.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on ________________, 20____, at Murrieta, California.
CITY OF MURRIETA
______________________________
City Clerk
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HH
H
H H HHHHH
H
JACKSON AVE§¨¦
215
§¨¦
15 §¨¦
215
IVY ST
LOS ALAMOS RD
MADISON AVE
§¨¦
15 MADISON AVE
WHITEWOOD
RD
MURRIETA HOT SPRINGS RD
CALIFO
RNIA
OAKS
RD
LOS ALAMOS RD
WHITEW
O
OD
RD
CLINTON KEITH RD
HANCOCK AVE
IVY ST
MONROEAVE
MADISON AVE
JEFFERSON AVE
ADAMS AVE
JUNIPER ST
NUTMEG ST
LINCOLN AVE
JACKSON AVE
KALMIA ST
LAS BRISAS RD
ALTAMURRIETA DR
WASHINGTON AVE
MONROE AVE
Pedestrian Safety Enhancement Project
2020-21 and 2021-22 05/15/2023
AttachmentVicinity Map
2,000 0 2,0001,000 Feet
E
LOCATION MAP
G:\GISData\Departments\Engineering\ArcMapDocs_23\Vicinity.mxd 370
CITY OF MURRIETA
City Council Meeting Agenda
Report
12/5/2023
Agenda Item No. 14.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Geovanny Calvopina, Financial Analyst
SUBJECT: Fiscal Year 2022/23 Year End Report and Approve Appropriations for Carryover of Unspent Amounts from FY 2022/23 to FY 2023/24 ..title
RECOMMENDATION
Accept this report;
Amend the Fiscal Year 2023/24 Operating Budget to include the Fiscal Year 2022/23 Rollovers; and Appropriate the Unassigned Fund Balance.
PRIOR ACTION/VOTE
On June 1, 2021, the City Council, the Board of Directors of the Murrieta Fire District (MFD), the Community Services District (CSD), the Murrieta Library District (MLD), the Housing Authority (HA), and the City Council acting as Successor to the Redevelopment Agency (SRDA) adopted a series of Resolutions (21-4405, 21- 4406, MFD 21-210, CSD 21-258, HA 21-33, and 21-4407) approving the Operating Budgets for Fiscal Years (FY 2021/22 and 2022/23) (Vote: 5-0).
On December 6, 2022, the City Council, the Board of Directors of the MFD, CSD, MLD, SRDA, and the HA approved various amendments to the Fiscal Year 2022/23 Operating Budget on (Vote: 5-0).
On February 21, 2023, the City Council, the Boards of Directors of the MFD, CSD MLD, SA, and the HA approved amendments to the Fiscal Year 2022/23 Operating Budget (Vote: 5-0).
On May 16, 2023, the City Council, the Boards of Directors of the MFD, CSD MLD, SA, and the HA approved amendments to the Fiscal Year 2022/23 Operating Budget (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
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Agenda Item No. 14.
BACKGROUND
Budgets are projections based on known and anticipated future revenues and expenditure obligations. Staff monitors and analyzes actual revenues and expenditures against projections throughout the Fiscal Year (FY) and provides quarterly reports to the City Council, City Manager, and Department Directors. They also recommend budget amendments, if necessary. This report aims to provide consistent financial updates by summarizing the Citywide estimated financial operating results for the FY that ended June 30, 2023. While this report is presented at a Citywide summary level, the estimated final results for each major fund, which includes the General Fund, Measure T, Fire District, Community Services District, and Murrieta Library, can be found in Attachment 1.
The totals presented herein for FY 2022/23 summarize the actual revenues and expenditures compared to the corresponding adopted and amended budget amounts for the year. However, please note that as of the date of this report, the independent external audit for FY 2022/23 has yet to be concluded. As a result, the actual amounts are subject to change should accounting adjustments be necessary before finalizing the audit. This report also includes carryover budget requests for the appropriation of encumbrances from FY 2022/23 to the FY 2023/24 budget.
The financial operating balances for the year exceeded expectations due to a combination of increased revenues and budgetary savings. Multiple factors contributed to ending the year on a positive note, including higher-than-anticipated Sales Tax and Property Tax, along with other revenue sources. Additionally, savings were achieved through vacant positions and budgetary savings under general Operations & Maintenance.
The City generated $204.5 million in revenue and $168.6 million in expenditures for all funds. The actual revenue exceeded the amended budget by $23,452,706, while expenditures were under budget by approximately $1 million, mainly because of approved budget amendments throughout the year. This resulted in an operating surplus of roughly $36 million. The City of Murrieta (City) achieved positive operating results due to budgetary savings and revenues exceeding actual expenditures.
It is essential to note that the figures listed in this report are subject to change until the annual audit of the City's financial records and the Annual Comprehensive Financial Report (ACFR) are completed.
The following table summarizes all City funds' unaudited revenue and expenditures through June 30, 2023. A complete Budget to Actual Report of all accounts is included in Attachment 2.
FY 2022/23
Adopted
Budget
FY 2022/23
Amended
Budget
FY23 YTD
thru 6/30/23
Variance
Amount (S)
% Received
thru 6/30/23
Revenues
Taxes-Sales Tax 40,683,000 51,716,500 55,317,537 3,601,037 107% Other Misc Revenue 15,418,762 35,731,877 38,786,727 3,054,850 109% Taxes-Property 27,454,867 27,859,574 31,678,533 3,818,960 114% Charges for Services 14,986,948 16,670,863 17,871,983 1,201,120 107% Transfer In 9,711,807 14,198,321 15,527,641 1,329,321 109% Special Assessments 11,229,745 11,229,745 11,360,911 131,166 101% Taxes-VLF/Property Tax Comp 9,301,070 9,638,000 10,186,630 548,630 106% Taxes-Franchises 3,968,420 4,705,100 4,960,011 254,911 105% Taxes-Other 2,955,663 2,955,663 2,815,689 (139,974) 95% Taxes-Transient Occupancy Tax 1,179,270 2,214,700 1,898,348 (316,352) 86% License/Permit Fees 1,618,857 1,814,688 2,352,370 537,682 130% Taxes-Business Licenses 730,330 920,000 928,285 8,285 101% Taxes-Property Transfer 660,800 900,000 576,080 (323,920) 64% Chrg for Svc-Waste Management 360,000 550,000 700,000 150,000 127% Chrg for Svc-ApplealslAdmin Fee - 250 50 (200) 20% Loan/Bond/Lease Proceeds 20,000 - 21,566 21,566 0% Tax-Special Tax - - 9,575,626 9,575,626 0% Total Revenue 140,279,539$ 181,105,280$ 204,557,987$ 23,452,706$ 113% FY 2022/23
Adopted
Budget
FY 2022/23
Amended
Budget
FY23 YTD
thru 6/30/23
Variance
Amount (S)
% Used thru
6/30/23
Expenditures
Personnel Costs 76,991,369 78,767,913$ 77,977,434$ (790,479)$ -1% Operations & Maintenance 38,620,622 61,067,364$ 57,706,098$ (3,361,266)$ -6% Capital Outlay 1,941,740 8,144,818$ 9,066,436$ 921,618$ 11% Allocations 7,042,968 7,372,588$ 6,834,607$ (537,981)$ -7% Transfer Out 9,711,807 14,198,321$ 17,027,641$ 2,829,321$ 20% Total Expenditures 134,308,507$ 169,551,005$ 168,612,218$ (938,787)$ -1%
CITYWIDE
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Agenda Item No. 14.
FY 2022/23
Adopted
Budget
FY 2022/23
Amended
Budget
FY23 YTD
thru 6/30/23
Variance
Amount (S)
% Received
thru 6/30/23
Revenues
Taxes-Sales Tax 40,683,000 51,716,500 55,317,537 3,601,037 107% Other Misc Revenue 15,418,762 35,731,877 38,786,727 3,054,850 109% Taxes-Property 27,454,867 27,859,574 31,678,533 3,818,960 114% Charges for Services 14,986,948 16,670,863 17,871,983 1,201,120 107% Transfer In 9,711,807 14,198,321 15,527,641 1,329,321 109% Special Assessments 11,229,745 11,229,745 11,360,911 131,166 101% Taxes-VLF/Property Tax Comp 9,301,070 9,638,000 10,186,630 548,630 106% Taxes-Franchises 3,968,420 4,705,100 4,960,011 254,911 105% Taxes-Other 2,955,663 2,955,663 2,815,689 (139,974) 95% Taxes-Transient Occupancy Tax 1,179,270 2,214,700 1,898,348 (316,352) 86% License/Permit Fees 1,618,857 1,814,688 2,352,370 537,682 130% Taxes-Business Licenses 730,330 920,000 928,285 8,285 101% Taxes-Property Transfer 660,800 900,000 576,080 (323,920) 64% Chrg for Svc-Waste Management 360,000 550,000 700,000 150,000 127% Chrg for Svc-ApplealslAdmin Fee - 250 50 (200) 20% Loan/Bond/Lease Proceeds 20,000 - 21,566 21,566 0% Tax-Special Tax - - 9,575,626 9,575,626 0% Total Revenue 140,279,539$ 181,105,280$ 204,557,987$ 23,452,706$ 113% FY 2022/23
Adopted
Budget
FY 2022/23
Amended
Budget
FY23 YTD
thru 6/30/23
Variance
Amount (S)
% Used thru
6/30/23
Expenditures
Personnel Costs 76,991,369 78,767,913$ 77,977,434$ (790,479)$ -1% Operations & Maintenance 38,620,622 61,067,364$ 57,706,098$ (3,361,266)$ -6% Capital Outlay 1,941,740 8,144,818$ 9,066,436$ 921,618$ 11% Allocations 7,042,968 7,372,588$ 6,834,607$ (537,981)$ -7% Transfer Out 9,711,807 14,198,321$ 17,027,641$ 2,829,321$ 20% Total Expenditures 134,308,507$ 169,551,005$ 168,612,218$ (938,787)$ -1%
CITYWIDE
Revenues
The three revenue categories that experienced the most significant increases in FY 2022/23 were Sales Tax, Property Tax, and Other Miscellaneous Revenues.
· The City has seen steady revenue growth in the FY in Sales Tax and Property Tax. Sales Tax comprises two sources: Bradley Burns (local Sales & Use Tax) and Measure T (a voter-approved 1% District Tax). These two sources are the primary revenue generators for the City. Sales Tax revenue experienced significant increases before FY 2022/23, but it is now leveling out to regular levels of growth. The Sales Tax budget was conservatively established due to the uncertainty of the economy; however, collections exceeded the Amended Budget by $3,601,037 (or 7%), with a total collection of $55,317,537. Bradley Burns (Sales Tax) has seen a 3% increase from the prior year, whereas Measure T's growth was less than 1%. The chart below shows the Sales Taxes collected from FY 2019/20, the first full year Measure T was collected, to the present.
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Agenda Item No. 14.
· Property taxes for FY 2022/23 were 14% higher than anticipated or $3.8 million above the projection.
The City experienced strong home sales through most of the fiscal year until interest rates started to rise to offset rising inflation. As interest rates are nearly double what they were last year, Property Taxes are anticipated to reduce back to an average 2-3% annual increase. · In FY 2022/23, the City received approximately $38.7 million in Other Miscellaneous Revenues, which exceeded the anticipated revenue by 9%. These revenues comprise Developer Impact Fees, Federal & State reimbursements, and Other Revenues.
The City received $9.5 million in Special Taxes in FY 2022/23. These taxes are collected from properties within Community Facilities Districts (CFDs), also known as Mello-Roos Districts, to fund the annual debt service on the bonds. The CFDs were formed to fund the acquisition of public facilities in connection with new construction.
In accordance with Governmental Accounting Standards Board (GASB) Statement No. 91, the City must recognize Revenues and Expenditures related to the CFDs. Previously, the activities related to these districts were only recognized on the balance sheet. A budget will be established for all Revenues and Expenditures associated with the CFDs going forward.
Expenditures
Citywide expenditures ended the year being under budget by $938,787. The most significant budgetary savings came from Personnel Costs and Operations & Maintenance (O&M). · Personnel Costs were under budget by $790,479 or 1% under the Amended Budget. Most savings derive from unanticipated vacant positions and the delay in hiring newly budgeted positions. · The O&M costs were $3.3 million or 6% less than the Amended Budget. The savings were mainly due to Contract Services.
· Internal service fund allocations ended the FY $537,981 under budget. This was intentional due to the year-end true-up of the Information Technology (IT) Fund. Any budgetary savings within this fund were credited back to each contributing fund.
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12/5/2023
Agenda Item No. 14.
The Transfers Out Expenditure category was over budget by $2.8 million, which is a result of negative and positive variances. Operating Transfers to funds that do not have sufficient revenues to cover their expenses are "trued-up" at the end of the FY. The "true-up" resulted in budgetary savings of $4.1 million for certain funds; however, there was $6.9 million in unbudgeted transfers related to the CFDs associated with Debt Service payments. These transfers will be budgeted going forward.
Estimated Components of Fund Balance
In accordance with GASB Statement Number 54, each fund balance is categorized primarily based on the extent of its resource usage constraint. The table below displays the anticipated variations in each fund balance category within the General Fund and Measure T Fund from June 30, 2022, to June 30, 2023.
The balances are not only reliant on the operation outcomes (i.e., the difference between Revenues and Expenditures), but also on the changes in other fund balance categories such as long-term note receivables, inventory, annual debt service payments, capital projects, and unspent appropriations carried over to the succeeding FY. As mentioned earlier, the amounts are subject to change until the external audit and the City's FY 2022/23 financial statements have been completed. Below is a classification of the General Fund and Measure T fund balances. The fund balance classifications for the remaining major funds (Fire, CSD, and Library) can be found in Attachment 4. The estimated fund balances for all funds are also listed in Attachment
5. For the General Fund, the most significant changes in the fund balance classifications come from Committed and Unassigned.
· The Committed Fund Balance of the General Fund has increased by approximately 2%. The primary CITY OF MURRIETA Printed on 12/1/2023Page 5 of 7
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Agenda Item No. 14.
· The Committed Fund Balance of the General Fund has increased by approximately 2%. The primary reason for this increase is the requested carryovers from FY 2022/23 to FY 2023/24, which will be discussed in detail in the following sections. Furthermore, the Unassigned Fund Balance has increased by 41.6%, which brings the estimated Unassigned Fund Balance to $36,591,368. This growth can be attributed to higher-than-anticipated revenues and planned and unplanned expenditure savings as well as fund balance changes in the other fund balance categories.
For the Measure T Fund, the most significant changes in the fund balance classifications come from Committed and Unassigned.
· The Committed Fund Balance decreased by 26.9% due to decreases in funding needed for capital projects. However, the Unassigned Fund Balance increased by 126.2%, equivalent to $31,212,803.
This increase was due to higher-than-anticipated revenues and savings from planned and unplanned expenses.
It is important to note that while the Unassigned Fund Balances for the General Fund and Measure T appear to be high, most of those balances were designated as part of the Biennial Budget Adoption.
Appropriation of Unassigned Fund Balance
To ensure that the City functions optimally and remains financially stable, it is crucial to focus on maintaining reserves for both operations and sustainability. Staff recommends allocating a portion of the projected Unassigned Fund Balance for Measure T to these Reserves as part of this budget update.
For FY 2022/23, the delta between actual Revenues and Expenditures for the General Fund was approximately $10.6 million. A portion of the excess will fund the proposed carryover requests discussed in the following section. Staff will propose an allocation of the balance of the excess during the upcoming FY 2023/24 Mid-Year Budget Update.
For FY 2022/23, the delta between actual Revenues and Expenditures for Measure T Fund was approximately $9.4 million; this was approximately $4.69 million more than what was anticipated. Staff recommends appropriating this excess to Economic Contingency and Continuing Operations Reserves.
Fund/Reserve Amount
Measure T
Unassigned Fund Balance 238,904
Economic Contingency 1,282,884$
Continuing Operations 4,000,000
Total Allocation 5,282,884$
Allocation of Excess Unassigned Fund Balance
The funds appropriated to the Economic Contingency Reserve will be set aside to address financial impacts resulting from changes in the economic environment. Funds appropriated in the Continuing Operations Reserve will be used to fund the recently approved public safety employee group memorandums of understanding (MOUs), if needed; unanticipated one-time expenditures; equipment; and capital improvements. Per the Fund Balance and Reserve Policy 100-11, the City Council will need to authorize funds from any Reserve category before its use.
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Agenda Item No. 14.
Requested Carryover FY 2022/23 Budget Appropriations to FY 2023/24 Purchase Orders (POs) are used to encumber funds for procurement of goods and services required for operating activities and/or specific projects. If the projects remain unfinished by the end of the fiscal year the PO was established, the remaining budget and PO can be carried over to the following year with City Council authorization. Staff identified projects that were not completed during FY 2022/23 due to various reasons such as timing, staffing, reprioritization of workload, or projects spanning multiple years. Most of the PO carryover requests, accounting for 70%, are related to Capital Improvement Projects, while the remaining 30% are from Operations.
In addition to the PO carryovers, there are some requests for budget-only carryovers that are not associated with a PO. The total amount of these carryover requests for revenues is $3,934,425 and $4,248,978 in expenditures. These budgets were reserved for grant-funded projects not completed in the previous FY 2022/23, but City staff expects them to be finished in the current FY 2023/24. Examples of budget-only carryovers include one-time replacement or purchase of computer equipment and software, fire vehicle equipment, and unspent grant funds.
The requested budget amounts for carryover are currently unspent and available. If not requested for carryover, these amounts would have been considered budgetary savings and would have contributed to the fund balance. A brief summary by Fund number is presented below to provide an overview of the carryover requests. For detailed information, please refer to Attachment 3.
FISCAL IMPACT
No net fiscal impact is associated with the action related to the carryover of unspent appropriations. The previously authorized expenditures will simply be spent in a later period, which only affects the timing of cash flow.
Appropriate excess Measure T Unassigned Fund Balance in the amount of $5,282,884 as reference in this report.
ATTACHMENTS
1. FY 2022/23 Budget to Actual Report - Major Funds
2. FY 2022/23 Budget to Actual Report - All Funds
3. FY 2022/23 Carryover Requests by General Ledger Account and Purchase Order
4. Components of Fund Balance (Estimated)
5. Fund Balances for All Funds (Estimated)
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Fiscal Year 2022/23 Year End Summary of Major Funds - December 5, 2023 Council Action FY 2022/23
Adopted Budget
FY 2022/23
Amended
Budget
FY23 YTD thru
6/30/23
Variance
Amount (S)
% Received
thru 6/30/23
Revenue
Charges for Services 2,080,080$ 4,072,095$ 4,853,158.58$ 781,064$ 119% Chrg for Svc-ApplealslAdmin Fee - 250 50 (200) 20% Chrg for Svc-Waste Management 360,000 550,000 700,000 150,000 127% License/Permit Fees 1,618,857 1,814,688 2,351,057 536,369 130% Loan/Bond/Lease Proceeds - - 21,566 21,566 0% Other Misc Revenue 4,499,610 4,861,345 7,120,153 2,258,809 146% Taxes-Business Licenses 730,330 920,000 928,285 8,285 101% Taxes-Franchises 3,918,420 4,655,100 4,915,332 260,232 106% Taxes-Property 9,114,340 9,577,447 10,639,940 1,062,493 111% Taxes-Property Transfer 660,800 900,000 576,080 (323,920) 64% Taxes-Sales Tax 20,600,000 24,748,000 26,779,284 2,031,284 108% Taxes-Transient Occupancy Tax 1,179,270 2,214,700 1,898,348 (316,352) 86% Taxes-VLF/Property Tax Comp 9,301,070 9,638,000 10,186,630 548,630 106% Transfer In 307,010 32,727 41,532 8,805 127% Total Revenue 54,369,787$ 63,984,351$ 71,011,416$ 7,027,065$ 111% FY 2022/23
Adopted Budget
FY 2022/23
Amended
Budget
FY23 YTD thru
6/30/23
Variance
Amount (S)
% Used thru
6/30/23
Expenditures
Allocations 4,760,855$ 4,979,755$ 4,712,359.37$ (267,395)$ 95% Capital Outlay 917,200 1,698,609 914,134 (784,475) 54% Operations & Maintenance 9,905,358 14,032,032 11,743,071 (2,288,961) 84% Personnel Costs 40,775,515 41,527,168 41,660,904 133,736 100% Transfer Out 451,964 1,466,784 1,306,275 (160,509) 89% Total Expenditures 56,810,893$ 63,704,349$ 60,336,744$ (3,367,605)$ 95% Contribution to/(Use of) Fund Balance (2,441,105)$ 280,003$ 10,674,672$
GENERAL FUND