Murrieta City Council
June 17, 2025

SECTION B

TERMS AND CONDITIONS FOR SOFTWARE LICENSES, SOFTWARE AND EQUIPMENT SUPPORT SERVICES,

AND EDUCATIONAL AND PROFESSIONAL SERVICES
This Section B applies to Software licensed, Equipment purchased, support services for Software and Equipment, and educational and professional services, when such items are identified on the Order which expressly references this Agreement.

1. PAYMENT AND DELIVERY
Unless otherwise set forth in this Agreement, payment terms are indicated on the Order Form or other contemporaneous ordering document containing product-specific payment terms signed by the parties. Delivery terms are as stated on the Order Form (“Delivery”).

Kronos will invoice Customer for products upon Delivery. Unless otherwise set forth on the Order Form, Professional and Educational Services are provided on a time and materials basis, invoiced monthly as rendered.

2. GENERAL LICENSE TERMS
Kronos owns or has the right to license the Software. The Software and Software documentation are confidential and may not be disclosed to a third party without Kronos’ written consent. The Software contains proprietary trade secret technology. Unauthorized use and copying of such Software is prohibited by law, including United States and foreign copyright law. The price Customer pays for a copy of the Software constitutes a license fee that entitles Customer to use the Software as set forth below. Kronos grants to Customer a non-exclusive, nontransferable, perpetual (except as provided herein) license to use the Software. This license may be terminated by Kronos by written notice to Customer upon any material breach of this Agreement by Customer which remains uncured for a period of thirty (30) days after such written notice from Kronos. Upon such termination of this license by Kronos, Customer will have no further right to use the Software and will return the Software media to Kronos and destroy all copies of the Software (and related documentation) in Customer’s possession or control. This license is subject to all of the terms of this Section B.

3. FEE BASED LIMITATIONS
Customer recognizes and agrees that the license to use the Software is limited, based upon the amount of the license fee paid by Customer. Limitations, which are set forth on the Order Form, may include the number of employees, simultaneous or active users, Software product modules, Software features, computer model and serial number and partition, and/or the number of telephone lines or terminals to which the Software is permitted to be connected. Customer agrees to: i) use the Software only for the number of employees, simultaneous or active users, computer model, partition and serial number, and/or terminals permitted by the applicable license fee; ii) use only the product modules and/or features permitted by the applicable license fees; and iii) use the Software only in support of Customer’s own business. Customer agrees not to increase the number of employees, simultaneous or active users, partitions, terminals, products modules, features, or to upgrade the model, as applicable, unless and until Customer pays the applicable fee for such increase/upgrade. Customer may not relicense or sublicense the Software to, or otherwise permit use of the Software (including timesharing or networking use) by any third party. Customer may not provide service bureau or other data processing services that make use of the Software without the express prior written consent of Kronos.

4. OBJECT CODE ONLY
Customer may use the computer programs included in the Software (the “Programs”) in object code form only, and shall not reverse compile, disassemble or otherwise convert the Programs into uncompiled or unassembled code. The Programs include components owned by third parties. Such third party components are deemed to be Software subject to this Section B. Customer shall not use any of the Programs (or the data models therein) except solely as part of and in connection with the Software and as described in the published documentation for such Software.

5. PERMITTED COPIES
Customer may copy the Programs as reasonably necessary to load and execute the Programs and for backup and disaster recovery and testing purposes only, except for additional copies of the Teletime Software and the Kronos iSeries (which must be licensed separately). All copies of the Programs or any part thereof, whether in printed or machine readable form and whether on storage media or otherwise, are subject to all the terms of this license, and all copies of the Programs or any part of the Programs shall include the copyright and proprietary rights notices contained in the Programs as delivered to the Customer.

6. UPDATES
In the event that Kronos supplies Service Packs, Point Releases and Major Releases (including legislative updates if available) of the Software (collectively referred to as “Updates”), such Updates shall be part of the Software and the provisions of this license shall apply to such Updates and to the Software as modified thereby.

7. ACCEPTANCE
For Customer’s initial purchase of each Equipment and Software product Kronos shall provide an acceptance test period (the “Test Period”) that commences upon Installation. Installation shall be defined as: a.) the Equipment, if any, is mounted; b.) the Software is installed on Customer’s server(s); and c.) implementation team training, if any, is complete. During the Test Period, Customer shall determine whether the Equipment and Software meet the Kronos published electronic documentation, ("Specifications").

The Test Period shall be for 30 days. If Customer has not given Kronos a written deficiency statement specifying how the Equipment or Software fails to meet the Specifications (“Deficiency Statement”) within the Test Period, the Equipment and Software shall be deemed accepted. If Customer provides a Deficiency Statement within the Test Period, Kronos shall have 30 days to correct the deficiency, and Customer shall have an additional 30 days to evaluate the Equipment and Software. If the Equipment or Software does not meet the Specifications at the end of the second 30 day period, either Customer or Kronos may terminate this Agreement. Upon any such termination, Customer shall return all Equipment and Software (and related documentation) to Kronos, and Kronos shall refund any monies paid by Customer to Kronos for the returned Equipment and Software. Neither party shall then have any further liability to the other for the products that were the subject of the Acceptance Test. 441

8. LIMITED WARRANTY
Kronos warrants that all Kronos Equipment and Software media shall be free from defects in materials and workmanship, for a period of ninety (90) days from Delivery. In the event of a breach of this warranty, Customer’s remedy shall be Kronos’ repair or replacement of the deficient Equipment and/or Software media, at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the Specifications. This warranty is extended to Customer only and shall not apply to any Equipment (or parts thereof) or Software media in the event of:
(a) damage, defects or malfunctions resulting from misuse, accident, neglect, tampering, (including modification or replacement of any Kronos components on any boards supplied with the Equipment), unusual physical or electrical stress or causes other than normal and intended use;
(b) failure of Customer to provide and maintain a suitable installation environment, as specified in the Specifications; or (c) malfunctions resulting from the use of badges or supplies not approved by Kronos.

When using and applying the information generated by Kronos products, Customer is responsible for ensuring that Customer complies with requirements of federal and state law where applicable. If Customer is licensing Workforce Payroll Software or Workforce Absence Management Software: (i) Customer is solely responsible for the content and accuracy of all reports and documents prepared in whole or in part by using such Software, (ii) using such Software does not release Customer of any professional obligation concerning the preparation and review of such reports and documents, (iii) Customer does not rely upon Kronos, Best Software, Inc. or such Software for any advice or guidance regarding compliance with federal (and state laws where applicable) or the appropriate tax treatment of items reflected on such reports or documents, and (iv) Customer will review any calculations made by using such Software and satisfy itself that those calculations are correct.

9. PROFESSIONAL AND EDUCATIONAL SERVICES
(a) ENGAGEMENTS
Unless otherwise indicated on the Order, Professional and Educational Services (“Professional Services”) shall be provided on a time and material basis and described in a statement of work. If a dollar limit is stated in the Order Form or any associated statement of work (“SOW”), the limit shall be deemed an estimate for Customer's budgeting and Kronos' resource scheduling purposes. After the dollar limit is expended, Kronos will continue to provide Professional Services on a time and materials basis, if a Change Order or Schedule of Services for continuation of the Professional Services is signed by both parties. (b) WARRANTY
Kronos warrants that all professional and educational services performed under this Agreement shall be performed in a professional and competent manner. In the event that Kronos breaches this warranty, and Customer so notifies Kronos within 30 days of receipt of invoice for the applicable services, the Customer’s remedy and Kronos’ liability shall be to re-perform the services which were deficient in a manner so as to conform to the foregoing warranty, at no additional cost to Customer. (c) KRONOS PROFESSIONAL/EDUCATIONAL SERVICES POLICIES
Kronos’ then-current Professional/Educational Services Policies shall apply to all Professional and/or Educational Services purchased under the applicable SOW and may be accessed at: http://www.kronos.com/Support/ProfessionalServicesEngagementPolicies.htm (“Professional Services Policies”). In the event of a conflict between the Professional Services Policies and this Agreement, the terms of this Agreement shall prevail.

10. SOFTWARE SUPPORT SERVICES
The following terms and conditions shall govern the Software support services provided by Kronos to Customer.

10.1 SUPPORT OPTIONS
Customer may select from the following Software support purchase options: Gold (or Gold Plus) and Platinum (or Platinum Plus) support (“Service Type”), each providing different service coverage periods and/or service offerings, as specified herein (“Service Offerings”) and in the Kronos Support Service Policies (defined below). Customer must purchase the same Service Type for all of the Software specified on the Order Form, (however, if Customer is purchasing support services for Visionware Software, Customer may only purchase Gold Service Type for the Visionware Software). All Updates shall be provided via remote access.

10.2 TERM OF SOFTWARE SUPPORT
Unless otherwise indicated on the Order Form, support service shall commence on the Software Delivery date and shall continue for an initial term of one (1) year. Support service may be renewed for additional one (1) year terms on the anniversary date of its commencement date by mutual written agreement of the parties or by Kronos sending Customer an invoice for the applicable renewal term and Customer paying such invoice prior to the commencement of such renewal term. After the one year initial term of this Agreement, the Service Offerings provided and the Service Coverage period are subject to change by Kronos with sixty (60) days advance written notice to Customer. For the initial two (2) renewal years the annual support fee, for the same products and service type, will not increase by more than 4% over the prior year’s annual support fee.

10.3 GOLD SERVICE OFFERINGS
Customer shall be entitled to receive:
(i) Updates for the Software (not including any Software for which Kronos charges a separate license fee), provided that Customer’s operating system and equipment meet minimum system configuration requirements, as reasonably determined by Kronos. If Customer requests Kronos to install such Updates or to provide retraining, Customer agrees to pay Kronos for such installation or retraining at Kronos’ pricing set forth in this Agreement.
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(ii) Telephone and/or electronic access to the Kronos Global Support Center for the logging of requests for service during the Service Coverage Period. The Service Coverage Period for the Gold Service Offering is 8:00 a.m. to 8:00 p.m., local time, Monday through Friday, excluding Kronos holidays.
(iii) Web-based support including access to Software documentation, FAQ’s, access to Kronos knowledge base, Customer forums, and e-case management. Such offerings are subject to modification by Kronos. Current offerings can be found at http://www.kronos.com/services/support-services.aspx .
(iv) Web-based remote diagnostic technical assistance which may be utilized by Kronos to resolve Software functional problems and user problems during the Service Coverage Period.
(v) Access to specialized content as and when made available by Kronos such as technical advisories, learning quick tips, brown bag seminars, technical insider tips, SHRM e-Learning, HR Payroll Answerforce and service case studies.

10.4 PLATINUM AND PLUS SERVICE OFFERINGS:

Platinum: In addition to the Service Offerings specified for the Gold Service Offering above, the Service Coverage Period for the Platinum Service Offering is 24 hours a day, seven days a week, 365 days a year.

Plus option: In addition to the Service Offerings specified for the Gold Service Offering above, Customers purchasing the Plus option shall receive the services of a dedicated, but not exclusive, Kronos Technical Account Manager (“TAM”) for one production instance of the Software. Customers purchasing the Gold-Plus option shall designate up to one primary and one secondary backup technical contacts (“Technical Contacts”) to be the sole contacts with the TAM, while Customers purchasing the Platinum-Plus option shall designate up to two primary and three secondary backup Technical Contacts. Upon request, Customer may designate additional and/or backup Technical Contacts. Customer is required to place all primary Technical Contacts through Kronos product training for the Software covered under this Section B at Customer’s expense.

Customers purchasing the Platinum-Plus option shall also receive a one day per year visit to be performed at the Customer location where the Software is installed. During this onsite visit, Kronos shall work with Customer to identify ways to help Customer increase functionality or maximize utilization of the Software in Customer’s specific environment. Customer must be utilizing the then-current version of the Software.

10.5 PAYMENT
Customer shall pay annual support charges for the initial term in accordance with the payment terms on the Order Form and for any renewal term upon receipt of invoice. Customer shall pay additional support charges, if any, and time and material charges upon receipt of invoice

10.6 ADDITION OF SOFTWARE
Additional Software purchased by Customer as per the ordering procedure set out in the agreement during the initial or any renewal term shall be added to the Support Services at the same support option as the then current Software support coverage in place under these terms. Customer agrees to pay the charges for such addition as per the Order.

10.7 RESPONSIBILITIES OF CUSTOMER
Customer agrees (i) to provide Kronos personnel with full, free and safe access to Software for purposes of support, including use of Kronos’ standard remote access technology, if required; (ii) to maintain and operate the Software in an environment and according to procedures which conform to the Specifications; and (iii) not to allow support of the Software by anyone other than Kronos without prior written authorization from Kronos. Failure to utilize Kronos’ remote access technology may delay Kronos’ response and/or resolution to Customer’s reported Software problem. If Customer requires the use of a specific remote access technology not specified by Kronos, then Customer must purchase the Plus option to receive support and provide Kronos personnel with full, free and safe access to the remote access hardware and/or software.
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10.8 DEFAULT
Customer shall have the right to terminate Kronos support services in the event that Kronos is in breach of the support services warranty set forth below and such breach is not cured within fifteen (15) days after written notice specifying the nature of the breach.

In the event of such termination, Kronos shall refund to Customer on a pro-rata basis those pre-paid annual support fees associated with the unused portion of the support term. Kronos reserves the right to terminate or suspend support service in the event the Customer is in default under this Agreement with Kronos and such default is not corrected within fifteen (15) days after written notice. In addition, the support services will terminate and all charges due hereunder will become immediately due and payable in the event that Customer ceases to do business as a going concern or has its assets assigned by law.

10.9 WARRANTY
Kronos warrants that all support services shall be performed in a professional and competent manner.

11. EQUIPMENT SUPPORT SERVICES
The following terms and conditions shall govern the equipment support services provided by Kronos to Customer.

Kronos and Customer hereby agree that Kronos shall provide depot equipment repair support services ("Depot Support Services") for Customer's Kronos Equipment ("Product(s)") specified on an Order Form to and from locations within the United States and Puerto Rico pursuant to the following terms and conditions:
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11.1 TERM
Equipment Support Services for the Product(s) have a term of one (1) year commencing upon the expiration of the applicable warranty period, as specified in this Section B . Equipment Support Services can be extended for additional one year terms on the anniversary of its commencement date ("Renewal Date") by mutual written agreement of the parties or by Kronos sending Customer an invoice for the applicable renewal term and Customer paying such invoice prior the commencement of such renewal term. For the initial two (2) renewal years the annual support fee, for the same products and service type, will not increase by more than 4% over the prior year’s annual support fee to the extent consistent with the pricing set forth under the Agreement.

11.2 PAYMENT
Customer agrees to pay the Support Charges for the initial term as set forth on the Order Form for each Product listed. Customer agrees that all Products of the same type that are owned by the Customer, including without limitation Customer's "Spare Products" (as defined below), will be subject to this Agreement. Customer agrees that if Customer purchases, during the term of this Agreement, any Products of the same type as those specified on an Order Form, such additional Products shall be subject to this Agreement.

Customer agrees to pay a prorated fee for such additional Products and agrees to pay the full annual fee for such additional Products, upon the renewal date.

Kronos will invoice Customer for the annual Support Charges each year in advance of the Renewal Date. Customer will pay Kronos within thirty (30) days of receipt of invoice.

11.3 DEPOT SUPPORT SERVICE DESCRIPTION
Upon the failure of installed Equipment, Customer shall notify Kronos of such failure and Kronos will provide remote fault isolation at the FRU (Field Replacement Unit) or subassembly level and attempt to resolve the problem. Those failures determined by Kronos to be Equipment related shall be dispatched to a Kronos Depot Repair Center, and Customer will be provided with a Return Material Authorization Number (RMA) for the failed Equipment if Customer is to return the failed Equipment to Kronos, as reasonably determined by Kronos. Customer must return the failed Equipment with the supplied RMA number. Hours of operation, locations and other information related to Kronos’ Depot Repair Centers are available upon request and can be found athttps://customer.kronos.com/contact/contact-phone.aspx and are subject to change. Return and repair procedures for failed Equipment shall be provided based on the Depot option - Depot Exchange or Depot Repair - selected by Customer on the applicable Order Form and as specified herein and in Kronos’ then-current Support Services Policies. Service packs for the Equipment (as described in subsection (b) below) are included in both Depot Exchange and Depot Repair Support Services. (i) Depot Exchange: Kronos will provide a replacement for the failed Equipment at the FRU or subassembly level on an "advanced exchange" basis, utilizing a carrier of Kronos’ choice. Replacement Equipment will be shipped the same day, for delivery to Customer’s location as further described in the Support Policies. REPLACEMENT EQUIPMENT MAY BE NEW OR RECONDITIONED. Customer shall specify the address to which the Equipment is to be shipped. All shipments will include the Kronos provided RMA designating the applicable Kronos Depot Repair Center, as the recipient. Customer, upon receipt of the replacement Equipment from Kronos, shall package the defective Equipment in the materials provided by Kronos, with the RMA supplied and promptly return failed Equipment directly to Kronos.
(ii) Depot Repair: Upon failure of installed Equipment, Customer shall install a Spare Product to replace the failed Equipment.

Customer shall then return the failed Equipment, with the required RMA, to the applicable Kronos Depot Repair Center. Customer shall make reasonable efforts to return the failed Equipment using the same or substantially similar packing materials in which the original Equipment was sent. Customer shall also specify the address to which the repaired Equipment should be return shipped. Upon receipt of the failed Equipment, Kronos shall repair the failed Equipment and ship it, within ten (10) business days after receipt, to Customer. Kronos shall ship the repaired Equipment by regular surface transportation to Customer.

Kronos warrants that all repairs performed under the Agreement shall be performed in a professional and competent manner. In the event of a breach of this warranty, the exclusive remedy of Customer and sole liability of Kronos shall be replacement of the repaired Equipment.

11.4 EQUIPMENT SERVICE PACK SUPPORT SERVICE DESCRIPTION If Customer purchase the Equipment service packs support, Kronos manufactured terminals specified on an Order, Customer shall be entitled to receive:
(i) Service packs for the Equipment (which may contain system software updates, firmware updates, security updates, and feature enhancements) available for download at Kronos’ customer portal; and (ii) Access to the Kronos Support Services Center for the logging of requests for assistance downloading service packs for the Equipment.

Service packs for the Equipment are not installed by the Kronos Depot Repair Center but are available for download at Kronos’ customer portal, provided Customer is maintaining the Equipment under an annual Equipment Support Services plan with Kronos.

Kronos warrants that all service packs and firmware updates provided under this Agreement shall materially perform in accordance with the Kronos published specifications for a period of ninety (90) days after download by Customer. In the event of a breach of this warranty, Customer’s exclusive remedy shall be Kronos’ repair or replacement of the deficient service pack(s) or firmware update(s), at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the specifications.

11.5 RESPONSIBILITIES OF CUSTOMER
Customer agrees that it shall return failed Products promptly as the failures occur and that it shall not hold failed Products and send failed Product to Kronos in "batches" which shall result in a longer turnaround time and surcharge to Customer. In addition, Customer agrees to:
(a) Maintain the Products in an environment conforming to Kronos' published specifications for such Products; (b) De-install all failed Products and install all replacement Products in accordance with Kronos' published installation guidelines; (c) Ensure that the Product(s) are returned to Kronos properly packaged; and 444

(d) Obtain an RMA before returning any Product to Kronos and place the RMA clearly and conspicuously on the outside of the shipping package. Customer may only return the specific Product authorized by Kronos when issuing the RMA.

11.6 SUPPORT EXCLUSIONS
Depot Support Service does not include the replacement of "consumables". In addition, Depot Support Service does not include the repair of damages, and Customer will not attempt to return damaged Product, resulting from:
(a) Any cause external to the Products including, but not limited to, electrical work, fire, flood, water, wind, lightning, transportation, or any act of God;
(b) Customer's failure to continually provide a suitable installation environment (as indicated in Kronos' published installation guidelines) including, but not limited to, adequate electrical power; (c) Customer's improper use, relocation, packaging, refinishing, management or supervision of the Product(s) or other failure to use Products in accordance with Kronos' published specifications; (d) Customer's use of the Products for purposes other than those for which they are designed or the use of accessories or supplies not approved by Kronos;
(e) Government imposed sanctions, rules, regulations or laws preventing the shipment of the Products; or (f) Customer's repair, attempted repair or modification of the Products.

Professional services provided by Kronos in connection with the installation of any Software or firmware upgrades, if available, and if requested by Customer, are not covered by Depot Support Services. Firmware (including equipment service packs) which may be available to resolve a Product issue is not installed by the Kronos Depot Repair Center but is available for download at Kronos' customer web site provided Customer is maintaining the Product under an annual Depot Support Services plan with Kronos.

11.7 WARRANTY
(a) Depot Repair and Exchange warranty: Kronos warrants that all repairs performed under this Section B shall be performed in a professional and competent manner.
(b) Services Pack support Warranty: Kronos warrants that all service packs and firmware updates provided under this Section B shall materially perform in accordance with the Kronos published specifications for a period of ninety (90) days after download by Customer.

In the event of a breach of this warranty, Customer’s remedy shall be Kronos’ repair or replacement of the deficient service pack(s) or firmware update(s), at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the specifications.

11.8 LIMITATION OF REMEDIES
To the extent permitted by law, the remedy of Customer and liability of Kronos shall be replacement of the repaired Product.

12. KRONOS SUPPORT SERVICE POLICIES
Kronos’ then-current Support Services Policies shall apply to all Support Services purchased and may be accessed at:
http://www.kronos.com/Support/SupportServicesPolicies.htm (“Support Policies”). In the event of a conflict between the Support Policies and this Agreement, the terms of this Agreement shall prevail.

13. FIRMWARE
Customer may not download firmware updates for the Kronos Equipment unless Customer is maintaining such Equipment under a support plan with Kronos. If Customer is not maintaining the Equipment under a support plan with Kronos, Kronos shall have the right to verify Customer’s Kronos Equipment to determine if Customer has downloaded any firmware to which Customer is not entitled.

14. TRAINING POINTS
Training Points which are purchased by Customer may be redeemed for an equivalent value of instructor-led training sessions offered by Kronos. Available instructor-led sessions are listed at http://customer.Kronos.com and each session has the Training Points value indicated. Training Points are invoiced when used by the Customer. Points may be redeemed at any time within 12 months of the date of the applicable Order Form, at which time they shall expire. Training Points may not be exchanged for other Kronos products and/or services.

15. KNOWLEDGEPASS EDUCATION SUBSCRIPTION:

The parties hereby agree that the following terms shall apply to Customer’s purchase of the Kronos KnowledgePass Education Subscription only, if specified on the Order Form:

Scope: The KnowledgePass Education Subscription is available to customers who are licensing Kronos’ Workforce Central and iSeries Timekeeper Software products and who are maintaining such products under a support plan with Kronos. The KnowledgePass Education Subscription provides access via the internet to certain educational offerings provided by Kronos (the “KnowledgePass Content”), including:

Product and upgrade information for project teams and end users Hands-on interactive instruction on common tasks
Self-paced tutorials covering a range of topics
Job aids
Knowledge assessment and reporting tools to measure progress Webinars
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Term of Subscription: The annual KnowledgePass Education Subscription shall run co-terminously with Customer’s Software Support, and shall renew for additional one (1) year terms provided Customer renews its KnowledgePass Education Subscription as provided below.

Payment: Customer shall pay the annual subscription charge for the initial term of the KnowledgePass Education Subscription in accordance with the payment terms on the Order Form. Kronos will send Customer a renewal invoice for renewal of the KnowledgePass Education Subscription at least forty five (45) days prior to expiration of the then current term. KnowledgePass Education Subscription shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or any renewal term.

The KnowledgePass Subscription is available when the Customer subscribe on annual basis.

Limitations: Customer recognizes and agrees that the KnowledgePass Content is copyrighted by Kronos. Customer is permitted to make copies of the KnowledgePass Content provided in *pdf form solely for Customer’s internal use and may not disclose such KnowledgePass Content to any third party other than Customer’s employees. Customer may not edit, modify, revise, amend, change, alter, customize or vary the KnowledgePass Content without the written consent of Kronos, provided that Customer may download and modify contents of Training Kits solely for Customer’s internal use.

Train-the-Trainer Program (TTT): Certification under the Train-the-Trainer Program is valid only for the point release of the Software for which the TTT Program is taken, and covers only the Customer employee who completes the TTT Program.

16. INDEMNIFICATION
Kronos agrees to indemnify Customer and to hold it harmless from and against any and all claims, costs, fees and expenses (including reasonable legal fees) relating to actual or alleged infringement of United States or Canadian patents or copyrights asserted against Customer by virtue of Customer's use of the Software as delivered and maintained by Kronos, provided that: i) Kronos is given prompt written notice of any such claim and has sole control over the investigation, preparation, defense and settlement of such claim; and, ii) Customer reasonably cooperates with Kronos in connection with the foregoing and provides Kronos with all information in Customer's possession related to such claim and any further assistance as reasonably requested by Kronos. Kronos will have no obligation to indemnify Customer to the extent any such claim is based on the use of the Software with software or equipment not supplied by Kronos. Should any or all of the Software as delivered and maintained by Kronos become, or in Kronos' reasonable opinion be likely to become, the subject of any such claim, Kronos may at its option: i) procure for Customer the right to continue to use the affected Software as contemplated hereunder; ii) replace or modify the affected Software to make its use non-infringing; or iii) should such options not be available at reasonable expense, terminate this Agreement with respect to the affected Software upon thirty (30) days prior written notice to Customer. In such event of termination, Customer shall be entitled to a pro-rata refund of all fees paid to Kronos for the affected Software, which refund shall be calculated using a five year straight-line depreciation commencing with the date of the relevant Order. Additionally, Kronos agrees to be liable for tangible property damage or personal injury to the extent caused by the negligence or willful misconduct of its employees.

17. LIMITATION OF LIABILITY

CUSTOMER'S EXCLUSIVE REMEDIES AND KRONOS' SOLE LIABILITY FOR ANY KRONOS BREACH OF THIS AGREEMENT ARE EXPRESSLY STATED HEREIN. EXCEPT AS PROVIDED IN THIS AGREEMENT, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE EXCLUDED.

EXCEPT FOR i) KRONOS' INDEMNIFICATION OBLIGATIONS SET FORTH IN ARTICLE 16 ABOVE; (II) CUSTOMER’S CLAIMS

FOR TANGIBLE PROPERTY DAMAGE OR PERSONAL INJURY TO THE EXTENT CAUSED BY THE NEGLIGENCE OR WILLFUL MISCONDUCT OF THE OTHER PARTY’S EMPLOYEES, IN NO EVENT SHALL KRONOS' OR ITS PARENTS', SUBSIDIARIES',

AFFILIATES', OR THIRD PARTY LICENSOR'S LIABILITY TO A CUSTOMER, HOWSOEVER CAUSED, EXCEED THE VALUE OF

THE ORDER WHICH GIVES RISE TO THE CLAIM, AND IN NO EVENT WILL KRONOS OR ITS PARENTS, SUBSIDIARIES

AFFILIATES OR THIRD PARTY LICENSORS BE LIABLE FOR LOST PROFITS, LOST DATA OR ANY OTHER INCIDENTAL OR

CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT WHETHER SUCH CLAIM IS BASED ON WARRANTY, CONTRACT, TORT OR THE EXISTENCE, FURNISHING, FUNCTIONING OR CUSTOMER’S SPECIFIC USE OF, OR INABILITY TO SO USE, ANY EQUIPMENT, SOFTWARE OR SERVICES PROVIDED FOR IN THIS AGREEMENT.

18. TERMINATION OF ORDER FORM OR SOW
(a) Termination for breach. For any breach of this Agreement by Kronos in relation with that Customer which cannot be cured by repair, replacement or re-performance, Customer shall have the right to terminate this the Order Form or applicable SOW upon thirty (30) days prior written notice to Kronos, provided Kronos has not cured such breach during such thirty (30) day period. Upon such termination, Customer shall be entitled to pursue its remedies at law or in equity subject to the terms of this Agreement. (b) Termination for non-appropriation of funds. Should the funding for the services ordered by Customer be discontinued, Customer shall have the right to terminate the Order Form relating to such services ordered upon a 30 days written advance notice to Kronos. In such event, the Customer agrees to pay for the products delivered and the services performed under the terms of the Agreement prior to the receipt by Kronos of the termination notice.
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SECTION C

CLOUD APPLICATION HOSTING

SUPPLEMENTAL TERMS AND CONDITIONS
There terms and conditions apply to the cloud services which are identified in the Pricing as the Cloud in the Pricelist Name.

These Application Hosting Supplemental Terms and Conditions are applicable for hosting services ordered by Customer for Kronos Software licensed under Section B of this Agreement.

1. DEFINITIONS
“Acceptable Use Policy” means the Kronos policy describing prohibited uses of the Cloud Services as further described at:
https://www.kronos.com/policies/acceptable-use
“Application(s)” means those Kronos software applications set forth on the applicable Order Form (or a schedule to the Order Form if Customer is only hosting a portion of the Applications for which Customer has a perpetual license) and which are made accessible to Customer for use in the Kronos Private Cloud under the terms of this Section C. “Billing Start Date” means the date on which billing for the Cloud Services will commence, as indicated on the Order Form. “Cloud Services” means access to the password protected customer area of the Kronos Private Cloud and those services related thereto, all as further described at: http://www.kronos.com/products/workforce-central-cloud/cloud-guidelines.aspx “Customer Content” means all content Customer, or others acting on behalf of or through Customer, posts or otherwise inputs into the Kronos Private Cloud.
“Initial Term” means the initial billing term of the Cloud Services as indicated on the Order Form. The Initial Term commences on the Billing Start Date. Customer may have access to the Cloud Services prior to the commencement of the Initial Term. “Monthly Services Fee(s)” means the monthly fees described in the applicable Order Form. “Order Form” means an order form mutually agreed upon by Kronos and Customer setting forth the items ordered by Customer and to be provided by Kronos, including without limitation the prices and fees to be paid by Customer. “Personally Identifiable Data” means information concerning individually identifiable employees of Customer that is protected against disclosure under applicable law or regulation.
“Production Environment” means the environment established for Customer’s daily use of the Applications in a live environment throughout the Term.
“Renewal Term” means the renewal billing term of the Cloud Services as indicated on the Order Form. “SLA(s)” means a service level agreement offered by Kronos for the Production Environment and attached to this Section C as Exhibit A which contains key service level standards and commitments that apply to the Kronos Private Cloud. “SLA Credit” means the credit calculated in accordance with the SLA and offered by Kronos in the event of outages or interruptions in the delivery of the Cloud Services that result in a failure to meet the terms of the applicable SLA. “Supplier” means any contractor, subcontractor or licensor of Kronos providing software, equipment and/or services to Kronos which are incorporated into or otherwise related to the Cloud Services. Kronos may at its sole discretion replace a Supplier, provided that a change to Supplier will not have a materially adverse effect on the Cloud Services delivered by Kronos under this Agreement. “Temporary Environment” means a transient, non-production environment created to serve limited purposes for a limited time period, and identified on the applicable Order Form as a Temporary Environment. “Term” means the Initial Term and any Renewal Terms.

2. CLOUD SERVICES AND TERM

2.1 During the Term, Kronos will provide the Cloud Services for the Applications. Unless the Order Form indicates that the Applications are to be implemented in a Temporary Environment, the Applications will be deemed to be implemented in a Production Environment.

2.2 Billing for the Cloud Services commences on the Billing Start Date, and continues for the Initial Term or until terminated in accordance with the provisions hereof. At the expiration of the Initial Term and each Renewal Term as applicable, the Cloud Services shall automatically renew for an additional Renewal Term until either party provides notice of its intent not to renew at least sixty (60) days prior to the expiration of the then-current Term.
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2.3 Kronos may suspend or terminate the Cloud Services upon notice in the event of any breach by Customer of this Section C if such breach is not cured within thirty (30) days of the date of Kronos’ written notice. No interruption shall be deemed to have occurred during, and no credits shall be owed for, any authorized suspension of the Cloud Services.

2.4 Customer may terminate the Cloud Services by written notice at any time during the term of the Section C if Kronos materially breaches any provision of this Section C, and such default is not cured within thirty (30) days after receipt of written notice from Customer. In the event of such termination by Customer, Customer shall pay Kronos within thirty (30) days all fees then due and owing for the Cloud Services prior to the date of termination.

2.5 Customer may terminate any or all of the Cloud Services for convenience on no less than ninety (90) days prior written notice to Kronos. In the event of termination of any of the Cloud Services by Customer for convenience or by Kronos for cause during the Initial Term, Customer will pay to Kronos any out of pocket expenses incurred by Kronos in terminating the Cloud Services plus an early termination fee based on the following calculation: one (1) month of the then-current Monthly Services Fees for every twelve (12) month period (or portion thereof) remaining in the Initial Term. By way of example only, if Customer terminates the Cloud Services for convenience with fifteen (15) months remaining in the Initial Term, Customer will be responsible to pay Kronos two (2) months of the then-current Monthly Services Fees.

2.6 Customer Content shall be available to Customer to retrieve at any time and at no additional charge throughout the Term and for no more than fifteen (15) days after expiration or termination of the Agreement for any reason. After such time period, Kronos shall have no further obligation to store or make available the Customer Content and will securely delete all Customer Content without liability of any kind.

2.7 In the event that either party becomes insolvent, makes a general assignment for the benefit of creditors, is adjudicated a bankrupt or insolvent, commences a case under applicable bankruptcy laws, or files a petition seeking reorganization, the other party may request adequate assurances of future performance. Failure to provide adequate assurances, in the requesting party’s reasonable discretion, within ten (10) days of delivery of the request shall entitle the requesting party to terminate the Agreement immediately upon written notice to the other party.

3. CLOUD SERVICES, FEES AND PAYMENT

3.1 In consideration of the delivery of the Cloud Services, Customer shall pay Kronos the Monthly Services Fee for such Cloud Services as defined in the applicable Order Form. The Monthly Services Fee shall commence on the Billing Start Date and will be invoiced on the “Billing Frequency” indicated on the Order Form. When billed annually in advance, Kronos will invoice Customer an amount equal to twelve (12) months of the Monthly Services Fees for the Cloud Services annually in advance for each year during the Term commencing on the Billing Start Date. The Billing Start Date for the Monthly Service Fees for any Cloud Services ordered by Customer after the date of this Agreement which are incremental to Customer’s then-existing Cloud Services shall be the date the applicable Order Form is executed by Kronos and Customer.

3.2 All fees payable for the Cloud Services shall be sent to the attention of Kronos as specified on the invoice. Unless otherwise indicated on an Order Form, payment for all items shall be due 30 days following date of invoice. Customer is responsible for all applicable federal, state, country, provincial or local taxes relating to the Cloud Services (including without limitation GST and/or VAT if applicable), excluding taxes based on Kronos’ income or business privilege. Customer may be required to purchase additional Cloud Services to address infrastructure requirements as released by Kronos for a new version of a particular Application.

3.3 If any amount owing under this or any other agreement for Cloud Services is thirty (30) or more days overdue, Kronos may, without limiting Kronos’ rights or remedies, suspend Cloud Services until such amounts are paid in full. Kronos will provide at least seven (7) days’ prior written notice that Customer’s account is overdue before suspending Cloud Services.

3.4 At the commencement of each Renewal Term, Kronos may increase the Monthly Service Fee rates in an amount not to exceed four percent (4%). The increased Monthly Service Fees will be reflected in the invoice following the effective date of such increase without additional notice. Customer may be required to purchase additional Cloud Services to address increased infrastructure requirements for a new version of a particular Application as released by Kronos. Any additional Cloud Services will be set forth on an Order Form to be mutually agreed upon by Customer and Kronos.

4. ACCEPTABLE USE

4.1 Customer shall take all reasonable steps to ensure that no unauthorized persons have access to the Cloud Services, and to ensure that no persons authorized to have such access shall take any action that would be in violation of this Agreement. Customer is responsible for all activities undertaken under the auspices of its passwords and other login credentials to use the Cloud Services.

4.2 Customer represents and warrants to Kronos that Customer has the right to publish and disclose the Customer Content in connection with the Cloud Services. Customer represents and warrants to Kronos that the Customer Content will comply with the Acceptable Use Policy.

4.3 Customer will not (a) use, or allow the use of, the Cloud Services in contravention of the Acceptable Use Policy.

4.4 Kronos may suspend the Cloud Services immediately upon written notice in the event of any security risk, negative impact on infrastructure or Acceptable Use Policy violation.

5. MAINTENANCE
Monthly Service Fees are in addition to the fees Customer pays for annual maintenance and support under the License Agreement.

Customer must maintain the Software under an active maintenance plan with Kronos throughout the Term. If Kronos, its Suppliers, 448

or the local access provider, as applicable, requires access to Customer sites in order to maintain or repair access to the Kronos Private Cloud, Customer shall cooperate in a timely manner and reasonably provide such access and assistance as necessary.

6. CUSTOMER CONTENT
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be the Confidential Information of Customer. Customer will ensure that all Customer Content conforms with the terms of this Agreement and applicable law. Kronos and its Suppliers may, but shall have no obligation to, access and monitor Customer Content from time to time to provide the Cloud Services and to ensure compliance with this Agreement and applicable law. Customer is solely responsible for any claims related to Customer Content and for properly handling and processing notices that are sent to Customer regarding Customer Content.

7. CONNECTIVITY AND ACCESS
Customer acknowledges that Customer shall (a) be responsible for securing, paying for, and maintaining connectivity to the Kronos Private Cloud (including any and all related hardware, software, third party services and related equipment and components required for access); and (b) provide Kronos and Kronos’ representatives with physical or remote access to Customer’s computer and network environment as mutually agreed upon may be reasonably necessary in order for Kronos to perform its obligations under the Agreement. Customer will make all necessary arrangements as may be required to provide access to Customer’s computer and network environment if necessary for Kronos to perform its obligations under the Agreement.

8. indemnification

8.1 Customer shall defend Kronos, its Suppliers and their respective directors, officers, employees, agents and independent contractors (collectively, the “Kronos Indemnified Parties”) harmless, from and against any and all notices, charges, claims, proceedings, actions, causes of action and suits, brought by a third party (each a “Claim”) alleging that: (a) employment-related claims arising out of Customer’s configuration of the Cloud Services; (b) Customer’s modification or combination of the Cloud Services with other services, software or equipment not furnished by Kronos, provided that such Customer modification or combination is the cause of such infringement and was not authorized by Kronos; or, (c) a claim that the Customer Content infringes in any manner any intellectual property right of any third party, or any of the Customer Content contains any material or information that is obscene, defamatory, libelous, or slanderous violates any person’s right of publicity, privacy or personality, or has otherwise caused or resulted in any tort, injury, damage or harm to any other person. Customer will have sole control of the defense of any such action and all negotiations for its settlement or compromise. Kronos will cooperate fully at Customer’s expense with Customer in the defense, settlement or compromise of any such action. Customer will indemnify and hold harmless the Kronos Indemnified Parties against any liabilities, obligations, costs or expenses (including without limitation reasonable attorneys’ fees) actually awarded to a third party as a result of such Claims by a court of applicable jurisdiction or as a result of Customer’s settlement of such a Claim.

8.2 The Kronos Indemnified Party(ies) shall provide written notice to the indemnifying party promptly after receiving notice of such Claim. If the defense of such Claim is materially prejudiced by a delay in providing such notice, the purported indemnifying party shall be relieved from providing such indemnity to the extent of the delay’s impact on the defense. The indemnifying party shall have sole control of the defense of any indemnified Claim and all negotiations for its settlement or compromise, provided that such indemnifying party shall not enter into any settlement which imposes any obligations or restrictions on the applicable Indemnified Parties without the prior written consent of the other party. The Indemnified Parties shall cooperate fully, at the indemnifying party’s request and expense, with the indemnifying party in the defense, settlement or compromise of any such action. The indemnified party may retain its own counsel at its own expense, subject to the indemnifying party’s rights above.

9. SERVICE LEVEL AGREEMENT
Kronos shall provide the service levels and associated credits, when applicable, in accordance with the Service Level Agreement attached hereto as Exhibit A and which is hereby incorporated herein by reference. CUSTOMER’S SOLE AND EXCLUSIVE REMEDY

IN THE EVENT OF ANY SERVICE OUTAGE OR INTERRUPTION OF THE CLOUD SERVICES OR FAILURE BY KRONOS TO

MEET THE TERMS OF THE APPLICABLE SERVICE LEVEL AGREEMENT, SHALL BE THE REMEDIES PROVIDED IN EXHIBIT A.

10. LIMITATION OF LIABILITY

IN ADDITION TO THE LIMITATIONS SET FORTH IN THE LICENSE AGREEMENT, EXCEPT WITH RESPECT TO LIABILITY ARISING FROM KRONOS’ GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, KRONOS DISCLAIMS ANY AND ALL LIABILITY

AND SERVICE CREDITS, INCLUDING SUCH LIABILITY RELATED TO A BREACH OF SECURITY OR DISCLOSURE, RESULTING

FROM ANY EXTERNALLY INTRODUCED HARMFUL CLOUD SERVICES (INCLUDING VIRUSES, TROJAN HORSES, AND WORMS), CUSTOMER’S CONTENT OR APPLICATIONS, THIRD PARTY UNAUTHORIZED ACCESS OF EQUIPMENT OR SOFTWARE OR SYSTEMS, OR MACHINE ERROR.

11. DATA SECURITY

11.1 As part of the Cloud Services, Kronos shall provide those administrative, physical, and technical safeguards for protection of the security, confidentiality and integrity of Customer data as described at: http://www.kronos.com/products/workforce-centralcloud/cloud-guidelines.aspx Customer acknowledges that such safeguards endeavor to mitigate security incidents, but such incidents may not be mitigated entirely or rendered harmless. Customer should consider any particular Kronos supplied security-related safeguard as just one tool to be used as part of Customer’s overall security strategy and not a guarantee of security. Both parties agree to comply with all applicable privacy or data protection statutes, rules, or regulations governing the respective activities of the parties under the Agreement.

11.2 As between Customer and Kronos, all Personally Identifiable Data is Customer’s Confidential Information and will remain the property of Customer. Customer represents that to the best of Customer’s knowledge such Personally Identifiable Data supplied to 449

Kronos is accurate. Customer hereby consents to the use, processing or disclosure of Personally Identifiable Data by Kronos and Kronos’ Suppliers wherever located only for the purposes described herein and only to the extent such use or processing is necessary for Kronos to carry out Kronos’ duties and responsibilities under the Agreement or as required by law.

11.3 Prior to initiation of the Cloud Services and on an ongoing basis thereafter, Customer agrees to provide notice to Kronos of any extraordinary privacy or data protection statutes, rules, or regulations which are or become applicable to Customer’s industry and which could be imposed on Kronos as a result of provision of the Cloud Services. Customer will ensure that: (a) the transfer to Kronos and storage of any Personally Identifiable Data by Kronos or Kronos’ Supplier’s data center is permitted under applicable data protection laws and regulations; and, (b) Customer will obtain consents from individuals for such transfer and storage to the extent required under applicable laws and regulations.
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EXHIBIT A OF SECTION C

SERVICE LEVEL AGREEMENT (SLA)
Service Level Agreement: The Applications, in a production environment, are provided with the service levels described in this Exhibit A. SLAs are only applicable to production environments. SLAs will be available upon Customer’s signature of Kronos’ Go Live Acceptance Form for Customer’s production environment.

99.75% Application Availability
Actual Application Availability % = (Monthly Minutes (MM) minus Total Minutes Not Available (TM)) multiplied by 100) and divided by Monthly Minutes (MM), but not including Excluded Events Service Credit Calculation: An Outage will be deemed to commence when the Applications are unavailable to Customer in Customer’s production environment hosted by Kronos and end when Kronos has restored availability of the Applications. Failure to meet the 99.75% Application Availability SLA, other than for reasons due to an Excluded Event, will entitle Customer to a credit as follows:

Actual Application Availability %
(as measured in a calendar month)
Service Credit to be applied to Customer’s
monthly invoice for the affected month
<99.75% to 98.75% 10%
<98.75% to 98.25% 15%
<98.25% to 97.75% 25%
<97.75 to 96.75% 35%
<96.75 50%
"Outage" means the accumulated time, measured in minutes, during which Customer is unable to access the Applications for reasons other than an Excluded Event.
“Excluded Event” means any event that results in an Outage and is caused by (a) the acts or omissions of Customer, its employees, customers, contractors or agents; (b) the failure or malfunction of equipment, applications or systems not owned or controlled by Kronos, including without limitation Customer Content, failures or malfunctions resulting from circuits provided by Customer, any inconsistencies or changes in Customer’s source environment, including either intentional or accidental connections or disconnections to the environment; (c) Force Majeure events; (d) expected downtime during the Maintenance Periods described below; (e) any suspension of the Cloud Services in accordance with the terms of the Agreement to which this Exhibit A is attached; (f) the unavailability of required Customer personnel, including as a result of failure to provide Kronos with accurate, current contact information; or (g) using an Application in a manner inconsistent with the Documentation for such Application. “Maintenance Period” means scheduled maintenance periods established by Kronos to maintain and update the Cloud Services, when downtime may be necessary, as further described below. The Maintenance Period is used for purposes of the Service Credit Calculation; Kronos continuously maintains the production environment on a 24x7 basis to reduce disruptions.

Customer Specific Maintenance Period

1. Customer will choose one of the following time zones for their Maintenance Period:
a. United States Eastern Standard Time,
b. GMT/UTC,
c. Central European Time (CET) or
d. Australian Eastern Standard Time (AEST).

2. Customer will choose one of the following days of the week for their Maintenance Period: Saturday, Sunday, Wednesday or Thursday.

3. Kronos will use up to six (6) hours in any two (2) consecutive rolling months (specifically: January and February; March and April; May and June; July and August; September and October; November and December) to perform Customer Specific Maintenance, excluding any customer requested Application updates. Downtime in excess of these six (6) hours will be deemed to be an Outage.

4. Customer Specific Maintenance will occur between 12am-6am during Customer’s selected time zone.

5. Excluding any customer requested Application updates, Kronos will provide notice for planned downtime via an email notice to the primary Customer contact at least seven (7) days in advance of any known downtime so planning can be facilitated by Customer.
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6. Customer Specific Maintenance Windows also include additional maintenance windows mutually agreed upon by Customer and Kronos.

7. In absence of instruction from Customer, Kronos will by default perform Maintenance in the time zone where the Data Center is located.

Non-Customer Specific Maintenance Period
Kronos anticipates non-Customer Specific Maintenance to be performed with no or little (less than three hours per month) Customer downtime. If for any reason non-Customer Specific Maintenance requires downtime, Kronos will provide as much notice as reasonably possible of the expected window in which this will occur. Downtime in excess of three (3) hours per month for Non-Customer Specific Maintenance will be deemed to be an Outage. “Monthly Minutes (MM)” means the total time, measured in minutes, of a calendar month commencing at 12:00 am of the first day of such calendar month and ending at 11:59 pm of the last day of such calendar month. “Total Minutes Not Available (TM)” means the total number of minutes during the calendar month that the Cloud Services are unavailable as the result of an Outage.

Reporting and Claims Process: Service Credits will not be provided if: (a) Customer is in breach or default under the Agreement at the time the Outage occurred; or (b) the Outage results from an Excluded Event. If Kronos does not provide the appropriate Service Credit as due hereunder, Customer must request the Service Credit within sixty (60) calendar days of the conclusion of the month in which the Service Credit accrues. Customer waives any right to Service Credits not requested within this time period. All performance calculations and applicable Service Credits are based on Kronos records and data unless Customer can provide Kronos with clear and convincing evidence to the contrary.

The Service Level Agreements in this Exhibit, and the related Service Credits, apply on a per production environment basis. For the avoidance of doubt, Outages in one production environment may not be added to Outages in any other production environment for purposes of calculating Service Credits.

Customer acknowledges that Kronos manages its network traffic in part on the basis of Customer’s utilization of the Cloud Services and that changes in such utilization may impact Kronos’ ability to manage network traffic. Therefore, notwithstanding anything else to the contrary, if Customer significantly changes its utilization of the Cloud Services than what is contracted with Kronos and such change creates a material and adverse impact on the traffic balance of the Kronos network, as reasonably determined by Kronos, the parties agree to co-operate, in good faith, to resolve the issue. 452

SECTION D

KRONOS WORKFORCE CENTRAL - SOFTWARE AS A SERVICE (SAAS) TERMS AND CONDITIONS Customer and Kronos agree that the terms and conditions set forth in this Section D shall apply to the Kronos supply of the commercially available version of the Workforce Central SaaS Applications in Kronos’ hosting environment, the services related thereto, and the sale or rental of Equipment (if any) specified on a Kronos Order Form. The Applications described on the Order Form shall be delivered by means of Customer’s permitted access to the Kronos infrastructure hosting such Applications.

1. DEFINITIONS
“Acceptable Use Policy” means the Kronos policy describing prohibited uses of the Services as further described at:
https://www.kronos.com/policies/acceptable-use
“Agreement” means the terms and conditions of Section D and the Order Form(s). “Application(s)” or “SaaS Application(s)” means those Kronos software application programs set forth on an Order Form which are made accessible for Customer to use under the terms of this Agreement. “Billing Start Date” means the date the billing of the Monthly Service Fees commences as indicated on the applicable Order Form.

Notwithstanding, Implementation Services provided on a time and material basis are billed monthly as delivered. The Billing Start Date of the Monthly Service Fees for any Services ordered by Customer after the date of this Agreement which are incremental to Customer’s then-existing Services shall be the date the applicable Order Form is executed by Kronos and Customer. “Cloud Services” means those services related to Customer’s cloud environment as further described at:
http://www.kronos.com/products/workforce-central-cloud/cloud-guidelines.aspx “Customer Content” means all content Customer, or others acting on behalf of or through Customer, posts or otherwise inputs into the Services.
“Documentation” means technical publications published by Kronos relating to the use of the Services or Applications. “Equipment” means the Kronos equipment specified on an Order Form. “Implementation Services” means those professional and educational services provided by Kronos to set up the cloud environment and configure the Applications. Unless otherwise set forth on an Order Form as “a la carte” services (supplemental fixed fee, fixed scope services) or “bill as you go” services (time and material services described in a Statement of Work), Kronos will provide, as part of the Monthly Service Fee for the Applications, the fixed fee, fixed scope Implementation Services described in the Services Implementation Detail set forth at: www.kronos.com/products/workforce-central-saas/implementation-guidlines.aspx Implementation Services may also be provided as set forth in Section B. “Initial Term” means the initial term of the Services as indicated on the Order Form. “KnowledgePass Content”/“KnowledgePass Education Subscription” have the meanings ascribed in Section 7.5. “Monthly Service Fee(s)” means the monthly fees described in an Order Form. Monthly Service Fees include fees for usage of the Applications and the Services, Cloud Services as applicable, and Equipment rental, if any. Billing of the Monthly Service Fee(s) commences on the Billing Start Date.
“Order Form” means an order form mutually agreed upon by Kronos and Customer setting forth the items ordered by Customer and to be provided by Kronos and the fees to be paid by Customer. “Personally Identifiable Data” means information concerning individually identifiable employees of Customer that is protected against disclosure under applicable law or regulation.
“Renewal Term” means the renewal term of the Services as indicated on the Order Form. “Services” means (i) the Cloud Services, (ii) accessibility to the commercially available version of the Applications by means of access to the password protected customer area of a Kronos website, and all such services, items and offerings accessed by Customer therein, and (ii) the Equipment rented hereunder, if any. “Statement of Work”, “SOW”, “Services Scope Statement” and “SSS” are interchangeable terms referring to a written description of the Implementation Services mutually agreed upon by Kronos and Customer and set forth as “bill as you go” services on the Order Form.
“Supplier” means any contractor, subcontractor or licensor of Kronos providing software, equipment and/or services to Kronos which are incorporated into or otherwise related to the Services. “Term” means the Initial Term and any Renewal Terms thereafter. “Training Points” has the meaning ascribed to it in Section 7.6 below. 453

2. TERM

2.1 Billing for the Services commences on the Billing Start Date, and continues for the Initial Term or until terminated in accordance with the provisions hereof. At the expiration of the Initial Term and each Renewal Term as applicable, the Services shall automatically renew each year for an additional Renewal Term until terminated in accordance with the provisions hereof.

2.2 Customer may terminate the Services and this Agreement for convenience upon sixty (60) days prior written notice subject to Customer’s payment for services performed. Kronos may terminate the Services and this Agreement to be effective at the expiration of the then current Term upon no less than sixty (60) days prior written notice.

2.3 Either party may terminate the Services and the Agreement upon a material breach of the Agreement by the other party if such breach is not cured within fifteen (15) days after receipt of written notice.

2.4 In the event that either party becomes insolvent, makes a general assignment for the benefit of creditors, is adjudicated a bankrupt or insolvent, commences a case under applicable bankruptcy laws, or files a petition seeking reorganization, the other party may request adequate assurances of future performance. Failure to provide adequate assurances, in the requesting party’s reasonable discretion, within ten (10) days of delivery of the request shall entitle the requesting party to terminate the Agreement immediately upon written notice to the other party.

2.5 If the Agreement is terminated for any reason:
(a) Customer shall pay Kronos within thirty (30) days of such termination, all fees accrued and unpaid under this Agreement prior to the effective date of such termination, provided however, if Customer terminates for material breach of the Agreement by Kronos, Kronos shall refund Customer any pre-paid fees for Services not delivered by Kronos; (b) Customer’s right to access and use the Applications shall be revoked and be of no furtherforce or effect and return rented Equipment as provided in Section 9.1 below;
(c) Customer agrees to timely return all Kronos-provided materials related to the Services to Kronos at Customer’s expense or, alternatively, destroy such materials and provide Kronos with an officer’s certification of the destruction thereof; and (d) All provisions in the Agreement, which by their nature are intended to survive termination, shall so survive.

2.6 Customer Content shall be available to Customer to retrieve at any time and at no additional charge throughout the Term and for no more than fifteen (15) days after expiration or termination of the Agreement for any reason. After such time period, Kronos shall have no further obligation to store or make available the Customer Content and will securely delete all Customer Content without liability of any kind.

3. FEES AND PAYMENT

3.1 Customer shall pay Kronos the Monthly Service Fees, the fees for the Implementation Services and any additional one time or recurring fees for Equipment, Training Points, KnowledgePass Education Subscription and such other Kronos offerings, all as set forth on the Order Form. The Monthly Service Fees will be invoiced on the frequency set forth on the Order Form (“Billing Frequency”).

If Customer and Kronos have signed a Statement of Work for the Implementation Services, Implementation Services will be invoiced monthly as delivered unless otherwise indicated on the Order Form. If Kronos is providing Implementation Services in accordance with the Services Implementation Guideline or as “a la carte” services on the Order Form, Kronos will invoice Customer for Implementation Services in advance of providing such Implementation Services unless otherwise indicated on the Order Form. All other Kronos offerings will be invoiced upon execution of the applicable Order Form by Kronos and Customer. Unless otherwise indicated on an Order Form, payment for all items shall be due 30 days following date of invoice. All payments shall be sent to the attention of Kronos as specified on the invoice. Except as expressly set forth in this Agreement, all amounts paid to Kronos are nonrefundable. Customer is responsible for all applicable federal, state, country, provincial or local taxes relating to the goods and services provided by Kronos hereunder (including without limitation GST and/or VAT if applicable), excluding taxes based on Kronos’ income or business privilege.

3.2 If any amount owing under this or any other agreement between the parties is thirty (30) or more days overdue, Kronos may, without limiting Kronos’ rights or remedies, suspend Services until such amounts are paid in full. Kronos will provide at least seven (7) days’ prior written notice that Customer’s account is overdue before suspending Services.

3.3 At the latest of (i) one (1) year after the effective date of this Agreement, or (ii) expiration of the Initial Term, and at each annual anniversary of that date thereafter, Kronos may increase the Monthly Service Fee rates in an amount not to exceed four percent (4%).

The increased Monthly Service Fees will be reflected in the monthly invoice following the effective date of such increase without additional notice.

4. RIGHTS TO USE

4. 1 Subject to the terms and conditions of the Agreement, Kronos hereby grants Customer a limited, revocable, non-exclusive, nontransferable, non-assignable right to use during the Term and for internal business purposes only: a) the Applications and related services, including the Documentation; b) training materials and KnowledgePass Content; and, c) any embedded third party software, libraries, or other components, which form a part of the Services. The Services contain proprietary trade secret technology of Kronos and its Suppliers. Unauthorized use and/or copying of such technology are prohibited by law, including United States and foreign copyright law. Customer shall not reverse compile, disassemble or otherwise convert the Applications or other software comprising the Services into uncompiled or unassembled code. Customer shall not use any of the third party software programs (or the data models therein) included in the Services except solely as part of and in connection with the Services. The JBoss® Enterprise Middleware components of the Service are subject to the end user license agreement found at http://www.redhat.com/licenses/jboss_eula.html Customer acknowledges that execution of separate third party agreements may be required in order for Customer to use certain add-on features or functionality, including without limitation tax filing services. 454

4.2 Customer acknowledges and agrees that the right to use the Applications is limited based upon the amount of the Monthly Service Fees paid by Customer. Customer agrees to use only the modules and/or features for the number of employees and users as described on the Order Form. Customer agrees not to use any other modules or features nor increase the number of employees and users unless Customer pays for such additional modules, features, employees or users, as the case may be. Customer may not license, relicense or sublicense the Services, or otherwise permit use of the Services (including timesharing or networking use) by any third party. Customer may not provide service bureau or other data processing services that make use of the Services without the express prior written consent of Kronos. No license, right, or interest in any Kronos trademark, trade name, or service mark, or those of Kronos’ licensors or Suppliers, is granted hereunder.

4.3 Customer may authorize its third party contractors and consultants to access the Services through Customer’s administrative access privileges on an as needed basis, provided Customer: a) abides by its obligations to protect Confidential Information as set forth in this Agreement; b) remains responsible for all such third party usage and compliance with the Agreement; and c) does not provide such access to a competitor of Kronos who provides workforce management services.

4.4 Customer acknowledges and agrees that, as between Customer and Kronos, Kronos retains ownership of all right, title and interest to the Services, all of which are protected by copyright and other intellectual property rights, and that, other than the express rights granted herein and under any other agreement in writing with Customer, Customer shall not obtain or claim any rights in or ownership interest to the Services or Applications or any associated intellectual property rights in any of the foregoing. Customer agrees to comply with all copyright and other intellectual property rights notices contained on or in any information obtained or accessed by Customer through the Services.

4.5 When using and applying the information generated by the Services, Customer is responsible for ensuring that Customer complies with applicable laws and regulations. If the Services include the Workforce Payroll Applications or Workforce Absence Management Applications: (i) Customer is solely responsible for the content and accuracy of all reports and documents prepared in whole or in part by using these Applications, (ii) using these Applications does not release Customer of any professional obligation concerning the preparation and review of any reports and documents, (iii) Customer does not rely upon Kronos, Best Software, Inc. or these Applications for any advice or guidance regarding compliance with federal and state laws or the appropriate tax treatment of items reflected on such reports or documents, and (iv) Customer will review any calculations made by using these Applications and satisfy itself that those calculations are correct.

5. ACCEPTABLE USE

5.1 Customer shall take all reasonable steps to ensure that no unauthorized persons have access to the Services, and to ensure that no persons authorized to have such access shall take any action that would be in violation of this Agreement. Customer is responsible for all activities undertaken under the auspices of its passwords and other login credentials to use the Services.

5.2 Customer represents and warrants to Kronos that Customer has the right to publish and disclose the Customer Content in connection with the Services. Customer represents and warrants to Kronos that the Customer Content will comply with the Acceptable Use Policy.

5.3 Customer will not (a) use, or allow the use of, the Services in contravention of the Acceptable Use Policy.

5.4 Kronos may suspend the Services immediately upon written notice in the event of any security risk, negative impact on infrastructure or Acceptable Use Policy violation.

6. CONNECTIVITY AND ACCESS
Customer acknowledges that Customer shall (a) be responsible for securing, paying for, and maintaining connectivity to the Services (including any and all related hardware, software, third party services and related equipment and components); and (b) provide Kronos and Kronos’ representatives with such physical or remote access to Customer’s computer and network environment as Kronos deems reasonably necessary in order for Kronos to perform its obligations under the Agreement. Customer will make all necessary arrangements as may be required to provide access to Customer’s computer and network environment if necessary for Kronos to perform its obligations under the Agreement.

7. IMPLEMENTATION AND SUPPORT

7.1 Implementation Services. Kronos will provide the Implementation Services to Customer. Implementation Services described in a SOW are provided on a time and materials basis, billed monthly as delivered unless otherwise indicated on the Order Form.

Implementation Services described in the Services Implementation Guideline are provided on a fixed fee basis. If Customer requests additional Implementation Services beyond those described in the Services Implementation Guideline, Kronos will create a change order for Customer’s review and approval and any additional Implementation Services to be provided by Kronos will be billed as delivered at the then-current Kronos professional services rates. Kronos’ configuration of the Applications will be based on information and work flows that Kronos obtains from Customer during the discovery portion of the implementation. Customer shall provide Kronos with necessary configuration-related information in a timely manner to ensure that mutually agreed implementation schedules are met.

In the event that Kronos is required to travel to Customer’s location during the implementation, travel expenses shall be set forth in accordance with Section 6 Exhibit A. Kronos shall invoice Customer for such travel expenses and payment thereof shall be due net thirty (30) days from date of invoice.

7.2 Additional Services. Customer may engage Kronos to provide other services which may be fixed by activity (“a la carte”) or provided on a time and materials basis (“bill as you go”) as indicated on the applicable Order Form. 455

7.3 Support. Kronos will provide 24x7 support for the cloud infrastructure, the availability to the cloud environment, and telephone support for the logging of functional problems and user problems. Customer may log questions online via the Kronos Customer Portal.

As part of such support, Kronos will make updates to the Services available to Customer at no charge as such updates are released generally to Kronos’ customers. Customer agrees that Kronos may install critical security patches and infrastructure updates automatically as part of the Services. Kronos’ then-current Support Services Policies shall apply to all Support Services provided by Kronos and may be accessed at: http://www.kronos.com/Support/SupportServicesPolicies.htm (“Support Policies”). In the event of a conflict between the Support Policies and this Agreement, the terms of this Agreement shall prevail.

7.4 Support Services for Equipment. Provided Customer has purchased support services for the Equipment, the following terms shall apply (Depot Exchange support services for rented Equipment are included in the rental fees for such Equipment):
(a) Customer may select, as indicated on an Order Form, an Equipment Support Services option offered by the local Kronos entity responsible for supporting the Equipment if and as such offerings are available within the Kronos territory corresponding to the Equipment’s location. Kronos shall provide each Equipment Support Services offering as specified herein. (i) Depot Exchange and Depot Repair. If Customer has selected Depot Exchange or Depot Repair Equipment Support Services, the following provisions shall apply: Upon the failure of installed Equipment, Customer shall notify Kronos of such failure and Kronos will provide remote fault isolation at the FRU (Field Replacement Unit) or subassembly level and attempt to resolve the problem. Those failures determined by Kronos to be Equipment related shall be dispatched to a Kronos Depot Repair Center, and Customer will be provided with a Return Material Authorization Number (RMA) for the failed Equipment if Customer is to return the failed Equipment to Kronos, as reasonably determined by Kronos. Customer must return the failed Equipment with the supplied RMA number. Hours of operation, locations and other information related to Kronos’ Depot Repair Centers are available upon request and are subject to change. Return and repair procedures for failed Equipment shall be provided based on the Depot option - Depot Exchange or Depot Repair - selected by Customer on the applicable Order Form and as specified herein and in Kronos’ then-current Support Services Policies. Service packs for the Equipment (as described in subsection (ii) below) are included in both Depot Exchange and Depot Repair Support Services.

Depot Exchange: Kronos will provide a replacement for the failed Equipment at the FRU or subassembly level on an "advanced exchange" basis, utilizing a carrier of Kronos’ choice. Replacement Equipment will be shipped the same day, for delivery to Customer’s location as further described in the Support Policies. REPLACEMENT EQUIPMENT MAY BE NEW OR RECONDITIONED. Customer shall specify the address to which the Equipment is to be shipped. All shipments will include the Kronos provided RMA designating the applicable Kronos Depot Repair Center, as the recipient. Customer, upon receipt of the replacement Equipment from Kronos, shall package the defective Equipment in the materials provided by Kronos, with the RMA supplied and promptly return failed Equipment directly to Kronos.

Depot Repair: Upon failure of installed Equipment, Customer shall install a Spare Product (as defined below) to replace the failed Equipment. Customer shall then return the failed Equipment, with the required RMA, to the applicable Kronos Depot Repair Center. Customer shall make reasonable efforts to return the failed Equipment using the same or substantially similar packing materials in which the original Equipment was sent. Customer shall also specify the address to which the repaired Equipment should be return shipped. Upon receipt of the failed Equipment, Kronos shall repair the failed Equipment and ship it, within ten (10) business days after receipt, to Customer. Kronos shall ship the repaired Equipment by regular surface transportation to Customer.
(ii) Device Software Updates Only. If Customer has selected Device Software Equipment Support Services, Customer shall be entitled to receive:
(A) Service packs for the Equipment (which may contain system software updates, firmware updates, security updates, and feature enhancements) available for download at Kronos’ customer portal. Service packs for the Equipment are not installed by the Kronos Depot Repair Center but are available for download at Kronos’ customer portal, provided Customer is maintaining the Equipment under an annual Equipment Support Services plan with Kronos.; and (B) Access to the Kronos Support Services Center for the logging of requests for assistance downloading service packs for the Equipment.
(b) Warranty. Kronos warrants that all service packs and firmware updates provided under this Agreement shall materially perform in accordance with the Kronos published specifications for a period of ninety (90) days after download by Customer. In the event of a breach of this warranty, Customer’s exclusive remedy shall be Kronos’ repair or replacement of the deficient service pack(s) or firmware update(s), at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the specifications.
(c) Responsibilities of Customer. It is Customer’s responsibility to purchase and retain, at Customer’s location and at Customer’s sole risk and expense, a sufficient number of spare products ("Spare Products") to allow Customer to replace failed Equipment at Customer’s locations in order for Customer to continue its operations while repairs are being performed and replacement Equipment is being shipped to Customer. For each of the Depot Exchange and Depot Repair Equipment Support Services options, Customer agrees that it shall return failed Equipment promptly as the failures occur and that it shall not hold failed Equipment and send failed Equipment to Kronos in "batches" which shall result in a longer turnaround time to Customer. In addition, Customer agrees to:
(i) Maintain the Equipment in an environment conforming to the Kronos published specifications for such Equipment; (ii) Not perform self-repairs on the Equipment (i.e., replacing components) without prior written authorization from Kronos; (iii) De-install all failed Equipment and install all replacement Equipment in accordance with Kronos’ written installation guidelines;
(iv) Ensure that the Equipment is returned to Kronos properly packaged; and (v) Obtain an RMA before returning any Equipment to Kronos and place the RMA clearly and conspicuously on the outside of the shipping package. Customer may only return the specific Equipment authorized by Kronos when issuing the RMA. 456

(d) Delivery. All domestic shipments within the United States are FOB Destination to/from Customer and Kronos with the shipping party bearing all costs and risks of loss, and with title passing upon delivery to the identified destination. All international shipments from Kronos to Customer are DAP (Incoterms 2010) to the applicable Customer location, and are DDP (Incoterms 2010) to the applicable Kronos Depot Repair Center when Customer is shipping to Kronos. Customer is responsible for all duties and taxes when sending Equipment to Kronos.

7.5 KnowledgePass Education Subscription. When KnowledgePass Education Subscription is purchased on an Order Form, Kronos will provide Customer with the KnowledgePass Education Subscription. The KnowledgePass Education Subscription provides access to certain educational offerings provided by Kronos (the “KnowledgePass Content”). Customer recognizes and agrees that the KnowledgePass Content is copyrighted by Kronos. Customer is permitted to make copies of the KnowledgePass Content provided in *pdf form solely for Customer’s internal use. Customer may not disclose such KnowledgePass Content to any third party other than Customer’s employees. Customer may not edit, modify, revise, amend, change, alter, customize or vary the KnowledgePass Content without the written consent of Kronos, provided that Customer may download and modify contents of training kits solely for Customer’s internal use.

7.6 Training Points. “Training Points” which are purchased by Customer may be redeemed for an equivalent value of instructor-led training sessions offered by Kronos. Training Points may be redeemed only during the Term at any time no more than twelve (12) months after the date of the applicable Order Form, after which time such Training Points shall expire and be of no value. Training Points may not be exchanged for other Kronos products or services.

7.7 Training Courses. When Training Points or training sessions are set forth in an SSS, the SSS applies. When Training Points or training sessions are not set forth in an SSS, as part of the Services, for each SaaS application module included in the Services purchased by Customer, Customer’s employees shall be entitled to attend, in the quantity indicated, the corresponding training courses set forth at: www.kronos.com/products/workforce-central-saas/training-guidlines.aspx Participation in such training courses is limited to the number of seats indicated for the courses corresponding to the modules forming a part of the Services purchased by Customer.

7.8 Technical Account Manager. Customers purchasing a Kronos Technical Account Manager (“TAM”) as indicated on the Order Form shall receive the services of a dedicated, but not exclusive, TAM for one production instance of the Software. Customer will designate up to two primary and three secondary backup technical contacts (“Technical Contacts”) to be the sole contacts with the TAM. Upon request, Customer may designate additional and/or backup Technical Contacts. Customer is required to place all primary Technical Contacts through Kronos training for the Applications covered under this Agreement at Customer’s expense.

8. Customer content
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be the Confidential Information of Customer. Kronos may, but shall have no obligation to, monitor Customer Content from time to time to ensure compliance with the Agreement and applicable law.

9. EQUIPMENT
Customer shall own all Customer Content. Kronos acknowledges that all of the Customer Content is deemed to be the Confidential Information of Customer. Customer will ensure that all Customer Content conforms with the terms of this Agreement and applicable law. Kronos and its Suppliers may, but shall have no obligation to, access and monitor Customer Content from time to time to provide the Services and to ensure compliance with this Agreement and applicable law. Customer is solely responsible for any claims related to Customer Content and for properly handling and processing notices that are sent to Customer regarding Customer Content.

9.1 Rented Equipment. The following terms apply only to Equipment Customer rents from Kronos:
a) Rental Term and Warranty Period. The term of the Equipment rental and the “Warranty Period” for such Equipment shall run coterminously with the Term of the other Services provided under the Agreement. b) Insurance. Customer shall insure the Equipment for an amount equal to the replacement value of the Equipment for loss or damage by fire, theft, and all normal extended coverage at all times. No loss, theft or damage after shipment of the Equipment to Customer shall relieve Customer from Customer’s obligations under the Agreement. c) Location/Replacement. Customer shall not make any alterations or remove the Equipment from the place of original installation without Kronos’ prior written consent. Kronos shall have the right to enter Customer’s premises to inspect the Equipment during normal business hours. Kronos reserves the right, at its sole discretion and at no additional cost to Customer, to replace any Equipment with newer or alternative technology Equipment as long as the replacement Equipment at least provides the same level of functionality as that being replaced.
d) Ownership. All Equipment shall remain the property of Kronos. All Equipment is, and at all times shall remain, separate items of personal property, notwithstanding such Equipment’s attachment to other equipment or real property. Customer shall not sell or otherwise encumber the Equipment. Customer shall furnish any assurances, written or otherwise, reasonably requested by Kronos to give full effect to the intent of terms of this paragraph (d). e) Equipment Support. Kronos shall provide to Customer the Equipment support services described in Section 7. f) Return of Equipment. Upon termination of the Agreement or the applicable Order Form, Customer shall return, within thirty (30) days of the effective date of termination and at Customer’s expense, the Equipment subject to this Section 9.1. Equipment will be returned to Kronos in the same condition as and when received, reasonable wear and tear excepted. If Customer fails to return Equipment within this time period, upon receiving an invoice from Kronos, Customer shall pay Kronos the then list price of the unreturned Equipment.

9.2 Purchased Equipment. The following terms apply only to Equipment Customer purchases from Kronos:
a) Ownership and Warranty Period. Title to the Equipment shall pass to Customer upon delivery to the carrier. The “Warranty Period” for the Equipment shall be for a period of ninety (90) days from such delivery (unless otherwise required by law). 457

b) Equipment Support. Kronos shall provide to Customer the Equipment support services described in this Agreement if purchased separately by Customer as indicated on the applicable Order Form. If purchased, Equipment support services have a term of one (1) year commencing upon expiration of the Warranty Period. Equipment support services will be automatically extended for additional one year terms on the anniversary of its commencement date ("Renewal Date"), unless either party has given the other thirty (30) days written notification of its intent not to renew. Kronos may change the annual support charges for Equipment support services effective at the end of the initial one (1) year term or effective on the Renewal Date, by giving Customer at least thirty (30) days prior written notification.

10. SERVICE LEVEL AGREEMENT
Kronos shall provide the service levels and associated credits, when applicable, in accordance with the Service Level Agreement attached hereto as Exhibit D-1 and which is hereby incorporated herein by reference. CUSTOMER’S SOLE AND EXCLUSIVE REMEDY IN THE EVENT OF ANY SERVICE OUTAGE or INTERRUPTION OF the SERVICES OR FAILURE BY KRONOS TO MEET THE TERMS OF the APPLICABLE service level agreement, SHALL BE THE REMEDIES PROVIDED IN exhibit D-1.

11. LIMITED WARRANTY; DISCLAIMERS OF WARRANTY

11.1 Kronos represents and warrants to Customer that the Applications, under normal operation as specified in the Documentation and when used as authorized herein, will perform substantially in accordance with such Documentation during the Term.

11.2 Kronos’ sole obligation and Customer’s sole and exclusive remedy for any breach of the foregoing warranty is limited to Kronos’ reasonable commercial efforts to correct the non-conforming Services at no additional charge to Customer. In the event that Kronos is unable to correct material deficiencies in the Services arising during the Warranty Period, after using Kronos’ commercially reasonable efforts to do so, Customer shall be entitled to terminate the then remaining Term of the Agreement as Customer’s sole and exclusive remedy. Kronos’ obligations hereunder for breach of warranty are conditioned upon Customer notifying Kronos of the material breach in writing, and providing Kronos with sufficient evidence of such non-conformity to enable Kronos to reproduce or verify the same.

11.3 Kronos warrants to Customer that each item of Equipment shall be free from defects in materials and workmanship during the Warranty Period. In the event of a breach of this warranty, Customer’s sole and exclusive remedy shall be Kronos’ repair or replacement of the deficient Equipment, at Kronos’ option, provided that Customer’s use, installation and maintenance thereof have conformed to the Documentation for such Equipment. This warranty is extended to Customer only and shall not apply to any Equipment (or parts thereof) in the event of:
a) damage, defects or malfunctions resulting from misuse, accident, neglect, tampering, (including without limitation modification or replacement of any Kronos components on any boards supplied with the Equipment), unusual physical or electrical stress or causes other than normal and intended use;
b) failure of Customer to provide and maintain a suitable installation environment, as specified in the published specifications for such Equipment; or
c) malfunctions resulting from the use of badges or supplies not approved by Kronos.

Except as provided for in this Section 11, Kronos hereby disclaims all warranties, conditions, guaranties and representations relating to the Services, express or implied, oral or in writing, including without limitation the implied warranties of merchantability, fitness for a particular purpose, title and non-infringement, and whether or not arising through a course of dealing. The Services are not guaranteed to be error-free or uninterrupted. Except as specifically provided in this Agreement, Kronos makes no warranties or representations concerning the compatibility of the Services, the SaaS Applications or the Equipment nor any results to be achieved therefrom.

12.0 DATA SECURITY

12.1 As part of the Services, Kronos shall provide those administrative, physical, and technical safeguards for protection of the security, confidentiality and integrity of Customer data as described at: http://www.kronos.com/products/workforce-centralcloud/cloud-guidelines.aspx Customer acknowledges that such safeguards endeavor to mitigate security incidents, but such incidents may not be mitigated entirely or rendered harmless. Customer should consider any particular Kronos supplied security-related safeguard as just one tool to be used as part of Customer’s overall security strategy and not a guarantee of security. Both parties agree to comply with all applicable privacy or data protection statutes, rules, or regulations governing the respective activities of the parties under the Agreement.

12.2 As between Customer and Kronos, all Personally Identifiable Data is Customer’s Confidential Information and will remain the property of Customer. Customer represents that to the best of Customer’s knowledge such Personally Identifiable Data supplied to Kronos is accurate. Customer hereby consents to the use, processing or disclosure of Personally Identifiable Data by Kronos and Kronos’ Suppliers wherever located only for the purposes described herein and only to the extent such use or processing is necessary for Kronos to carry out Kronos’ duties and responsibilities under the Agreement or as required by law.

12.3 Prior to initiation of the Services under the Agreement and on an ongoing basis thereafter, Customer agrees to provide notice to Kronos of any extraordinary privacy or data protection statutes, rules, or regulations which are or become applicable to Customer’s industry and which could be imposed on Kronos as a result of provision of the Services. Customer will ensure that: (a) the transfer to Kronos and storage of any Personally Identifiable Data by Kronos or Kronos’ Supplier’s data center is permitted under applicable data protection laws and regulations; and, (b) Customer will obtain consents from individuals for such transfer and storage to the extent required under applicable laws and regulations.

13. INDEMNIFICATION

13.1 Kronos shall defend Customer and its respective directors, officers, and employees (collectively, the “Customer Indemnified Parties”), from and against any and all notices, charges, claims, proceedings, actions, causes of action and suits, brought by a third 458

party (each a “Claim”) alleging that the permitted uses of the Services infringe or misappropriate any United States or Canadian copyright or patent and will indemnify and hold harmless the Customer Indemnified Parties against any liabilities, obligations, costs or expenses (including without limitation reasonable attorneys’ fees) actually awarded to a third party as a result of such Claim by a court of applicable jurisdiction or as a result of Kronos’ settlement of such a Claim. In the event that a final injunction is obtained against Customer’s use of the Services by reason of infringement or misappropriation of such copyright or patent, or if in Kronos’ opinion, the Services are likely to become the subject of a successful claim of such infringement or misappropriation, Kronos, at Kronos’ option and expense, will use commercially reasonable efforts to (a) procure for Customer the right to continue using the Services as provided in the Agreement, (b) replace or modify the Services so that the Services become non-infringing but remain substantively similar to the affected Services, and if neither (a) or (b) is commercially feasible, to (c) terminate the Agreement and the rights granted hereunder after provision of a refund to Customer of the Monthly Service Fees paid by Customer for the infringing elements of the Services covering the period of their unavailability.

13.2 Kronos shall have no liability to indemnify or defend Customer to the extent the alleged infringement is based on: (a) a modification of the Services by anyone other than Kronos; (b) use of the Services other than in accordance with the Documentation for such Service or as authorized by the Agreement; (c) use of the Services in conjunction with any data, equipment, service or software not provided by Kronos, where the Services would not otherwise itself be infringing or the subject of the claim; or (d) use of the Services by Customer other than in accordance with the terms of the Agreement. Notwithstanding the foregoing, with regard to infringement claims based upon software created or provided by a licensor to Kronos or Suppliers, Kronos’ maximum liability will be to assign to Customer Kronos’ or Supplier’s recovery rights with respect to such infringement claims, provided that Kronos or Kronos’ Supplier shall use commercially reasonable efforts at Customer’s cost to assist Customer in seeking such recovery from such licensor.

13.3 Customer shall be responsible and liable for all damages and cost of \Kronos, its Suppliers and their respective directors, officers, employees, agents and independent contractors any and all Claims alleging that: (a) employment-related claims arising out of Customer’s configuration of the Services; (b) Customer’s modification or combination of the Services with other services, software or equipment not furnished by Kronos, provided that such Customer modification or combination is the cause of such infringement and was not authorized by Kronos; or, (c) a claim that the Customer Content infringes in any manner any intellectual property right of any third party, or any of the Customer Content contains any material or information that is obscene, defamatory, libelous, or slanderous violates any person’s right of publicity, privacy or personality, or has otherwise caused or resulted in any tort, injury, damage or harm to any other person.

13.4 The Indemnified Party(ies) shall provide written notice to the indemnifying party promptly after receiving notice of such Claim. If the defense of such Claim is materially prejudiced by a delay in providing such notice, the purported indemnifying party shall be relieved from providing such indemnity to the extent of the delay’s impact on the defense. The indemnifying party shall have sole control of the defense of any indemnified Claim and all negotiations for its settlement or compromise, provided that such indemnifying party shall not enter into any settlement which imposes any obligations or restrictions on the applicable Indemnified Parties without the prior written consent of the other party. The Indemnified Parties shall cooperate fully, at the indemnifying party’s request and expense, with the indemnifying party in the defense, settlement or compromise of any such action. The indemnified party may retain its own counsel at its own expense, subject to the indemnifying party’s rights above.

14. LIMITATION OF LIABILITY

14.1 Except as specifically provided in this agreement, Kronos and its Suppliers will not be liable for any damages or injuries caused by the use of the services or by any errors, delays, interruptions in transmission, or failures of the Services.

14.2 Except for Kronos’ indemnification obligations set forth in Section 13 above, the total aggregate liability of Kronos or Kronos’ suppliers to Customer and/or any third party in connection with the Agreement shall be limited to direct damages proven by Customer, such direct damages not to exceed an amount equal to the total net payments received by Kronos for the Services in the twelve (12) month period immediately preceding the date in which such claim arises.

14.3 except for Kronos’ indemnification obligations set forth in Section 13 above, in no event shall Kronos or Kronos’ suppliers, their respective affiliates, service providers, or agents be liable to Customer or any third party for any incidental, special, punitive, consequential or other indirect damages or for any lost or imputed profits or revenues, lost data or cost of procurement of substitute services resulting from delays, nondeliveries, misdeliveries or services interruption, however caused, arising from or related to the Services or the Agreement, regardless of the legal theory under which such liability is asserted, whether breach of warranty, indemnification, negligence, strict liability or otherwise, and whether liability is asserted in contract, tort or otherwise, and regardless of whether Kronos or Supplier has been advised of the possibility of any such liability, loss or damage.

14.4 Except with respect to liability arising from Kronos’ gross negligence or willful misconduct, Kronos disclaims any and all liability, including without limitation liability related to a breach of data security and confidentiality obligations, resulting from any externally introduced harmful program (including without limitation viruses, trojan horses, and worms), Customer’s Content or applications, third party unauthorized access of Equipment, SaaS Applications or systems, or machine error. 459

EXHIBIT D-1

SERVICE LEVEL AGREEMENT (SLA)
Service Level Agreement: The Services, in a production environment, are provided with the service levels described in this Exhibit A. SLAs are only applicable to production environments. SLAs will be available upon Customer’s signature of Kronos’ Go Live Acceptance Form for Customer’s production environment.

99.75% Application Availability
Actual Application Availability % = (Monthly Minutes (MM) minus Total Minutes Not Available (TM)) multiplied by 100) and divided by Monthly Minutes (MM), but not including Excluded Events Service Credit Calculation: An Outage will be deemed to commence when the Applications are unavailable to Customer in Customer’s production environment hosted by Kronos and end when Kronos has restored availability of the Applications. Failure to meet the 99.75% Application Availability SLA, other than for reasons due to an Excluded Event, will entitle Customer to a credit as follows:

Actual Application Availability %
(as measured in a calendar month)
Service Credit to be applied to Customer’s
monthly invoice for the affected month
<99.75% to 98.75% 10%
<98.75% to 98.25% 15%
<98.25% to 97.75% 25%
<97.75 to 96.75% 35%
<96.75 50%
"Outage" means the accumulated time, measured in minutes, during which Customer is unable to access the Applications for reasons other than an Excluded Event.
“Excluded Event” means any event that results in an Outage and is caused by (a) the acts or omissions of Customer, its employees, customers, contractors or agents; (b) the failure or malfunction of equipment, applications or systems not owned or controlled by Kronos, including without limitation Customer Content, failures or malfunctions resulting from circuits provided by Customer, any inconsistencies or changes in Customer’s source environment, including either intentional or accidental connections or disconnections to the environment; (c) Force Majeure events; (d) expected downtime during the Maintenance Periods described below; (e) any suspension of the Services in accordance with the terms of the Agreement to which this Exhibit A is attached; (f) the unavailability of required Customer personnel, including as a result of failure to provide Kronos with accurate, current contact information; or (g) using an Application in a manner inconsistent with the Documentation for such Application. “Maintenance Period” means scheduled maintenance periods established by Kronos to maintain and update the Services, when downtime may be necessary, as further described below. The Maintenance Period is used for purposes of the Service Credit Calculation; Kronos continuously maintains the production environment on a 24x7 basis to reduce disruptions.

Customer Specific Maintenance Period

1. Customer will choose one of the following time zones for their Maintenance Period:
a. United States Eastern Standard Time,
b. GMT/UTC,
c. Central European Time (CET) or
d. Australian Eastern Standard Time (AEST).

2. Customer will choose one of the following days of the week for their Maintenance Period: Saturday, Sunday, Wednesday or Thursday.

3. Kronos will use up to six (6) hours in any two (2) consecutive rolling months (specifically: January and February; March and April; May and June; July and August; September and October; November and December) to perform Customer Specific Maintenance, excluding any customer requested Application updates. Downtime in excess of these six (6) hours will be deemed to be an Outage.

4. Customer Specific Maintenance will occur between 12am-6am during Customer’s selected time zone.

5. Excluding any customer requested Application updates, Kronos will provide notice for planned downtime via an email notice to the primary Customer contact at least seven (7) days in advance of any known downtime so planning can be facilitated by Customer.

6. Customer Specific Maintenance Windows also include additional maintenance windows mutually agreed upon by Customer and Kronos.
460

7. In absence of instruction from Customer, Kronos will by default perform Maintenance in the time zone where the Data Center is located.

Non-Customer Specific Maintenance Period
Kronos anticipates non-Customer Specific Maintenance to be performed with no or little (less than three hours per month) Customer downtime. If for any reason non-Customer Specific Maintenance requires downtime, Kronos will provide as much notice as reasonably possible of the expected window in which this will occur. Downtime in excess of three (3) hours per month for Non-Customer Specific Maintenance will be deemed to be an Outage. “Monthly Minutes (MM)” means the total time, measured in minutes, of a calendar month commencing at 12:00 am of the first day of such calendar month and ending at 11:59 pm of the last day of such calendar month. “Total Minutes Not Available (TM)” means the total number of minutes during the calendar month that the Services are unavailable as the result of an Outage.

Reporting and Claims Process: Service Credits will not be provided if: (a) Customer is in breach or default under the Agreement at the time the Outage occurred; or (b) the Outage results from an Excluded Event.

Kronos will provide Customer with an Application Availability report on a monthly basis for each prior calendar month. Within sixty (60) days of receipt of such report, Customer must request the applicable Service Credit by written notice to Kronos. Customer waives any right to Service Credits not requested within this time period. All performance calculations and applicable Service Credits are based on Kronos records and data unless Customer can provide Kronos with clear and convincing evidence to the contrary.

The Service Level Agreements in this Exhibit, and the related Service Credits, apply on a per production environment basis. For the avoidance of doubt, Outages in one production environment may not be added to Outages in any other production environment for purposes of calculating Service Credits.

Customer acknowledges that Kronos manages its network traffic in part on the basis of Customer’s utilization of the Services and that changes in such utilization may impact Kronos’ ability to manage network traffic. Therefore, notwithstanding anything else to the contrary, if Customer significantly changes its utilization of the Services than what is contracted with Kronos and such change creates a material and adverse impact on the traffic balance of the Kronos network, as reasonably determined by Kronos, the parties agree to co-operate, in good faith, to resolve the issue.
461

SECTION E

KRONOS ADDENDUM

WORKFORCE TELESTAFF IVR SERVICE
(Licensed or User based)
The parties hereby agree that the following terms and conditions are supplemental terms and conditions to the Agreement and are applicable to the Workforce Telestaff IVR service (“Workforce Telestaff IVR”), a service of Aspect Software Inc., which Kronos is authorized to resell. The Workforce Telestaff IVR service can be ordered either on a licensed basis (in which case Workforce Telestaff IVR is only available with a perpetual license to Workforce Telestaff and is not hosted by Kronos) (“Workforce Telestaff IVR License Per Port”) or on a per minute basis (“Workforce Telestaff IVR Service”). The applicable designation for Workforce Telestaff IVR will be indicated on the applicable Order Form..

Description. Workforce Telestaff IVR is an Interactive Voice Response (IVR) solution, provided solely for Customer’s internal use, by which Customer may initiate phone calls to staff members to fill vacancies or receive notifications of work opportunities for employees who are licensed to use the Kronos Workforce TeleStaff® product. Each exchanged message (notice, response, confirmation, denial) shall be considered an “Interaction.” Maintenance.

Workforce Telestaff IVR maintenance will entitle Customer to Workforce Telestaff IVR phone support and software updates and shall commence upon Order execution. For Usage Based Workforce Telestaff IVR, maintenance will be provided at the same level of support as Customer’s Workforce TeleStaff product at no additional charge. For Workforce Telestaff IVR License Per Port, Customer must purchase maintenance for both Workforce TeleStaff and Workforce Telestaff IVR License Per Port, and maintenance for Workforce Telestaff IVR License Per Port will be charged at the same level of support as Workforce TeleStaff (i.e., Gold or Platinum).

Implementation. To initiate and setup administration of the required communications, Kronos will perform the standard implementation of Workforce Telestaff IVR, including configuration, as described in the Statement of Work (“SOW”) signed by the Customer. Any additional professional services for non-standard implementation services will be provided at mutually agreed upon rates subject to a separate Order Form or a separate statement of work mutually agreed upon by both parties.

Payment. Kronos will invoice Customer for the Workforce Telestaff IVR implementation/configuration professional services fees set forth in the applicable SOW and Order Form, pursuant to the Agreement and on the payment terms set forth therein. Kronos will invoice Customer as follows: (i) for the license fees and annual maintenance associated with the Licensed Based Workforce Telestaff IVR as indicated on the Order Form; or (ii) each month in arrears for the Usage Based Workforce Telestaff IVR usage fees for the total actual number of metered minutes used each month (the “Minute Usage Fee”) at a rate of $0.13 per minute. Customer’s right to begin using the service shall begin upon activation of the service after implementation/configuration.

Customer will pay invoices issued by Kronos hereunder within thirty (30) days of receipt.

Restrictions on Workforce Telestaff IVR Services; Additional Responsibilities. Customer agrees that Workforce Telestaff IVR has not been designed for, and may not be used as, a means to connect with 911 or E911 emergency services. Kronos shall have no liability for any delays, failures or unavailability of Workforce Telestaff IVR due to transmission or other delays, errors or problems beyond Kronos’ control, or any other interruptions caused by the mobile communications network and/or mobile devices. Use of Workforce Telestaff IVR is subject to the software license terms set forth in the Agreement as well as the Acceptable Use Policy found at: https://www.aspect.com/acceptable-use-policy and Customer agrees that it shall be liable for all loss, damage or injury that may result from Customer’s failure to abide by such Policy. Customer acknowledges that communications occurring through Workforce Telestaff IVR may be subject to standard mobile carrier policies or government regulatory requirements for mobile communications.

Workforce Telestaff IVR Security. The Workforce Telestaff IVR service relies upon a third party hosted communication platform.

Accordingly, notwithstanding any other provision of the Agreement or this Addendum to the contrary, Customer understands and acknowledges that the exclusive statement of the security protections provided for i) Interactions by Customer and its employees through Workforce Telestaff IVR, and ii) all associated data, is found at: https://www.aspect.com/privacy-policy, under the heading “Information Security.”
Renewal and Termination. The initial Term is twelve months. At the expiration of the initial Term, the Term shall automatically renew on a month-to-month basis until terminated in accordance with the provisions hereof. At any time: (i) Customer may terminate the Workforce Telestaff IVR service for convenience upon thirty (30) days prior written notice, and (ii) Kronos may terminate the Workforce Telestaff IVR service for convenience upon one hundred and twenty (120) days prior written notice. Kronos may increase the per minute rate upon renewal with sixty (60) days prior written notice for use based Workforce Telestaff IVR. 462

SECTION F
WFC Extensions for Healthcare Terms and Conditions
to
Section D (Workforce Central Software as a Services Terms and Conditions) This WFC Extensions for Healthcare addendum of supplemental terms and conditions (the “Section F”) is entered into by and between Kronos and Customer and shall supplement the Agreement. Capitalized terms not otherwise defined herein shall have the meanings prescribed to them in the Agreement.

WHEREAS, Kronos and Customer entered into an agreement governing the provision of Kronos’ Workforce Central Software as a Service in Section D offering (the “SaaS Agreement”) pursuant to which Customer acquires Cloud Services for certain Applications to be used by Customer in the “Kronos Private Cloud” or “KPC; WHEREAS, Customer desires to acquire from Kronos the Extensions for Healthcare Application(s) (i.e., Workload Manager for Healthcare; Target Intelligence for Healthcare; and/or Forecast Manager for Healthcare, as such Applications set may be updated from time to time) (collectively, the “Extension Applications”) to be used and managed in Kronos Private Cloud and in accordance with this Section F Terms and Conditions and Section D, SaaS Agreement; WHEREAS, Kronos agrees to host and manage the Extension Applications in the Kronos Private Cloud for the benefit of Customer and in accordance with this Section F and the Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth, the parties agree as follows:

Customer and Kronos agree that the terms and conditions set forth herein shall only apply to the Extension Applications in Kronos’ Private Cloud, and the services related thereto. The Extension Applications described on the Order Form shall be delivered by means of Customer’s permitted access to the Kronos Private Cloud. Notwithstanding any provision in the Agreement or any prior Statement of Work signed by the parties for the Cloud Services to the contrary, the terms and conditions of this Section F shall apply to the Extension Applications hosted by Kronos in the Kronos Private Cloud. In the event of a conflict or inconsistency between the Agreement and this Section F, and only as it pertains to the Extension Applications, the provisions of this Section F shall prevail.

1. DEFINITIONS
“Agreement” means the underlying agreement including the SaaS Terms and Conditions set forth in Section D and to which this Section F shall apply.
“Business Associate Agreement” or “BAA” means the Business Associate Agreement attached hereto as Section H. “Client Partnership Services” means those services provided pursuant to Section 4, below. “Cloud Services” means those services described in Section I, the “Cloud Services for Extension Applications”. “Encrypt” or “Encryption” means to cryptographically protect data using methods such as symmetric encryption algorithm, asymmetric encryption algorithm or a one-way hashing algorithm. “HIPAA” means the Health Insurance Portability & Accountability Act of 1996, P.L. 104-191, as amended from time to time, together with its implementing regulations promulgated under HIPAA and under the Health Information Technology for Economic and Clinical Health Act (the “HITECH Act”), Title XIII of Division A and Title IV of Division B of the American Recovery and Reinvestment Act of 2009 (“ARRA”), by the U.S. Department of Health and Human Services, including, but not limited to, the Privacy Rule, the Security Rule and the Breach Notification Rule, as amended from time to time. “PHI” means Protected Health Information as defined by HIPAA. PHI shall be deemed to be Personally Identifiable Data under the Agreement.
“Solution” means the combination and use of the Extension Applications working with the Encryption Gateway Tool.

2. KRONOS CLOUD ENCRYPTION GATEWAY
a. As part of acquiring the Extension Applications pursuant to this Section F, Kronos licenses to Customer the right to use the Kronos Cloud Encryption Gateway tool (“Encryption Gateway Tool”). The Encryption Gateway Tool will Encrypt PHI before it is transmitted to the Kronos Private Cloud and it will un-Encrypt the PHI when it is extracted from the Kronos Private Cloud in accordance with the encryption product documentation. b. Kronos will deliver the Encryption Gateway Tool by giving Customer access to the secure Customer portal and such tool shall be available for download and to be installed by Customer, on Customer’s server and behind its firewall at its location. The Encryption Gateway Tool will at all times be under Customer’s control and Customer shall install updates to the Encryption Gateway Tool, when such updates are made available by Kronos. The Encryption Gateway Tool is licensed to Customer concurrently with the Extension Application(s) and upon termination or expiration of the Extension Application(s), Customer’s right to use the Encryption Gateway Tool shall also terminate. Customer agrees to uninstall the Encryption Gateway Tool upon termination of Customer’s right to use of the Extension Applications. 463

c. As part of the Services for the Extension Applications, Customer is entitled to receive the Support Services detailed in Section D.
d. The Application Availability SLA of the Agreement shall not apply to the Encryption Gateway Tool which is installed on Customer’s server at Customer’s control.

3. CUSTOMER RESPONSIBILITIES
Customer agrees to:
a. install, maintain and use the Encryption Gateway Tool as part of the cloud hosting services for the Extension Applications in accordance with the product documentation. Customer acknowledges that its failure to immediately apply updates to the Encryption Gateway Tool when such updates become available may: (i) compromise the security of Customer Content, including, Personally Identifiable Data and PHI; and (ii) result in incompatibility between the Healthcare Extensions and the Encryption Gateway Tool, which could cause failures in Encrypting and un-Encrypting data, and affect the scope of the Services provided by Kronos and its ability to adhere with its compliance programs, including those verified by the independent auditor report (i.e., SOC reports). Customer acknowledges Kronos shall not provide any credits for SLA issues under the Agreement that resulted from Customer’s failure to update the Encryption Gateway Tool. b. install and maintain the encryption gateway private key per the encryption product documentation, and not share the encryption gateway private key with any third party who does not have a need to know, including not sharing the encryption gateway private key with Kronos. Should Customer lose the key, any encrypted data will remain encrypted. c. enter and maintain PHI only in the fields defined in the Extension Applications product documentation; and to only send PHI data (e.g., screen shots containing PHI) to Kronos by means of secure support channels for such data. d. use unique user ID and passwords for all users of Extension Applications e. configure Extension Application user’s account to meet Customer’s HIPAA policy requirements for complexity, length duration and lockout.
f. determine user access/authorization to the application level of the Solution and assure that the level of access and the user assigned roles and permission are appropriate, which includes periodic application level logical access review. g. review application logs to meet Customer’s HIPAA compliance program. h. immediately notify Kronos in the event Customer discovers a security issue with the Solution. i. provide Kronos resources with application level accounts as reasonably needed to support the Extension Applications, and not unreasonably withhold such access.

4. CLIENT PARTNERSHIP SERVICES
If acquired by Customer on the applicable Order Form, the parties agree that the following terms shall apply to Customer’s purchase of Client Partnership Services only:
a. Scope. Client Partnership Services will provide to Customer additional support services to develop performance improvement for clients utilizing the Extension Applications. This service includes a dedicated Strategic Client Advisor (the “Advisor”) that works with the Customer to guide the Customer in optimizing the use of the Extension Applications. The Advisor will also provide consultation services which may include, but is not limited to, developing supporting processes, staff engagement and accountability structures, service plan development in response to Customer’s business requirements, as well as serving as a resource link to assist Customers in networking with other Kronos customer’s healthcare organizations.
b. Term. Client Partnership Services shall be for a term of one (1) year and shall renew for additional one (1) year terms provided Customer renews the Client Partnership Services as provided below. c. Payment: Customer shall pay the annual Client Partnership Services charges for the initial term in accordance with the payment terms on the Order Form as executed by Customer. Kronos will send Customer a renewal invoice for renewal of the Client Partnership Services at least forty five (45) days prior to expiration of the then current term. Client Partnership Services shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or any renewal term.
d. Change to Offerings; Support Increases: After the one year initial term, the Client Partnership Services offerings provided and the service coverage period are subject to change by Kronos with sixty (60) days advance written notice. For the initial two (2) renewal terms from the date of the Addendum, the annual Client Partnership Services fee, for the same service type, is subject to increase by not more than four percent (4%) over the prior year’s annual Client Partnership Services fee.

5. BUSINESS ASSOCIATE AGREEMENT
The parties agree that the provisions of the Business Associate Agreement referenced as Section H shall apply.

6. DATA SECURITY
As part of the Services for the Extension Applications, Kronos shall provide those administrative, physical, and technical safeguards for protection of the security, confidentiality and integrity of Customer data as described in Section I herein. 464

SECTION G
WFC Extensions for Healthcare Terms and Conditions
to
Section C / Section C-1 (Hosting Terms and Conditions)
This WFC Extensions for Healthcare addendum of supplemental terms and conditions (“Section G”) is entered into by and between Kronos and Customer and shall supplement the Agreement. Capitalized terms not otherwise defined herein shall have the meanings prescribed to them in the Agreement.

WHEREAS, Kronos and Customer entered into an agreement to have Kronos host the Workforce Central Software in its managed cloud environment in Section C/Section C-1 (the “Kronos Private Cloud” or “KPC”) and to allow Customer to use such software in the Kronos Private Cloud;
WHEREAS, Customer desires to acquire from Kronos the Extensions for Healthcare Application(s) (i.e., Workload Manager for Healthcare; Target Intelligence for Healthcare; and/or Forecast Manager for Healthcare, as such Application set may be updated from time to time) (collectively, the “Extension Applications”) to be used and managed in the Kronos Private Cloud and in accordance with this Section G terms and conditions and Section C / Section C-1; WHEREAS, Kronos agrees to host and manage the Extension Applications in the Kronos Private Cloud for the benefit of Customer and in accordance with this Section G and the Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth, the parties agree as follows:

Customer and Kronos agree that the terms and conditions set forth herein shall only apply to the Extension Applications in Kronos’ Private Cloud, and the services related thereto. The Extension Applications described on the Order Form shall be delivered by means of Customer’s permitted access to the Kronos Private Cloud. Notwithstanding any provision in the Agreement or any prior Statement of Work signed by the parties for the Cloud Services to the contrary, the terms and conditions of this Section G shall apply to the Extension Applications hosted by Kronos in the Kronos Private Cloud. In the event of a conflict or inconsistency between the Agreement and this Section G, and only as it pertains to the Extension Applications, the provisions of this Section G shall prevail.

1. DEFINITIONS
“Agreement” means the underlying agreement including the Cloud Hosting Terms and Conditions set forth in Section C/Section C1, as applicable, and to which this Section G shall apply. “Business Associate Agreement” or “BAA” means the Business Associate Agreement attached Section H. “Client Partnership Services” means those services provided pursuant to Section 4, below. “Cloud Services” means those services described in Section I, the “Cloud Services for Extension Applications”. “Encrypt” or “Encryption” means to cryptographically protect data using methods such as symmetric encryption algorithm, asymmetric encryption algorithm or a one-way hashing algorithm. “HIPAA” means the Health Insurance Portability & Accountability Act of 1996, P.L. 104-191, as amended from time to time, together with its implementing regulations promulgated under HIPAA and under the Health Information Technology for Economic and Clinical Health Act (the “HITECH Act”), Title XIII of Division A and Title IV of Division B of the American Recovery and Reinvestment Act of 2009 (“ARRA”), by the U.S. Department of Health and Human Services, including, but not limited to, the Privacy Rule, the Security Rule and the Breach Notification Rule, as amended from time to time. “PHI” means Protected Health Information as defined by HIPAA. PHI shall be deemed to be Personally Identifiable Data under the Agreement.
“Solution” means the combination and use of the Extension Applications working with the Encryption Gateway Tool.

7. KRONOS CLOUD ENCRYPTION GATEWAY
a.As part of acquiring the Extension Applications pursuant to this Section G, Kronos licenses to Customer the right to use the Kronos Cloud Encryption Gateway tool (“Encryption Gateway Tool”). The Encryption Gateway Tool will Encrypt PHI before it is transmitted to the Kronos Private Cloud and it will un-Encrypt the PHI when it is extracted from the Kronos Private Cloud in accordance with the encryption product documentation. b.Kronos will deliver the Encryption Gateway Tool by giving Customer access to the secure Customer portal and such tool shall be available for download and to be installed by Customer, on Customer’s server and behind its firewall at its location.

The Encryption Gateway Tool will at all times be under Customer’s control and Customer shall install updates to the Encryption 465

Gateway Tool, when such updates are made available by Kronos. The Encryption Gateway Tool is licensed to Customer concurrently with the Extension Application(s) and upon termination or expiration of the license to use the Extension Application(s) or termination or expiration of Software Support maintenance, Customer’s right to use the Encryption Gateway Tool shall also terminate.
c. Customer is entitled to receive the Support Services detailed in Section C/Section C-1. d.The Application Availability SLA of the Agreement shall not apply to the Encryption Gateway Tool which is installed on Customer’s server at Customer’s control.

8. CUSTOMER RESPONSIBILITIES
Customer agrees to:
a. install, maintain and use the Encryption Gateway Tool as part of the cloud hosting services for the Extension Applications in accordance with the product documentation. Customer acknowledges that its failure to immediately apply updates to the Encryption Gateway Tool when such updates become available may: (i) compromise the security of Customer Content, including, Personally Identifiable Data and PHI; and (ii) result in incompatibility between the Healthcare Extensions and the Encryption Gateway Tool, which could cause failures in Encrypting and un-Encrypting data, and affect the scope of the Hosting Related or Cloud Services provided by Kronos and its ability to adhere with its compliance programs, including those verified by the independent auditor report (i.e., SOC reports). Customer acknowledges Kronos shall not provide any credits for SLA issues under the Agreement that resulted from Customer’s failure to update the Encryption Gateway Tool.
b. install and maintain the encryption gateway private key per the encryption product documentation, and not share the encryption gateway private key with any third party who does not have a need to know, including not sharing the encryption gateway private key with Kronos. Should Customer lose the key, any encrypted data will remain encrypted. c. enter and maintain PHI only in the fields defined in the Extension Applications product documentation; and to only send PHI data (e.g., screen shots containing PHI) to Kronos by means of secure support channels for such data. d. use unique user ID and passwords for all users of Extension Applications e. configure Extension Application user’s account to meet Customer’s HIPAA policy requirements for complexity, length duration and lockout.
f. determine user access/authorization to the application level of the Solution and assure that the level of access and the user assigned roles and permission are appropriate, which includes periodic application level logical access review. g. review application logs to meet Customer’s HIPAA compliance program. h. immediately notify Kronos in the event Customer discovers a security issue with the Solution. i. provide Kronos resources with application level accounts as reasonably needed to support the Extension Applications, and not unreasonably withhold such access.

9. CLIENT PARTNERSHIP SERVICES
If acquired by Customer on the applicable Order Form, the parties agree that the following terms shall apply to Customer’s purchase of Client Partnership Services only:
a. Scope. Client Partnership Services will provide to Customer additional support services to develop performance improvement for clients utilizing the Extension Applications. This service includes a dedicated Strategic Client Advisor (the “Advisor”) that works with the Customer to guide the Customer in optimizing the use of the Extension Applications. The Advisor will also provide consultation services which may include, but is not limited to, developing supporting processes, staff engagement and accountability structures, service plan development in response to Customer’s business requirements, as well as serving as a resource link to assist Customers in networking with other Kronos customer’s healthcare organizations.
b. Term. Client Partnership Services shall be for a term of one (1) year and shall renew for additional one (1) year terms provided Customer renews the Client Partnership Services as provided below. c. Payment: Customer shall pay the annual Client Partnership Services charges for the initial term in accordance with the payment terms on the Order Form as executed by Customer. Kronos will send Customer a renewal invoice for renewal of the Client Partnership Services at least forty five (45) days prior to expiration of the then current term. Client Partnership Services shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or any renewal term.
d. Change to Offerings; Support Increases: After the one year initial term, the Client Partnership Services offerings provided and the service coverage period are subject to change by Kronos with sixty (60) days advance written notice. For the initial two (2) renewal terms from the date of the Addendum, the annual Client Partnership Services fee, for the same service type, is subject to increase by not more than four percent (4%) over the prior year’s annual Client Partnership Services fee.

10. BUSINESS ASSOCIATE AGREEMENT
The parties agree that the provisions of the Business Associate Agreement attached hereto and incorporated herein by reference as Section H shall apply

11. DATA SECURITY
As part of the Services for the Extension Applications, Kronos shall provide those administrative, physical, and technical safeguards for protection of the security, confidentiality and integrity of Customer data as described in Section I herein. 466

SECTION H

BUSINESS ASSOCIATE AGREEMENT

RECITALS
WHEREAS, Customer (hereinafter “Covered Entity”) has entered into an agreement with Kronos (hereinafter “Business Associate”) governing the provision of Kronos’ Workforce Central Software provided by Business Associate to Covered Entity in accordance with the Underlying Agreement;
WHEREAS, Business Associate may perform certain services to support Business Associate’s software licenses for or on behalf of Covered Entity, and in performing said services, Business Associate may receive, maintain, or transmit Protected Health Information (“PHI”);
WHEREAS, Covered Entity is a “Covered Entity” as that term is defined under the Health Insurance Portability and Accountability Act of 1996 (Public Law 104-91), as amended, (“HIPAA”), and the regulations promulgated thereunder by the Secretary of the U.S.

Department of Health and Human Services (“Secretary”), including, without limitation, the regulations codified at 45 C.F.R. Parts 160 and 164 (“HIPAA Regulations”);
WHEREAS, the Parties intend to protect the privacy and provide for the security of PHI disclosed by Covered Entity to Business Associate, or received by Business Associate, when providing Services in compliance with HIPAA, the Health Information Technology for Economic and Clinical Health Act (Public Law 111-005) (“the HITECH Act”) and its implementing regulations and guidance issued by the Secretary, and other applicable state and federal laws, all as amended from time to time; and WHEREAS, as a Covered Entity, Covered Entity is required under HIPAA to enter into a Business Associate Agreement (“BAA”) with Business Associate that meets certain requirements with respect to the Use and Disclosure of PHI, which are met by this BAA.

AGREEMENT
NOW WHEREFORE, in consideration of the Recitals and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Parties agree as follows:

1. DEFINITIONS
The following terms shall have the meaning set forth below. Capitalized terms used in this BAA and not otherwise defined shall have the meanings ascribed to them in HIPAA, the HIPAA Regulations, or the HITECH Act, as applicable.

1.1. “Breach” shall have the meaning given under 42 U.S.C. § 17921(1) and 45 C.F.R. § 164.402.

1.2. “Designated Record Set” shall have the meaning given such term under 45 C.F.R. § 164.501.

1.3. “Disclose” and “Disclosure” mean, with respect to PHI, the release, transfer, provision of access to, or divulging in any other manner of PHI outside of Business Associate or to other than members of its Workforce, as set forth in 45 C.F.R. § 160.103.

1.4. “Electronic PHI” or “e-PHI” means PHI that is transmitted or maintained in electronic media, as set forth in 45 C.F.R. § 160.103.

1.5. “Protected Health Information” and “PHI” mean any information, whether oral or recorded in any form or medium, that: (a) relates to the past, present or future physical or mental health or condition of an individual; the provision of health care to an individual, or the past, present or future payment for the provision of health care to an individual; (b) identifies the individual (or for which there is a reasonable basis for believing that the information can be used to identify the individual); and (c) shall have the meaning given to such term under the Privacy Rule, including, but not limited to, 45 C.F.R. § 160.103. Protected Health Information includes e-PHI.

1.6. “Security Incident” means a confirmed successful unauthorized access, use, disclosure, modification, or destruction of information or interference with system operations in an information system which affects Covered Entity’s PHI or ePHI in possession and/or control of Business Associate. Security Incident shall exclude (i) “pings” on an information system firewall; (ii) port scans; (iii) attempts to log on to an information system or enter a database with an invalid password or user name; (iv) denialof-service attacks that do not result in a server being taken offline; or (v) “malware” (e.g., a worm or a virus) that does not result in unauthorized access, use, disclosure, modification or destruction of PHI.

1.7. “Services” shall mean the services provided to Covered Entity by Business Associate pursuant to the Underlying Agreement.

1.8. “Unsecured PHI” shall have the meaning given to such term under 42 U.S.C. § 17932(h), 45 C.F.R. § 164.402, and guidance issued pursuant to the HITECH Act including, but not limited to the guidance issued on April 17, 2009 and published in 74 Federal Register 19006 (April 27, 2009) by the Secretary. 467

1.9. “Use” or “Uses” mean, with respect to PHI, the sharing, employment, application, utilization, examination or analysis of such PHI within Business Associate’s internal operations, as set forth in 45 C.F.R. § 160.103.

1.10. “Workforce” shall have the meaning given to such term under 45 C.F.R. § 160.103.

2. OBLIGATIONS OF BUSINESS ASSOCIATE

2.1 Permitted Uses and Disclosures of Protected Health Information. Business Associate shall not Use or Disclose PHI other than as permitted or required by any Underlying Agreement, this BAA, or as Required by Law. Business Associate shall not Use or Disclose PHI in any manner that would constitute a violation of Subpart E of 45 C.F.R. Part 164 if so Used or Disclosed by Covered Entity. However, Business Associate may Use or Disclose PHI (i) for the proper management and administration of Business Associate; (ii) to carry out the legal responsibilities of Business Associate, provided that with respect to any such Disclosure either: (a) the Disclosure is Required by Law; or (b) Business Associate obtains a written agreement from the person to whom the PHI is to be Disclosed that such person will hold the PHI in confidence and shall not Use and further Disclose such PHI except as Required by Law and for the purpose(s) for which it was Disclosed by Business Associate to such person, and that such person will notify Business Associate of any instances of which it is aware in which the confidentiality of the PHI has been breached; (iii) for Data Aggregation purposes for the Health Care Operations of Covered Entity. To the extent that Business Associate carries out one or more of Covered Entity’s obligations under Subpart E of 45 C.F.R. Part 164, Business Associate must comply with the requirements of Subpart E that apply to the Covered Entity in the performance of such obligations.

2.2 Prohibited Marketing and Sale of PHI. Notwithstanding any other provision in this BAA, Business Associate shall comply with the following requirements: (i) Business Associate shall not Use or Disclose PHI for fundraising or marketing purposes, except to the extent expressly authorized or permitted by any Underlying Agreement and consistent with the requirements of 42 U.S.C. § 17936, 45 C.F.R. §§ 164.514(f), and 164.508(a)(3)(ii), and (ii) Business Associate shall not directly or indirectly receive remuneration in exchange for PHI except with the prior written consent of Covered Entity and as permitted by the HITECH Act, 42 U.S.C. § 17935(d)(2), and 45 C.F.R. § 164.502(a)(5)(ii); however this prohibition shall not affect payment by Covered Entity to Business Associate for the provision of Services pursuant to any Underlying Agreement.

2.3 Adequate Safeguards of PHI. Business Associate shall implement and maintain reasonably appropriate safeguards to prevent Use or Disclosure of PHI other than as provided for by this BAA. Business Associate shall reasonably and appropriately protect the confidentially, integrity, and availability of e-PHI that it receives, maintains or transmits on behalf of Covered Entity in compliance with Subpart C of 45 C.F.R. Part 164 to prevent Use or Disclosure of PHI other than as provided for by this BAA.

2.4 Mitigation. Business Associate agrees to mitigate, to the extent practicable, any harmful effect that is known to Business Associate of a Use or Disclosure of PHI by Business Associate in violation of the requirements of this BAA.

2.5 Reporting Non-Permitted Use or Disclosure.

2.5.1 Reporting Security Incidents and Non-Permitted Use or Disclosure. Business Associate shall report to Covered Entity in writing each confirmed Security Incident or Use or Disclosure that is made by Business Associate, members of its Workforce, or Subcontractors that is not specifically permitted by this BAA no later than ten (10) business days after confirming such Security Incident or non-permitted Use or Disclosure, in accordance with the notice provisions set forth herein. Business Associate shall investigate each Security Incident or non-permitted Use or Disclosure of Covered Entity’s PHI that it discovers to determine whether such Security Incident or non-permitted Use or Disclosure constitutes a reportable Breach of Unsecured PHI.

Business Associate shall document and retain records of its investigation of any Breach, including its reports to Covered Entity under this Section 2.5.1. Upon written request by Covered Entity, Business Associate shall furnish to Covered Entity the documentation of its investigation and an assessment of whether such Security Incident or non-permitted Use or Disclosure constitutes a reportable Breach. If such Security Incident or non-permitted Use or Disclosure constitutes a reportable Breach of Unsecured PHI, then Business Associate shall comply with the additional requirements of Section 2.5.2 below.

2.5.2 Breach of Unsecured PHI. If Business Associate determines that a reportable Breach of Unsecured PHI has occurred, Business Associate shall provide a written report to Covered Entity without unreasonable delay but no later than thirty (30) calendar days after discovery of the Breach. To the extent that information is available to Business Associate, Business Associate’s written report to Covered Entity shall be in accordance with 45 C.F.R. §164.410(c). Business Associate shall reasonably cooperate with Covered Entity in meeting Covered Entity’s obligations under the HITECH Act with respect to such Breach. Covered Entity shall have sole control over the timing and method of providing notification of such Breach to the affected individual(s), the Secretary and, if applicable, the media, as required by the HITECH Act.

2.6 Availability of Internal Practices, Books, and Records to Government. Business Associate agrees to make its internal policies, books and records relating to the Use and Disclosure of PHI received from, or received by the Business Associate on behalf of Covered Entity available to the Secretary for purposes of determining Covered Entity’s compliance with HIPAA, the HIPAA Regulations, and the HITECH Act. Except to the extent prohibited by law, Business Associate shall notify Covered Entity of all requests served upon Business Associate for information or documentation by or on behalf of the Secretary.

2.7 Access to and Amendment of Protected Health Information. To the extent that Business Associate maintains a Designated Record Set on behalf of Covered Entity and within fifteen (15) business days of a written request by Covered Entity, Business Associate shall (a) make the PHI it maintains (or which is maintained by its Subcontractors) in Designated Record Sets available to Covered Entity for inspection and copying to fulfill its obligations under 45 C.F.R. § 164.524, or (b) permit Covered Enity 468

to amend the PHI Business Associate maintains (or which is maintained by Business Associate’s Subcontractors) in Designated Record Sets to enable the Covered Entity to fulfill its obligations under 45 C.F.R. § 164.526. In the event that an individual makes a direct request to Business Associate to amend any PHI of such individual maintained in a Designated Record Set on behalf of Covered Entity, Business Associate shall promptly forward such individual’s request to Covered Entity for review. Business Associate shall not Disclose PHI to a health plan for payment or Health Care Operations purposes except as otherwise directed by Covered Entity or required by law. If Business Associate maintains PHI in a Designated Record Set electronically, Business Associate shall provide such information in the electronic form and format requested by the Covered Entity if it is readily reproducible in such form and format, and, if not, in such other form and format as commercially reasonable and available to enable Covered Entity to fulfill its obligations under 42 U.S.C. § 17935(e) and 45 C.F.R. § 164.524(c)(2). Business Associate shall notify Covered Entity within fifteen (15) business days of receipt of a request for access to PHI.

2.8 Accounting. To the extent that Business Associate maintains a Designated Record Set on behalf of Covered Entity, within thirty (30) days of receipt of a request from Covered Entity or an individual for an accounting of disclosures of PHI, Business Associate and its Subcontractors shall make available to Covered Entity the information required to provide an accounting of disclosures to enable Covered Entity to fulfill its obligations under 45 C.F.R. § 164.528 and its obligations under 42 U.S.C. § 17935(c). Business Associate shall notify Covered Entity within fifteen (15) business days of receipt of a request by an individual or other requesting party for an accounting of disclosures of PHI.

2.9 Use of Subcontractors. Business Associate shall require each of its Subcontractors, if any, that maintains, receives, or transmits PHI on behalf of Business Associate, to execute a Business Associate Agreement that imposes on such Subcontractors the same, or substantially similar, restrictions, conditions, and requirements that apply to Business Associate under this BAA with respect to PHI.

2.10 Minimum Necessary. Business Associate (and its Subcontractors) shall, to the extent practicable, limits its request, Use, or Disclosure of PHI to the minimum amount of PHI necessary to accomplish the purpose of the request, Use or Disclosure, in accordance with 42 U.S.C. § 17935(b) and 45 C.F.R. § 164.502(b)(1) or any other guidance issued thereunder.

3. COVERED ENTITIES RESPONSIBILITIES
Covered Entity Responsibilities. With respect to the use and disclosure of the PHI by Business Associate, Covered Entity agrees to: (a) inform Business Associate of any change in or revocation of any authorization provided to Covered Entity by Individuals pursuant to applicable law, including, but not limited to, the HIPAA Statute and which is applicable to Business Associate; and (b) to timely notify Business Associate, in writing, of any arrangement permitted or required of Covered Entity under applicable law, including, but not limited to, the HIPAA Statute, that may impact in any manner the use, disclosure, or access to PHI by Business Associate under the Agreement, including, but not limited to, any agreement by Covered Entity to restrict use or disclosure of any PHI as permitted by the HIPAA Statute.

4. TERM AND TERMINATION

4.1 Term. Subject to the provisions of Section 4.2 herein, the term of this BAA shall be the term of the Underlying Agreement.

4.2 Termination for Cause. In addition to and notwithstanding the termination provisions set forth in any Underlying Agreement, upon Covered Entity’s knowledge of a material breach or violation of this BAA by Business Associate, Covered Entity shall either:
a. Notify Business Associate of the breach in writing, and provide an opportunity for Business Associate to cure the breach or end the violation within fifteen (15) business days of such notification; provided that if Business Associate fails to cure the breach or end the violation within such time period, Covered Entity may immediately terminate this BAA and any Underlying Agreement upon written notice to Business Associate; or b. Upon written notice to Business Associate, immediately terminate this BAA and any Underlying Agreement if Covered Entity determines that such breach cannot be cured

4.3 Disposition of Protected Health Information Upon Termination or Expiration.

4.3.1 Upon termination or expiration of this BAA, Business Associate shall either return or destroy all PHI received from, or received by Business Associate on behalf of Covered Entity, that Business Associate still maintains in any form and retain no copies of such PHI. If Covered Entity requests that Business Associate return PHI, PHI shall be returned in a a format utilized at the time of termination and timeframe, at no additional charge to Covered Entity.

4.3.2 If return or destruction is not feasible, Business Associate shall (a) retain only that PHI which is necessary for Business Associate to continue its proper management and administration or to carry out its legal responsibilities; (b) return to Covered Entity the remaining PHI that the Business Associate still maintains in any form; (c) continue to extend the protections of this BAA to the PHI for as long as Business Associate retains the PHI; (d) limit further Uses and Disclosures of such PHI to those purposes that make the return or destruction of the PHI not feasible and subject to the same conditions set out in Section 2.1 and 2.2 above, which applied prior to termination; and (e) return to Covered Entity the PHI retained by Business Associate when it is no longer needed by Business Associate for its proper management and administration or to carry out its legal responsibilities. 469

5. MISCELLANEOUS

5.1 Amendment to Comply with Law. The parties agree to enter into an amendment to this BAA to incorporate any mandatory obligations of Covered Entity or Business Associate under the HITECH Act and its implementing HIPAA Regulations, as applicable, and as mutually agreed between the parties. Additionally, the Parties agree to take such action as is reasonably necessary to amend this BAA from time to time for Covered Entity to implement its obligations pursuant to HIPAA, the HIPAA Regulations, or the HITECH Act, and to the extent mutually acceptable to the parties.

5.2 Relationship to Underlying Agreement Provisions. Except as otherwise specifically stated in this BAA, in the event that a provision of this BAA is contrary to a provision of an Underlying Agreement, the provision of this BAA shall control.

Otherwise, this BAA shall be construed under, and in accordance with, the terms of such Underlying Agreement, and shall be considered an amendment of and supplement to such Underlying Agreement, subject to Section 5.3 below.

5.3 Entire Agreement. This BAA supplements and is entered into subject to the Underlying Agreement, and constitutes the entire agreement between the Parties for the services described herein and supersede all prior or contemporaneous representations, negotiations, or other communications between the Parties relating to the subject matter of this BAA. Any provisions in the Underlying Agreement regarding limitations or exclusion of liability or indemnification will apply to any of the rights and obligations of the parties under this BAA or breach thereof. This BAA supersedes and replaces any existing Business Associate Agreement in effect between Business Associate and Covered Entity. Any PHI received from Covered Entity prior to, on, or after the date of this Agreement is subject to the terms and conditions of this Agreement.

5.4 Notices. Any notices required or permitted to be given hereunder by either Party to the other shall be given in writing: (1) by personal delivery; (2) by electronic mail or facsimile with confirmation sent by United States first class registered or certified mail, postage prepaid, return receipt requested; (3) by bonded courier or by a nationally recognized overnight delivery service; or (4) by United States first class registered or certified mail, postage prepaid, return receipt, in each case, addressed to a Party on the signature page(s) to this Agreement, or to such other addresses as the Parties may request in writing by notice given pursuant to this Section 5.4. Notices shall be deemed received on the earliest of personal delivery; upon delivery by electronic facsimile with confirmation from the transmitting machine that the transmission was completed; twenty-four (24) hours following deposit with a bonded courier or overnight delivery service; or seventy-two (72) hours following deposit in the U.S. mail as required herein.

5.5 Relationship of Parties. Notwithstanding anything to the contrary in any Underlying Agreement, Business Associate is an independent contractor and not an agent of Covered Entity under this BAA. Business Associate has the sole right and obligation to supervise, manage, contract, direct, procure, perform or cause to be performed all Business Associate obligations under this BAA.
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SECTION I
Cloud Services for Extension Applications Applicable to Sections F and G Only Cloud Offering
Environments:

One standard Production and one Non-Production (Development) environment.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Included. More nonproduction environments are
available for additional fees.

Environment restoration:

Restore of Production environment to one Non-Production environment once per week.

Customer is responsible for requesting data to be moved from the Production environment to the Non-Production environment and for the contents of the data moved from the Production environment to the Non-Production environment.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Included. More frequent
restores or additional
environments will be subject
to additional time and
material fees.

Connectivity to Service:

Customer's users connect to application via secure TLS connection over the internet.

Cooperative efforts with customer IT staff may be required to enable access. Kronos will assist with validating site connectivity but assumes no responsibility for customer internet connection or ISP relationships. Kronos related Internet traffic cannot be filtered by proxy or caching devices on the client network. Exclusions must be added for the fully qualified domain names and public IP addresses assigned to the environments in the Kronos Cloud. Applicable ports must be opened from customer network as described in product documentation.

Included
Operating System and Database Software Management: Includes application of critical security patches, service packs and hot-fixes; maintenance of servers.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Included
Server Maintenance: Repair and replacement of defective or failed hardware and the installation of hardware upgrades.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Included
Application Updates: Services to perform technical tasks required to apply application service packs, legislative updates (if applicable), point releases and version upgrades.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Included
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Cloud Offering
Backup:

Customer data is backed up daily. Database backups are replicated via encrypted connections to a second Kronos Cloud datacenter. Backups are retained for the prior 28 days on a rotating basis. All historical employee and configuration data is stored in the rotating backups.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Included
Security:

Kronos maintains a hosting environment that undergoes examinations from an independent auditor in accordance with the American Institute of Certified Public Accounts (AICPA) Trust Services Principles Section 100a, Trust Services for Security, Availability, Processing Integrity, Confidentiality and Privacy (i.e. SOC 2). The Kronos Private Cloud (KPC) is evaluated for the principles of Security, Availability and Confidentiality by the independent auditor. The Kronos Private Cloud is located in data centers that undergo SSAE 16 examinations. Management access to the KPC is limited to authorized Kronos support staff and customer authorized integrations. The security architecture has been designed to control appropriate logical access to the KPC to meet the Trust Services Principles of Security, Availability and Confidentiality. The Applications provide the customer with the ability to configure application security and logical access per the customer's business processes.

Additionally the independent auditor will provide an opinion on the design and operating effectiveness of controls to meet the security requirements of the Health Insurance Portability and Accountability Act Security Rule, which will be first issued by end of calendar year 2016.

In the event the customer identifies a security issue, the customer will notify Kronos. For security purposes, customers are restricted from accessing the desktop, file systems, databases and operating system of the environments.

Customer agrees not to upload payment card information as the service is not certified for PCI DSS.

For each of the customer’s production and non-production environments in a data center in the United States of America, Customer Content will be Encrypted at rest at the storage level for the Extension Application(s). Encryption at rest is defined as Customer Content is made unreadable on disk via encryption technology when the Kronos Cloud computing environment hardware is powered off. For clarity this storage level of Encryption within the Kronos Private Cloud is independent of the Encryption at the Encryption Gateway Tool located at the customer’s location, thus providing a second layer of encryption at rest.

Included
Basic Disaster Recovery Services:

Customer environment and all customer data in the Kronos Cloud are replicated to a secondary Kronos Cloud data center. Basic Disaster Recovery Services provides a Recovery Point Objective (RPO) of 24 hours and Kronos strives to restore Application Availability in a commercially reasonable timeframe.

The customer will be down until production processing is restored in the primary or secondary data center if needed. No application environment is readily available at the alternate site to process data. Customers are expected to use fully qualified domain names (FQDNs) to access the service given that IP address of the service may change.

Any issues arising out of the disaster recovery event due to customer configuration/customization and/or customer third party software outside of the Kronos Cloud is the responsibility of the customer to resolve.

Included
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Cloud Offering
Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Enhanced Disaster Recovery Services:

Customer environment and all customer data in the Kronos Cloud are replicated to a secondary Kronos Cloud datacenter. Enhanced Disaster Recovery Services provide an RTO (Recovery Time Objective) of 72 hours and a RPO (Recovery Point Objective) of 24 hours.

In the unlikely event that Kronos declares a disaster in the primary datacenter, Kronos will notify the customer and activate the Disaster Recovery steps necessary to restore application availability within the RTO defined.

As part of the enhanced service, Kronos will conduct an annual Disaster Recovery Process test which has the objectives to 1) test backups 2) train Kronos employees 3) verify and improve internal Kronos procedures. The annual Disaster Recovery Process test may be live or simulated test.

Customers are expected to use fully qualified domain names (FQDNs) to access the service given that IP address of the service may change. Any issues arising out of the disaster recovery event due to customer configuration/customization and/or customer third party software outside of the Kronos Cloud is the responsibility of the customer to resolve.

Excludes encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

If purchased on Order Form
Guidelines and Assumptions:

Category Assumption
Estimated availability of production server hardware in Kronos Cloud is approximately 30 days after the Order Form is processed.

Customer agrees to receive automatic updates to the Applications.

Applications will support English only.

Customer agrees not to conduct security testing, which includes but is not limited to penetration testing and vulnerability scanning.

Customer agrees not conduct any sort of automated or manual performance testing of the Service. 473

Category Assumption
Retention policies must be configured in the Application(s). Setting retention policies will ensure that unnecessary system data (e.g. temp files, deleted records, empty rows, etc.) is routinely purged from the system and will help in managing database growth. Additionally application audit log will retained for 30 days.

Customer will be required to sign a go live milestone document confirming customer has completed its testing and is ready to go live with the Workforce Central Application EHC module(s).

Workforce Central EHC Upgrade Services
The Service includes services for Kronos to execute tasks to apply point releases and version upgrades to customer’s Kronos Applications in the Kronos Cloud. Services are limited to those tasks which apply these updates to the Applications. Services related to upgrade of Encryption Gateway Environment and encryption gateway software running at a location in customer’s control outside of Kronos Cloud are not included.

The table below reflects the included upgrade tasks.

Planning Phase
Customer/ Kronos Introduction Call – up to 30 minutes Included Technical readiness & architecture review – Kronos Cloud Environment Included Technical readiness & architecture review – Encryption Gateway environment Not Included Assessment Phase
Assessment of Interface Upgrade to WFC Included
Assessment of new features or changes to configuration Not included Assessment of customs, custom interfaces and custom reports and development activities related thereto
Not included
Solution Upgrade / Build Phase
One (1) restore of Production database to Pre-Production environment for the purpose of upgrade testing.

Additional restores, if requested, shall be subject to additional time and material fees.

Included
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Upgrade Non-Production and Production environments to new point release or version. Included Upgrade of interface integration to Workforce Central per features in product documentation. Included Upgrade of integrations beyond integration to Workforce Central per features in product documentation. Not Included Upgrade of any customs, custom interfaces and custom reports and development activities related thereto
Not Included
Configuration of new features or functionality or changes to existing configuration Available for Purchase
Upgrade of Encryption Gateway Environment and encryption gateway software running at a location in customer’s control outside of Kronos Cloud.

Not Included
Test & Certify Phase
User acceptance testing (UAT) of upgraded environments, interfaces, custom reports, new features, etc. Not Included Develop customer-specific test cases Not Included
Sign-off on upgraded Non-Production and Production Environments Customer Deploy & Support Phase
Deployment Readiness Call – up to 30 minutes Included
Note that new feature configuration, project management services, other Professional, Managed and Educational Services and training are not included as part of Upgrade Services, but may be purchased independently, if desired.

If not specifically noted, the customer should assume responsibility of the task and/or deliverable. 475

SECTION J

CLIENT PARTNERSHIP SERVICES SUPPLEMENTAL TERMS AND CONDITIONS (For Healthcare Customers only)
This Client Partnership Services Supplemental Terms and Conditions apply to the Client Partnership Services purchased by Customer set forth in the applicable Order Form.

Customer has purchase software licenses and/or acquire software services, as well as related equipment, professional, educational and training services and support maintenance services (collectively, the “Products”) under Section A and B of the Agreement; WHEREAS, Customer desires to purchase the Client Partnership Services set forth in the applicable Order Form, as executed by Customer;
WHEREAS, Customer acknowledges that the purchase and use of the Client Partnership Services shall be subject to the Agreement, as modified and supplemented by this Section K.

WHEREAS, the Parties agree that the terms and conditions of this Section K shall apply only to the Client Partnership Services as identified on the Order Form executed by the Parties, and this Section K shall not affect the rights or use of such other Kronos software modules or applications (i.e., the Kronos Workforce software suite of products) acquired by Customer under the other section of the Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants hereafter set forth herein, the Parties agree as follows:

1. Client Partnership Services for Kronos Software.

If purchased by Customer on the applicable Order Form, the parties agree that the following terms shall apply to Customer’s purchase of Client Partnership Services only and shall supplement the Software Support Services offered by Kronos under Section B:
(a) Scope. Kronos Client Partnership Services will provide to Customer’s organization an additional set of support services to develop performance improvement for those customers using the Kronos software. This service includes a dedicated Strategic Client Advisor (the “Advisor”) who works closely with the Customer to guide the Customer in optimizing the use of the Software. The Advisor will be the Customer’s link to Kronos’ broad industry practice, support tools and knowledge base.

The Advisor will also provide consultation services which include, but are not limited to, developing supporting processes, staff engagement and accountability structures, service plan development in response to Customer’s business requirements, as well as serving as a resource link to assist Customers in networking with other Kronos healthcare organizations;
(b) Term. Client Partnership Services shall be for a term of one (1) year and shall renew for additional one (1) year terms provided Customer renews the Client Partnership Services as provided below; (c) Payment: Customer shall pay the annual Client Partnership Services charges for the initial term in accordance with the payment terms on the Order Form as executed by Customer. Kronos will send Customer a renewal invoice for renewal of the Client Partnership Services at least forty-five (45) days prior to expiration of the then current term. Client Partnership Services shall renew for an additional one (1) year term if Customer pays such invoice before the end of the initial term or any renewal term and;
(d) Change to Offerings; Support Increases: Client Partnership Services are offered under Kronos Software Support offerings and after the one year initial term of this Addendum, the Client Partnership Service offerings provided and the service coverage period are subject to change by Kronos.
476

SECTION K
WORKFORCE DIMENSIONS™ AGREEMENT
Customer and Kronos agree that the terms and conditions set forth in this Section K apply to Kronos’ Workforce Dimensions software as a service and other related offerings specified on a Kronos Order Form.

This Section K includes the following exhibits, which are incorporated by reference, and which form an integral part of this contract:

Exhibit K-A: Attachment A-1: Equipment Purchase, Rental, and Support Attachment A-2: Professional and Educational Services Policies Attachment A-3: Service Level Agreement
Exhibit K-B: Workforce Dimensions Cloud Guidelines:
www.kronos.com/workforce-dimensions/agreement/exhibitb
Exhibit K-C: Customer Success
Attachment C-1: Customer Success Plans
Attachment C-2: Support Policies
Exhibit K-D: Acceptable Use Policy (AUP):
www.kronos.com/workforce-dimensions/agreement/exhibitd
Exhibit K-E: AtomSphere Service and Boomi Software
Attachment E-1: Boomi Flow Down Provisions
The description of the type, quantity, and cost of the specific offerings being ordered by Customer will be described in an Order Form, that will be mutually agreed upon and signed by the Parties pursuant and subject to this Section K. If Implementation Services are to be delivered by Kronos, the Parties may need to execute a Statement of Work, which will set forth the scope, objectives and other business terms of the Implementation Services ordered with the Order Form.

Definitions
“Acceptable Use Policy” and “AUP” are interchangeable terms referring to the Kronos policy describing prohibited uses of the Service as further described in Exhibit D. “Aggregated Data” is any statistical data that is derived from the operation of the Service, including without limitation, for analysis of the Service, Configurations or Customer Data, and is created by Kronos in response to specified queries for a set point in time; including without limitation aggregation, metrics, trend data, correlations, benchmarking, determining best practices, the number and types of transactions, configurations, records, reports processed in the Service, and the performance results for the Service Agreement.
“Applicable Law(s)” means any applicable provisions of all laws, codes, legislative acts, regulations, ordinances, rules, rules of court, and orders which govern the Party’s respective business. “Authorized User” means any individual or entity that directly (or through another Authorized User) accesses or uses the Service with any login credentials or passwords Customer uses to access the Service.
477

“Application(s)” means those Kronos Workforce Dimensions software application programs set forth on an Order Form which are made accessible for Customer to use under the terms of this Agreement. “Boomi AtomSphere Service” means the third-party service for the creation of integrations by Customer as further described in Exhibit E, which the Customer and Customer’s Authorized Users have the right to access through the Service.
“Boomi Software” means the third-party proprietary software associated with the Boomi AtomSphere Service as further described in Exhibit E.
“Claim(s)” means any and all notices, charges, claims, proceedings, actions, causes of action and suits, brought by a third party.
“Configuration(s)” means the Customer specific settings of the parameters within the Applications(s), including pay and work rules, security settings such as log-in credentials, passwords, and private keys used to access the Service.
“Controls” means the administrative, physical, and technical safeguards for the protection of the security, confidentiality and integrity of Customer Data, designed and implemented by Kronos to secure Customer Data against accidental or unlawful loss, access or disclosure consistent with the AICPA Trust Principles Criteria for security, availability, confidentiality and processing integrity (SOC 2). “Customer Data” means all content Customer, or its Authorized Users, posts or otherwise inputs into the Service, including but not limited to information, data (such as payroll data, vacation time, hours worked or other data elements associated with an Authorized User), text, multimedia images (e.g. graphics, audio and video files), or compilations.
“Customer Success Plan(s)” means the services provided by Kronos to support and maintain the Service as described in Exhibit C, including but not limited to the Support Plans and the Customer Success Programs.
“Customer Indemnified Party(ies)” means Customer and Customer’s respective directors, officers, and employees.
“Data Protection Law(s)” means all international, federal, state, and local laws, rules, regulations, directives and published governmental or regulatory decisions that specify data privacy, data protection or data security obligations, and which, in each case, have the force of law applicable to a Party’s collection, use, processing, storage, or disclosure of Personally Identifiable Information. “Documentation” means the published specifications for the applicable Applications and Equipment, such as user manuals and administrator guides.
“Equipment” means Kronos equipment such as time clocks, devices, or other equipment set forth on an Order Form.
“Equipment Support Services” means the maintenance and support services related to Kronos’ support of Equipment as further described in Attachment A-1.
478

“Feedback” means suggestions, ideas, comments, know how, techniques or other information provided to Kronos for enhancements or improvements, new features or functionality or other feedback with respect to the Service.
“Fees” means the charges to be paid by Customer for a particular item. “Implementation Services” means those professional and educational services provided by Kronos to set up the cloud environment and to setup the Configurations within the Applications, as set forth in an SOW.
“Kronos Indemnified Party(ies)” means Kronos and its third-party Technology suppliers and each of their respective directors, officers, employees, agents and independent contractors. “Order Form” means an order form mutually agreed upon by Kronos and Customer setting forth, among other things, the items ordered by Customer and to be provided by Kronos and the Fees to be paid by Customer.
“Party(ies)” means Kronos or Customer, or both of them, as the context dictates. “PEPM” means the per employee per month fee for a Customer’s Authorized Users access to the Service.
“Personally Identifiable Information” means information concerning individually identifiable employees of Customer that is protected against disclosure under Applicable Data Protection Law. “Professional Services” means the professional, educational, consulting, or training services provided by Kronos pursuant to an Order Form and which are not described in a Statement of Work. “Seasonal Licenses” are limited use licenses that have the following attributes: (i) valid only for the four (4) consecutive months during the annual period identified on the Order Form; (ii) valid from the first day of the month in which they commence until the end on the last day of the month in which they expire; and (iii) will be effective automatically each year during the Term, subject to termination and non-renewal as provided in the Agreement.
“Service” means the Kronos supply of the commercially available version of the Workforce Dimensions SaaS Applications in Kronos’ hosted environment and the services described in the section related thereto.
“Statement of Work” and “SOW” are interchangeable terms referring to a written description of the Implementation Services.
“Technology” means the intellectual property of Kronos within the Service, including but not limited to the Applications.
“Term” means the Initial Term and any Renewal Terms.
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1. Order Forms

1.1 The following commercial terms may appear on an Order Form:
a. The Application(s) included in the Service, and the other offerings being ordered by Customer b. Billing Start Date (i.e., the date the billing of the PEPM Fees commences) c. Initial Term (i.e., the initial billing term of the Service commencing on the Billing Start Date) d. Renewal Term (i.e., the renewal billing term of the Service) e. Billing Frequency (i.e., the frequency for the invoicing of the PEPM Fees such as Annual in Advance or Monthly in Arrears)
i. “Annual in Advance” means payment is due on an annual basis with the invoice being issued upon execution of the Order Form.
ii. “Monthly in Arrears” means payment is due on a monthly basis with the invoice being issued at the end of the month in which the Service was delivered. f. Payment Terms (i.e., the amount of days in which Customer must pay a Kronos invoice) g. Shipping Terms (i.e., FOB – Shipping Point, Prepay and Add)

1.2 The following Fees may appear on an Order Form:
a. PEPM Fees for use of the Service, including PEPM Fees for Seasonal Licenses b. Customer Success Fees for Premium and Premium Plus Plans c. Implementation Services Fees (The Order Form will note if Implementation Services Fees are included in PEPM Fees.)
d. Equipment Purchase Fees
e. Equipment Rental Fees

1.3 Kronos may also sell (or rent) Equipment to Customer, and provide related Equipment Support Services, if included on an Order Form. These offerings are subject to this Agreement and the terms and conditions set forth in Attachment A-1.

2. Billing

2.1 Kronos will invoice the Fees on the Billing Frequency indicated on the Order Form. For each Order Form, the billing period of the PEPM Fees will start on the Billing Start Date and will continue for the time period indicated as the Initial Term. Customer will pay the Fees on the Payment Terms and in the currency, indicated on the Order Form. Customer will send payment to the attention of Kronos at the address indicated on the applicable invoice unless the Parties have made an alternative payment arrangement (such as credit card, wire transfer, ACH payment or otherwise). Unless expressly provided in this Section K, Customer payments are non-refundable. Each Party is responsible to pay all costs and fees attributable to such Party pursuant to the Shipping Terms indicated on the Order Form.

2.2 At the expiration of the Initial Term, and at the expiration of each Renewal Term, the Service will automatically renew for a Renewal Term. For each Renewal Term, Kronos may increase the PEPM Fees by no more than four percent (4%) over the previous year’s PEPM Fees, for the same Applications and the same licensed quantity. Kronos will reflect these increased PEPM fees in the applicable invoice for each Renewal Term.

3. Implementation Services and Professional Services

3.1 Implementation Services are described in a SOW that the Parties will sign or reference on a signed Order Form. These SOWs are subject to this Section K. Implementation Services are invoiced monthly 480

as delivered, except if otherwise indicated on an Order Form. Each Party will perform their respective obligations as outlined in a signed SOW.

3.2 While Customer may configure the Applications itself, as part of the Implementation Services as described in an SOW, Kronos may also configure the Applications. Kronos will configure the Applications based on Customer’s instructions and direction. Customer is solely responsible for ensuring that the Configurations comply with Applicable Law.

3.3 Kronos may also provide Professional Services to Customer that do not require an SOW but which will be as set forth on an Order Form.

3.4 The Kronos policies set forth in Section B shall apply to all Implementation Services and Professional Services provided by Kronos. In the event of a conflict between the Professional Services Policies and this Section K, the terms of this Section K shall prevail.

4. Service Level Agreement
Kronos offers the Service Level Agreement and associated SLA Credits as described in Attachment A-3.

The SLA Credits are Customer’s sole and exclusive remedy in the event of any Outage. Kronos remains obligated to provide the Service as otherwise described in this Section K.

5. Data, Confidentiality, Security and Privacy
Section 5.1 Data

5.1.1 Customer owns Customer Data. Customer is solely responsible for Customer Data, including ensuring that Customer Data complies with the Acceptable Use Policy and Applicable Law. Customer is solely responsible for any Claims that may arise out of or relating to Customer Data.

5.1.2 Kronos owns the Aggregated Data. Nothing in this Agreement will prohibit Kronos from utilizing the Aggregated Data for any purposes, provided that Kronos’ use of Aggregated Data will anonymize Customer Data, will not reveal any Customer Confidential Information, and will not reveal any Personally Identifiable Information.

Section 5.2 Security and Privacy

5.2.1 Kronos will maintain the Controls throughout the Term.

5.2.2 Each Party will comply with all Applicable Laws, including, without limitation, Data Protection Laws.

5.2.3 Kronos employees will access Customer Data from the locations from which such employees work.

Customer consents to Kronos’ handling, collection, use, transfer, and processing of Customer Data to provide the Service. As may be required by Applicable Law, Customer will ensure that Customer Data may be provided to Kronos for the purposes of providing the Service. Customer has obtained all necessary consents from individuals to enable Kronos to use the Customer Data to provide the Service. As may be contemplated by the applicable Data Protection Laws, Customer will remain the “controller” of Customer Data and Kronos will be considered a “processor” of Customer Data.

5.2.4 Kronos will notify Customer in accordance with Applicable Law upon becoming aware of an unauthorized access of Customer Data. To the extent reasonably possible, such a notification will include, 481

at a minimum (i) a description of the breach, (ii) the information that may have been obtained as a result of the breach, and (iii) the corrective action Kronos is taking in response to the breach.

6. Warranty
Kronos warrants that the Service will be provided in a professional and workmanlike manner. TO THE

EXTENT PERMITTED UNDER APPLICABLE LAW, KRONOS DISCLAIMS ALL OTHER WARRANTIES RELATED

TO THE SERVICE, EITHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. If Customer informs Kronos in writing that there is a material deficiency in the Service which is making this warranty untrue, Kronos will use its reasonable commercial efforts to correct the non-conforming Service at no additional charge, and if Kronos is unable to do so within a reasonable period of time, Customer may terminate the then remaining Term, which will be Customer’s sole and exclusive remedy. Customer agrees to provide Kronos with reasonable information and assistance to enable Kronos to reproduce or verify the nonconforming aspect of the Service.

7. License
Section 7.1 Technology License

7.1.1 As part of the Service, Kronos will provide Customer access to and use of the Technology, including the Applications. Kronos hereby grants Customer a limited, revocable, non-exclusive, non-transferable, non-assignable right to use the Service, including the Technology, during the Term and for internal business purposes only. Customer acknowledges and agrees that the right to use the Service, including Seasonal Licenses when included on the Order Form, is limited based upon the number of Authorized Users, and Customer’s payment of the corresponding PEPM Fees. Customer agrees to use the Applications only for the number of employees stated on the total of all Order Forms for the applicable Applications. Customer agrees not to use any other Application nor increase the number of employees using an Application unless Customer enters into an additional Order Form that will permit the Customer to have additional Authorized Users.

7.1.2 Kronos owns all title or possesses all intellectual property rights in and to the Technology used in delivering the Service. Customer has a right to use this Technology and to receive the Service subject to this Section K. No other use of the Technology is permitted. Customer is specifically prohibited from reverse engineering, disassembling or decompiling the Technology, or otherwise attempting to derive the source code of the Technology. Customer cannot contact third party licensors or suppliers for direct support of the Technology. No license, right, or interest in any Kronos trademark, trade name, or service mark, or those of any third party supplying Technology as part of the Service, is granted hereunder.

8. Scope and Authority

8.1 Authorized Users may access the Service on Customer’s behalf, and Customer will be responsible for all actions taken by its Authorized Users. Customer will make sure that Authorized Users comply with Customer’s obligations under this Section K. Unless Kronos breaches its obligations under this Section K, Kronos is not responsible for unauthorized access to Customer’s account, nor activities undertaken with Customer’s login credentials, nor by Customer’s Authorized Users. Customer should contact Kronos immediately if Customer believes an unauthorized person is using Customer’s account or that Customer’s account information has been compromised.
482

8.4 Use of the Service includes the ability to enter into agreements and/or to make transactions electronically. This feature of the Service is referred to as the “Marketplace”. The use of the Marketplace can be configured, and Customer may disable use of the Marketplace by some or all of its Authorized Users. CUSTOMER ACKNOWLEDGES THAT WHEN AN AUTHORIZED USER INDICATES ACCEPTANCE OF AN

AGREEMENT AND/OR TRANSACTION ELECTRONICALLY WITHIN THE MARKETPLACE, THAT ACCEPTANCE WILL CONSTITUTE CUSTOMER’S LEGAL AGREEMENT AND INTENT TO BE BOUND BY AND TO PAY FOR SUCH AGREEMENTS AND TRANSACTIONS. THIS ACKNOWLEDGEMENT THAT CUSTOMER INTENDS TO BE BOUND

BY SUCH ELECTRONIC ACCEPTANCE APPLIES TO ALL AGREEMENTS AND TRANSACTIONS CUSTOMER

ENTERS INTO THROUGH THE SERVICE, SUCH AS ORDERS, CONTRACTS, STATEMENTS OF WORK, AND NOTICES OF CANCELLATION.

9. Suspension

9.1 Kronos may suspend the Service if any amount that Customer owes Kronos is more than thirty (30) days overdue. Kronos will provide Customer with at least seven (7) days prior written notice that the Customer’s account is overdue before Kronos suspends the Service. Upon payment in full of all overdue amounts, Kronos will immediately restore the Service.

9.2 Customer is responsible for complying with the AUP. Kronos and its third party cloud service provider reserve the right to review Customer’s use of the Service and Customer Data for AUP compliance and enforcement. If Kronos discovers an AUP violation, and Kronos reasonably determines that Kronos must take immediate action to prevent further harm, Kronos may suspend Customer’s use of the Service immediately without notice. Kronos will contact Customer when Kronos suspends the Service to discuss how the violation may be remedied, so that the Service may be restored as soon as possible. If Kronos does not reasonably believe it needs to take immediate action, Kronos will notify Customer of the AUP violation. Even if Kronos doesn’t notify Customer or suspend the Service, Customer remains responsible for any such AUP violation. Kronos will restore the Service once the AUP violation is cured or as both Parties may agree.

10. Termination
Section 10.1. Types of Termination

10.1.1 For Convenience. Customer may terminate the Service and this Section K for convenience upon ninety (90) days prior written notice. Customer may terminate Seasonal Licenses upon at least sixty (60) days prior written notice before the start of a Renewal Term.

10.1.2 Non-renewal. Either Party may terminate the Service upon at least sixty (60) days prior written notice before the start of the Renewal Term.

10.1.3 For Cause. Either Party may terminate the Service and this Section K if the other Party fails to perform any material obligation under this Section K, and such Party is not able to cure the nonperformance within thirty (30) days of the date such Party is notified by the other Party of such default.

10.1.4 For Bankruptcy. If either Party: (i) becomes insolvent, (ii) makes a general assignment for the benefit of our creditors, (iii) is adjudicated as bankrupt or insolvent, or (iv) has a proceeding commenced against it under applicable bankruptcy laws, the other Party may ask for a written assurance of future performance of a Party’s obligations under this Agreement. If an assurance that provides reasonable evidence of future performance is not provided within ten (10) business days of a written request, the requesting Party may immediately terminate this Agreement upon written notice. 483

Section 10.2 Effects of Termination
If the Section K is terminated for any reason:
a. All Fees will be paid by Customer for amounts owed through the effective date of termination. b. Any Fees paid by Customer for the Service not rendered prior to the effective date of termination will be credited against Customer’s account, with any remaining amounts refunded to Customer within thirty (30) days of the effective date of termination. c. Customer’s right to use the Service will end as of the effective date of termination.

Notwithstanding such termination, Customer will have thirty (30) days after the effective date of termination to access the Service for purposes of retrieving Customer Data through tools provided by Kronos that will enable Customer to so extract Customer Data. If Customer requires a longer period of access to the Service after termination to retrieve Customer Data, such access will be subject to additional Fees. Extended access and use of the Services will be subject to the terms of this Section K.
d. Kronos will delete Customer Data after Customer’s rights to access the Service and retrieve Customer Data have ended. Kronos will delete Customer Data in a series of steps and in accordance with Kronos’ standard business practices for destruction of Customer Data and system backups. Final deletion of Customer Data will be completed when the last backup that contained Customer Data is overwritten.
e. Kronos and Customer will each return or destroy any Confidential Information of the other Party, with any retained Confidential Information remaining subject to this Section K. f. Provisions in this Section K which by their nature are intended to survive in the event of a dispute or because their obligations continue past termination will so survive.

11. Indemnification

11.1 Kronos will defend the Customer Indemnified Parties, from and against any and all Claims alleging that the permitted uses of the Service, Technology or Applications infringe or misappropriate any legitimate copyright or patent. Kronos will indemnify and hold harmless the Customer Indemnified Parties against any liabilities, obligations, costs or expenses (including, without limitation, reasonable attorneys’ fees) actually awarded to a third party by a court of applicable jurisdiction as a result of such Claim, or as a result of Kronos’ settlement of such a Claim. In the event that a final injunction is obtained against Customer’s use of the Service by reason of infringement or misappropriation of any such copyright or patent, or if in Kronos’ opinion, the Service is likely to become the subject of a successful claim of infringement or misappropriation, Kronos (at its option and expense) will use commercially reasonable efforts to either (a) procure for Customer the right to continue using the Service as provided in the Section K, or (b) replace or modify the Service so that the Service becomes non-infringing but remains substantively similar to the affected Service. Should neither (a) nor (b) be commercially reasonable, either Party may terminate the Agreement and the rights granted hereunder, at which time Kronos will provide a refund to Customer of the PEPM Fees paid by Customer for the infringing elements of the Service covering the period of their unavailability.

11.2 Kronos will have no liability to indemnify or defend Customer to the extent the alleged infringement or misappropriation is based on: (a) a modification of the Service undertaken by anyone other than Kronos, or not undertaken at Kronos’ direction and in accordance with such direction; (b) use of the Service other than as authorized by this Section K; or (c) use of the Service in conjunction with any equipment, service or software not provided by Kronos, where the Service would not otherwise infringe, misappropriate or otherwise become the subject of the Claim. 484

11.3 Customer shall be responsible and liable for all damages and costs of Kronos arising out of any and all Claims alleging that: (a) the Configurations violate any law applicable to the rights of an Authorized User; (b) Customer’s modification or combination of the Service with other services, software or equipment not furnished by Kronos, infringes or misappropriates any copyright or patent, provided that such modification or combination is the cause of such infringement and was not authorized by Kronos in writing; or, (c) a claim that the Customer Data or its collection or use by Customer violates the AUP or Applicable Laws.

11.4 The Indemnified Party will provide written notice to the indemnifying party promptly after receiving notice of such Claim. If the defense of such Claim is materially prejudiced by a delay in providing such notice, the purported indemnifying party will be relieved from providing such indemnity to the extent of the delay’s impact on the defense. The indemnifying party will have sole control of the defense of any indemnified Claim and all negotiations for its settlement or compromise, provided that such indemnifying party will not enter into any settlement which imposes any obligations or restrictions on the applicable Indemnified Parties without the prior written consent of the other Party. The Indemnified Parties will cooperate fully (at the indemnifying party’s request and expense) with the indemnifying party in the defense, settlement or compromise of any such action. The indemnified party may retain its own counsel at its own expense, subject to the indemnifying party’s rights above.

12. Extent and Limitations of Liability

12.1 EXCEPT FOR KRONOS’ INDEMNIFICATION OBLIGATIONS EXPRESSLY SET FORTH IN SECTION 11

ABOVE, THE TOTAL AGGREGATE LIABILITY OF KRONOS TO CUSTOMER OR TO ANY THIRD PARTY IN

CONNECTION WITH THIS AGREEMENT WILL BE LIMITED TO ACTUAL AND DIRECT DAMAGES PROVEN BY

CUSTOMER, SUCH DAMAGES NOT TO EXCEED AN AMOUNT EQUAL TO THE TOTAL NET PAYMENTS RECEIVED BY KRONOS FOR THE SERVICE IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE IN WHICH THE CLAIM ARISES.

12.2 NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, OR PUNITIVE DAMAGES. NEITHER PARTY WILL BE LIABLE FOR THE COST OF ACQUIRING SUBSTITUTE OR REPLACEMENT SERVICES. NEITHER PARTY WILL BE LIABLE FOR ANY LOST OR IMPUTED PROFITS OR

REVENUES OR LOST DATA RESULTING FROM DELAYS, NONDELIVERIES, MISDELIVERIES OR SERVICES INTERRUPTION, HOWEVER CAUSED, ARISING FROM OR RELATED TO THE SERVICE OR THIS AGREEMENT.

THESE LIMITATIONS APPLY FOR ANY REASON, REGARDLESS OF ANY LEGAL THEORY AND FOR WHATEVER REASON LIABILITY IS ASSERTED.

13. Changes
The information found in any Exhibit (or at any URL referenced in this Section K) may change over the Term. Any such change will be effective as of the start of the next Renewal Term after such change is announced or published by Kronos.

14. Feedback
From time to time, Customer may provide Feedback. Kronos has sole discretion to determine whether or not to undertake the development of any enhancements, new features or functionality contained in or with Feedback. Customer hereby grants Kronos a royalty-free, fully paid up, worldwide, transferable, sublicensable, irrevocable, perpetual license to use, copy, distribute, transmit, display, perform, create derivative works of and otherwise fully exercise and commercially exploit the Feedback for any purpose 485

in connection with Kronos’ business without any compensation to Customer or any other restriction or obligation, whether based on intellectual property right claim or otherwise. For the avoidance of doubt, no Feedback will be deemed to be Customer Confidential Information, and nothing in this Section K limits Kronos’ right to independently use, develop, evaluate, or market products or services, whether incorporating Feedback or otherwise.

Attachment A-1: Equipment Purchase, Rental, and Support:
www.kronos.com/workforce-dimensions/agreement/attachment-a1 Attachment A-2: Professional and Educational Services Policies:
www.kronos.com/workforce-dimensions/agreement/attachment-a2 Attachment A-3: Service Level Agreement:
www.kronos.com/workforce-dimensions/agreement/attachment-a3 486

Exhibit K-C: Customer Success
Section 1. Success Plans

1.1 Kronos offers the following Success Plans for Workforce Dimensions:
a. Community Success (included in Customer’s PEPM Fee)
b. Guided Success (available for an additional Fee)
c. Signature Success (available for an additional Fee with minimum annual spend in PEPM and Equipment Rental Fees)

1.2 As part of the Community Success Plan, Kronos will provide:
a. Local Time Zone Support: 8am – 8pm Monday to Friday, with two-hour response time to support cases.
b. 27/7 Mission Critical Support: Immediate and on-going support for a critical issue with no available workaround, where the system or a module may be down, experiencing major system degradation, or other related factors.
c. Kronos Community Access: Ability to access how-to articles, discussion boards, and open support cases .
d. Kronos Onboarding Experience: Step-by-step guidance to assist Customer during onboard activities.
e. KnowledgeMap™: On-line education portal providing access to Kronos e-learning resources. e. KnowledgeMap™ Live may be purchased for an additional Fee. f. A Technical Account Manager (TAM) may be purchased for an additional Fee: senior Technical Support Engineers or former Kronos Application Consultants with industry-specific Kronos product knowledge.

1.3 As part of the Guided Success Plan, Kronos will provide:
a. All of the services under Community Success, including the option to purchase KnowledgeMap™ Live or a TAM.
b. Proactive Support: Monitoring of your environment and usage with proactive notification and resolution of potential issues.
c. Named Success Manager: Dedicated, industry-specific advisor. d. Live Check-In Meetings: Regular meetings with your named success manager. e. Personalized Success Path: Tailored guidance based on your business goals. f. Success Reporting: Personalized reporting providing insight into your key performance indicators on an annual basis (i.e., user adoption, compliance, productivity, efficiency.) g. Executive Business Review: Strategic review of roadmap, realized value, engagement, relationship, and future direction.
h. Optimization Assessment: Assistance with optimizing the use of Workforce Dimensions based on your current usage patterns.

1.4 As part of the Signature Success Plan, Kronos will provide:
a. All of the services under Guided Success. Additionally, KnowledgeMap™ Live and a TAM are included as part of the Signature Success Plan for no additional Fee. b. 24/7 Local Time Zone Support with one-hour response time to support cases. c. Technical Account Manager included at no additional charge. d. Integration/API Support: Assistance with enhancing and updating existing APIs and integrations. 487

e. KnowledgeMap™ Live included at no additional charge. k. Industry Best Practice Audit: Review configuration and use of Workforce Dimensions against industry peers and provide recommendations.

1.5 Each Success Plan provides different services and different service coverage periods, which are described in Attachment C-1.

1.6 The Kronos policies set forth in Attachment C-2 shall apply to all Success Plans.

Attachment C-1: Success Plans:
www.kronos.com/workforce-dimensions/agreement/attachment-c1 Attachment C-2: Support Policies:
www.kronos.com/workforce-dimensions/agreement/attachment-c2 488
52 Exhibit K-E: AtomSphere Service and Boomi Software
As part of the Service, Customer has the right to access and use the Boomi AtomSphere Service and a nonexclusive, non-transferable and non sublicenseable license to use the associated Boomi Software as part of the Boomi AtomSphere Service. Customer may use the Boomi AtomSphere Service and the Boomi Software only to create integrations to and from the Service.

There are two (2) cloud environments associated with Customer use of the Boomi AtomSphere Service and the Boomi Software:
a. Run-Time environment: A run time environment in the Kronos Cloud where the integration created by with the Boomi AtomSphere Service runs. This environment is described in Exhibit B. b. Development environment: A development environment in the Boomi Cloud where the design and development tools exist to build the integrations. This environment is referred to as a Hosted Environment in Attachment E-1.

The Boomi AtomSphere Service is subject to the additional terms and conditions set forth below. These additional terms and conditions apply to all integrations to and from the Service using the Boomi AtomSphere Service, whether done by Customer or by Kronos. Except as provided in these additional terms and conditions, all terms and conditions of this Section K related to the Service apply to the Boomi AtomSphere Service. Upon termination, Customer’s rights to access the Boomi AtomSphere Service and the Boomi Software also terminates.

Attachment E-1: Boomi Flow Down Provisions:
www.kronos.com/workforce-dimensions/agreement/attachment-e1 489
53 Exhibit K F: Workforce Dimensions™ Add-Ins
This Exhibit governs the Add-In(s) to be provided by Kronos to Customer, if specified on an Order Form. Capitalized terms not otherwise defined herein shall have the meanings prescribed to them in the Agreement. In the event of a conflict or inconsistency between the Agreement and this Exhibit, this Exhibit shall control.

Customer agrees that the Add-In(s) may only be used solely in connection with Workforce Dimensions™ for Customer’s own internal purposes. The Add-Ins are not installed in the Kronos hosting environment in which Workforce Dimensions resides. The Add-Ins may only be installed and operated in a data center or other cloud environment managed by or on behalf of Customer. Customer is solely responsible to have all applicable rights, licenses and necessary infrastructure and support to use the third-party applications with which the Add-In(s) function, including security of the environment in which the Add-In(s) are installed.

The Service Level Agreement and associated SLAs (Attachment A-3) and the Workforce Dimensions Cloud Guidelines (Exhibit B) in the Agreement do not apply to the Add-In(s) because the Add-In does not reside in Kronos’ hosting environment.

Implementation. Configuration and deployment of the Add-In(s) may be performed by Customer in accordance with Kronos written instructions and guidelines. Alternatively, Customer may engage Kronos or a third party to perform implementation or professional services as described in the Agreement.

Warranty Disclaimer. Kronos does not warrant that the Add-In(s) will be free from errors or service interruption.

Kronos disclaims errors and liability with respect to the third-party applications or APIs with which the Add-In(s) function. Customer is solely responsible to manage its accounts or systems that may access the Add-In(s). 490
491
492
493
494

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 12.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Matt Henry, Chief of Police
PREPARED BY: Dawnn Jackson, Management Analyst - Administration SUBJECT:

Approve Public Safety Enterprise Communication (PSEC) Use Agreement with Riverside County for Full Time and Emergency Radio Use

RECOMMENDATION
Approve the five-year Public Safety Enterprise Communication Use Agreement with Riverside County for full time and emergency radio use.

PRIOR ACTION/VOTE
On June 3, 2025, City Council adopted the Fiscal Year 2025/26 and 2026/27 Operating Budget.

CITY COUNCIL GOAL
Provide a high level of innovative public safety.

BACKGROUND
The Public Safety Enterprise Communication (PSEC) system, established by Riverside County (County) in 2005, provides a reliable, digital radio communication network designed to enhance interoperability among public safety agencies, eliminate historical coverage gaps, and support coordinated response efforts during emergencies.

The Murrieta Police Department became the first municipal law enforcement agency to join PSEC on July 20, 2015. The City of Murrieta (City) has since maintained participation through two successive agreements, with the current agreement set to expire on June 30, 2025.

The County has drafted a new Use Agreement, which will extend the City’s participation through June 30, 2030, with the option to renew in writing for one (1) five-year increment. This agreement ensures the City’s continued uninterrupted access to the PSEC system and continued support for critical public safety communications.

Per Section 3.08.280(G) of the Murrieta Municipal Code, the City Manager is authorized to enter into contracts for personal services, for professional and consulting services, and for other contractual services without CITY OF MURRIETA Page 1 of 2 Printed on 6/12/2025
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6/17/2025
Agenda Item No. 12.
for personal services, for professional and consulting services, and for other contractual services without observing the bidding procedure provided in this chapter when the City Council finds that adherence to the procedures in this chapter would be inefficient, impractical and unnecessary. Given the City’s established use of the PSEC system and the system’s critical public safety function, staff recommends approval under this provision.

FISCAL IMPACT
The total estimated annual cost for this contract for the Police Department and Fire Department’s radios to use the PSEC system in Fiscal Year 2025/26 is $497,949.24 and $144,650.88, respectively. PSEC system rates are reviewed and approved annually, with any adjustments taking effect on July 1, of each fiscal year.

Funding for Fiscal Years 2025/26 and 2026/27 has been included in the adopted biennial budget under Operating Budget Account 1103120-60480 (Police) and 1113520-60480 (Fire). Funding for subsequent years will be requested and addressed through future budget cycles, subject to appropriation.

ATTACHMENTS

1. PSEC Use Agreement
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PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 1 rance
PSEC Use Agreement for
Full Time and/or Emergency Radio Use with
City of Murrieta
497
PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 2 PSEC USE AGREEMENT FOR Full Time and/or EMERGENCY RADIO USE This PSEC Use Agreement for Full Time and/or Emergency Radio Use (“Agreement”) is made and entered into by and between the County of Riverside, a political subdivision of the State of California (“COUNTY”), and the City of Murrieta (“AGENCY”), collectively referred to herein as the “Parties.”

RECITALS
WHEREAS, COUNTY operates, manages and maintains the Public Safety Enterprise Communication System (“PSEC System”) and all infrastructure equipment utilized to support “subscribers” on the PSEC System; Maintenance of subscriber equipment i.e. consoles, handheld radios, mobiles radios, cellular devices are not part of the subscriber monthly rate. If AGENCY chooses to utilize PSEC for maintenance, AGENCY will be required to enter into a separate agreement; and
WHEREAS, AGENCY desires to use the PSEC System, in compliance with the terms of this Agreement and without hindering the functionality or operation of the PSEC System; and WHEREAS, COUNTY is willing to grant AGENCY a limited license to access and use the PSEC System;
NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, COUNTY and AGENCY agree as follows:

I. Use Granted
Subject to and conditioned on AGENCY’s payment of the fees and compliance and performance in accordance with the terms and conditions of this Agreement, COUNTY grants to AGENCY and AGENCY hereby accepts a limited, nonexclusive, nontransferable, and non-assignable license (mobile or portable radios or dispatch console or cellular device) to access and use, solely during the terms, as defined in Exhibit C, Statement of Work, which is attached and incorporated herein by this reference, the PSEC System, at COUNTY’s sole and absolute discretion. Subject to COUNTY’s approval, AGENCY may choose to add additional subscribers to the system.

Additional subscribers may impact the system’s capacity thereby requiring the system to be expanded. Any system expansion costs incurred to support the additional subscribers will be billed to the AGENCY.

The County of Riverside Board of Supervisors (the “Board”) retains ultimate legal and financial authority over the PSEC System; however, the Board, through the PSEC Charter, has delegated administrative, operational, and financial control to the PSEC Steering Committee. The PSEC Steering Committee provides governance and financial accountability. AGENCY agrees and acknowledges that AGENCY shall always comply with the terms of this Agreement and never hinder the functionality or operation of the PSEC System. Users of the PSEC System will abide by the direction/guidance provided by the PSEC Steering Committee. 498
PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 3 Supervision over the provision of COUNTY services, the standards of performance, and other matters incident to the performance of such services, shall remain with the COUNTY at all times. The full PSEC Governance Charter is available upon request.

II. Period of Performance
The term of this Agreement shall commence upon execution by both Parties and expire on June 30, 2030 (the “Initial Term”), unless earlier terminated. This Agreement may be renewed in writing in one (1) five-year increment (“Renewal Term”) and is subject to approval by the COUNTY’s Board of Supervisors. The rates payable by AGENCY during a Renewal Term is defined in Section III of this Agreement.

III. Payment
PSEC System rates are reviewed and approved annually by the Board, with changes taking effect automatically on July 1 of each year. On July 1 of every year, the rates for PSEC System use and maintenance under this Agreement will automatically adjust based upon these new rates, in accordance with Riverside County PSEC Rate Guide, which is attached as Exhibit A of this Agreement and incorporated herein by this reference.

COUNTY shall invoice AGENCY each month for AGENCY’s use of the PSEC System. Payment shall be due on the first day of each calendar month during the term of this Agreement. In the event AGENCY fails to make its monthly payment within thirty (30) days after the due date, a non-refundable late fee of three hundred dollars ($300.00) shall apply.

IV. Termination
Termination by COUNTY: COUNTY may terminate this Agreement without cause upon ninety (90) days written notice served upon AGENCY stating the extent and effective date of termination. Further, COUNTY shall have the right to immediately terminate this Agreement if AGENCY: files for voluntary or involuntary bankruptcy for the adjudication of Agency as a debtor; makes a general assignment, or AGENCY’s interest hereunder is assigned involuntarily or by operation of law, for the benefit of creditors; fails to comply with the terms of this Agreement; or fails to comply with applicable law. AGENCY shall have thirty (30) days to cure any default, to the satisfaction of COUNTY, AGENCY’s breach or default under this Agreement after written notice from the COUNTY.

Termination by AGENCY: This Agreement may be terminated by AGENCY without cause, provided that AGENCY has given at least ninety (90) days’ prior written notice. Upon expiration or termination of this Agreement, all rights, licenses, consents and authorizations granted by COUNTY to AGENCY shall immediately terminate, and COUNTY may disable all access to the PSEC System. 499
PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 4 V. Restrictions
The Use granted herein is for AGENCY, and AGENCY only. AGENCY shall not permit any other individual or entity access to or use of the license except as expressly permitted in this Agreement. Specifically, AGENCY shall not:

A. Enter into a separate agreement that provides any third-party access to the PSEC Radio System; B. Rent, lease, lend, sell, sublicense, assign, distribute, publish, transfer, or make available in any manner or form any part of this license, or access to and/or use of the PSEC System; C. Access or use the PSEC System in any manner, or for any purpose that infringes, misappropriates or otherwise violates any intellectual property right or other right of any third party (including by any unauthorized access to, misappropriation, use, alteration, destruction or disclosure of any information obtained through the PSEC System), or that violates any applicable law; D. Bypass any security device or protection used to access the PSEC System, or access the PSEC System through any means other than by valid access credentials; E. Damage, destroy, disrupt, disable, impair, interfere with or otherwise impede or harm in any manner the PSEC System, including but not limited to, interference with the COUNTY’s access to or use of the PSEC System;
F. Otherwise access or use the Services beyond the scope of the authorization granted under Section I of this Agreement.

VI. Indemnification
AGENCY shall indemnify and hold harmless the County of Riverside, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, employees, agents, and representatives (individually and collectively hereinafter referred to as “Indemnitees”) from any liability, action, claim, or damage whatsoever, based or asserted upon any access and/or use of the PSEC System by AGENCY, its officers, employees, subcontractors, agents, or representatives arising out of or in any way relating to this Agreement, including but not limited to property damage, bodily injury, death, or any other element of any kind or nature. AGENCY shall defend the Indemnitees at its sole expense including all costs and fees (including, but not limited, to attorney fees, cost of investigation, defense and settlements or awards) in any claim or action based upon such acts, omissions, or services. With respect to any action or claim subject to indemnification herein by AGENCY, AGENCY shall, at its sole cost, have the right to use counsel of its own choice and shall have the right to adjust, settle, or compromise any such action or claim without the prior consent of the County of Riverside; provided, however, that any such adjustment, settlement or compromise in no manner whatsoever limits or circumscribes AGENCY’s indemnification to Indemnitees as set forth herein. 500
PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 5 VII. Coverage Performance
The PSEC System provides extensive and robust coverage across Riverside County. However due to the nature of radio systems (i.e. variation in geography, location in relation to PSEC radio sites, time dependent obstructions, radio performance and many other factors) coverage cannot be guaranteed for every location within the County. Coverage performance also cannot be guaranteed within buildings. AGENCY must perform radio tests of the system to verify their coverage needs will be met prior to onboarding onto the system. By onboarding onto the PSEC System, AGENCY chooses to accept the PSEC Radio System coverage as-is. If coverage expansion is requested by the AGENCY, any associated costs will be at the AGENCY’s expense.

AGENCY subscribers using cellular devices on the Critical Connect System are subject to cellular coverage provided by a third-party cellular network provider. PSEC is not responsible for the coverage area or any outage due to the third-party cellular coverage.

VIII. Critical Connect System
The Critical Connect System is a cloud-based application, WAVE Mobile Communicator, provided by Motorola Solutions which turns your cellular device into a broadband push-to-talk device to communicate with other users of the PSEC System. The Critical Connect System is dependent on the user’s third-party cellular network connection and coverage is not guaranteed by PSEC.

PSEC does not recommend Critical Connect as the only form of communications for AGENCY and does not recommend Critical Connect for field level responders.

IX. Miscellaneous
A. Nothing in this Agreement shall be construed to create a partnership, joint venture, or agency relationship between the Parties.

B. County’s Representative: COUNTY appoints its Executive Office delegate on the PSEC Steering Committee and the PSEC Steering Committee Chair as its authorized representatives to administer this Agreement.

C. Notices: Notices required or given by either party shall be to the following:
501
PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 6 D. AGENCY shall not delegate or assign any interest in this Agreement, whether by operation of law or otherwise, without the prior written consent of COUNTY. Any attempt to delegate or assign any interest herein shall be deemed void and of no force or effect.

E. Any waiver by COUNTY of any breach of any one or more of the terms of this Agreement shall not be construed to be a waiver of any subsequent or other breach of the same or of any other term of this Agreement. Failure on the part of COUNTY to require exact, full, and complete compliance with any terms of this Agreement shall not be construed as in any manner changing the terms or preventing COUNTY from enforcement of the terms of this Agreement.

F. AGENCY shall comply with all applicable Federal, State and local laws and regulations. AGENCY will comply with all applicable COUNTY policies and procedures. In the event there is a conflict between the various laws or regulations that may apply, the AGENCY shall comply with the more restrictive law or regulation.

G. This Agreement shall be governed by the laws of the State of California. Any legal action related to the performance or interpretation of this Agreement shall be filed only in the Superior Court of the State of California located in Riverside, California, and the Parties waive any provision of law providing for a change of venue to another location. In the event any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

H. This Agreement, including any attachments or exhibits, constitutes the entire agreement of the Parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications, whether oral or in writing. This Agreement may be changed or modified only by a written amendment signed by authorized representatives of both Parties.

COUNTY:

County of Riverside, PSEC
Trish Byrd, PSEC Manager
7195 Alessandro Blvd.

Riverside, CA 92506
(951) 955-1086
AGENCY:

Agency Contact Information
Matt Henry, Chief of Police
2 Town Square
Murrieta, CA 92562
502
PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta 7 I. For Critical Connect System users, Critical Connect is a cloud-based application that turns your cellular device into a broadband push to talk device that can communicate with others on the PSEC system. AGENCY is responsible for agreement with third-party cellular network provider and all associated costs for the cellular services provided by that agreement. For Critical Connect System users, an additional license with Motorola for the cellular device is required. AGENCY is responsible for setting up a child account with Motorola for AGENCY. AGENCY will be invoiced directly by Motorola Solutions, PSEC is not responsible for these costs X. Maintenance
County will maintain all PSEC infrastructure. Maintenance of any additional equipment including but not limited to AGENCY’s consoles and subscriber equipment will be covered in Exhibit B Support and Maintenance. All maintenance and repair of cellular devices will be the responsibility of the AGENCY.

XI. Electronic/Digital Signatures
This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each party of this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement. The Parties further agree that the electronic signatures of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time.

The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (h) of Section 1633.2 of the Civil Code.
[Remainder of Page Intentionally Blank]
[Signatures on Following Page]
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8 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta IN WITNESS WHEREOF, the Parties hereto have caused their duly authorized representatives to execute this Agreement.

COUNTY: AGENCY:

COUNTY OF RIVERSIDE City of Murrieta
By: ____________________________ By: _____________________________ Name: Name: Cindy Warren
Title: Title: Mayor, City of Murrieta

Dated: _________________ Dated: __________________
By: ____________________________
Name: Chris Wagner
Title: PSEC Chair
Dated: _________________

APPROVED AS TO FORM
Minh C. Tran
County Counsel
By:___________________
Amrit P. Dhillon
Deputy County Counsel
504
9 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta

EXHIBIT A

PSEC BOARD APPROVED RATES
The published rate guide reflects a cost of $121.76 for each full time user and $24.35 for each emergency radio user for Fiscal year 25/26.

DEFINITION FY 24/25 RATE FY 25/26 RATE UNIT
Device - Emergency radio
Monthly charges for the base
consolette, consoles, mobile, portable
radio unit and critical connect device
$25.40 $24.35 Per Device per Month
Device - Holiday radio
Monthly charges for the base
consolette, consoles, mobile, portable
radio unit and critical connect device
Refer to Use
Agreement
Refer to Use
Agreement
Per Device per Month
Device - Communication device
Monthly charges for the base
consolette, consoles, mobile, portable
radio unit and critical connect device
$126.99 $121.76 Per Device per Month
Technician Expert Time - REG
(during business hours)
Technician Expert time (REG) to cover
work done outside of PSEC Use
Agreement
$80.78 $82.14 Per Hour
Technician Expert Time - OT (after
business hours)
Technician Expert Overtime to cover
work done outside of PSEC Use
Agreement
$84.33 $86.00 Per Hour
Rack Set rate for monthly full rack mount
charge $567.46 $590.87 Per Month
Half Rack Set rate for monthly half rack mount
charge $283.73 $295.44 Per Month
Floor Space Set rate for monthly square footage
charge excluding rack space $567.46 $590.87 Per Month
Antenna Mounted Lower Set rate for monthly LMR antenna
lower $300.00 $342.56 Position of the antenna per month Antenna Mounted Middle Set rate for monthly LMR antenna middle $600.00 $685.11 Position of the antenna
per month
Antenna Mounted Top Set rate for monthly LMR antenna top $900.00 $1,027.67 Position of the antenna per month
Microwave Connection
Monthly charge per connection for
microwave transmission
$336.37 $339.68 Per Month
Application Fee Application fee for FCC licensing or for permits
Actual Cost Actual Cost Per application
Engineering Expert Time - REG
(during business hours)
Engineering Expert Time (REG) to cover
work done outside of PSEC Use
Agreement
$127.19 $138.57 Per Hour
Engineering Expert Time - OT (after
business hours)
Engineering Expert Overtime to cover
work done outside of PSEC Use
Agreement
$135.68 $149.70 Per Hour
Microwave and Site
Technology Engineering
Subscriber
Technician
505
10 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta

EXHIBIT B

SUPPORT AND MAINTENANCE

1. COUNTY maintenance and support of AGENCY’s fleet of subscriber equipment will include the services listed below as part of the monthly subscriber rate paid to the COUNTY. AGENCY is responsible for scheduling all maintenance and for transporting radios to PSEC facility.

Radios/Consoles
 Firmware/Software upgrades mandated by COUNTY
 County initiated codeplug updates*
Any radio or console repairs not covered by a separate subscriber (consoles/radios) maintenance agreement with PSEC, will be billed at the Board Approved Rate. If parts are needed as part of the repair, all parts will be billable.

Any AGENCY driven changes, including console configuration files (ELT)/codeplug modifications, will be billed on a time & material basis per Board approved rates. Items not listed as covered under this Agreement will be subject to additional cost on a time and material basis per Board approved rates.

2. Any changes to ELT/code plugs shall be reviewed by COUNTY to ensure no adverse impact on the overall system.

3. AGENCY and COUNTY will coordinate all firmware and software upgrades of subscribers (portable, mobile or consoles) prior to AGENCY action. AGENCY is responsible for ensuring that all console and subscriber equipment firmware and software version remains compatible with the current and future PSEC System release versions. Any upgrades and/or replacement of console or subscriber equipment to maintain combability with the PSEC System is the sole responsibility of the AGENCY.

4. For users of the Critical Connect System, COUNTY will notify AGENCY if an update to the Wave Mobile Communicator Application is available, AGENCY will be responsible to update the WAVE Mobile Communicator Application on cellular device when an update is available.

5. Encryption key may be changed by COUNTY when required. 506
11 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta

6. If radio is lost or stolen, and AGENCY chooses to deactivate the radio, contact can be made 24x7 to PSEC’s on-call technicians. On-call contact information is distributed to all PSEC customers on a weekly basis.

7. For users of the Critical Connect System, AGENCY is responsible for immediately notifying PSEC if a cellular device is lost or stolen.

8. For users of the Critical Connect System, the device is tied to a phone number, AGENCY is responsible for notifying PSEC within five (5) days if the phone number is transferred to a new user.

9. The COUNTY utilizes over-the-air tools to evaluate whether radios operating on the system are doing so within their factory rated specifications. Subscribers that operate outside of the factory specification tolerance can cause interference and degrade audio quality performance on the radio system. The COUNTY will notify the AGENCY of radios that are performing outside of their factory rated specifications and the AGENCY will be required to have radio serviced with their service provider prior to impacting the system or system users. If a subscriber piece of equipment is determined to be detrimental to the system or other PSEC user(s) the equipment will be removed and or deactivated from the system.

10. AGENCY must maintain an updated record of subscriber/Console firmware and software changes.

11. PSEC Facility Maintenance Operations
Subscriber repair covered under a separate agreement will be provided during normal business hours at one of the three PSEC radio shops. Drop off service for portable and mobile radios is available during normal business hours on appointment basis only. Radio shop contact information is listed below.
 7195 Alessandro Blvd., Riverside, CA 92506
(951) 955-3644
 82695 Dr. Carreon Blvd., Indio, CA 92201
(760) 863-8999
 249 N. Spring Street, Blythe, CA 92225
(760) 921-5087 or (760) 921-5079
Normal business hours are: Mon - Thurs 7:00 a.m. to 4:30 p.m. and Friday 7:00 a.m. to 3:30 p.m. excluding holidays. PSEC does have 24x7 maintenance technicians available for emergency repairs. 507
12 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta Contact can be made to PSEC’s on-call technicians. On-call contact information is distributed to all PSEC customers on a weekly basis.

12. COUNTY does not keep cache spares. AGENCY should have spares in the event equipment cannot be repaired in shop and may need to be shipped back and/or there is a prolonged waiting period for factory repair. Cache spares will be billed at the emergency rate.

13. ADDITIONAL EQUIPMENT PURCHASES AND FEES
Additional equipment purchases are considered any equipment purchases/orders/added after the signing of the Agreement.

Additional equipment purchases, the initial mandatory setup fee and future AGENCY requested changes (i.e. ELT/code Plug changes driven by the Agency) are not included in the monthly subscriber rate and will be invoiced separately.

All radios purchased will require an Advanced System Key (ASK) feature. This includes Motorola, Harris, EF Johnson and any others.
 All radios purchased to operate on PSEC System must have hardware system key enabled and COUNTY will be the keeper of that key.
 All radio types and/or manufacturers must be pre-approved to come on the PSEC System by COUNTY prior to purchase.

For Critical Connect System users, all cellular device purchases, Critical Connect System license and costs for associated service contracts with cellular network providers are the responsibility of the AGENCY and are not included in the monthly subscriber rate.

14. APPROVED EQUIPMENT as of July 1, 2022:

The following equipment has been approved by COUNTY for use on the PSEC Radio System:
 Motorola MCC7500/E Console (Revision 21.8.5)
 Motorola APX Consolette (Firmware 26.03.00)
 Motorola APX Series 4000 Portables (Firmware 26.03.00)  Motorola APX Series 6000 Mobiles and Portables (Firmware 26.03.00))  Motorola APX Series 7000 Mobiles and Portables (Firmware 26.03.00)  Motorola APX Series 8000 Portables and Mobiles (Firmware 26.03.00)  Motorola APX N Series – Firmware 5 or higher
 Harris XL-45 (Firmware Version R12H)
 Harris XL-95 (Firmware Version R12H)
508
13 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta  Harris XL-145 (Firmware Version R12H)
 Harris XL-200 (Firmware Version R12H)
 Harris Unity (Firmware version-XGPRO6K07_XG100P)
 Kenwood VP 6430 Firmware 8.34.16
 Kenwood VP5430 Firmware 8.34.16
 Kenwood NX5400 Firmware 8.34.16
 Kenwood VP 900 Firmware 8.34.16
 Kenwood VP 8000 Firmware 8.36.14.269
 Kenwood VM 8000 Firmware 8.42.30
All equipment to be used on the PSEC System MUST be pre-approved by COUNTY prior to operation on the System.

Although the COUNTY has evaluated the provided list of approved subscribers for System compatibility, the COUNTY is not responsible for any issues encountered by AGENCY with these subscribers that are deemed to be a manufacturer issue.

It is the responsibility of the AGENCY to test manufacturer subscribers, not included on the approved list, and obtain assurance from the manufacturer that their subscribers can operate on the PSEC Radio System per the AGENCY’s and COUNTY’s requirements. AGENCY may request the COUNTY to test other manufacturer’s equipment to be used on the PSEC Radio System, depending on the level of testing required these services may be billed at the Board approved rates.

15. CALL OUTS
 COUNTY shall provide 24-hour service support for COUNTY maintained and operated infrastructure related issues and equipment.
 AGENCY owned infrastructure issues and equipment are the responsibility of the AGENCY.

After-hours call out radio repair service that is not covered by a separate agreement for single subscriber issues must be deemed an emergency and will be billed at the Board approved rate.  If AGENCY has a need for after-hours radio repair service, that service will be billed at a time and material rate in accordance within EXHIBIT A “PSEC BOARD APPROVED RATES”.

16. SPECIAL PROVISIONS
 If AGENCY wants to program their own radios, they must sign the Advanced System Key (ASK) agreement.
509
14 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta  AGENCY does not have the authority to program radio subscriber equipment for other agencies, including Federal agencies, without previous authorization from PSEC.

This Agreement only authorizes devices that are APCO P25 Phase II TDMA (time division multiple access) compliant. FDMA (frequency division multiple access) radios are not authorized on the PSEC Radio System.

EXHIBIT C

STATEMENT OF WORK
This Statement of Work between the AGENCY and COUNTY describes the duties of each of the Parties.

The AGENCY is requesting to join the PSEC Radio System as a Full Time and/or Emergency user with a total of 455 AGENCY owned subscribers (City of Murrieta PD 337 Full Time and 19 Emergency / City of Murrieta Fire 99 Full Time and 0 Emergency).

An Emergency Radio for a Full Time User is defined as a radio that is programmed for full-time use, and the radio permissions are active on the PSEC network but is only used in the event of an emergency or disaster. The purpose of the emergency radio for a Full Time User is to allow for the AGENCY to have a radio quickly available to them in the event of an emergency or disaster. As an emergency user, the AGENCY shall not use the system for day-to-day operations. PSEC will periodically assess the AGENCY’s use of the system. Should PSEC, in its sole discretion, determine that the AGENCY has used the PSEC System for non-Emergency Communications, the AGENCY will be subject to the full-time user rate of the given fiscal year. Non-Emergency Communications for the Full Time User would be defined as if the radio is being used to monitor the PSEC system daily, (dispatch back up radio would be an exception), or more than ten (10) Push to talks per month.

If AGENCY uses the Emergency Radio for an incident, they must notify PSEC via email at [email protected] immediately. Billing changes will be effective date of email notification.

To remove the radio completely from billing the radio would need to be brought to PSEC and have the programmed removed, and the ID would be removed from the PSEC system.

The AGENCY’s area of operation will be covered by the Northwest and Southwest Simulcast cells. The coverage provided by the PSEC Radio System is “as is”. This Agreement does not provide any coverage guarantees. It is the responsibility of the AGENCY to test their area of operation and determine if it meets their needs prior to joining the PSEC Radio System. For the Critical Connect System, coverage is dependent upon the user’s third-party cellular network connection and coverage, capacity and uptime is not guaranteed by PSEC. 510
15 PSEC FULL TIME and/or EMERGENCY USER AGREEMENT: City of Murrieta COUNTY will develop the fleet map, review vendor created codeplug, and activate the IDs on the network for AGENCY. These costs are listed in the Cost Estimate Table in EXHIBIT A. “PSEC BOARD APPROVED RATES” of this Agreement.

Talkgroups
AGENCY will follow the COUNTY’S naming convention for talkgroup development. COUNTY will work in conjunction with AGENCY to develop the talkgroup structure for the AGENCY. COUNTY and AGENCY will jointly design and develop radio personalities for use on the PSEC System.

AGENCY represents by entering into this Agreement, that all their equipment conforms to the specifications of the PSEC System and AGENCY will abide by all programming guidelines set forth in this Agreement. All subscriber equipment on the PSEC System must support system key technology that will allow only authorized persons to program subscriber radios on the system.

County Responsibilities:
 COUNTY will hold the license for all master system key technologies and will provide child keys to AGENCY for radio programming.
 All subscribers (mobile, portable, and consolette) Logical Identification Numbers (LID) are defined and issued by the COUNTY. LID numbers are the intellectual property of the COUNTY and must be surrendered at termination of this Agreement.  COUNTY will engrave all portables and mobiles with PSEC Trunked radio unit IDs.

Agency Responsibilities:
 AGENCY agrees that all their equipment conforms to the specifications of the PSEC System and will abide by all programming guidelines set forth.
 All subscriber equipment on the PSEC System must support Advanced System Key technology that will allow only authorized persons to program subscriber radios on the system.  AGENCY is solely responsible for procuring all equipment and services related to implementing their dispatch centers.
511

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 13.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Renée Santos, Administrative Assistant - Engineering SUBJECT:

Approval of Purchase Orders with Michael Baker International, Inc.; HR Green Pacific Inc.; Accenture Infrastructure and Capital Projects, LLC; and Rick Engineering Company

RECOMMENDATION
Approve a purchase order with Michael Baker International, Inc for On-Call Plan Check services for Fiscal Year 2025/26 for an amount not to exceed $440,000 from the Engineering General Fund; Approve a purchase order with Michael Baker International, Inc for On-Call Land Development Review services for Fiscal Year 2025/26 for an amount not to exceed $90,000 from the Engineering General Fund; Approve a purchase order with HR Green Pacific, Inc. for On-Call Plan Check services for Fiscal Year 2025/26 for an amount not to exceed $330,000 from the Engineering General Fund; Approve a purchase order with Accenture Infrastructure and Capital Projects, LLC for On-Call Storm Water Pollution Prevention Program (SWPPP) and Inspection services for Fiscal Year 2025/26 for an amount not to exceed $525,000 from the Engineering General Fund;
Approve a purchase order with Accenture Infrastructure and Capital Projects, LLC for On-Call National Pollutant Discharge Elimination System services for Fiscal Year 2025/26 for an amount not to exceed $150,000 from the National Pollutant Discharge Elimination System Fund; Approve a purchase order with Rick Engineering Company for On-Call Traffic Engineering services for Fiscal Year 2025/26 for an amount not to exceed $144,150 from the Engineering General Fund; Approve a purchase order with Rick Engineering Company for On-Call Traffic Engineering consultant services for Fiscal Year 2025/26, for an amount not to exceed $237,570 with $73,465 from Capital Improvement Plan project No. 13074, $73,465 from Capital Improvement Plan project No. 13077, $73,465 from Capital Improvement Plan project No. 13078, and $17,175 from Capital Improvement Plan project 13079; Approve the First Amendment to the Agreement with Anser Advisory Management, LLC; and Authorize the City Manager to execute the purchase orders and Assignment Agreement.

CITY OF MURRIETA Page 1 of 3 Printed on 6/12/2025
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6/17/2025
Agenda Item No. 13.

PRIOR ACTION/VOTE
On June 20, 2023, the City Council authorized entering into Agreements for miscellaneous On-Call consulting services that included Michael Baker International, Inc., HR Green Pacific, Inc., Anser Advisory Management, LLC and Rick Engineering Company (Vote: 4-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

BACKGROUND
On June 20, 2023, City Council approved on-call agreements for engineering plan check, land development review, public works and storm water pollution prevention plan (SWPPP) and inspection, National Pollutant Discharge Elimination Systems (NPDES) inspection, and traffic engineering services with Michael Baker International, Inc. (MBI), HR Green Pacific, Inc. (HR Green), Anser Advisory Management, LLC (Anser), and Rick Engineering Company (REC). These companies have been providing ongoing engineering services under the current on-call agreements.

Anser recently notified the City that its company name has been changed due to its acquisition by Accenture Infrastructure and Capital Projects, LLC (Accenture). Due to the name change, an assignment of the Agreement from Anser to Accenture is necessary. The attached Assignment Agreement assigns the terms of the Agreement including the consultant’s rights and obligations from Anser to Accenture and Accenture accepts the obligations of the Agreement.

New purchase orders ((PO(s) are necessary to provide continued services for the upcoming Fiscal Year (FY) 2025/26. The proposed POs are listed below by consultant and service type, along with the PO amount based on trend analysis and projected services for FY 2025/26. The REC POs are based on the proposals, which are included as attachments herein.

Consultant and Services PO Amount
MBI - Plan Check Services $440,000
MBI - Land Development Review Services $90,000
HR Green - Plan Check Services $330,000
Accenture - Public Works and SWPPP Inspection Services $525,000 Accenture - NPDES Inspection Services $150,000
REC - Traffic Engineering Services: Operating Budget $144,150 REC - Traffic Engineering Services: CIP Budget $237,570

FISCAL IMPACT
Funding for these POs is available in the FY 2025/26 Engineering Operating Budget.

Company PO Amount Funding Source
MBI - Engineering Plan Check $440,000 1106120-60600
MBI - Land Development Review $90,000 1106120-60360
HR Green - Engineering Plan Check $330,000 1106120-60600 Accenture - PW & SWPPP Inspection $525,000 1106120-60640 S $
CITY OF MURRIETA Page 2 of 3 Printed on 6/12/2025
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6/17/2025
Agenda Item No. 13.

Company PO Amount Funding Source
MBI - Engineering Plan Check $440,000 1106120-60600
MBI - Land Development Review $90,000 1106120-60360
HR Green - Engineering Plan Check $330,000 1106120-60600 Accenture - PW & SWPPP Inspection $525,000 1106120-60640 Accenture - NPDES $150,000 4316120-60640
REC - Traffic Engineering Services $144,150 1106120-60360 REC - Neighborhood Traffic Management Program: CIP
13074
$73,465 3067500-60360 /
13074306-100
REC - Citywide Signal Modifications: CIP 13077 $73,465 3027500-60360 / 13077302-100
REC - Traffic Signal Optimization / Congestion
Management: CIP 13078
$73,465 3027500-60360 /
13078302-100
REC - Priority Traffic Signal: CIP 13079 $17,175 3067500-60360 / 13079306-100

ATTACHMENTS

1. 2023 On-Call Agreement with Michael Baker International, Inc.

2. 2023 On-Call Agreement with HR Green Pacific, Inc.

3. 2023 On-Call Agreement with Anser Advisory Management, LLC.

4. 2023 On-Call Agreement with Rick Engineering Company

5. Rick Engineering Company Proposal - Operating Budget FY25/26

6. Rick Engineering Company Proposal - CIP Budget FY25/26

7. Assignment Agreement with Anser Advisory Management, LLC.

CITY OF MURRIETA Page 3 of 3 Printed on 6/12/2025
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590
May 21, 2025
Mr. Jeffrey J. Hitch, P.E.

City Engineer
City of Murrieta
1 Town Square
Murrieta, California 92562
SUBJECT: PROPOSAL FOR AS NEEDED SUPPLEMENTAL STAFFING TRAFFIC

ENGINEERING SERVICES FOR THE CITY OF MURRIETA, CALIFORNIA (RICK JOB NUMBER 16750-F)
Dear Jeff:

Pursuant to your request, RICK is pleased to present a Scope of Services and associated Fee to provide professional engineering services for the subject project. This work consists of assisting the Engineering Department by providing staff one day a week at City Hall from July 1, 2025 through June 30, 2026, to prepare staff reports and work orders, attend meetings, attend and present at Traffic Commission, respond to resident concerns/inquiries, perform signal timing tasks, and to provide plan checking services.

Thank you for the opportunity to provide these services. Should you have any questions regarding this proposal, please feel free to contact me at (619) 291-0707. Thank you for requesting RICK to provide these services.

Sincerely,
RICK
Brian R. Stephenson, P.E., T.E., P.T.O.E.

RCE No. 69471
Associate Principal
K:\Files\16750\text\16750f.058.letter_operating.docx
591

SCOPE OF WORK
Provide Staff at City Hall one day a week from July 1, 2025, through June 30, 2026. Typical tasks to be performed include:

1. Staff Reports
Assist the Director of Public Works and City Engineer by preparing staff reports for City Council, Planning Commission, and Traffic Commission meetings. Items to be prepared for staff reports may include signal warrant analysis, all way stop analysis, road closure analysis, traffic calming measures, signal timing analysis, and all backup data needed for the report.

2. Meetings
Attend meetings as necessary for City Council, Planning Commission, Traffic Commission, Development Review Committee, School District, Police Department, developer/applicant meetings, and Project Design Meetings.

3. Traffic Commission
Prepare staff reports for Traffic Commission meetings and present the reports on action items and informational items to the Commission at the meetings.

4. Work Orders
Prepare work orders for City of Murrieta maintenance staff. Typical work order items include sign installations, curb markings, and pavement markings/striping.

5. Resident Concerns/Inquiries
Respond to resident phone calls/emails requesting traffic analysis within their neighborhoods.

Typical duties include analyzing locations for all way stops, additional signage, sight distance analysis, parking restrictions, and traffic calming measures.

6. Signal Timing
Prepare signal timing sheets for new signal installations and troubleshoot problems at existing signal locations. Make any timing adjustments deemed necessary.

7. Plan Checking
Review and comment on any traffic signal plans, signing and striping plans, and traffic control plans that are not submitted as part of a separate development plan set, as requested by the City Engineer/Engineering Department.
592
FEE
Our fee for the work to be performed for the As-Needed Traffic Engineering Services would be based on a fixed fee in the amount of one hundred and forty-four thousand one hundred and fifty dollars ($144,150.00).

Any printing, title company fees, blueprinting and miscellaneous expenses are included within this agreement. Not included are any items not specifically referred to above.

Fees and expenses will be billed monthly as the work progresses, and the net amount shall be due within thirty (30) days from the date of receipt of the invoice in the Client's office. 593
May 21, 2025
Mr. Jeffrey J. Hitch, P.E.

City Engineer
City of Murrieta
1 Town Square
Murrieta, California 92562
SUBJECT: PROPOSAL FOR TRAFFIC ENGINEERING SERVICES FOR CAPITAL

IMPROVEMENT PLAN PROJECTS FOR THE CITY OF MURRIETA,
CALIFORNIA (RICK JOB NUMBER 16750-F)
Dear Jeff:

Pursuant to your request, RICK is pleased to present a Scope of Services and associated Fee to provide professional engineering services for the subject project. This work consists of assisting the Engineering Department with providing traffic engineering services for the following Capital Improvement Plan (CIP) Projects, from July 1, 2025 through June 30, 2026:

Neighborhood Traffic Management Program (CIP 13074)
Citywide Signal Modifications (CIP 13077)
Traffic Signal Optimization/Congestion Management (CIP 13078) Priority Traffic Signals (CIP 13079)
Thank you for the opportunity to provide these services. Should you have any questions regarding this proposal, please feel free to contact me at (619) 291-0707. Thank you for requesting RICK to provide these services.

Sincerely,
RICK
Brian R. Stephenson, P.E., T.E., P.T.O.E.

RCE No. 69471
Associate Principal
K:\Files\16750\text\16750f.059.letter_CIP.docx
594

SCOPE OF WORK
Neighborhood Traffic Management Program (CIP 13074)
Assist the Engineering Department with tasks related to the City’s approved Neighborhood Traffic Management Program (NTMP). Typical duties include:
▪ Responding to resident requests for NTMP related issues. ▪ Investigating complaints related to traffic safety and recommending actions related to these requests.
▪ Managing the traffic counting subconsultants tasked with performing traffic volume counts, speed surveys, classification counts, and license plate surveys. ▪ Performing all way stop analysis.
▪ Performing signal warrant analysis.
▪ Preparing staff reports summarizing findings for Traffic Commission meetings. ▪ Attending Traffic Commission meetings.
▪ Attending neighborhood meetings.

Citywide Signal Modifications (CIP 13077)
Provide traffic engineering services related to Citywide Traffic Signal Modifications. Typical tasks include the following:
▪ Maintain the City’s left-turn phasing warrant analysis and signalized intersections throughout the City and determine future intersection needs for protected left-turn phasing.
▪ Identify locations for Closed Circuit Television (CCTV) installations. Typical tasks include preparing bid specifications and documents for the CCTV’s installations and assisting City Staff with advertising the project(s) and providing Project Management. ▪ Identify locations for installation of cabinet switches. The switches will bring multiple types of communication equipment back to the TMC, for monitoring of battery-back up and video detection, as well as the signal and CCTV camera. ▪ Identify locations for upgrades from wireless communication to single mode fiber and assist City Staff with advertising the project(s) and providing Project Management. 595
Traffic Signal Optimization/Congestion Management (CIP 13078) Provide traffic engineering services related to traffic signal timing at the City’s signalized intersections. Typical tasks include the following:
▪ Perform optimized timing parameters for traffic signals that are operating in free mode utilizing the Synchro software and implement the timing at the intersections via the City’s Quicnet system from within the Traffic Management Center. ▪ Perform optimized corridor timing parameters for the City’s Major and Arterial roadways utilizing the Synchro software and implement the timing at the intersections via the City’s Quicnet system from within the Traffic Management Center. This task will require coordination with Caltrans and the cities of Temecula and Menifee at locations that are shared between agencies.
▪ Assist the City’s Traffic Signal Technician with troubleshooting timing issues at City intersections.
▪ Implement current California Manual on Uniform Traffic Control Devices (MUTCD) timing requirements at the City’s signalized intersections. ▪ Manage the traffic counting subconsultants tasked with performing turning movement counts at signalized intersection locations and with daily segment counts along the City’s roadway corridors.

Priority Traffic Signals (CIP 13079)
Assist the engineering department by maintaining the City’s Traffic Signal Priority list. Typical tasks include the following:
▪ Responding to resident and staff requests for future traffic signalized locations. ▪ Performing traffic signal warrant analysis at locations that are anticipated to meet signalization warrants.
▪ Maintaining a list and ranking of warranted traffic signal locations. 596
FEE
Our fee for the work to be performed for the Traffic Engineering Services for Capital Improvement Plan Projects would be based on a fixed fee in the amount of two hundred and thirty-seven thousand five hundred and seventy dollars ($237,570.00) and is summarized as follows:
▪ Neighborhood Traffic Management Program (CIP 13074) $ 73,465.00 ▪ Citywide Signal Modifications (CIP 13077) 73,465.00
▪ Traffic Signal Optimization/Congestion Management (CIP 13078) 73,465.00 ▪ Priority Traffic Signals (CIP 13079) 17,175.00
Total: $237,570.00
Any printing, title company fees, blueprinting and miscellaneous expenses are included within this agreement. Not included are any items not specifically referred to above.

Fees and expenses will be billed monthly as the work progresses, and the net amount shall be due within thirty (30) days from the date of receipt of the invoice in the Client's office. 597
01375.0024 2010012.3

FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF MURRIETA

AND ANSER ADVISORY MANAGEMENT, LLC
This First Amendment (“First Amendment”) is made and entered into this 17 th
day of June 2025, by and between the City of Murrieta, a municipal corporation (“City”), and Anser Advisory Management , LLC, a California corporation (“Consultant”) which has been acquired by and is now known as Accenture Infrastructure and Capital Projects, LLC, a Delaware limited liability company (“Assignee”).

R E C I T A L S
WHEREAS, on or about May 20, 2023, City and Consultant entered into the “Agreement Between the City of Murrieta and Anser Advisory Management, LLC” (“Agreement”), pursuant to which Consultant agreed to provide construction inspection services; and
WHEREAS, pursuant to Section 15 of the Agreement, Consultant seeks the City’s written approval of the transfer and assignment of Consultant’s rights and obligations under the Agreement to Assignee; and
WHEREAS, at this time, City desires to consent to the transfer and assignment of Consultant’s rights and obligations under the Agreement to Assignee pursuant to this First Amendment;

A G R E E M E N T
The recitals contained above are incorporated herein by reference and the Agreement is hereby amended as follows:

1. Prior to the date of consideration of this First Amendment by the City, Contractor shall provide the City with updated proof of all required insurance and endorsements as set forth in Article 10 of the Agreement.

2. As of the date of this First Amendment, Section 2.3 will be amended to read as follows:
“2.3 This Agreement shall be administered on behalf of the parties hereto, and any notice desired or required to be sent to a party hereunder shall be addressed, as follows:

For CITY: Jeffrey J. Hitch, City Engineer
Address: City of Murrieta
One Town Square
Murrieta, CA 92562
Phone: (951) 461-6076
Facsimile: (951) 461-6049
For CONSULTANT: Tyson Atwood
CONSULTANT: Accenture Infrastructure and Capital Projects, LLC 598
01375.0024 2010012.3
Address: 300 Spectrum Center Dr, Suite 1400
Irvine, CA 92618
Phone: 805-459-7697
Facsimile: N/A

3. As of the date of this First Amendment, a new Section 15.1 is added to the Agreement to read as follows:
"Approval of Assignment. As of June 17, 2025, Accenture Infrastructure and Capital Projects, LLC, a Delaware limited liability company (“Assignee”) agrees to accept the rights and responsibilities of Consultant in accordance with the terms of this Agreement and City has agreed to consent to the transfer and assignment of Consultant’s rights and obligations under the Agreement to Assignee. All references in the Agreement to ‘Consultant’ shall refer to 'Assignee' as of June 17, 2025."

4. Except as expressly provided herein, all other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto executed this First Amendment to be effective as of the Date first written above.

CITY:

City of Murrieta, a municipal corporation
By: ______________________________
Justin Clifton, City Manager
ATTEST:
___________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
____________________________
Tiffany Israel, City Attorney
CONSULTANT:
599
01375.0024 2010012.3
Anser Advisory Management, LLC, a California
limited liability company
By: ______________________________
Craig Halvorson, Executive Vice
President
Mailing address:
300 Spectrum Center Dt
Ste 1400
Irvine, CA 92618
ASSIGNEE:

Accenture Infrastructure and Capital Projects,
LLC, a Delaware limited liability company
By:
_____________________________
Name: Tyson Atwood
Title: Senior Vice President
Mailing address:
300 Spectrum Center Dr,
Suite 1400
Irvine, CA 92618
600

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 14.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: James Ozouf, Senior Civil Engineer, CIP
SUBJECT:

Construction Management Services for the Murrieta Hot Springs Road Widening Project, CIP No. 8079

RECOMMENDATION
Approve a Purchase Order for Construction Management Services for the Murrieta Hot Springs Road Widening Project, Capital Improvement Plan (CIP) No. 8079, to TKE Engineering, Inc. in the amount of $617,083; and
Authorize a 10% construction management service contingency of $61,708.30.

PRIOR ACTION/VOTE
On June 20, 2023, the City Council approved an on-call consulting services agreement with TKE Engineering, Inc. for Construction Management Services, and authorized the City Manager to execute purchase orders from various CIP accounts, operating budgets, developer deposits, and development fees not-to-exceed the City Manager’s signing authority per purchase order for the purpose of providing funds for the services provided by the Consultant (Vote 4-0-1).

On June 4, 2024, the City Council approved Resolution No. 24-4745, approving the Capital Improvement Plan Budget for Fiscal Year 2024/25, and the Fiscal Year 2024/25 to 2028/29 Capital Improvement Plan, which included the Murrieta Hot Springs Road Widening Project, CIP No. 8079 (Vote 5-0).

CITY COUNCIL GOAL
Plan, program and create infrastructure development.

BACKGROUND
The Street Improvement Plans for the Murrieta Hot Springs Road Widening Project, CIP No. 8079, will result in numerous improvements to Murrieta Hot Springs Road between Margarita Road and Winchester Road. The purpose of this project is to widen Murrieta Hot Springs Road to its ultimate six-lane configuration and increase traffic flow and pedestrian and bicyclist safety along this corridor. The roadway will be widened from a fourlane roadway to a six-lane roadway between Via Princesa (East) and Del Haven Street, while the overall CITY OF MURRIETA Page 1 of 2 Printed on 6/12/2025
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Agenda Item No. 14.
lane roadway to a six-lane roadway between Via Princesa (East) and Del Haven Street, while the overall improvements occur between Margarita Road and Winchester Road. Improvements include the installation of asphalt concrete pavement, concrete curb and gutter, concrete sidewalk, landscaped medians, street lighting, signing and striping, bike lanes, retaining walls, and a traffic signal at the intersection of Murrieta Hot Springs Road and Calle Del Lago. The widening will also require the realignment of Via Frontera Road within the Ridgegate Community as well as the relocation of various existing utilities, including electric, gas, water, sewer, and communications.

Construction management and inspection services are necessary for this project. Current City staffing does not have adequate capacity due to the extensive night work needed to complete the work. A request for proposal (RFP) was distributed on November 14, 2024 to several of the City’s on-call consultants who have been pre-qualified to perform these services. Two of the three firms specializing in construction management and inspection services submitted proposals, which were reviewed by a panel consisting of City staff utilizing the following criteria:

1. Project understanding/approach

2. Experience with similar kinds of work

3. Familiarity with City and Caltrans procedures

4. Team qualifications

5. Availability and suitability of personnel

6. References/demonstrated ability
TKE Engineering, Inc. (TKE) was selected as the most qualified consultant and is a full service, multidisciplinary consulting corporation specializing in construction management and inspection services for various types of transportation projects including major freeway/bridge construction, interchanges, grade separations, soldier pile walls, traffic signals, street widening, and various street improvements. The TKE team members have more than 20 years of experience and have completed more than 100 miles of major local transportation/public works roadway projects in the Inland Empire and surrounding areas. City staff performed reference checks with the City of Wildomar and other cities in the region and determined each municipality was pleased with the performance of its work.

TKE proposes to provide a resident engineer, an assistant resident engineer, several inspectors, and other engineering staff members to provide construction management and inspection services to ensure the project is constructed in conformance with the project bid specifications. The scope of services anticipates preconstruction preparation, which includes a constructability review of the bid specifications and plans, nine (9) months of construction management and inspection, and post-construction activities. City staff reviewed the rates of the TKE employees and found them to be consistent with the rates proposed in their on-call agreement and against similar services in the industry. TKE’s total proposed cost for their services is $617,083.

FISCAL IMPACT
Funding in the amount $617,083, plus a 10% contingency of $61,708.30, is available in CIP No. 8079.

ATTACHMENTS

1. Agreement with TKE Engineering, Inc.

2. Proposal/Scope of Services from TKE Engineering, Inc.

3. Vicinity Map
CITY OF MURRIETA Page 2 of 2 Printed on 6/12/2025
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1 Prepared for:

City of Murrieta
1 Town Square
Murrieta, CA 92562
Contact: James Ozouf, P.E.

Senior Civil Engineer
Phone: (951) 461-6429
Email: [email protected]
Prepared by:

TKE Engineering, Inc.
2305 Chicago Avenue
Riverside, CA 92507
Contact: Terry Renner, P.E., P.L.S., Q.S.D.

Senior Vice President
Phone: (951) 680-0440
E-mail: [email protected]

TABLE OF CONTENTS
Section 1 | Introduction
Section 2 | Consultant Experience
Section 3 | Project Approach/Work Plan
Section 4 | Project Team
Section 5 | References
Section 6 | Authorization
Section 7 | Professional Fee
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Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 1 | INTRODUCTION
December 5, 2024
James Ozouf, P.E.

City of Murrieta
1 Town Square
Murrieta, CA 92562
Subject: Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
Dear Mr. Ozouf:

Thank you for the opportunity to present this material outlining TKE Engineering, Inc. (TKE’s) qualifications. Enclosed herein are our qualifications to provide Construction Management and Inspection Services to the City of Murrieta (City). TKE is a full service, multi-disciplinary consulting corporation located at 2305 Chicago Avenue, Riverside, California 92507. Mr. Terry Renner will be the construction manager and contact person during the period of proposal evaluation, and he can be reached by phone at (951) 680-0440 or by email at [email protected]. We are highly qualified to perform the services necessary for project delivery and are enthusiastic about the opportunity to further assist the City in bettering its infrastructure.

Why should the City choose TKE to provide consulting inspection services? Please consider the following:

1. Experience and Qualifications – TKE is a full-service, multi-disciplinary firm with a wide range of construction management and inspection related experience in public works inspection of street, sewer, water, drainage and pavement rehabilitation improvement projects for local and grant funded projects. TKE’s broad range of successful construction management and inspection services for our diverse array of public projects, ensures TKE’s broad range of government experience will benefit the City through our intimate understanding of the common pitfalls for each project variation and our past history of successfully overcoming these challenges. TKE is also familiar with working on projects with multicrew construction projects with day and night time working requirements.

TKE has provided construction management and inspection services to numerous City’s throughout Southern California over the past 24 years and are familiar with various City Caltrans, Greenbook and County requirements and projects.

2. Team Leadership – The City will benefit greatly by continuing the vision, leadership, and dedication to community exhibited by TKE’s project team. TKE’s numerous accomplishments and management skills will help maintain continuity in the delivery of the construction management and inspection services. In particular, Terry Renner, TKE’s Senior Vice President and Construction Manager will be the client’s representative, and primary contact. Mr. Renner is a registered civil engineer and licensed land surveyor, and his experience extends from project planning to design and continues through bidding and construction. His excellent communication and management skills will provide a great benefit to the City. In particular, his experience with “cutting edge” creative engineering techniques focused on cost control, will ensure that projects provide the maximum value for the public’s investment. Some of Mr. Renner’s key strengths are communication, organization and issue resolution. His effective communication skills ensure that all stakeholders are constantly advised of project progress. He implements a proactive organizational program to effectively manage the Team’s schedule, documents action items with required follow-up and conducts continuous budget and schedule reviews to anticipate needs for future action items. Lastly, Mr. Renner’s ‘can do’ approach to all project issues always results in resolution. His perseverance and vast knowledge and experience of issues will resolve challenges while protecting City interests. The City will find that Mr. Renner’s and TKE’steam approach provides the best working partnership to meet the City’s engineering needs.

3. Our Commitment – TKE is committed to providing high quality, efficient services to meet all of the City’s needs and exceed client expectations. Prior to beginning any services, TKE will meet to discuss project requirements and scheduling needs. Our Construction Managers and Inspectors will be in contact with City staff on a daily basis to ensure that the project is progressing on schedule and within the allocated budget. It is this personal touch and contact that define our “local service” approach. 620
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 1 | INTRODUCTION
We consider ourselves community builders and take ownership of projects assigned to TKE, ensuring that our personnel will be allocated on an as needed basis.

Our broad array of services and team provide the City a trusted consultant to turn to for any of your projects. We pride ourselves in the management and completion of special, atypical projects and thrive on challenging budgets and deadlines. It is this commitment to service and diverse array of offerings that makes us unique and drives our long-standing relationship with our client base and it is these qualities that make us “the right fit” for the City of Murrieta.

4. Our Value – TKE’s management team and staff are fundamentally committed to creating value in each task that we perform. As such, we have created a professional culture wherein each member of our staff constantly strives for increased efficiency, ultimately allowing us to provide highly professional services at competitive rates. Our culture of constant value creation and increased efficiencies ensures that the services contracted to and provided by TKE will always mean good stewardship of public resources.

5. Contact Person – Terry Renner, P.E., P.L.S., Q.S.D., TKE’s Senior Vice President, will be the contact person during the proposal evaluation period. Mr. Renner works from TKE’s only office location located at 2305 Chicago Avenue, Riverside, California 92507 and can be reached by phone at (951) 680-0440 or by email at [email protected].

6. Validity – Both the main RFQ submittal and separate cost file shall remain valid for a period of not less than 90 days.

7. Addenda – TKE acknowledges that no addendums have been issued as of 12/05/2024.

Thank you for your consideration. TKE acknowledges and accepts all of the general terms and conditions presented in the RFP without any exception. TKE has read and understands the RFP in its entirety, including, without limitation, the scope and nature of the work, as well as the associated attachments and addenda. TKE would very much appreciate the opportunity to interview with the City and introduce our team in person to City staff. Terry Renner is authorized to negotiate and execute an Agreement with the City on behalf of TKE. If you have any questions, please call Mr. Renner at our office at (951) 680-0440 or email him at [email protected].

Sincerely,
Terry Renner, P.E., P.L.S., Q.S.D.

Senior Vice President
TKE Engineering, Inc.
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City of Murrieta
SECTION 2 | SPECIALIZED EXPERIENCE
SECTION 2 | SPECIALIZED

EXPERIENCE
A. COMPANY OVERVIEW
TKE Engineering, Inc. (TKE), a California Corporation, was established in June 2000, and in the last 24 years has developed into one of Southern California’s premier full-service consulting municipal engineering firms. TKE provides construction
management and inspection services to municipal clients exclusively, and has extensive history with public works projects. TKE was founded with the goal of providing turnkey services for municipal agencies in order to benefit our local communities. As a result of the focus of a firm on this mission, TKE has earned a reputation for thoroughness, rapid
turnaround, cost efficiency and, overall quality of work. We are a highly motivated, dynamic firm that prioritizes the
demonstration of our strong qualifications for becoming a preferred consultant for all City services we offer.

TKE employs a highly qualified team of professionals to provide construction management and construction inspection services for the Murrieta Hot Springs Road Project. Regarding public service, we share a common goal with the City to deliver responsive and caring service to our local communities, clients, and colleagues alike. Our reputation for delivering quality work is rooted in our team’s uncompromised integrity on every project. Demonstrating consistent transparency and taking accountability for our actions continues to solidify our working relationships among our staff, as well, as with our clients. Our history of providing construction management and inspection services for surrounding local cities; including Wildomar, Lake Elsinore, Menifee, and Perris, has prepared us to implement an enhanced approach toward maintaining continuity and
communication with heightened standards for this contract.

TKE provides turnkey municipal construction management for capital improvement projects to numerous municipalities throughout Riverside, San Bernardino, Los Angeles, and Orange Counties. The municipal services provided by our firm include Construction Management, and Construction Inspection, Civil Engineering and Design Services, Plan and Map Checking, Traffic Engineering, Surveying and Project Management
services, as well as Quality Assurance/Quality Control. Our broad range of services provides our team with an intimate knowledge and experience of the common pitfalls for each project variation and our team will ensure the Murrieta Hot Springs Road project does not fall into the same situations.

TKE routinely assists cities with inspection of their capital improvement and projects for street widening, regional
corridors, street rehabilitation program for arterial highways, collectors, and residential streets; intersection and traffic signal improvements; miscellaneous sidewalk and concrete
replacements for Americans with Disabilities Act (ADA)
TKE Engineering, Inc. | AT A GLANCE
City/District Inspection
TKE provides On-Call Construction Management
and Inspection for 15 Cities/Districts
Department of Industrial Relations
TKE and its subconsultants are registered with the
Department of Industrial Relations
TKE DIR Number 1000413173
Construction Management
Contracts
TKE has provided construction management and
inspection on more than $600 Million in projects
over the past 24 years. Including more than $300
Million in Grant funded projects.

Size of Organization
65 Professional Construction Managers, Inspectors,
Surveyors, Engineers, Project Managers, Plan
Checkers, Designers, and Support Staff
Location of Office
TKE Engineering, Inc.
2305 Chicago Avenue
Riverside, CA 92507
Years in Business
TKE was founded in 2000 and has 24 years of
experience in providing construction management
support services for public clients.

Company Structure
TKE is a California Corporation founded in June
2000. TKE is not a subsidiary. California Business
License Number: 00109901
Firm Owners
Michael P. Thornton, P.E., P.L.S., M.S.

President
Terry Renner, P.E., P.L.S., Q.S.D.

Senior Vice President
Steven W. Ledbetter, P.E., Q.S.D.

Vice President
City of Murrieta
Point of Contact
Terry Renner, P.E., P.L.S., Q.S.D.

Senior Vice President
2305 Chicago Avenue
Riverside, CA 92507
Phone: (951) 680-0440
Email: [email protected]
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Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 2 | SPECIALIZED EXPERIENCE
improvements; installation of traffic signals; construction of park improvements; bridge maintenance and repairs, and
rehabilitation of City-owned facilities .

B. FIRM QUALIFICATIONS
TKE proudly serves municipal agencies the following similar services on a routine basis which will be required for the upcoming street improvement project:

C ONSTRUCTION M ANAGEMENT
TKE has managed publicly funded construction projects
throughout our history. The breadth of experience and
technical skill of our staff enable us to manage a wide variety of projects, ranging from major infrastructure to the restoration and rehabilitation of significant historical structures. TKE has routinely performed administration of the contract (general contract administration and oversight of project), provided Resident Engineering services pursuant to Caltrans/Federal requirements, constructability reviews on project documents, managed preconstruction and weekly progress meetings,
coordinated with contractors, including multiple contractors simultaneously, coordinated with design engineers for design changes and corrections, coordinated with the project
inspector, reviewed and responded to RFI’s, reviewed weekly statement of working days, reviewed quantities for monthly progress payments, reviewed extra work tickets and assessed them for justification within the contract requirements, process control documents, submittals, change orders, and work
change directives, prepared and performed contract change orders and negotiations, coordinated with residents and businesses throughout construction process, performed public outreach, represented City’s with other agencies at numerous meetings, represented engineering with the City’s council and other public meetings, managed engineering budgets and
project schedules, documented environmental compliance, prepared and acquired right-of-way, coordinated utility relocations, acquired and managed permits from numerous agencies, including Caltrans, South Coast AQMD, BNSF, UP, Riverside County Flood Control & Water Conservation District, U.S Army Corps of Engineers, California Department of Fish and Wildlife, Regional Water Quality Control Board and many others, managed numerous funding programs through Caltrans Local Assistance and various other State and Federal funding agencies.

TKE has extensive experience with providing construction management services on all types of public works projects. We are extremely familiar with the Greenbook, requirements of plans and specifications, and California public contract code in relation to construction projects and various related work. We ensure that all work is completed in accordance with funding contract specifications, terms, conditions, state and federal laws and regulations, and client policy. Our construction management portfolio includes:

Δ Street Widening Projects
Δ Sidewalk Repair and ADA Compliance Projects
Δ Utility Relocation/Adjustments
Δ Conventional and Rubberized Pavement
Rehabilitation Projects
Δ Conventional and Rubberized Pavement Coating
Project
Δ PCC Paving Projects
Δ Traffic Signal and Striping Projects
Δ Signing and Striping
Δ Amphitheaters
Δ Public Facilities
Δ Restrooms
Δ Maintenance Facilities
Δ Treatment Plants
Δ Bus Transfer Stations
Δ Parking Lot Projects
Δ Parks and Other Public Facilities
Δ Grading and Retaining Walls
Δ Storm Drains and Channels
Δ Retention and Detention Basins
Δ Site Improvement Projects
Δ Major Infrastructure Projects
Δ Reconstruction and Rehabilitation
TKE’s construction management services are enhanced by
integration with our knowledge and background of civil
engineering, traffic engineering and surveying to facilitate and ensure all construction projects managed by TKE will operate safely and efficiently.

C ONSTRUCTION I NSPECTION
TKE provides experienced, highly qualified staff with significant technical expertise and strong public relations skills for inspection services. All of TKE’s inspectors have a background within design and construction, enabling TKE to provide wellrounded inspectors capable of understanding the requirements to construct a project and who are capable of identifying potential change orders and design deficiencies before they occur. TKE is fully capable of providing staff on a full-time, parttime, on-call or interim project basis. Please refer to our project COMMON GOALS:

TKE’s Team Leadership is eager to
help the City achieve its goal in
smoothly guiding stewardship of
resources to its people, and further
cultivating a vision for Murrieta’s
future toward advancement.
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Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 2 | SPECIALIZED EXPERIENCE
team, together with our corporate resumes to verify our team’s technical ability to deliver these services.

TKE has provided similar services to those requested here for a number of different agencies. TKE understands that each jurisdiction has its own development and capital improvement standards that were developed to meet the needs of that particular community. TKE has a thorough understanding of these standards together with the needs of the community needs. For each project that TKE is assigned, TKE will verify compliance with all applicable standards. Furthermore, with our extensive experience in other jurisdictions, TKE will be able to recommend improvements to these standards to ensure
expedited project delivery and enhanced public
infrastructure. Our inspection portfolio includes:

Δ Daily review and documentation of construction
activities (daily reports and digital photo of
significant issues and milestones)
Δ Monitor Contractor’s daily labor force for
compliance with state & federal labor laws.

Δ Field verification of traffic control procedures and
consistency with approved Traffic Control Plan
Δ Coordinate with agencies and different
stakeholders to ensure smooth progress of
construction activities
Δ Monitor project schedule
Δ Verify quantities and assuring quality control
Δ Field observations of construction activities
Δ Maintain complete and accurate project records
compliant with Caltrans manual
Δ Review and recommend approval/disapproval of
monthly progress pay estimates
Δ Verify NPDES and SWPPP compliance
Δ Prepare weekly statement of working days
Δ Review RFI’s, change orders and progress
payments
Δ Coordinate punch list and as-built plans
Δ Ensure that materials and completed work comply
with plans specifications and design criteria
Δ Implement security procedures
Δ Issue notices for safety concerns and violations
Δ Coordinate with survey, material testing and
other construction consultants
Δ Review and ensure compliance with control
documents, submittals, RFI’s, change orders, and
work change directives
Δ Compliance with Caltrans encroachment permit
requirements, if required
Δ Preparation of punch list
Δ Coordinate project closeouts activities which
include staff report, Notice of Completion, release
of retention, warranty walk, and archiving
documents.

C IVIL E NGINEERING
TKE regularly provides design services on a wide variety of public works improvement projects. TKE’s Civil Engineering projects have included:

Δ Parks
Δ Public Facilities
Δ Pavement Rehabilitation
Δ Pavement Management Systems
Δ Local Streets and Road Design
Δ Street Widening
Δ Storm Drainage Infrastructure Planning and Design
Δ Retention / Detention Basins
Δ Parking Lots
Δ Storm Drain and Channels
Δ Floodplain Analysis and Mapping
Δ Traffic Signal Design
Δ Traffic Studies and Warrant Analysis
Δ Traffic Impact Studies
Δ Grading Studies, Design and Earthwork Analysis
Δ Capital Improvement Programs (CIPs)
Δ Neighborhood Improvement Preservation
Δ Hydrologic Studies / Hydraulic Design
Δ Storm Water Pollution Prevention Plans (SWPPP)
Δ Sediment and Erosion Control Facilities
Δ Hydromodification Studies / Water Quality
Management Plans (WQMPs)
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Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 2 | SPECIALIZED EXPERIENCE
C. PROJECT EXPERIENCE
SIERRA AVENUE WIDENING PROJECT City of Fontana, CA
Client Contact: Phillip Burum | Deputy City
Manager
Phone Number: (909) 350-6727
Email: [email protected]
Project Cost: $11.3M
Completion Date: Current

DESCRIPTION
The Sierra Avenue widening improvements project is located in the City of Fontana north of Interstate 10 Freeway between Foothill Boulevard and Baseline Road. The project is approximately 1 mile of widening for the City’s primary north-south arterial street widening the roadway from 4 lanes to 6 lanes. The project includes street widening, raised landscape median, new sewer main installation, traffic signal installation and modifications, traffic signal interconnect and fiber optic cable installation, and extensive utility coordination for water main replacement, Rule 20A and Rule 20B undergrounding work. The project also includes right-of-way acquisition for 76 parcels, traffic analysis, review of construction plans, coordination with project design consultants, construction management and construction staking services. TKE represents the City with other agencies, represented engineering with the City’s management personnel and other meetings, managed engineering budgets and project schedules.

SERVICES
Services include design, topographic survey, right-of-way engineering and acquisition, roadway safety analysis, preparation of exhibits, cost estimates, utility coordination, construction management, and construction staking.

KEY STAFF
Michael P. Thornton, P.E., L.S., Terry Renner, P.E., L.S., Q.S.D., Ron Musser, L.S., Monae Pugh

PALOMAR/CLINTON KEITH SIDEWALK, TRAIL, AND BIKE LANE CONNECTIVITY PROJECT City of Wildomar, CA
Client Contact: Jason Farag
Phone Number: (951) 677-7751
Project Cost: $1.5M
Email: [email protected]
Completion Date: March 2022

DESCRIPTION
This grant funded project is located along Palomar Street from Clinton Keith Road to Meadow Ridge Lane and along Clinton Keith Road in the City of Wildomar. The project included approximately one mile of sidewalk connectivity, ultimate street widening, storm drain, striping, and private property restoration that required full depth removal and placement of AC pavement; removal and reconstruction of concrete curbs and gutters, ADA ramps, cross-gutters, sidewalks; construction of concrete sidewalks, curbs and gutters, cross-gutters, ADA ramps, and driveway approaches; construction of CMU retaining wall and significant regrading along hillsides; construction of a multipurpose DG Trail; construction of catch basins, rock bioswales, headwalls, and storm drains; installation of a new pedestrian push button system and curb ramp; relocation of miscellaneous utilities; raising of various utility manholes/valves and installation of traffic signing, striping and loop detectors.

SERVICES
Services included preliminary engineering, design, topographic survey, right-of-way engineering and acquisition assistance, flood control permitting, traffic signal modification, ADA accessibility, Storm Water Pollution Protection, striping redesign, utility relocation and coordination, coordination with property owners, bidding assistance, and construction assistance.

KEY STAFF
Terry Renner, P.E., L.S., Q.S.D., Chance Renner, Ron Musser, L.S., Brett Enscoe

RELEVANCE TO MURRIETA
• Project/Construction Management
• Major Arterial Roadway Widening
• Traffic Signal Modification/Design
• Right-of-Way Acquisition
• Various Pavement Strategies
• Extensive Utility Coordination and Relocations
• Community Outreach Efforts

RELEVANCE TO MURRIETA
• Street/Pedestrian Design
• Grant Funding Coordination
• Utility Relocation/Coordination
• Design Topographic Surveying
• Right-of-Way Engineering
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CV SYNC – PHASE I & II Coachella Valley Association of Governments (CVAG), Coachella Valley, CA Client Contact: Eric Cowle | Program
Manager
Phone Number: (760)346-1127
Email: [email protected]
Project Cost: $109M
Completion Date: Current

DESCRIPTION
This project located in the Coachella Valley consists of upgrading the local agencies existing legacy (outdated) traffic signal controllers, traffic management systems, and communication systems with the latest off-the-shelf technologies in order to provide inter-agency traffic signal synchronization along three regional roadways including Highway 111, Ramon Road and Washington Street. The project improvements include advanced traffic management systems (ATMS), advanced transportation controllers (ATC), selected Intelligent Transportation System (ITS) elements, ITS sub-systems, and Ethernet/IP-based communications that will be expandable and scalable for future integration of ITS technologies and strategies, such as Integrated Corridor Management (ICM), Smart Cities, and Connected and Autonomous Vehicles. This project includes a Regional Traffic Management Center (RTMC) and local Traffic Operation Centers (TOC) that will have the capability to monitor, control of connected traffic signals, and be used as a monitoring tool for research and analysis to help determine regional system enhancements, operations, and maintenance.

SERVICES
Services included bid administration and pre-construction assistance, grant funding administration, construction management, inspection, and project closeout services

KEY STAFF
Terry Renner, P.E., L.S., Q.S.D, Justin Schlaefli, P.E., T.E., P.T.O.E., Stephen Biscotti, Michael Counce COUNTY LINE ROAD TRANSPORTATION CORRIDOR (LPP) City of Calimesa, CA Client Contact: Will Kolbow |
City Manager
Phone Number: (909) 795-9801
Email: [email protected]
Project Cost: $10.1 Million ($3.7 Million Grant)
Completion Date: Current
Description
TKE prepared and obtained a grant for the City of Calimesa through the Road Repair and Accountability Act of 2017 (SB1) Local Partnership Program (LPP). TKE is preparing street widening and roundabout improvements for the construction of the County Line Road Transportation Corridor. The Project includes four (4) single-lane and one (1) multi-lane roundabouts, together with street, pedestrian, and bicycle improvements, to improve safety and efficiency throughout the corridor. The innovative approach to implement roundabout intersection throughout the corridor provides adequate capacity and level of service to remain a two-lane street; thus, significantly reducing right-of-way and construction costs to construct a four-lane corridor.

Services
Services include grant coordination and management, design, topographic survey, right-of-way engineering, environmental assistance, roadway safety analysis, preparation of exhibits, cost estimates, coordination with California Transportation Commission, construction management, inspection, and construction staking.

Key Staff
Michael P. Thornton, P.E., L.S., Terry Renner, P.E., P.L.S., Q.S.D., Steven Ledbetter, P.E., Q.S.D., Octavio Parada, Ron Musser, L.S., Monae Pugh, Justin Schlaefli, P.E., T.E., P.T.O.E. Jeff Lantosh, CPII, Brian McDuffie

RELEVANCE TO MURRIETA
• Public Works Construction
Management Inspection Project
• Traffic Signal, Synchronization and
Special Inspections
• Electrical Inspections
• State and Federal Grant Management

RELEVANCE TO MURRIETA
• LPP State Grant Management
• Roundabouts Design
• Right-of-Way Acquisition
• Extensive Utility Relocations
• Major Arterial Reconstruction
• Various Pavement Strategies
• Extensive Utility Coordination and
Permitting
• Community Outreach Efforts
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CITYWIDE PAVEMENT REHABILITATION PROGRAM (ARTERIALS) FY 2021/2022 City of Moreno Valley, CA Client Contact: Eddie Godinez
Phone Number: (951) 218-8646
Email: [email protected]
Project Cost: $18M
Completion Date: November 2023

DESCRIPTION
The Citywide Pavement Rehabilitation Program for FY 2021/22 Project included rehabilitation for 20 miles along various streets throughout the City of Moreno Valley. TKE provided daily inspection and monitoring to ensure construction of the project was in accordance with the approved plans and specifications. The project included pavement crack sealing, grinding and isolated removal areas along with construction of street widening with asphalt rubberized hot mix overlay over conventional hot mix asphalt base paving, pavement replacement, rubberized asphalt concrete overlay, slurry seal and asphalt concrete curb installation. TKE provided preparation of daily field reports and photo logs and provided reports to the City Staff on weekly basis.

SERVICES
Services included review and monitoring of Contractor’s daily traffic control, storm water pollution prevention measures and safety procedures, daily oversight and inspection, report preparation, photo log preparation and verification of quantities for payment requests.

KEY STAFF
Terry Renner, P.E., L.S., Q.S.D., Bob Doss, P.E., Nelson Blackwell, C.P.I.I., Brad Escoe, Naeem Dulloo ZONE 3 IMPROVEMENT PROJECT City of El Monte, CA
Client Contact: Lee Torres
Phone Number: (626) 258-8833
Email: [email protected]
Project Cost: $5.2M
Completion Date: November 2024

DESCRIPTION
The City of El Monte is requiring treatments to the set of streets in zone three to increase the pavement quality to the full width of the street.

The TKE Team is providing a constructability review of the design plans, specifications and cost estimate (PS&E); overseeing construction coordination meetings with the contractor and stakeholders; community outreach in multi-language, project updates, responding to inquiries and concerns through the duration of the project, tracking and processing requests for information, coordinating materials submittals; conducting material/geotechnical testing, providing construction inspection and reporting; schedule tracking; reviewing and recommending approval of contractor payment requests; reviewing, negotiating, and recommending approval of contract change orders; coordinating with utilities and other agencies; assuring contractor labor compliance; and records management.

SERVICES
Services include constructability review, construction coordination, construction management, construction inspection and reporting, public outreach, labor compliance, survey, construction phasing, and traffic signing and striping inspection

KEY STAFF
Terry Renner, P.E., P.L.S., Q.S.D., Brad Enscoe, Nelson Blackwell, C.P.I.I., Naeem Dulloo, Marvin Lara, E.I.T., Brian Wolfe, P.E.

RELEVANCE TO MURRIETA
• Various Pavement Rehabilitation
Strategies
• Arterial Roadway Construction and
Traffic Control
• Permitting and Private Residents and
Business Coordination

RELEVANCE TO MURRIETA
• Project/Construction
Management
• Construction Inspection
• Street Improvement Project
• Survey
• Community Outreach Efforts
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SECTION 3| PROJECT

APPROACH/WORK PLAN
A. PROJECT APPROACH
Successful project delivery is our goal. Our definition of successful project delivery is:
• Project completion that meets all project
requirements and specifications
• Project completion within budget
• Project completion on schedule
Our approach to the Murrieta Hot Springs Project, recognizing that both cost effectiveness and expedited construction are of primary concern, dictates that very close working partnership between the selected consultant and the City is vital to successful project completion. When this is coupled with the various site constraints, it is critical that the City choose a consultant team with a proven track record of delivering construction management and inspection projects. With a familiar team of senior level design and construction
professionals, TKE is the right choice for this project.

As mentioned above, our experience tells us that there must be a proactive approach to completing the work in order to complete cost effective fully functioning public works project.

This approach includes early identification of critical elements, and development of project schedule and tasks.

Critical elements for construction administration projects include funding source compliance, Utility Coordination, QA/QC, dispute resolution, public relations,
permitting/environmental compliance, and compliance with plans, specifications and standards, and site safety.

The most important key to every public works project is management. TKE, working closely with City staff, will ensure that the project is managed properly to expedited project delivery. Project construction will generate a series of considerations requiring City responses. Our close working partnership will lead to the proper decisions and ultimately, fully operating, cost effective public works improvements.

TKE also understands the limits on the City’s budget, particularly funding. Because of the limited budget for City projects, it is vital to keep costs controlled. Our approach to controlling costs is to utilize our considerable experience with Construction Management and our unique knowledge of the City to assist in providing compliance with the contract documents, cost and dispute resolution.

Below are key elements of our commitment to service:

S TRICT C ONSTRUCTION

C OMPLIANCE
In order to ensure cost controls and maintain project
budgets, it is imperative that the City employ an experienced Inspection team. Our construction inspection team has
consistently delivered projects on-time and within budget by maintaining an active dialogue and hands on approach with the project contractor, while ensuring that all
construction is consistent with the bid plans and
specifications. We are familiar with applicable standards and specifications, including but not limited to the County of Riverside, the Local City, Greenbook, and Caltrans.

P ROJECT M ANAGEMENT
Project management will be an essential element for project delivery. Effective communications will lead to effective management. Management will include weekly reviews of
project budget and schedules and regular meetings with all project shareholders.

The most important aspect of management will be to ensure that the City’s interests are protected to the maximum
extent possible and project schedules are met. TKE will ensure that public funds are used for the benefit of the community. Any deviation from standards and
requirements will be referred to the public works director for the responsible jurisdiction and TKE will implement direction given by City staff.

Project requirements, project schedule compliance and
budget tracking will be important. Project requirements will be assessed by TKE staff and presented to the City’s
management staff. Upon receipt of direction from the City’s staff, TKE staff will be responsible to verify that construction is completed in compliance with those project
requirements. TKE’s effective project management
techniques will ensure that compliance will occur.

Maintaining the project schedule will be one of the most important tasks. Further, maintaining excellent
communications will prevent any project processing
misunderstandings and will avoid project delays. TKE’s
developed management techniques have resulted in
efficient project delivery throughout our 24 year history.

U TILITIES
Construction contract change orders are primarily
attributable to utility relocation delays, inaccurate plotting of utility interferences or due to unknown utilities. TKE will actively coordinate with utility companies with affected facilities within the project area. We will ensure a project schedule is provided and adhered to, to help keep all
parties aware of upcoming requirements.
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T RAFFIC C ONTROL
Traffic impacts created by construction of the street
improvements must be mitigated to the maximum extent
practicable. When considering street widening,
construction traffic control needs to be considered. Once the phasing is identified, traffic control design needs to be reviewed to ensure safe and convenient vehicular and
pedestrian mobility during construction operations. We
have extensive experience in construction traffic control plan preparation and plan review and we are intimately
familiar with the WATCH, Caltrans, and MUTCD
requirements. Our design will insure the project can be constructed with the least interference to daily traffic as possible.

PUBLIC RELATIONS
TKE’s Construction Manager and Inspectors are
experienced with public relations associated with
construction projects. TKE performs initial site visits to all potentially affected properties to discuss the upcoming project and any potential concerns the property owner
and/or tenant may have. TKE identifies improvements that will benefit the property owners to help them understand the importance of project construction. Our approach
builds a project coalition with the property owners and tenants which reduces public complaints at City Council meetings and provides a sense of ownership with the
project. TKE’s Inspector also performs routine visits during construction to check on the property owners concerns and to see if there are any issues that need to be mitigated.

QUALITY ASSURANCE / QUALITY

CONTROL
TKE takes pride in our reputation for thoroughness, rapid turnaround, cost efficiency and overall quality of work, and believes that a high level of quality is needed on all aspects of construction projects. High quality review and inspection yields the following tangible results:
• Ease of oversight
• Smoother processing
• Absence of design-related change orders
• Reduced claims and dispute resolution costs
TKE believes that the most successful quality assurance program is one that is applied inherently throughout the entire management and inspection process. This program
requires not only formal procedures for inspection, but encourages the conscientious effort of experienced people to always “create quality” in every task performed. All of our management and inspection personnel are trained to
identify potential construction issues before the occur, thereby saving time and money on potential costly change orders.

This Quality Assurance/Quality Control program is in place to ensure that project construction exceeds the standards of our clients and that we will deliver the project on
schedule and within budget.

D ISPUTE R ESOLUTION
TKE’s construction managers are highly skilled with and have provided dispute resolution on a number of past
projects. The keys to avoiding potential costly and timeconsuming disputes are knowledge, communication and organization. Our construction managers pride themselves on thorough research and review of the project plans and specifications and existing knowledge and understanding of Caltrans, Greenbook and other standard plans and
specifications. Their effective communications skills
ensure that all stakeholders are constantly advised of
project progress and requirements. Their proactive
organizational program effectively manages the
construction schedule, documents action items with
required follow-up and continuous schedule reviews and
anticipate needs for future action items. Our project
manager’s ‘can do’ approach to all project issues nearly always results in resolution. They are non-combative with all project stakeholders, maintaining professional working relationships with each stakeholder regardless of
conflict. Their perseverance and vast knowledge and
experience of issues will resolve challenges while
protecting City’s and local jurisdictional agencies interests.

B. PROJECT

UNDERSTANDING
The proposed Murrieta Hot Springs Road Improvement
Project is situated along Murrieta Hot Springs Road,
extending between Margarita Road and Winchester Road,
approximately 1.5 miles east of Interstate 215. The primary objective of this project is to widen the existing four-lane roadway to six lanes, enhancing traffic flow and safety. Key elements of the project include the installation of new traffic signals at the intersections of Murrieta Hot Springs Road with Calle Del Lago and Via Princesa. In addition, sidewalks and safety lighting will be constructed along both sides of the road, and water quality BMPs will be integrated into the parkway. The project will also feature landscaped and hardscaped raised medians to further improve the
streetscape.

This roadway improvement will facilitate better traffic, pedestrian, and bicycle circulation between the western 629
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and eastern parts of Murrieta, as well as provide improved connectivity to the City of Temecula.

The project will involve the construction of drilled soldier pile retaining wall systems on both sides of Murrieta Hot Springs Road, with some areas reaching a height of up to 15 feet. The total length of these retaining walls will be approximately 2,500 feet. Additionally, short planter walls will be added in locations where the soldier pile walls exceed a specific height.

The project also includes the realignment of the private street Via Frontera within the Ridgegate/Rhonda
Association community. Via Frontera will be shifted
approximately 6 feet north to accommodate the expanded
roadway. This realignment will necessitate utility
relocations, including adjustments to water, gas, electricity, lighting, and irrigation systems within the community.

All work will be performed in strict accordance with the 2015 edition of the “Standard Specifications for Public Works Construction” (Greenbook), the 2010 and 2018
California Department of Transportation (Caltrans)
“Standard Specifications” for traffic signal-related
improvements, and the project-specific special provisions and technical specifications.

C. SCOPE OF

SERVICES
Construction Management Services
Construction management services will include the following tasks and subtasks:

Task No. 1 – Preconstruction Services
TKE will provide the following subtasks related to
preconstruction services:

Task No. 1a – Quality Assurance/ Quality Control
TKE will provide plan check and constructability review services for the project. We will identify design deficiencies, permit requirements, utility relocations, any constructability issues and cost savings measures and will ensure that the projects will meet all budget requirements. We will also provide an outline of our dispute resolution procedures for the City to review.

Upon completion of our thorough project review, TKE will prepare a project schedule which will include utility and preconstruction relocations by others, notification timelines as noted on all permits, agreements, and contract documents.

TKE’s construction manager will then attend a meeting with the City Project Manager to discuss design features, our
constructability review, and the project schedule. After our meeting with the City, we will assist the contractor in obtaining any outstanding permits.

Deliverables: Contract Document Review Comments,
Project Schedule, and Meeting Agenda
Task No. 1b - Preconstruction Meeting
Prior to the preconstruction meeting, TKE’s Construction Manager and Inspector will review all project plans and specifications to have a complete understanding of the project requirements. During our review, we will identify any
constructability issues that may cause project delays and/or unnecessary change orders.

A preconstruction conference will be held for the project. The conference will be attended by City staff, TKE’s Construction Manager and Construction Inspector, the Contractor,
representatives of potentially affected utilities and
representatives of any other affected agencies. Prior to the conference, we will prepare a conference agenda. At the meeting, we will discuss communication protocol
requirements, safety and health procedures, storm water controls, schedule requirements, procedures for contract submittals, contract administration, job-site access and delivery, and coordination with others. After the meeting, it will be documented with minutes.

Deliverables: Agenda, Minutes, and Distribution to All
Entities
Task No. 1c – Records Management Review
TKE will coordinate with the City to establish and review electronic records management system. Files include:
 Contract Documents, Addenda, and Reports
 All required local, other agencies and state records
throughout the project duration and submit
copies to the City’s project manager, including
labor compliance.
 Environmental Compliance Documents/ Agency
Permits
 Material Submittals
 Contractor Correspondence (RFI’s and RFC’s)
 City Correspondence (Responses to RFI’s and
RFC’s and other correspondence)
 Certified Payroll Records
 Change Orders
 Weekly Statement of Working Days
 Resident Engineers Report
 Project Schedule
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 Dispute Resolution Outline
 Progress Payments
 Materials Testing Reports/Correspondence
 Labor Compliance Interviews
 Surveying Records
 Inspection Field Reports/ Accident Reports
 Photo Logs
 Utility/Agency Correspondence
 Public Correspondence
 Operations and Maintenance Manuals
 Project Closeout Records
Deliverables: E-File of Proposed Records for All of the Above.

Task No. 2 – Construction Management Services During
Construction
TKE will provide the following subtasks related to construction management services:

Task No. 2a – Records Management
TKE utilizes an electronic records management system. Files include:
 Contract Documents, Addenda, and Reports
 All required local, other agencies and state records
throughout the project duration and submit
copies to the City’s project manager, including
labor compliance.
 Environmental Compliance Documents/ Agency
Permits
 Material Submittals
 Contractor Correspondence (RFI’s and RFC’s)
 City Correspondence (Responses to RFI’s and
RFC’s and other correspondence)
 Certified Payroll Records
 Change Orders
 Weekly Statement of Working Days
 Resident Engineers Report
 Project Schedule
 Dispute Resolution Outline
 Progress Payments
 Materials Testing Reports/Correspondence
 Labor Compliance Interviews
 Surveying Records
 Inspection Field Reports/ Accident Reports
 Photo Logs
 Utility/Agency Correspondence
 Public Correspondence
 Operations and Maintenance Manuals
 Project Closeout Records
Deliverables: E-File of All of the Above.

Task No. 2b – Material Submittal Review
TKE will develop a list of all required material submittals and compare the list to the Contractors submittals. TKE will review all project submittals including traffic control plans. Each submittal shall be reviewed with City staff and design engineer as required to verify compliance. We will maintain a project log for each project and it will include descriptions of submittals, submittal status, date received, and date returned. Once the submittals have been reviewed and accepted, they will be signed, dated, and sent to the Construction Inspector, City staff, project Contractor and the file. Submittals will be returned within the time frame specified by the Contract Documents but not longer than two weeks.

In addition to submittals, TKE will review all vendor and lab reports and certifications and material test inspections and correlate all reports with respect to the plans and
specifications. TKE will provide a log for reports and
certifications and notify the City upon any irregularities.

Over the course of construction, TKE will utilize MDG
Associates, Inc. (MDG) to perform labor compliance interviews and verification of labor compliance for the project with each payment request submitted. Should deficiencies be noted, corrective action will be requested from the contractors prior to payment release.

Deliverables: Submittals, Transmittals, and Logs
Task No. 2c – Construction Meetings
TKE will be in constant communication with City staff during the projects entirety to ensure that the project is running smoothly and in accordance with the City’s expectations. TKE will hold regular meetings with City staff, Contractor and Inspector, meetings with utilities/agencies, and affected agencies. Each is discussed below:

City Meetings-TKE will meet with City staff as required to keep staff fully apprised as to construction progress and potential project issues. We will prepare agendas and minutes for each meeting.
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Contractor Meeting-our Construction Manager will meet with the project contractor weekly. We will prepare agendas and minutes for each meeting. Meeting agenda will typically include background, old business, new business, scope,
objectives, traffic control, construction phasing, project schedule, potential issues discussion, payment quantities discussion, and any safety deficiencies observed.

Utilities/Agency Meetings-as mentioned above, TKE will invite utilities and agencies to the preconstruction
conference. During that meeting, all potential project impacts will be discussed with each. During construction, should issues develop needing further discussions with utilities/agencies, TKE will meet with each and develop remediation strategies. Again, all meetings will be documented with minutes.

Public Meeting-if required, TKE will coordinate with the City for public meetings to advise the public of pending construction and its impacts. Discussion may include alternative routes to be used to avoid delays and the project schedule.

In addition, the City will receive RFI’s and RFC’s (including written clarification requests and change-in-plan drawings) regarding the contract documents. TKE will provide any
drawings, sketches and written responses in a timely manner to each with direction and will verify compliance with the Contract Documents. All RFI’s and RFC’s will be logged, including content of inquiry, date relayed and date of response. TKE will review all RFC’s for any potential change in scope and notify the City if potential change orders may arise from the RFC.

Deliverables: Agendas, Minutes, RFI and RFC Responses
Task No. 2d – Construction Management
TKE is uniquely suited to respond to challenges that may occur during construction. Our first review of the project is during our QA/QC analysis. Our consistent communications with the
construction inspector will also provide immediate remediation alternative development.

TKE will review the project schedule and construction progress prior to each Contractor meeting to verify compliance with the Contract Documents. In addition, we will prepare weekly statement of working days to be provided to the contractor at each weekly meeting. If the Contractor is failing to meet approved schedule contract obligations, TKE will request a remediation effort to return the project progress to comply with requirements. If the remediation plan requires
adjustment to the completion date, TKE will advise the City and will not execute any approval of such change without City authorization.

Change conditions and time extensions that may warrant a change order will require a complete understanding of the impacts of the change of which TKE will need to consider in determining its resolution. TKE will seek appropriate comments from anyone impacted by the changed conditions and will closely consult with the City to develop the most cost effective remediation alternative. Cost and scheduling impacts will be noted and presented to the City in accordance with the cities change order procedures prior to direction being given to the Contractor, including the preparation of Change Order drawings and specifications, if required.

To maintain cost controls, TKE will review project budgets on a weekly basis, or as warranted, by review of change orders, RFC’s, and progress payments. In particular, quantities used on the project will be tracked to verify that they will not exceed contract budgeted amounts. Each month TKE will provide a budget report to the City. Should an increase in budget be required, TKE will assist Staff with staff report preparation.

Regarding RFC’s, we will review any change order request received to determine if said request is warranted. If the change order request is not warranted, we will reject it in writing; prior to sending rejection letters to the Contractor, we will review it with City staff. If the change order request appears justified, we will review it with the Construction Inspector and compare it with field reports for confirmation of materials, equipment and/or labor involved; we will review same with City staff and receive City staff’s approval prior to preparing and processing the contract change order. Change orders will be prepared on standard forms.

Should rejected RFC’s require additional consideration, we will negotiate with contractors to establish the impact of change conditions and we will attempt to complete negotiations prior to beginning work. If we fail to reach an agreement and the work must continue, we will direct the Contractor to complete the work. For all disputed work and force account work, the Construction Inspector will document the labor, materials and equipment used for the extra work for use in future
negotiations.

Upon direction from the City, TKE will continue negotiating with Contractors to settle all disputes; however, City staff will ultimately determine the extent the City will go to achieve resolution. TKE will meet with both parties, either
independently or together, as warranted until resolution is reached. TKE will complete all necessary calculations to support the City’s position. TKE utilizes a proactive dispute avoidance program. Once an issue is identified, TKE works diligently to resolve it as timely as possible. The weekly meetings will also be used to avoid or resolve these disputes.

TKE will perform labor compliance interviews with contractor and subcontractor personnel in accordance with the required schedule set forth in the LAPM. In addition, TKE will review certified payroll reports and ensure DBE utilization in compliance with state and federal requirements.

Deliverables: Change Orders and Logs, RFI’s/RFC’s and
Logs, Budget Reports, Resident Engineer’s Report, Weekly Statement of Working Days and Labor Compliance Forms
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Task No. 2e – Pay Requests
Each month, TKE will review the construction payment requests submitted by the contractors for work completed and the construction schedule. We will review the work completed and payment requests to ensure that the quantities and amounts requested reflect the actual work completed. After each request has been reviewed (and revised if necessary), we will approve it and forward it to staff for approval and payment along with a written statement of completed review. We will also submit a monthly status report with each payment request that will advise the City of compliance with the project schedule.

TKE will track and log any Preliminary and Stop Notices prior to each month’s progress payment. If any stop notices have been issued, we will direct the Contractor to rectify the notice and provide proof of the rectification prior to release of payment.

TKE will also provide monthly reports highlighting project progress, change orders, cost issues, and schedule.

Deliverables: Payment Requests and Budget Reports
Task No. 2f – Agency Coordination
TKE’s Construction Managers will review permitting and
coordinate with appropriate County, City, and utility agencies affected by the work. We will coordinate project schedules and work progress affecting each of the projects with each
appropriate agency. If appropriate, the construction manager will invite affected agencies to attend the weekly progress meetings to review the project schedule, summarize project requirements and discuss them at these weekly meetings.

Deliverables: Agency Coordination and Permit
Acquisition
Task 2g – Billing and Project Reports
TKE will provide monthly project reporting identifying current activities, future activities, potential change items, concerns, problems and possible delays, percentage of completion and budget status for construction and consultants. TKE will provide monthly billing to the City for consultant work performed during the previous month. All invoices will follow City format and include a break down by task and fee. TKE will also prepare reimbursement requests to Caltrans Local
Assistance in accordance with the LAPM and funding
requirements.

Deliverables: Monthly Invoices, Summary Reports and
Reimbursement Requests to LAPM
Task 2h – Inspection Services
TKE will provide daily construction inspection and reporting, to verify that the project is progressing in compliance with the contract documents. We will require strict compliance with the contract documents for all construction activities and for any equipment or materials to be furnished and installed. We already possess the measuring devices and testing equipment normally required for inspecting public works construction projects. Our construction inspection personnel are
experienced and knowledgeable in the operation of said devices and equipment, as well as the associated safety equipment.

All materials will be reviewed against approved material submittals as they arrive on-site. Batch tickets or weigh certificates will be collected upon material arrival.

Our Construction Inspector will verify SWPPP and safety provisions have been implemented at the start of each work day, at the construction site. Any deviations will be
documented. All system service interruptions, connections and abandonments will be coordinated with staff. In addition, he will coordinate and schedule materials testing and survey requirements with appropriate parties to ensure there is no delay to the project construction and to minimize costly down periods for anyone onsite.

We will digitally photograph the activities and maintain copies in the project files and our Construction Inspector will prepare daily field reports, which will document all observed project activity, including location of the activity, number of workers present, construction equipment used, quantities constructed, inspector present, weather conditions, and construction progress. All project documentation will be completed on standard forms. All documents will be submitted in hard copy and electronic copy formats. TKE will provide all inspection equipment needed.

Our inspector will provide emergency contact information to allow for 24-hour accessibility. He will verify site safety conditions on a daily basis and, should conditions be unsafe, advise the contractor of corrective actions. If the contractor fails to remediate such condition, he will advise the City and request direction. Should an accident occur, we will notify the City and note all site conditions and photo document the accident location.

Deliverables: Daily Field Reports, Site Deficiency Reports, Batch Tickets, Photographs, Accident Reports, Testing Reports, and Summary Reports
Task 2i – Construction Surveying Services
TKE will provide construction staking services for the
project. Construction staking will include site control to develop control and establishment of centerline
monumentation and the establishment of temporary site
control for staking operations including a level loop from the City’s benchmarks around the site to be utilized during construction. In addition, we will provide staking and grade sheets as necessary for all items required for construction including but not limited to, clearing and grubbing, rough grading, asphalt concrete and PCC demolition limits, curb, 633
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gutter, sidewalk, ramps, driveways, fencing, walls, storm drain pipe, catch basins, and street lighting.

TKE will tie out all existing monumentation prior to
construction. After construction is complete, we will reset all lost survey monuments and prepare all required
documentation.

Deliverables: Construction Stakes, Grade Sheets and Corner Records
Task 2j – Geotechnical Services and Materials Testing
Over the course of project construction, we will schedule materials and compaction testing with Aragon Geotechnical Inc. They will identify the locations and specified depths for all tests on roadway subgrade, aggregate base, asphalt concrete and grading in accordance with the City’s Quality Assurance Plan. They will provide for initial sampling and acceptance testing on materials proposed for the project and continue sampling as required throughout the project in accordance with ASTM D2922, D1556 or D1557. Extraction and gradation tests will be performed in accordance with ASTM D2172. Testing will be conducted in a Caltrans Certified Laboratory and all technicians will be Caltrans Certified as well. A certification memorandum will be prepared and signed by a professional engineer identifying any non-complying materials used on the project.

Deliverables: Reports and Certification Memorandum
Task No. 3 – Post Construction Management Services
TKE will provide the following subtasks related to post construction management services:

Task 3a - Project Close-Out
After project construction is essentially complete, we together with City staff, if desired, will field review the project and prepare a construction deficiencies list (punch list) of items requiring remedial work. After all deficiencies are corrected, our Construction Manager will prepare a letter, recommending acceptance of the project. Once the remedial work is
completed, TKE will review and process the final project invoice.

TKE will assist the City to identify, track and monitor the completion of warranty work prior to the construction
completion date. We will obtain lien waivers, bonds,
guarantees, warranties, if required, and other documents required by the Contract Documents for final Contract
Closeout.

In addition, we will prepare the Notice of Substantial
Completion to establish the date for the commencement of contract warranty periods and acceptance of maintenance responsibility by City. We will provide the Contractor with a list of any remaining incomplete work requirements to be
completed prior to Final Completion.

After all project requirements have been completed, we will prepare a “Notice of Completion” report documenting the final completion of the project and acceptance of the project improvements by the City.

Once the project has been completed, we will provide the City with a complete set of redlined record drawings which will reflect the improvements as constructed; any changes made during project construction will be shown on the record drawings based on contractor’s and our records.

We will forward copies of all records in digital and hard copy format (CD ROM and mylar) and we will prepare a summary of construction changes, final cost, and schedule revisions.

Deliverables: Record Drawings, Punch List, Final
Payment, Project Records, and Notice of Completion
Task No. 3b – Record Drawings
Each month, our Construction Inspector will review the
contractor’s records to ensure that a diligent effort is being made to keep current and accurate records of work in place. If deficiencies are observed, we will withhold the contractor’s progress payment until the contractor demonstrates
compliance.

Once the project has been completed, we will provide the City with a complete set of redlined record drawings which will reflect the improvements as constructed; any changes made during project construction will be shown on the record drawings based on contractor’s and our records. Drawings will be forwarded to the design engineer to prepare final as-built drawings to be provided to the City.

Deliverables: Redlined Record Drawings
Task 3c – Billing Close-Out
TKE will prepare the Final Delivery Report of Expenditures (FROE) for review and submittal by the City to Caltrans Local Assistance.

Deliverables: FROE Report
D. DEVIATIONS FROM

GENERAL SCOPE OF
WORK
TKE has read and understands the requested scope of work and has no deviations.
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A. KEY PERSONNEL
TKE’s key staff assigned to perform the services required are identified and discussed in detail within the following section.

As discussed previously, TKE currently maintains a staff of 54 personnel who are highly qualified to assist with any of the required services for this contract.

TKE has two unique advantages associated with the experience of TKE’s project team. One benefit of TKE’s project team is our extremely low internal turnover rate. As a result of our rigorous interview and testing procedures, coupled with our extremely high employee satisfaction rates, TKE staff has years of experience working together. The close relationships each of our staff members have with one another provide the City with an extremely well rounded and experienced team. As such, TKE’s project team experience directly correlates with TKE’s firm experience described previously.

The second benefit of TKE’s project team is our internal training procedures. TKE has strived to develop techniques that reach outside the box and develop well rounded individuals
committed to providing high quality, efficient services to meet all of our clients’ needs. TKE trains our staff on every facet of engineering design and construction to provide a level of knowledge that can identify problems in every phase of a project, from planning through construction.

It is this commitment to service and diverse array of offerings that makes us unique and drives our long-standing relationships with our client base. Understanding that all aspects of on-call miscellaneous consulting services are important to ensure the City’s interests are protected and project schedules are met, our team brings TKE management level professionals to projects ensuring that every aspect receives full and comprehensive consideration. It is this personal touch and contact that define our ‘local service’ approach. We consider ourselves community builders and take ownership of services requested from TKE, ensuring that our personnel will be allocated on an as-needed basis in order to complete all services on schedule and within specified budget. TKE is committed to responding to our clients’ needs as they arise.

Below are TKE’s Key Personnel for the City’s Construction Management and Inspection Services Murrieta Hot Springs Road Widening Project:

Terry Renner, P.E., P.L.S., Q.S.D.

Construction Manager
R.C.E. No. 69984
P.L.S. No. 9762
Q.S.D. Certification No. 24329
Mr. Renner is the Senior Vice President
of TKE and has over 24 years of construction experience on grant funded civil engineering infrastructure projects, including transportation improvements, drainage improvements, sewer and water improvements, facilities improvements and
recreation improvements. He has managed numerous
transportation and drainage projects for the City of Highland and has delivered projects for the City of Rialto, Hesperia, Fontana, Moreno Valley, Upland, Riverside, Redlands, and Corona.

As a construction manager, Mr. Renner has been responsible for construction coordination and scheduling, utility relocation coordination, public relations, submittal review, supervising a staff of inspectors and subconsultants, weekly progress meetings, request for information responses, storm water management, progress payments, change order review and
negotiations, labor compliance, and project closeout. He has successfully delivered a wide variety of complex and challenging projects and is dedicated to ensuring that the projects managed and delivered by TKE continue to exceed industry standards.

Mr. Renner’s greatest attribute is his ability to deliver projects from grant funded to capital projects. His vast experience ensures success again and again. He also understands the importance of working as a team member. Mr. Renner
understands that he will be given direction from City staff and fully understands the need to maintain proper protocol while providing services. He further understands that his role will be to implement construction that meets the needs of the City and project documents while maintaining the project budget.

Marvin Lara, E.I.T.

Construction Manager
Mr. Lara is an Associate Engineer of
TKE and has 7 years of experience in
civil engineering infrastructure
projects, including transportation
improvements, drainage improvements, sewer and water
improvements, facilities improvements, recreation
improvements, and construction methods. He has managed
numerous projects and has delivered projects for the Cities of South El Monte, Highland, Calimesa, El Monte, Fontana, Rialto, 635
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Upland, Riverside, Hesperia and Redlands. As a Construction Assistant, Mr. Lara has been responsible for assistance in supervising a staff of inspectors, construction coordination and scheduling, utility relocation coordination, public relations, submittal review, coordination with subconsultants, weekly progress meetings, request for information responses, storm water management, progress payments, change order review and negotiations, labor compliance, and project closeout Ron Musser, P.L.S.

Senior Surveyor
P.L.S. No. 4230
Mr. Musser has over 50 years of
experience in performing field and
office surveying services for public and
private projects including design
surveys and right-of-way acquisition
projects. Prior to joining TKE Engineering, Inc., Mr. Musser worked at the County of Riverside as a County Surveyor for nearly 22 years providing mapping, easement document
preparation, field surveying and calculations support for hundreds of projects. He has prepared records of survey, parcel maps, tract maps, right-of-way and easement documents in San Bernardino County, Riverside County, San Diego County,
Orange County and Los Angeles County. He has performed
boundary, topographic, ALTA, and precise level surveys as well as Global Positioning Surveys.

Nelson Blackwell, C.P.I.I.

Senior Construction Inspector
Mr. Blackwell has over 8 years of
experience providing inspection services
for capital projects to several agencies
throughout Southern California. His
services include but are not limited to site
grading, sewer and waterline installation,
street paving, American Disabilities Act (ADA) improvements, underground infrastructure, utilities installation, steel reinforcements, concrete and masonry, path/retaining walls, and parking lot installation. Additionally, he is skilled in understanding project plans and specifications, accessing applicable code, maintaining good and proper relationships with project stakeholders and contractors, and helping to prepare final project documents. Mr. Blackwell has prepared daily inspection reports, developed construction photo logs, verified compliance with contract documents and approved project submittals, and verified public safety compliance.

Jeff Lantosh, C.P.I.I.

Senior Construction Inspector
Mr. Lantosh has over 13 years of
inspection experience providing public
works inspection services to a variety
of municipalities throughout Southern
California. Mr. Lantosh’s background in
public works inspection and oversight provide him with an extensive knowledge of ASTM specifications and OSHA
standards. Additionally, Mr. Lantosh has provided coordination with other project professional services including geotechnical and survey. Mr. Lantosh has worked as a public works inspector for inspection of capital improvement and developer installed improvements relating to the construction of streets, drainage, traffic signals, parks and housing tract improvements. Mr.

Lantosh has prepared daily inspection reports, developed construction photo logs, assisted with progress and final payment processing, assisted with change order negotiations, verified compliance with contract documents and approved project submittals, verified public safety compliance, and developed remedial work lists. He also has experience
performing special inspections work and has earned numerous certifications that strengthen his qualifications to perform work on specialized projects.

Stephen Biscotti
Senior Construction Inspector
Mr. Biscotti has over 15 years of
inspection experience, and has been
providing Public Works Construction
Inspection services for the last ten
years. Mr. Biscotti has worked as a
Public Works Inspector for inspection of
capital improvement and developer installed improvements relating to the construction streets, drainage, utilities, parks and development improvements. He is currently working as a Senior Public Works Inspector on the CV-Sync Project for CVAG. Mr.

Biscotti has extensive knowledge of industry public works and Caltrans construction practices, and has demonstrated
experience reading and interpreting plans and specifications.

He will support the TKE Team in ensuring the required
deliverables are presented to the City on schedule.

TKE has a staff of 17 inspectors which will be available to assist depending on the project schedule.

D EPTH OF R ESOURCES
TKE’s professional team is supported by 65 Construction Management support staff, Construction Inspection Staff, Plan Check Staff, as well as Administrative Support personnel. An organizational chart for the entire team is presented on the following page, and resumes for key personnel have been 636
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provided separately per RFP requirements. Upon the City’s request, TKE can furnish additional resumes for any support staff needed to accomplish the work under this contract. 637
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B. RESUMES
TERRY

RENNER,
P.E., Q.S.D.

TKE Engineering, Inc.

PRINCIPLE-IN-CHARGE | CIP

CONSTRUCTION MANAGER

EDUCATION
BS, Civil Engineering, California State
Polytechnic University, Pomona

REGISTRATIONS
P.E. License Number 69984 (CA)
P.L.S. License Number 9762 (CA)
Qualified SWPPP Developer and
Practitioner #24329

CERTIFICATIONS
Caltrans SWPPP Certified QSP/QSD
Training

AFFILIATIONS
American Public Works Association
American Council of Engineering
Companies of California
Mr. Renner is the Senior Vice President of TKE and has over 24 years of experience in civil engineering design, plan checking, project management and construction management of both development and public works infrastructure projects, including grading improvements, street and transportation improvements, traffic engineering, drainage improvements, water improvements, sewer improvements, facilities improvements and recreation improvements. He currently provides traffic and transportation engineering services to the cities of Fontana, Calimesa, Upland, Wildomar, Highland, and Adelanto. His experience includes services during preproject planning, design, plan review, construction management and inspection, along with operations and maintenance. He also has experience conducting traffic studies, specialized access analysis, parking studies, signal operations, signal timing, and traffic control. He has successfully delivered a wide variety of complex and challenging projects and is dedicated to ensuring that the plans produced by TKE continue to exceed industry standards.

Through his career, Terry has accumulated extensive experience in Transportation and Traffic Engineering field. He has planned, designed and managed construction for more than 100 miles of roadways, street widening, medians, traffic calming, roundabouts, signing and striping modifications, bicycle lanes, and pedestrian facilities for major corridors, arterials, collectors and residential streets. Finally, Terry has overseen public works projects for signal modification and ITS improvements including projects in Caltrans jurisdiction and involving multi-agency coordination.

DETAILED PROJECT EXPERIENCE
• Sierra Avenue Widening Project, City of Fontana, CA - Mr. Renner provides project and construction management services to the City of Fontana for the Sierra Avenue Widening Project. The project is approximately 1 mile of widening for the City’s primary north south arterial street widening the roadway from 4 lanes to 6 lanes. The project includes street widening, raised landscape median, new sewer main installation, traffic signal installation and modifications, traffic signal interconnect and fiber optic cable installation, and extensive utility coordination for water main replacement, Rule 20A and Rule 20B undergrounding work. He is currently responsible for management of utility coordination, right-of-way acquisition for 76 parcels, traffic analysis, review of construction plans, coordination with project design consultants, construction management and construction staking services. While providing these services to the City, Mr. Renner has represented the City with other agencies, represented engineering with the City’s management personnel and other meetings, managed engineering budgets and project schedules.
• San Bernardino Avenue Street Improvements, City of Fontana, CA - Mr.

Renner provided Construction Administration services for the San Bernardino Avenue street and storm drain improvements project which is located in the City of Fontana north of Interstate 10 Freeway and East of the Interstate 15 Freeway from Commerce Drive to Cherry Avenue. The proposed median and sidewalk improvements minimize turning movements providing for increased vehicular capacity, corridor beautification, and improved traffic and pedestrian safety. Construction 638
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Management, Inspection and construction staking is being provided by TKE for approximately 8,800 linear feet of street median, sidewalk and storm drain improvements. TKE provided utility and railroad coordination for the relocation and adjustment of various utility improvements (i.e., power poles, meters, vaults, etc.) and the railroad crossing upgrade. TKE prepared all legal descriptions, right-of-way acquisition plats, temporary construction easement plats and negotiated with property owners for 5 separate parcels • CV Sync Construction Management, Palm Desert, CA- Mr. Renner serves as the Construction Manager in charge of oversight of all aspects for Phase 1 of the CV Sync project (Formerly CVAG TSSP). This work involves plan review, management and approval of construction scheduling, budget, field work, local agency procedures and more. This project involves coordination and support across twelve agencies in the Coachella Valley The project improvements include advanced traffic management systems (ATMS), advanced transportation controllers (ATC), selected Intelligent Transportation System (ITS) elements, ITS sub-systems, and Ethernet/IPbased communications that will be expandable and scalable for future integration of ITS technologies and strategies, such as Integrated Corridor Management (ICM), Smart Cities, Connected and Autonomous Vehicles, a Regional Traffic Management Center (RTMC) and local Traffic Operation Centers (TOC).
• Zone 3 Improvement Project, City of El Monte, Mr. Renner is the Construction Manager for this project. The City of El Monte is requiring treatments to the set of streets in zone three to increase the pavement quality to the full width of the street. The TKE Team is providing a constructability review of the design plans, specifications and cost estimate (PS&E); overseeing construction coordination meetings with the contractor and stakeholders; community outreach in multi-language, project updates, responding to inquiries and concerns through the duration of the project, tracking and processing requests for information, coordinating materials submittals; conducting material/geotechnical testing, providing construction inspection and reporting; schedule tracking; reviewing and recommending approval of contractor payment requests; reviewing, negotiating, and recommending approval of contract change orders; coordinating with utilities and other agencies; assuring contractor labor compliance; and records management.
• Citywide Pavement Rehabilitation Program FY 2021/24 Project, City of Moreno Valley, CA Mr. Renner was the Construction Manager for Citywide Pavement Rehabilitation Program for FY 2021/22 Project which included rehabilitation for more than 20 miles along various arterial streets throughout the City of Moreno Valley. TKE provided daily inspection and monitoring to ensure construction of the project was in accordance with the approved plans and specifications. The project included PCC cross gutter, curb and gutter, and ramp, removal and replacement, pavement crack sealing, grinding and isolated removal areas along with construction of street widening with asphalt rubberized hot mix overlay over conventional hot mix asphalt base paving, pavement replacement, rubberized asphalt concrete overlay, slurry seal and asphalt concrete curb installation. TKE provided preparation of daily field reports and photo logs and provided reports to the City Staff on weekly basis. • 5th Street Corridor Improvements Project City of Highland, CA– The 5th Street Corridor Improvements Project is located on 5th Street from Victoria Avenue to Palm Avenue in the City of Highland. The project includes 639
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construction of approximately one mile of pavement rehabilitation, removal and reconstruction of concrete sidewalks, curbs and gutters, crossgutters, ADA ramps, bus pads and driveway approaches, construction of catch basins and storm drains, installation of a new traffic signal system at the intersection of 5th Street and Central Avenue, relocation of miscellaneous utilities, raising of various utility manholes/valves and installation of traffic signing, striping and loop detectors. Services include value engineering, striping and signal redesign, utility relocation and coordination, construction management, inspection, construction staking and coordination with property owners.
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MARVIN LARA,
E.I.T.

TKE Engineering, Inc.

ASSISTANT

CONSTRUCTION

MANAGER

EDUCATION
BS, Civil Engineering, California State
Polytechnic University, Pomona

CERTIFICATIONS
Engineer in Training
E.I.T. Number 157100

AFFILIATIONS
Riverside-San Bernardino Counties
Branch, American Society of Civil
Engineers (ASCE)
Inland Empire, Women In
Transportation (WTS)
Cal Poly Pomona Alumni, Society of
Hispanic Professional Engineers
Mr. Lara is an Associate Engineer of TKE and has 7 years of experience in civil engineering infrastructure projects, including transportation improvements, drainage improvements, sewer and water
improvements, facilities improvements, recreation improvements, and construction methods. He has managed numerous projects and has delivered projects for the Cities of South El Monte, Highland, Calimesa, El Monte, Fontana, Rialto, Upland, Riverside, Hesperia and Redlands. As a Construction Assistant, Mr. Lara has been responsible for assistance in supervising a staff of inspectors, construction coordination and scheduling, utility relocation coordination, public relations, submittal review, coordination with subconsultants, weekly progress meetings, request for information responses, storm water management, progress payments, change order review and negotiations, labor compliance, and project closeout.

DETAILED PROJECT EXPERIENCE
• CV Sync Construction Management, Palm Desert, CA- Mr. Lara serves as the Assistant Construction Manager assist with oversight of all aspects for Phase 1 and 2 of the CV Sync project (Formerly CVAG TSSP). This work involves plan review, management and approval of construction scheduling, budget, field work, local agency procedures and more. This project involves coordination and support across twelve agencies in the Coachella Valley The project improvements include advanced traffic management systems (ATMS), advanced transportation controllers (ATC), selected Intelligent Transportation System (ITS) elements, ITS sub-systems, and Ethernet/IP-based communications that will be expandable and scalable for future integration of ITS technologies and strategies, such as Integrated Corridor Management (ICM), Smart Cities, Connected and
Autonomous Vehicles, a Regional Traffic Management Center (RTMC) and local Traffic Operation Centers (TOC).
• LPP County Line Road Project, City of Yucaipa/Calimesa, CA- Mr.

Lara was the Assistant Construction Manager for the SB1 Local Partnership Program project. This project consists of the preparation of full construction documents including environmental compliance documents, right-of-way acquisition, utility relocations, plans, technical specifications, construction cost estimates (PS&E) and construction support services for the design of four roundabouts, street widening, bicycle lanes, curb and gutter, sidewalk, crosswalks, ADA curb ramps, storm drain, and signing and striping along County Line Road from 4th Street to Bryant Street.
• Safe Routes to School Cycle 10, City of Highland, CA- Mr. Lara served as the assistant engineer. TKE provided construction management and inspections services for the Cycle 10 Safe Routes to Schools Warm Springs, Cole and Cypress Elementary Schools Projects for the City of Highland. The City of Highland was awarded SR2S funding for the pedestrian path of travel enhancements to provide safe walking paths along 6th Street, Elm Street, Cole Avenue, Drummond Avenue, 10th Street and 14th Street. Proposed improvements include sidewalk, curb access ramps, In-Roadway Lighting system, striping and signage improvements.
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• HSIP Jurupa Valley Guardrail Replacement Project, City of Jurupa Valley, CA- Mr. Lara served as the assistant engineer for this project.

This HSIP project located in Jurupa Valley involves a guardrail replacement, for which TKE is performing grant administration, construction management, and inspection services. TKE attends project development meetings on behalf of Jurupa Valley, assists with preparing requests for proposals, and tracks and reports on statuses with regard to the project budget and schedule. Our Team also composes various communications and reports required for the administration of this project related to its state and federal funding. • Moreno Valley Amphitheater, City of Moreno Valley, CA - Mr. Lara is currently assisting in performing construction management services for the new construction of Moreno Valley Amphitheater located near Moreno Valley City Hall at Southeast corner of Alessandro Boulevard and Veteran’s Way intersection. The project includes construction management, obtaining approval of permit applications, submittal and RFI review, project team coordination, inspections and construction staking.
• Library ADA Improvements, City of Moreno Valley, CA - The Library ADA Improvements Project is located at the Northwestern corner of Alessandro Boulevard and Kitching Street in the City of Moreno Valley. Proposed grading, sidewalk, curb access ramps, striping and signage improvements were designed to meet ADA Compliance. • I-15 Sewer and Water Improvements, City of Hesperia, CA - Mr. Lara assisted in the design of approximately 7,900 linear feet of 8” and 10” P.V.C. sewer main improvements. Design of sewer main improvements also included 10” ductile iron pipe with an 18” Steel Casing crossing the I-15 Freeway from Caliente Road to Mariposa Road near Ranchero Road in the City of Hesperia. In addition to sewer main improvements, approximately 3,800 linear feet of 18” DIP water lines were designed along Ranchero Road to and along Kourie Way and to and along Cromdale Street to existing tanks at East end of Cromdale Street. The project included restrained joints, system appurtenances, and connections to the existing systems and interconnections to City of Hesperia Sewer and Water.
• CDBG Alesia Street and Lerma Avenue, City of South El Monte, CAMr. Lara assisted in the design of approximately 107,000 sq. ft of street rehabilitation on Alesia Street between Potrero Avenue and Adelia Avenue and Lerma Street between Merced Avenue and Central Avenue in the City of South El Monte. Proposed design included asphalt rehabilitation, grading, striping and signage improvements sidewalk, and curb access ramps were designed to meet ADA Compliance.
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NELSON

BLACKWELL
Senior Public Works
Inspector
TKE Engineering, Inc.

EDUCATION
Special Inspection Certification and
Training - Southwest Training and
Calibration San Bernardino, Ca

CERIFICATIONS
ICC - Special Inspector, Soils,
Reinforced Concrete, Reinforced
Masonry and ACI Field Testing
Technician Grade 1
CPII – Certified Public Infrastructure
Inspector (CPII)
Mr. Blackwell has over 8 years of experience providing inspection services for capital projects to several agencies throughout Southern California. His services include but are not limited to site grading, sewer and waterline installation, street paving, American Disabilities Act (ADA) improvements, underground infrastructure, utilities installation, steel reinforcements, concrete and masonry, path/retaining walls, and parking lot installation. Additionally, he is skilled in understanding project plans and specifications, accessing applicable code, maintaining good and proper relationships with project stakeholders and contractors, and helping to prepare final project documents. Mr. Blackwell has prepared daily inspection reports, developed construction photo logs, verified compliance with contract documents and approved project submittals, and verified public safety compliance.

DETAILED PROJECT EXPERIENCE
• City Wide Pavement Rehabilitation Program, City of Moreno Valley – Mr. Blackwell was the Senior Public Works Inspector for the Citywide Pavement Rehabilitation 2021/22 Project which included rehabilitation for 20 miles along various streets throughout the City of Moreno Valley.

Mr. Blackwell provided daily inspection and monitoring to ensure construction of the project was in accordance with the approved plans and specifications. The project included pavement crack sealing, grinding and isolated removal areas along with construction of street widening with asphalt rubberized hot mix overlay over conventional hot mix asphalt base paving, pavement replacement, rubberized asphalt concrete overlay, slurry seal and asphalt concrete curb installation. • Boulder Ave Improvement Project, City of Highland – Mr. Blackwell was the Senior Public Works Inspector for Boulder Avenue Improvement Project, a major collector street with 2 lanes each direction separated by a median. The project included removal of curb, gutter, asphalt concrete pavement, signage, striping and construction of PCC curbs, gutters, curb ramps, driveways, asphalt concrete pavement, irrigation, median curb, landscaping, hardscape, in-road bicycle detection, decorative way findings signs, street lighting, trail lighting, anti-graffiti coating, architectural treatment on existing sound wall and cape seal located on Boulder Avenue from Greenspot Road to San Manual Village Plaza (Highland Avenue).
• I&I Projects – North Bay Slip Lining Phase 2, Lake Arrowhead Community Services District – Providing inspection of slip lining rehabilitation for existing sewer mainline.
• Spyglass Reservoir Water Tank Replacement, Lake Arrowhead Community Services District – Mr. Blackwell performed inspections for demolition of 300K Gallon steel water tank and construction of new 400K gallon concrete water tank and appurtenances. This project includes hillside grading, storm drain piping installations and local street paving.
• District Corp Yard/Field Ops Facility, Lake Arrowhead Community Services District – Mr. Blackwell performed inspections for all site construction activities including, but not limited to; Site grading, Underground utility installations, Parking lot construction, and Landscaping.
• Torrance Aquatic Center, Torrance Unified School District, Torrance, CA – Mr. Blackwell performed inspection services for this $15 Million project including professional construction observation of new pools, 643
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facility building, and underground infrastructure and utilities installations.
• Lawndale High School, Lawndale CA – Mr. Blackwell performed inspection services for this $30 million, 70,600 sf. building. His services included professional construction observation of building over excavation, site grading, and underground infrastructure and utilities installations.
• Roosevelt Elementary School, Pomona CA – Mr. Blackwell performed inspection services for this $45 million expansion and modernization project. His services included professional construction observation of new buildings, storm water infiltration system installation, and parking lot installation.
• Hart School District, Santa Clarita, CA– Mr. Blackwell performed inspection services for this $18.2 million project. His services included professional construction observation of building over excavation, site grading, and underground infrastructure and utilities installations. • Success Building, University of California, Riverside, CA– Mr. Blackwell performed inspection services for this $60 million project. His services included professional construction observation of building over excavation, underground utilities installation, steel reinforcement, and concrete.
• Naval Weapons Station, Missile Magazines, Seal Beach, Ca – Mr.

Blackwell performed inspection services for this concrete, missile bunker project. His services included professional construction observation of the slope and roof cover for the bunkers, road, and parking lots 644
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JEFFREY

LANTOSH

SENIOR PUBLIC WORKS

INSPECTOR/SPECIALTY

INSPECTOR
TKE Engineering, Inc.

EDUCATION
South West Calibration and
Training, San Bernardino, CA

CERIFICATIONS
CPII – Certified Public
Infrastructure Inspector
ICC - Special Inspector, Soils
Structural Masonry, Reinforced
Concrete, and Prestressed
Concrete (Cert No. 8052427)
American Concrete Institute -
Certification Staff
OSHA 30 Outreach Training for
the Construction Industry 2022:
construction#: 20-0107970
General#: 20-0079854
APNGA Portable Nuclear Gauge |
Radiation Safety Officer Class
Mr. Lantosh has over 12 years of inspection experience with the providing public works inspection services. Mr. Lantosh has provided inspection services to several municipalities throughout Southern California. He has completed project inspection services for the cities of Fontana, Riverside, Moreno Valley, Highland, Calimesa, Riverside Transit Agency, and the County of San Bernardino. Mr. Lantosh’s background in public works inspection and oversight provide him with an extensive knowledge of ASTM specifications and OSHA standards. Additionally, Mr. Lantosh has provided coordination with other project professional services including geotechnical and survey. Mr. Lantosh has worked as a public works inspector for inspection of capital improvement and developer installed improvements relating to the construction of water, sewer, streets, drainage, traffic signals, parks and housing tract improvements. Mr.

Lantosh has prepared daily inspection reports, developed construction photo logs, assisted with progress and final payment processing, assisted with change order negotiations, verified compliance with contract documents and approved project submittals, verified public safety compliance, and developed remedial work lists.

DETAILED PROJECT EXPERIENCE
• Regional Water Reclamation Program, Mission Springs Water District– Mr. Lantosh is providing specialty inspection services for the construction of the District’s Regional Water Reclamation Program (RWRP). The RWRP includes construction of a regional wastewater treatment plant, interceptor conveyance system, and local wastewater collection systems. Mr. Lantosh is performing specialty inspections for all reinforcement steel placement, concrete foundations, cutoff walls, water stops, separator walls and perimeter walls for the head works pump station, treatment processing tanks and buildings.
• Citywide Pavement Rehabilitation Program (Arterials) FY 2020/21 Project, City of Moreno Valley- Mr. Lantosh was the Senior Public Works Inspector for Citywide Pavement
Rehabilitation Program for FY 2020/21 Project which included rehabilitation for 6.0 miles along various arterial streets throughout the City of Moreno Valley. TKE provided daily inspection and monitoring to ensure construction of the project was in accordance with the approved plans and specifications.

The project included PCC cross gutter, curb and gutter, and ramp, removal and replacement, pavement crack sealing, grinding and isolated removal areas along with construction of street widening with asphalt rubberized hot mix overlay over conventional hot mix asphalt base paving, pavement replacement, rubberized asphalt concrete overlay, slurry seal and asphalt concrete curb installation. TKE provided preparation of daily field reports and photo logs and provided reports to the City Staff on weekly basis. • Citywide Pavement Rehabilitation Program (Local Streets) FY 2020/21 Project, City of Moreno Valley- Mr. Lantosh was the Senior Public Works Inspector for the Citywide Pavement 645
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 4 | PROJECT TEAM
South Coast Air Quality
Management District | Rule 403.1
Coachella Valley Fugitive Dust
Control Training (CV2302‐
010555‐13615)

AFFILIATIONS
American Concrete Institute -
Certification Board
Rehabilitation Program for FY 2020/21 Project which included rehabilitation for 2.4 miles along various local streets throughout the City of Moreno Valley. TKE provided daily inspection and monitoring to ensure construction of the project was in accordance with the approved plans and specifications. The project included pavement crack sealing, grinding and isolated removal areas along with construction of street widening with asphalt rubberized hot mix overlay over conventional hot mix asphalt base paving, pavement replacement, rubberized asphalt concrete overlay, slurry seal and asphalt concrete curb installation. TKE provided preparation of daily field reports and photo logs and provided reports to the City Staff on weekly basis. • Pavement Accelerated Repair Implementation Strategy (PARIS) Program, City of Redlands- Mr. Lantosh performed observation and testing on over 400 miles of roads throughout the City. This project entailed grinding and recycling existing pavement, creating a new base layer for asphalt. The City of Redlands features unique challenges, as the soil varies from silty sands on its north side to clayey material to the south. With this, the City heavily relied on field recommendations to ensure a firm and unyielding section to place asphalt. Some recommendations included cement treated soils and/or the use of geogrid. Good faith effort was used to provide value engineering to the City. This project changed the City’s pavement rating from one of the lowest to one of the highest in the state.
• Magnolia Ave. Grade Separations, City of Riverside Public Works– Mr. Lantosh performed observation and testing of reinforced concrete, structural masonry, and soils/earthwork. This project lowered Magnolia Avenue under the Union Pacific Railroad tracks in Magnolia Center. A two track railroad bridge was constructed over Magnolia Ave. As a main arterial for the City, Magnolia Ave. had to remain open at all times to allow first responders to pass through. Railroad operations could not be shut down either, so a shoofly was constructed as well. This project shifted the alignment of Magnolia Ave. and Beatty Drive was widened between Brockton Ave. and De Anza Ave. Traffic signals were installed at the intersections of Beatty Dr., Brockton, Magnolia, and De Anza Avenues. Additionally, Merrill Ave. east and west of Magnolia Ave. was converted to a right turn in/out to facilitate traffic flow. The project required relocation of water and electric facilities maintained by the City of Riverside Public Utilities Department, communication lines owned by AT&T and Charter, gas lines, and relocation of over 6300 feet of sewer line to redirect sewer flows around the grade separation.
646
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 4 | PROJECT TEAM

STEPHEN

BISCOTTI

SENIOR PUBLIC WORKS

INSPECTOR
TKE Engineering, Inc.

EDUCATION
Coronado State University, CA BA,
Arts and Humanities

CERTIFICATIONS
OSHA 30 Certified
16 Hour QSP Training Seminar
Lean Manufacturing Seminar – Gibbs
Wire & Steel Co., Inc.

Forklift Certification 2004 – 2012
(Both operator and instructor) – Gibbs
Wire & Steel Co., Inc.

Step 2000 Courses (electricity and
electrical control devices) Siemens
E&A
Conflict and Confrontation Seminar –
Farmers Insurance
Forklift Certification 1984 – 1990,
Various Wire Mills in MA, CT, and CA
Mr. Biscotti has over 14 years of inspection experience with the last 7 years providing public facility and public works construction inspection services. Mr. Biscotti has provided inspection services to several municipalities throughout Southern California. He has completed project inspection services for the Cities of Moreno Valley, Fontana, South El Monte, Riverside, Hemet, Calimesa, Riverside Transit Agency, East Valley Water District and the County of San Bernardino. Mr.

Biscotti has provided coordination with other project professional services including geotechnical and survey. Mr. Biscotti has worked as a Public Works Inspector for inspection of capital improvement and developer installed improvements relating to the construction streets, drainage, utilities, parks and development improvements. Mr.

Biscotti has prepared daily inspection reports, developed construction photo logs, assisted with progress and final payment processing, assisted with change order negotiations, verified compliance with contract documents and approved project submittals, verified public safety compliance, and developed remedial work lists.

DETAILED PROJECT EXPERIENCE
• Moreno Valley Amphitheater and Civic Center Park, City of Moreno Valley, CA – Mr. Biscotti provided construction
inspection services for the Moreno Valley Civic Center Park and Amphitheater Project located South of Alessandro Blvd immediately west of City Hall. The amphitheater is used for regional movie nights, concerts and seasonal special events.

The 2.5 acre project included an amphitheater stage, video wall and enclosure, audio/visual and storage room, 400
person arched concrete seating, fire water system upgrades, and a parking lot for approximately 300 vehicles.
• CV Sync Construction Management, Palm Desert, CA - Mr.

Biscotti provided construction inspection services for Phase 1 of the CV Sync project (Formerly CVAG TSSP). This work
involves plan review, management and approval of
construction scheduling, budget, field work, local agency procedures and more. This project involves coordination and support across twelve agencies in the Coachella Valley The project improvements include advanced traffic management systems (ATMS), advanced transportation controllers (ATC), selected Intelligent Transportation System (ITS) elements, ITS sub-systems, and Ethernet/IP-based communications that will be expandable and scalable for future integration of ITS technologies and strategies, such as Integrated Corridor Management (ICM), Smart Cities, Connected and Autonomous Vehicles, a Regional Traffic Management Center (RTMC) and local Traffic Operation Centers (TOC).
• Manganese Treatment Facility and 0.5 MG Reservoir Project, City of Huntington Park, CA – Mr. Biscotti performed
647
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 4 | PROJECT TEAM
construction inspection services for the construction of a grant funded 70-foot tall welded steel reservoir replacement project and a fully redundant manganese filtration plant capable of flowrates up to 1500 gpm in the City of Huntington Park. The project included the removal of a structurally deficient steel reservoir and construction of the proposed welded steel reservoir including a ring footing with 45-foot deep 3-foot diameter caissons to combat liquefaction issues. The reservoir removal and replacement is located within fifteen feet of an existing 70-foot tall 2 million gallon steel reservoir to be protected during construction.
• On-Call Inspection Services, San Bernardino Municipal Water Department, CA – Mr. Biscotti is providing on-call inspection services to the City of San Bernardino Municipal Water
Department (SBMWD) on numerous public and private
improvements related to housing tracts and commercial
development projects. Mr. Biscotti has provided inspection of more than 10,000 linear feet of pipeline installation for SBMWD.
• 5th Street Corridor Improvements Project, City of Highland, CA – Mr. Biscotti performed construction inspection services for installation of a new traffic signal on 5th Street located in the City of Highland west of the Interstate 210 Freeway. The 5th Street Corridor Improvements Project is located on 5th Street from Victoria Avenue to Palm Avenue in the City of Highland. The project includes construction of approximately one mile of pavement rehabilitation, removal and
reconstruction of concrete sidewalks, curbs and gutters, crossgutters, ADA ramps, bus pads and driveway approaches, construction of catch basins and storm drains, installation of a new traffic signal system at the intersection of 5th Street and Central Avenue, relocation of miscellaneous utilities, raising of various utility manholes/valves and installation of traffic signing, striping and loop detectors. Services include value engineering, striping and signal redesign, utility relocation and coordination, construction management, inspection,
construction staking and coordination with property owners. • Interagency Safe Routes to Schools Project, City of Adelanto, CA- Mr. Renner performed construction management services for approximately 5,000 linear feet of street, sidewalk and access ramp improvements around Columbia Middle School, Adelanto Elementary School, and Westside Park Elementary School. The project also included placement of speed
feedback signage and rapid rectangular flashing beacons within the school zones.
648
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 4 | PROJECT TEAM
Principle-in-Charge | CIP Construction Manager
Terry Renner, P.E., P.L.S., Q.S.D.

Assistant Construction Manager
Marvin Lara, E.I.T

Senior Construction Inspector
Jeff Lantosh, C.P.I.I.

Senior Construction Inspector
Nelson Blackwell,
C.P.I.I.

Senior Construction Inspector
Stephen Biscotti
Director of Surveys
Ron Musser, P.L.S.

C. ORGANIZATIONAL CHART

SUPPORT TEAM
( 65 + Members)
Shelby Kelley | Assistant Construction Manager Chance Renner | Assistant Construction Manager Daniel Melero | Assistant Construction Manager Travis Bradshaw | Assistant Construction Manager Naeem Dulloo | Senior Public Works Inspector Jose Hernandez | Assistant Construction Manager Tyler Ault | Senior Public Works Inspector Brian McDuffie | Senior Public Works Inspector Greg Lawyer | Senior Public Works Inspector Roy Garcia | Senior Public Works Inspector Jeff Lynn | Senior Public Works Inspector Paul Duffell | Senior Public Works Inspector Naeem Dulloo | Senior Public Works Inspector Patrick Palafox | Senior Public Works Inspector Ralph Martinez | Senior Public Works Inspector Ricardo Reynaga | Senior Public Works Inspector Michael Counce | Senior Public Works Inspector Victor Escoto | Senior Public Works Inspector Geotechnical Services
649
Page |26
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 5 |REFERENCES
SECTION 5 | REFERENCES

AGENCY CONTACT NAME CONTACT DATES SERVICES

PROVIDED
City of Highland
27215 Baseline
Highland, Ca 92346
Mr. Carlos Zamano
Public Works Director
(909) 864-6861
[email protected]
2014-Present
City of Calimesa
908 Park Avenue
Calimesa, Ca 92320
Mr. Will Kolbow
City Manager
(909) 795-9801
[email protected]
2012 – Present

CITY OF FONTANA
16489 Orange Way
Fontana, CA 92335
Mr. Phillip Burum
Deputy City Manager
(909) 350-6727
[email protected]
2000 – Present
City of Wildomar
23873 Clinton Keith Road
Suite 201
Wildomar, Ca 92595
Mr. Jason Farag
Assistant City Manager, Public
Works Director / City Engineer
(951) 677-7751
[email protected]
2013 – Present
City of Glendora
116 E. Foothill Blvd.

Glendora, CA 91741
Mr. Bill Wittkopf
Public Works Director
(626) 852-4845
[email protected]
2004-Present
650
Page |27
Request for Proposal for Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project CIP No. 8079
City of Murrieta
SECTION 6 |AUTHORIZATION
SECTION 6 | AUTHORIZATION
Terry Renner, P.E., P.L.S., Q.S.D., is authorized to bind the firm and proposal is valid for a period of one (1) year.
651
Subconsultants Total
Task No. Task Hours $ Hours $ Hours $ Hours $ Hours $ $ $ Scope of Services
Construction Management Services
Task No. 1 - Preconstruction Services
Task No. 1a - Quality Assurance/Quality Control 12 $ 2,178 32 $ 5,456 2 $ 187 8 $ 1,056 $ - $ - $ 8,877 Task No. 1b - Preconstruction Meeting 8 $ 1,452 16 $ 2,728 4 $ 374 4 $ 528 $ - $ - $ 5,082 Task No. 1c - Records Management Review 4 $ 726 4 $ 682 8 $ 748 2 $ 264 $ - $ - $ 2,420 Task No. 2 - Construction Management Services During Construction Task No. 2a - Records Management 2 $ 363 4 $ 682 44 $ 4,114 44 $ 5,808 $ - $ - $ 10,967 Task No. 2b - Material Submittal Review 16 $ 2,904 64 $ 10,912 24 $ 2,244 8 $ 1,056 $ - $ - $ 17,116 Task No. 2c - Construction Meetings 120 $ 21,780 150 $ 25,575 26 $ 2,431 44 $ 5,808 $ - $ - $ 55,594 Task No. 2d - Construction Management and Labor Compliance 300 $ 54,450 600 $ 102,300 130 $ 12,155 $ - $ - $ - $ 168,905 Task No. 2e - Pay Requests 34 $ 6,171 70 $ 11,935 8 $ 748 44 $ 5,808 $ - $ - $ 24,662 Task No. 2f - Agency Coordination 44 $ 7,986 70 $ 11,935 26 $ 2,431 44 $ 5,808 $ - $ - $ 28,160 Task No. 2g - Billing and Project Reports 8 $ 1,452 44 $ 7,502 26 $ 2,431 $ - $ - $ - $ 11,385 Task No. 2h - Inspection Services 2.) 26 $ 4,719 26 $ 4,433 26 $ 2,431 1600 $ 211,200 $ - $ - $ 222,783 Task No. 2i - Construction Surveying Services $ - $ - 8 $ 748 8 $ 1,056 40 $ 10,560 $ - $ 12,364 Task No. 2j - Geotechnical Services and Materials Testing 8 $ 1,452 16 $ 2,728 8 $ 748 24 $ 3,168 $ - $ - $ 8,096 Task No. 3 - Post Construction Management Services
Task No. 3a - Project Close-Out 16 $ 2,904 32 $ 5,456 24 $ 2,244 40 $ 5,280 $ - $ - $ 15,884 Task No. 3b - Record Drawings 8 $ 1,452 40 $ 6,820 8 $ 748 16 $ 2,112 $ - $ - $ 11,132 Task No. 3c - Billing Close-Out 12 $ 2,178 24 $ 4,092 8 $ 748 4 $ 528 $ - $ - $ 7,546 Subtotal: 606 $ 109,989 1,160 $ 197,780 378 $ 35,343 1,882 $ 248,424 40 $ 10,560 $ - $ 610,973 Reimbursables (@1%)1.): $ 6,110
Rates: Notes: Construction Management Total: $ 617,083
Construction Manager $ 182 /HR 1.) Reimbursables Include Cost for Prints, Copies, Mileage, Etc.

Assistant Construction Engineer $ 171 /HR 2.) Assumes Construction Period of 200 Working Days (Single Crew) Clerical $ 94 /HR
Inspector $ 132 /HR
Survey Crew $ 264 /HR
TKE Engineering, Inc.

Construction Manager Clerical Inspector
City of Murrieta
Construction Management and Inspection Services for the Murrieta Hot Springs Road Widening Project Assitant Construction
Engineer
Consulting Engineering Fee
CIP No. 8079
Survey Crew
652
PreparedBy:
653

MARGARITA RD

DATE ST

MARGARITA RD

VIA PRINCESA

BONAIRE WY

MURRIETA HOT SPRINGS RD

BAHAMA WY

WINCHESTER RD

VIA TAFFIA

MEMBERS CLUB DR

CLEARBROOK DR

FALKIRK DR

TORREY PINES RD

CALLE DEL LAGO

BRANWIN ST

SAINT MICHEL LN

BRANWIN CT

GANDOLF CT

WINCHESTER CREEK AVE

LIDO DR

WILLOW CREST DR

SAINT HONORE DR

EVERGREEN AVE

CHAMBRAY DR

SILVER OAK DR

ROYAL BURGH DR

CLEMENTS WY

ROYAL TROON DR

VIA PLAYA DEL REY

AGUA VISTA

MONARCH DR

VIA AZUL

VIA ROJA

SERENETY LN

WOODBRIDGE DR

WESTON HILLS DR

WOODFALL DR

COZUMEL CT

RISING HILL DR

BRIGHTON ST

CALLE CIS

PASEO DE ORO

CALLE POTRO

WENTWORTH ST

OAK CIR

SAINT KITTS CT

VIA LA ESPALDA

REDWOOD CIR

DELHAVEN ST

ABACO CT

HOLLY GROVE CT

DATE ST

VICINITY MAP
±
±
±
®
Murrieta Hot Springs Rd Improvements
Location Map
0 500 1,000 2,000
Feet 654

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 15.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Jeff Hitch, City Engineer
SUBJECT:

Finding that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek

RECOMMENDATION
Adopt Resolution No. 25-4847 entitled: A Resolution of the City Council of the City of Murrieta, California, Declaring that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek.

PRIOR ACTION/VOTE
On June 20, 2023, the City Council authorized an on-call consulting services Agreement with Michael Baker Internation, Inc. for civil engineering services (Vote: 4-0).

On June 4, 2024, the City Council approved Resolution No. 24-4745, approving the Capital Improvement Plan Budget for Fiscal Year 2024/25, and the Fiscal Year 2024/25 to 2028/29 Capital Improvement Plan (Vote 5-0).

On March 18, 2025, the City Council adopted Resolution No. 25-4816, declaring an emergency condition for the Hayes Avenue Bridge at Miller Canyon Creek, authorizing a purchase order for Michael Baker International in the amount of $89,580.92, and amending the Capital Improvement Plan budget to create the Hayes Avenue Bridge at Miller Canyon Creek Project CIP No. 11004 and appropriate $725,000 of Area Drainage Fees (Vote:
5-0).

CITY COUNCIL GOAL
Plan, program and create infrastructure development.

BACKGROUND
On February 6, 2025, staff encountered a pothole in the deck of the Hayes Avenue Bridge crossing Miller Canyon Creek, located generally between Ivy Street and B Street. Upon this discovery, Engineering staff believed the bridge could be unsafe and closed the bridge until further evaluation could be completed.

Michael Baker International (MBI) was contracted using the City of Murrieta’s (City) existing on-call agreement to perform a structural evaluation of the bridge. The evaluation was performed, and a report was generated CITY OF MURRIETA Page 1 of 2 Printed on 6/12/2025
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Agenda Item No. 15.
to perform a structural evaluation of the bridge. The evaluation was performed, and a report was generated and provided to the City. The report concluded that the bridge is structurally deficient for fire truck access and needs to be replaced. The bridge has a span that is 15-feet long, is 24-feet wide, and has concrete abutments with wooden girders and decking covered with asphalt concrete. MBI subsequently provided the City with a proposal to provide environmental and engineering services for engineering plans and emergency environmental permits necessary to replace the bridge with an alternate reinforced concrete box culvert.

Environmental and engineering design has since been completed, and the permit documents are ready to be submitted once a contractor is ready to commence work.

The adoption of an emergency declaration on March 18, 2025, allowed for emergency permitting as well as foregoing the normal public works bidding requirements pursuant to Public Contract Code. Staff is negotiating a scope and fee with contractors to perform the construction. Staff hopes to be able to ask the City Council to award a construction contract at its July 1, 2025 meeting. The scope of work will consist of removing the existing bridge structure, minor grading, and construction of a cast-in-place Reinforced Concrete Box (RCB), concrete wingwalls, rip rap energy dissipators, new pavement section over the RCB, and guardrail.

Construction is anticipated to commence within two weeks of award and take three to four weeks to complete.

The emergency conditions will remain until the bridge has been repaired. Under the California Public Contract Code, the City Council is required to periodically review whether the emergency conditions have abated and/or continue as well as to adopt a resolution by a four-fifths vote to confirm the continuation of the emergency or to declare the emergency to be concluded.

FISCAL IMPACT
None.

ATTACHMENTS

1. Resolution No. 25-4847

2. Vicinity Map
CITY OF MURRIETA Page 2 of 2 Printed on 6/12/2025
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01375.0024 2012316.1 6/10/2025
RESOLUTION 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, DECLARING THAT EMERGENCY CONDITIONS PERSIST IN

CONNECTION WITH THE HAYES AVENUE BRIDGE AT MILLER CANYON CREEK
WHEREAS, after strong winter storms, on February 6, 2025, City of Murrieta (“City”) staff encountered a pothole in the deck of the Hayes Avenue Bridge crossing Miller Canyon Creek located generally between Ivy Street and B Street (“Bridge”), requiring the City to close the Bridge until further evaluation could be completed; and WHEREAS, on February 11, 2025, a contractor retained by the City conducted a structural evaluation of the Bridge and determined that the Bridge is structurally deficient for fire truck access and needs to be replaced. This unexpected occurrence, which has not yet been remedied, poses a clear and imminent danger requiring immediate action to allow the City to continue providing fire truck access to all of its residents, which is an essential public service, and the closure of the Bridge constitutes an “emergency” as defined in Public Contract Code § 1102; and
WHEREAS, pursuant to Public Contract Code §§ 20168 and 22050, contracts for emergency expenditures may be approved by the adoption, by a four-fifths vote, of a resolution declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property such that the City is authorized to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and
WHEREAS, the unexpected occurrence poses City desires to use the process authorized by Public Contract Code § 22050 to immediately investigate and replace the Bridge; and WHEREAS, on March 18, 2025, the City Council adopted Resolution No. 25-4816 by a 5-0 vote to authorize investigations and emergency repair work to the Bridge pursuant to California Public Contract Code Sections 1102, 20168, and 22050; and WHEREAS, the ongoing structural deficiency continues to constitute an “emergency” as that term is defined in Public Contract Code § 1102; and WHEREAS, this item will be reviewed until the repair work has been completed, to ensure that the need to continue the emergency action continues to exist.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
657
01375.0024 2008311.1 5/27/2025
Section 1. The recitals above are true and correct and incorporated herein by this reference.

Section 2. The City Council finds that the facts set forth above constitute facts demonstrating that an emergency condition exists, has not abated, and that such emergency condition does not permit the delays which would result from a competitive solicitation for bids.

The City Council further finds that the immediate replacement of the Bridge is necessary to respond to the emergency conditions.

Section 3. The City Engineer shall cause a report on the status of the emergency circumstances to be agendized at a City Council meeting every sixty days until either the City Council finds that the repair work has been completed or that the emergency conditions have ceased to be present.

Section 4. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED this 17
th day of June, 2025.

Cindy Warren, Mayor
ATTEST:

Cristal McDonald, City Clerk
APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney
658
01375.0024 2008311.1 5/27/2025

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. 25-_____ 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 _______, 202_, 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
659
660

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 16.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Tanner Benson, Financial Analyst
SUBJECT:

Adoption of the Fiscal Year 2025/26 Murrieta Fire District Operating Budget

RECOMMENDATION
Conduct a Public Hearing; and
Adopt Resolution No. MFD25-225 entitled: A Resolution of the Board of Directors of the Murrieta Fire District, Approving the Fiscal Year 2025/26 Fire District Operating Budget.

PRIOR ACTION/VOTE
On February 10, 2025, the City Council held a goal-setting workshop. No formal action was required.

On May 6, 2025, the City Council conducted a budget workshop. During this meeting, a draft of the proposed biennial budget for Fiscal Years 2025/26 and 2026/27 was presented. No formal action was required.

On June 3, 2025, the City Council acting as the Board of Directors of the Murrieta Fire District approved the Preliminary Fiscal Year 2025/26 Operating Budget (Vote: 5-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

BACKGROUND
In accordance with the California Health and Safety (H&S) Code Section 13890, on or before June 30 of each year, the Board of the Murrieta Fire District (Board) shall adopt a preliminary budget for said District. On or before June 30, each year, in accordance with the H&S Code Section 13893, the Board shall publish a notice stating the adoption of the preliminary budget, the availability of the budget for public review, and the date and time when the Board will meet to adopt the final budget.

On June 3, 2025, the Board approved the preliminary Murrieta Fire District budget for Fiscal Years 2025/26 and 2026/27. Consistent with the provisions of the H&S Code, approval of the preliminary budget has been CITY OF MURRIETA Page 1 of 2 Printed on 6/12/2025
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6/17/2025
Agenda Item No. 16.
and 2026/27. Consistent with the provisions of the H&S Code, approval of the preliminary budget has been properly noticed on June 6, 2025, for a public hearing to be held regarding the adoption of the budget on June 17, 2025. Copies of the preliminary budget have been made available for public inspection in City Hall, at Fire Station 1 Administrative Offices, and on the City’s website at <https://www.murrietaca.gov/169/Budget-Management>.

Staff recommends that the Board of the Murrieta Fire District hold a Public Hearing and adopt the Murrieta Fire District Operating Budget for Fiscal Year 2025/26. There have been no changes to the Preliminary Fiscal Year 2025/26 Murrieta Fire District Operating Budget since the public meeting was held on June 3, 2025. The Preliminary Fire District budget is attached to this report and was also included in the published Fiscal Years 2025/26 and 2026/27 Operating Budget approved by the City Council on June 3, 2025.

FISCAL IMPACT
The preliminary budget for the Murrieta Fire District for Fiscal Year 2025/26 is $35,024,058. A summary of the preliminary Operating Budget by fund is provided below:

Fire District Fund 28,093,195
Measure T Fund 6,930,863
Total $ 35,024,058

ATTACHMENTS

1. Resolution No. MFD25-225
CITY OF MURRIETA Page 2 of 2 Printed on 6/12/2025
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RESOLUTION NO. MFD25 - 225

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MURRIETA
FIRE DISTRICT APPROVING THE FISCAL YEAR 2025/26 FIRE

DISTRICT OPERATING BUDGET
WHEREAS, the City Manager has worked with the Murrieta Fire District (“District”) to prepare operating budgets for fiscal years 2025/26 and 2026/27 (“Operating Budget”) to be presented to the Board of Directors for the Board’s approval; and
WHEREAS, the Board of Directors reviewed the District’s proposed Operating Budget at a workshop held on May 6, 2025, and approved the Preliminary Operating Budget at a City Council meeting held on June 3, 2025, a true and correct copy of the Operating Budget is attached hereto and incorporated herein as Exhibit 1; and WHEREAS, on June 3, 2025, the Board of Directors approved the District’s Preliminary Operating Budget and District staff provided notice of a public hearing to be held on June 17, 2025, to adopt the final Operating Budget; and
WHEREAS, City of Murrieta policy requires that the Board of Directors approve the Operating Budget; and
WHEREAS, pursuant to Health and Safety Code section 13893, a properly noticed public hearing was held on June 17, 2025 to allow the Board to consider the final Operating Budget; and
WHEREAS, the Board of Directors desires to adopt an annual budget to ensure efficient management.

NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE MURRIETA FIRE DISTRICT, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The recitals above and true and correct and incorporated herein by this reference.

Section 2. That the fiscal year 2025/26 Operating Budget, attached hereto as Exhibit 1, is approved.

Section 3. That the sums of money set forth in the Operating Budget are appropriated to the respective accounts and funds for expenditure during Fiscal Year 2025/26 and 2026/27 for the items set forth in the Operating Budget.

Section 4. That the City Manager is authorized to move funds within a fund in the Operating Budget without limitation.
663
PASSED AND ADOPTED this 17TH day of June, 2025.
______________________________
Cindy Warren, President
ATTEST:
____________________________
Cristal McDonald, Secretary
APPROVED AS TO FORM:
________________________________
Tiffany Israel
City Attorney/General Counsel

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, Secretary of the Murrieta Fire District, do hereby certify that the foregoing Resolution No. MFD25-225 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 17th day of June, 2025, 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, Secretary
664
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 1

PRELIMINARY MURRIETA FIRE DISTRICT

OPERATING BUDGET
FOR FISCAL YEARS 2025/26 AND 2026/27
Public Meeting: 6/3/2025
Public Hearing: 6/17/2025
665

TABLE OF CONTENTS
Fund Summaries 3
Murrieta Fire District 4
Departments 9
Fire and Rescue 10
Fire Administration 16
Fire Fleet Maintenance 24
Fire Operations 28
Fire Prevention 33
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 2 666

FUND SUMMARIES
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 3 667 Murrieta Fire
District
The Murrieta Fire Department (MFD) is dedicated to preserving the quality of life for all who invest, live, visit and work within the City by providing all risk emergency and nonemergency services.

Summary
The City of Murrieta is projecting $28.09M of revenue in FY2026, which represents a 9.0% increase over the prior year. Budgeted expenditures are projected to increase by 5.5% or $1.46M to $28.09M in FY2026.

Actual Revenue Source
Budgeted Revenue Source
Actual Expenditures
Budgeted Expenditures
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 $0
$10M
$20M
$30M
$40M
Revenue by Fund
2026 Revenue by Fund
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Millions
Grey background indicates budgeted figures.

Murrieta Fire District
FY2020
FY2021
FY2022
FY2023FY2024FY2025FY2026
FY2027
0 5
10 15
20 25
30 35
Murrieta Fire District $21,534,104 $24,193,627 $25,762,737 $28,093,196 $29,249,491 Total Murrieta Fire District: $21,534,104 $24,193,627 $25,762,737 $28,093,196 $29,249,491 Name FY2023 Actual FY2024 Actual FY2025 Amended Budget FY2026 Proposed FY2027 Proposed City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 5 669 Revenues by Source
Projected 2026 Revenues by Source
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Millions
Grey background indicates budgeted figures.

Loan/Bond/Lease Proceeds Licenses & Permits Fines & Forfeitures Other Misc Revenue Charges for Services Intergovernmental Assessments Transfer In Taxes
FY2020FY2021
FY2022
FY2023FY2024
FY2025
FY2026
FY2027
0 5
10 15
20 25
30 35
Revenue Source
Taxes $15,319,706 $16,391,638 $16,079,768 $18,156,100 $19,027,406 Name FY2023 Actual FY2024 Actual FY2025 Amended Budget FY2026 Proposed FY2027 Proposed City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 6 670 Assessments $1,551,897 $1,548,599 $1,577,711 $1,588,135 $1,601,100 Charges for Services $452,381 $678,176 $460,876 $726,360 $741,000 Licenses & Permits $1,313 $14,421 $10,500 $15,200 $15,504 Intergovernmental $766,909 $1,004,761 $715,000 $1,000,000 $1,020,000 Other Misc Revenue $326,774 $428,389 $256,554 $331,900 $338,960 Loan/Bond/Lease Proceeds $0 $6,800 $0 $0 $0
Transfer In $2,863,919 $3,954,583 $6,482,328 $6,245,501 $6,475,521 Fines & Forfeitures $251,205 $166,260 $180,000 $30,000 $30,000 Total Revenue Source: $21,534,104 $24,193,627 $25,762,737 $28,093,196 $29,249,491 Name FY2023 Actual FY2024 Actual FY2025 Amended Budget FY2026 Proposed FY2027 Proposed Expenditures by Expense Type
Budgeted Expenditures by Expense Type
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City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 7 671 Budgeted and Historical Expenditures by Expense Type
Millions
Grey background indicates budgeted figures.

Transfers Capital Internal Service Charges Operations & Maintenance Personnel FY2020FY2021FY2022
FY2023
FY2024
FY2025FY2026FY2027
0 5
10 15
20 25
30 35
Expense Objects
Personnel $18,190,271 $19,386,815 $21,706,130 $22,912,632 $23,773,917 Operations & Maintenance $2,394,972 $2,407,707 $2,779,738 $3,054,104 $3,151,107 Internal Service Charges $1,207,744 $1,481,100 $2,144,590 $2,038,850 $2,202,410 Capital $0 $0 $0 $87,610 $122,056
Total Expense Objects: $21,792,987 $23,275,622 $26,630,458 $28,093,196 $29,249,491 Name FY2023 Actual FY2024 Actual FY2025 Amended Budget FY2026 Proposed FY2027 Proposed City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 8 672

DEPARTMENTS
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 9 673 Fire and Rescue
Bernie Molloy
Fire Chief
Murrieta Fire & Rescue (MFR) is a dedicated team committed to serving the community by providing all risk emergency and non-emergency services.

No. of Full-Time Equivalent Positions in FY26: 81
Organizational Chart
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 10 674 Program Statement
VISION
To become the standard by which other progressive fire departments are measured.

Develop an identity that embraces continuous improvement Maintain sustainable processes
Not dependent on any single person
VALUES
Professional, Responsive, Integrity, Dedicated, Excellence - (PRIDE) Professional workforce planning and development will ensure that resources are allocated appropriately and supported while empowering employees to engage with one another through improved internal communication practices.

Responsive approaches to delivering emergency services are supported by quality and coordinated communications, current and applicable fire prevention programs and initiatives, and disaster preparedness planning to safeguard our community better.

Integrity will be evident in the execution of all responsibilities and interaction with the public through enhanced internal and external communications.

Dedication to the community and department will consistently demonstrate our commitment to being responsible agents of the physical resources that enable us to perform our duties.

Excellence is achieved by holding one another accountable for carrying out our mission, living our motto and values, accomplishing our goals, and ensuring these values become a reality.

OVERVIEW
MFR is an all-risk fire department, divided into four key divisions, responsible for providing: Fire Suppression and Emergency Medical Services (EMS), Fire Prevention and Disaster Preparedness, Hazard Mitigation, and Recovery Services, Wildland Fire Assistance, Swift Water Rescues, Vehicle Accident Response, Technical Rescue Calls, Non-Emergency Community Service Calls, Elder and Disabled Medical Care Safety Visits, Training and Public Education, Occupational Safety and Wellness Evaluations, Fire Code Enforcement, Abatement, Plan Check Reviews, Fire Inspections, Fire Investigations, Facility and Fleet Maintenance, Strategic Planning, Fiscal Management Services, Budgetary Development, Revenue Programs Oversight, Cost Recovery Analysis, Records Management, Personnel Management, Project Management, and Grants Administration.

BUDGET UNIT DESCRIPTION
Fire Administration – provides support, fiscal management services, personnel administration, supervision, and leadership for Murrieta Fire & Rescue through the efforts of the Fire Chief and three principal divisions.

Fire Operations – provides comprehensive fire suppression and emergency response, thereby minimizing the loss of life and destruction of property through the rapid deployment of highly trained personnel and modern equipment. Murrieta Fire & Rescue (MFR) is a First-Responder Fire Department with 65% of its dispatch calls for emergency medical services. Services are provided by skilled firefighter-paramedic and rescue personnel strategically situated in five (5) fire stations throughout the city.

MFR Emergency Medical Services (EMS) provides Advanced Life Support with emergency medical first responders in response to a variety of medical emergencies. MFR apparatus are equipped with emergency medical supplies and cardiac EKG monitors used to resuscitate and stabilize patients. MFR EMS provides MFR-based Tactical Medics to the Murrieta Police Department (MPD) SWAT for “hot zone” medical care and assistance to the MPD with calls involving injuries stemming from altercations. The Technical Rescue Team provides for the rescue of persons trapped and injured beyond the scope of normal fire operations. These specialized rescues involve high/low angle, trench, swift water, vehicle extrication, structural collapse, confined space rescue emergencies, and Urban Search & Rescue (USAR).

Fire Fleet – responsible for providing all mechanical and preventative work following state and federal mandates for more than 60 wheeled, motorized, towed, and all-terrain type vehicles for five (5) fire stations, fire prevention inspection staff, EMS staff, and fire pool vehicles.

Community Risk Reduction – prevents and reduces the loss of life, injury, and property damage due to fire or natural disaster in commercial, factory, institutional, business, educational, mercantile, and assembly occupancies. Works with the fire department resources to provide public outreach and education in various settings and capacities.

PROGRAM ACTIVITIES
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 11 675 Fire Administration
Strategic Planning Cost Recovery and Billing Oversight
Fiscal Management Services City-wide Program Development and Administration
Budgetary Planning, Development, and
Revenue Management
Capital Improvement Project Budgeting
Personnel Administration Internal IT Administration
EMS Management Community Outreach Activities
Record Management Inventory of Assets
Operational Policies and Procedures MFR Website
Grants Management Project Management
Fire Operations
Manages the Fire Investigation Team, which provides fire causation and origin determination and investigates all fires of a suspicious nature.

Administers the MFR Safety and Training Program handled by the Training Fire Captain.

MFR Emergency Medical Services (EMS):

Provides Advanced Life Support with emergency medical first responders in response to a variety of medical emergencies.

Provides MFR-based Tactical Medics to the Murrieta Police Department (MPD) SWAT for “hot zone” medical care and assistance to the MPD with calls involving altercations resulting in injuries.

The Technical Rescue Team provides for the rescue of persons trapped and injured beyond the scope of normal fire operations. These specialized rescues involve high and low angles, trenches, swift water, vehicle extrication, structural collapse, confined space rescue emergencies, and Urban Search and Rescue (USAR).

Fire Fleet
Maintenance responsibilities include mechanical work for all apparatus associated with the fire fleet to accommodate emergency medical services, fire prevention, and fire suppression operations.

Community Risk Reduction (Fire Prevention)
Provides comprehensive enforcement of mandated fire and life safety codes and regulations, including inspecting properties for fire code violations and regulating the design and implementation of building features and fire protection systems.

Conducts state mandated inspections of fixed occupancies and defensible space inspections during home sales in required areas.

Annual implementation of the Weed Abatement Program to reduce fire hazards city-wide.

In conjunction with the Disaster Preparedness Coordinator, coordinates planning, development, and implementation of a city-wide Disaster Preparedness Plan and continued efforts to educate the public and collaborate with surrounding services to assist during a disaster.

Oversee the Community Emergency Response Team (CERT) applications and the Community Fire Education Program (CFEP), which provides educational programs about the causes and prevention of fire and burn injuries. The CFEP encourages an active link between MFR and the community by instituting outreach programs such as the “Think First Program,” the “Every 15-Minutes Program”, the “Ready-Set-Go Program,” smoke detector campaigns, fire extinguisher training, fire safety training, programs for older people involving health and fire safety, and other community safety training.

City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 12 676 Department Goals and Objectives
KEY DEPARTMENTAL GOALS FOR FISCAL YEAR 2025/26 and 2026/27 Administration and Fiscal Management
GOAL: Use industry standards and best practices to prevent, train for and respond to fires, rescue, and emergency medical calls for service.

OBJECTIVES: Educate, brand, and market adaptive efforts made to enhance the efficiency and quality of service provided by Murrieta Fire & Rescue to the community.

Measure: Meet with stakeholder groups annually and conduct an assessment by 3rd quarter for FY27.

Continue providing proactive Fire Dispatch EMS training to improve 911 service each fiscal year.

Host a fire dispatcher continuing education session by the 4th quarter FY27.

Integrate a comprehensive new hirer dispatcher orientation training by the 3rd quarter FY27.

Update recruitment practices to retain talented staff and a diverse workforce.

Develop learning modules covering various City functions, forms, reports, and procedures for Fire personnel by the 4th quarter of FY27.

Update and expand Fire's onboarding and the offboarding process by the 3rd quarter of FY27.

Design a Project Management Timelines template to track all MFR projects and program progress.

Measure: Continue coordinating with local high schools and colleges to provide training and education to enhance organizational diversity. Ongoing. Program progress will be evaluated and measured by the 3rd quarter of FY27.

Install living accommodations at a fire station for a female firefighter by the 4th quarter of FY27.

Continue with planning and funding efforts for Station 6 construction project, a Tier 1 priority for City Council.

Collaborate with regional agencies for increased Public Safety Enterprise Communication (PSEC) system interoperability and communication efficiency.

Expand and enhance the fire investigation program, allocating resources for advanced training and inter-agency coordination.

Implement an in-house tiller training program ensuring operational readiness and proficiency prior to the arrival of the new apparatus in January 2026.

GOAL: Provide an enhanced wellness, fitness, and injury prevention program for suppression personnel.

OBJECTIVES: Benchmark the Fire Department Safety and Workers’ Compensation programs against industry best practices.

Measure: Update the incident safety officer program requirement (CPSE Site Team Strategic Recommendation) by the end of 3rd quarter FY27.

Measure: Provide regular training on identifying and managing mental health awareness. Continue the training program by conducting refresher training by the 2nd quarter of FY27. Continue evaluating training results to improve course curriculum and mental health awareness employee needs.

Benchmark Fire Department Safety and Workers’ Compensation programs against industry practices.

Measure: Coordinate with Risk Management to design a workers' compensation analysis assessment and prevention program by 1st quarter of FY27.

GOAL: Provide for proper design, development, and maintenance of the Fire Department’s equipment and facilities.

OBJECTIVES: Ensure facilities are sufficiently designed, updated, repaired, and maintained.

Measure: Update facilities management plans for maintenance and capital repairs by the 3rd quarter of FY27.

Conduct quarterly facilities walk-throughs to avoid deferred maintenance costs.

Update MFR's Assets Inventory and Replacement Plan each fiscal year by the 4th quarter.

GOAL: Increase the Fire Department’s organizational capacity and efficiency.

City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 13 677 OBJECTIVES: Facilitate and manage the principals of continuous improvement identified within the Center for Public Safety Excellence (CPSE) accreditation process.

Measure: Publish an updated Strategic Plan by the 1st quarter of the fiscal year.

Measure: Monitor alarm handling and turnout times, identify and report outcomes and consider opportunities for further enhancements that would reduce times (CPSE Site Team Strategic Recommendation) – ongoing weekly and monthly measurement during the fiscal year.

Update committee charters as needed each fiscal year by the 2nd quarter.

Evaluate the progress of MFR Committee goals and report performance outcomes by the 2nd quarter of each fiscal year.

Measure: Update senior staff Work Plans to reflect progress of actions. Ongoing (semiannually).

Engage a wide range of Fire Department project managers as contributors in the budget management process bi-annually each fiscal year.

Measure: Update and manage program budgets for project managers, including special operations, facilities, EMS, and training.

Ongoing through monthly financial reports.

Utilize technology at full capacity to improve communications and deploy resources effectively.

Measure: Continue working with the Police Department and Dispatch to improve the Emergency Medical Dispatch (EMD) Program (CPSE Site Team Strategic Recommendation). Process and communicate program adjustments by the 3rd quarter of FY27.

Measure: Test existing radio communications functions in the operating platform and ensure standardized requirements are met by the 2nd quarter of FY27.

Fire Operations and Emergency Response
GOAL: Use industry standards and best practices to prevent, train, and respond to fire, rescue, and emergency medical calls for service.

OBJECTIVES: Recruit highly qualified employees to fill vacancies within the organization.

Measure: Maintain an active lateral and entry-level firefighter list to minimize vacancies at any one time to less than 7% of the shift personnel workforce by the 2nd quarter of each fiscal year.

GOAL: Ensure workforce readiness and leadership development by providing innovative education and training programs.

OBJECTIVES: Enhance professional development opportunities and specify pathways for employee career development.

Measure: Revise the career path matrix that covers fire suppression department employees by the 2nd quarter FY27.

Measure: Continue hosting a dispatch academy during April of FY27.

GOAL: Develop a comprehensive pre-incident plan program.

OBJECTIVES: Fully implement a comprehensive pre-incident plan program prioritizing target hazards.

Measure: Pre-plan identifies target hazards and maintains an up-to-date database by the 1st quarter of each fiscal year.

GOAL: Provide an enhanced wellness, fitness, and injury prevention program for suppression personnel.

OBJECTIVES: Build upon the existing mental health, safety, and wellness approaches to develop a more comprehensive program.

Measure: Revised the Incident Safety Officer Program requirement (CPSE Site Team Strategic Recommendation) by the end of the 3rd quarter of FY27.

Measure: Provide regular training on identifying and managing mental health awareness. Ongoing each fiscal year.

Fire Fleet Management
GOAL: Ensure that the department fleet and apparatus is well maintained.

OBJECTIVES: Repair and replace fleet and apparatus per the existing fleet replacement schedule.

Measure: Update and post the heavy and light duty fleet replacement schedule. Ongoing each fiscal year.

Measure: Revise the internal equipment inventory, accountability, replacement, disposal, and maintenance process by the 2nd quarter of each fiscal year.

GOAL: Ensure workforce readiness and leadership development by providing innovative education and training programs.

OBJECTIVES: Comply with all federal, state, and local training mandates and measure with industry standards.

Measure: Fleet maintenance personnel maintain required fire mechanic certifications throughout the fiscal year. Ongoing each fiscal year.

GOAL: Provide for proper design, development, and maintenance of the Department’s apparatus and shop facility.

OBJECTIVES: Ensure the mechanic's shop and repair garage is sufficiently designed, updated, and maintained.

Measure: Reassess fleet shop equipment and garage repairs by the 2nd quarter of each fiscal year.

GOAL: Increase control of vehicle operating and repair costs.

OBJECTIVES: Reduce costs by reviewing previous repairs and monitoring current maintenance to ensure no duplication or overlapping of services.

Measure: Analyze expenditures to identify unnecessary or repeated repairs and parts ordered each quarter during the fiscal year, and report the outcome of the analysis to command staff. Ongoing each fiscal year.

Community Risk Reduction
GOAL: Safeguard the community through proactive prevention, enforcement, engineering, preparedness, and public education programs.

City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 14 678 OBJECTIVES: Identify target strategies that support older adults, families, youth, schools, and public education.

Measure: Update the Public Safety Afterschool Program by the 2nd quarter of each fiscal year.

Measure: Coordinate with community services and local schools to complete an updated Community Risk Assessment by the 3rd quarter of FY27.

Measure: Develop a program to educate the public on various safety measures and awareness by the 4th quarter of each fiscal year.

Assess and update the comprehensive building inspection and code enforcement program, and ensure compliance with laws, local ordinances, and industry best practices. Complete each fiscal year.

Measure: Continue training employees on the MFR code enforcement standards by the 2nd quarter of FY27.

Train and prepare the community to respond effectively to natural disasters and disasters caused by humans. Generate one or more training sessions per fiscal year and identify gaps in practice to improve future training activities. Ongoing each fiscal year.

Measure: Coordinate with local CERT-trained citizens to increase and enhance training and preparedness opportunities. Ongoing each fiscal year.

City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 15 679 Fire Administration
Fire Administration – provides support, supervision, and leadership for Murrieta Fire & Rescue through the efforts of the Fire Chief and three principal divisions.

No. of Full-Time Equivalent Positions in FY26: 10
Revenues by Source
Projected 2026 Revenues by Source
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Millions
Grey background indicates budgeted figures.

Licenses & Permits Loan/Bond/Lease Proceeds Fines & Forfeitures Other Misc Revenue Charges for Services Intergovernmental Assessments Transfer In Taxes
FY2020FY2021FY2022FY2023FY2024FY2025FY2026FY2027
0 5
10 15
20 25
30 35
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 17 681 Revenue by Fund
Murrieta Fire District
Taxes-Property-Current 40001 $12,336,170.87 $13,038,079.64 $13,298,841.23 $14,341,900.00 $15,059,000.00 Taxes-Current-Unsecured 40003 $567,793.28 $663,924.30 $643,000.00 $730,300.00 $766,800.00 Taxes-Prior Year 40004 $350,433.20 $505,105.93 $404,926.74 $555,600.00 $583,400.00 Taxes-Current-Supplemental 40006 $536,510.48 $505,613.01 $408,000.00 $632,000.00 $663,600.00 Taxes-Current-SBOE 40007 $232,137.26 $257,898.73 $200,000.00 $295,700.00 $310,500.00 Taxes-Current-HOX 40008 $102,516.63 $100,220.50 $105,000.00 $98,600.00 $97,005.70 Taxes-RDA Disolution Distrib 40011 $1,194,144.56 $1,320,795.94 $1,020,000.00 $1,502,000.00 $1,547,100.00 Spec Assess-Unit of Benefit
As
40041 $7,321.35 $0.00 $0.00 $0.00
Interest-Income 44401 $152,900.97 $173,397.78 $80,000.00 $106,200.00 $84,960.00 Lease/Rental-Income 44462 $116,226.98 $115,929.86 $121,054.34 $124,500.00 $128,000.00 Miscellaneous-Donations 47702 $1,380.00 $2,830.00 $2,500.00 $5,100.00 $5,200.00 Misc-Other
Reimbursements
47813 $18,429.25 $97,502.70 $25,000.00 $58,000.00 $81,900.00 Misc-Special EventsBarbeque
47821 $27,735.00 $33,922.57 $25,000.00 $34,000.00 $34,700.00 Misc-Other 47853 $3,450.00 $4,806.25 $3,000.00 $4,100.00 $4,200.00 Proceeds from Sale of
Capital
81020 $6,800.00 $0.00 $0.00
Transfer In All Other Funds 82140 $170,678.00 $0.00 $0.00 Transfer In Measure T 82221 $2,863,919.00 $3,783,904.79 $6,482,327.92 $6,245,501.00 $6,475,521.00 Spec Assess-Unit of Benefit
As
40041 $1,533,965.35 $1,537,019.89 $1,559,111.00 $1,575,206.51 $1,586,900.00 Spec Assess-Unit of Benefit
Pr
40042 $10,610.79 $11,579.10 $18,600.00 $12,928.00 $14,200.00 License/Permit-Permit Issue
Fe
41121 $306.00 $0.00 $0.00
Intergvt Rev -State Reimb 42221 $766,908.52 $1,004,761.12 $715,000.00 $1,000,000.00 $1,020,000.00 Chrg for Svc-Plan Checks 43301 $172,087.25 $254,183.53 $145,000.00 $275,700.00 $281,200.00 Chrg for Svc-Inspection
Charge
43305 $100,989.00 $201,391.25 $110,000.00 $207,600.00 $211,800.00 Chrg for Svc-Fire
Engineering
43573 $69,182.73 $70,255.73 $75,500.00 $81,100.00 $82,700.00 Chrg for Svc-Other Fire
Servic
43579 $21,997.25 $42,957.50 $40,000.00 $43,600.00 $44,500.00 Fines-AMR System
Enhancement
45520 $166,260.25 $150,000.00 $30,000.00 $30,000.00
Fines-Miscellaneous Fines 45539 $251,204.75 $0.00 $30,000.00 $0.00 $0.00 Misc-Other
Reimbursements
47813 $2,795.00 $0.00 $0.00
Misc-Other 47853 $440.00 $0.00 $0.00
Misc-Unclaimed Funds 47866 $45.25 $0.00 $0.00
Total Murrieta Fire District: $21,441,600.72 $24,069,818.37 $25,661,861.23 $27,959,635.51 $29,113,186.70 Name ERP
Code
FY2023
Actual
FY2024 Actual FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 18 682 Expenditures Summary
$6,742,612
$597,407
(9.72% vs. prior year)
Fire Administration Proposed and Historical Budget vs. Actual Actual Budgeted
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 $0
$2M
$4M
$6M
$8M
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 19 683 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
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Millions
Grey background indicates budgeted figures.

Capital Transfers Internal Service Charges Operations & Maintenance Personnel FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
0 2
4 6
8 City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 20 684 Expenditures by Fund
General Fund Measure T
Salary & Wages 51020 $84,823.43 $86,908.36 $90,000.00 $92,300.00 $96,000.00 Overtime 51040 $782.27 $623.38 $1,224.00 $650.00 $650.00 Benefit-ADD/ Life Insurance 52400 $135.20 $135.20 $135.00 $273.00 $273.00 Benefit-Worker's
Compensation
52450 $616.43 $378.91 $703.00 $743.60 $821.53
Benefit-Deferred
Compensation
52700 $2,000.00 $1,600.00 $2,400.00 $0.00 $0.00
Benefit-Dental 52800 $1,246.17 $1,093.74 $1,176.00 $1,262.40 $1,262.40 Benefit-Short/Long Term
Disabi
53000 $710.13 $738.84 $708.00 $1,656.00 $1,656.00
Benefit-PERS Health 53300 $19,391.46 $19,688.60 $22,140.00 $24,290.00 $26,000.00 Benefit-PERS Retirement 53400 $7,149.53 $6,730.34 $7,400.00 $14,000.00 $15,400.00 Benefit-Vision 53600 $477.07 $477.06 $480.00 $474.00 $474.00 Taxes-FICA/Medicare Employer 53700 $1,194.70 $1,219.95 $1,320.00 $1,350.00 $1,400.00 Vacancy Factor 53980 -$5,479.96 -$5,757.48
Contract Srvcs-Other 60480 $142,993.97 $209,204.56 $310,202.00 $424,050.00 $433,400.00 Equipment-Computers <
$5000
60760 $0.00 $37,347.96 $23,100.00 $0.00 $0.00
Equipment < $5000 60800 $4,801.77 $0.00 $0.00 $0.00 $0.00 Equipment-Furniture < $5000 60840 $9,380.17 $9,914.74 $10,600.00 $18,900.00 $25,200.00 Equipment-Safety 60880 $145,182.79 $79,214.92 $175,567.42 $181,000.00 $181,000.00 Debt Service-Principal 61280 $86,320.72 $83,119.13 $84,454.30 Other Interest Expense 61560 $11,236.68 $11,614.31 $0.00 $8,339.70 $7,004.53 Maintenance-Building 62000 $49.50 $0.00 $0.00
Maintenance-Equipment 62080 $31,754.92 $0.00 $0.00
Maintenance-Radio
Equipment
62120 $4,575.00 $0.00 $0.00
Maintenance-Software
Licenses
62160 $10,351.11 $13,637.22 $41,216.00 $83,470.00 $83,670.00 Rental Expense 63250 $111,977.07 $0.00 $0.00 $31,754.92 $31,754.92 Subscription-Membership,
Dues,
63880 $155.37 $129.46 $100.00 $175.00 $175.00
Training-Conference/Meeting 64280 $2,326.89 $1,144.02 $2,475.00 $2,475.00 $2,475.00 Training & Development 64360 $964.64 $2,500.00 $2,500.00 Srvcs-Information Technology 69100 $1,780.00 $1,902.57 $2,240.00 $2,050.00 $2,160.00 Liab & Property Ins Charges 69200 $6,936.79 $7,443.87 $12,730.00 $36,230.00 $38,420.00 Fleet Allocation 69300 $600,000.00 $618,000.00
Software & Intangible Assets 71020 $50,998.32 $0.00 $7,365.11 $0.00 $0.00 Machinery & Equipment 71030 $179,111.25 $49,991.60 $133,000.00 $0.00 $0.00 Total General Fund Measure T: $795,758.57 $664,804.39 $846,281.53 $1,605,582.79 $1,648,393.20 Murrieta Fire District
Salary & Wages 51020 $925,038.53 $1,105,461.06 $1,166,400.00 $1,257,430.00 $1,333,830.00 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 21 685 Salary & Wages (Special) 51021 $497.51 $0.00 $0.00
Overtime 51040 $42,875.47 $49,963.43 $26,964.00 $11,700.00 $11,700.00 FLSA Overtime 51044 $1,329.37 $1,400.00 $0.00 $0.00
Strike Team Overtime 51045 $90,010.76 $0.00 $75,000.00 $80,000.00 $80,000.00 Part-Time Salary (PERS) 51060 $14,606.38 $0.00 $0.00 $0.00 Part-Time Salary (PARS) 51080 $20,845.12 $0.00 $37,130.00 $0.00 $0.00 Leave-Administrative Buyout
Le
51100 $1,656.88 $640.96 $2,500.00 $690.00 $710.00
Leave-Annual Buyout 51110 $16,378.36 $16,982.68 $73,700.00 $18,340.00 $18,890.00 Leave-Holiday Buyout 51140 $525.07 $8,491.03 $9,170.00 $9,450.00 Allowance-Mobile
Communication
52200 $1,684.48 $1,689.09 $1,680.00 $1,679.00 $1,679.86 Allowance-Uniform 52300 $396.71 $4,310.49 $1,850.00 $4,300.00 $4,300.00 Benefit-ADD/ Life Insurance 52400 $2,212.54 $2,544.88 $3,659.00 $8,296.00 $8,296.00 Benefit-Worker's
Compensation
52450 $104,973.29 $78,573.35 $122,408.00 $199,362.00 $229,817.00 Benefit-Deferred
Compensation
52700 $13,027.90 $14,172.59 $13,000.00 $0.00 $0.00
Benefit-Deferred Comp
NTWD401a
52701 $3,400.00 $0.00 $0.00 $0.00
Benefit-Deferred Comp
ICMA401a
52702 $2,457.50 $0.00 $4,800.00 $0.00 $0.00
Benefit-Dental 52800 $8,819.77 $8,749.91 $9,408.00 $10,099.00 $10,099.00 Benefit-Short/Long Term
Disabi
53000 $5,941.16 $7,005.72 $6,560.00 $15,622.00 $15,622.00 Benefit-Retiree Medical 53100 $172,844.00 $171,447.56 $177,000.00 $185,160.00 $190,710.00 Benefit-PARS Retirement 53200 $220.59 $0.00 $483.00 $0.00 $0.00 Benefit-PERS Health 53300 $132,746.66 $154,784.09 $161,670.00 $76,110.00 $93,450.00 Benefit-PERS Retirement 53400 $338,809.03 $398,112.56 $496,200.00 $410,200.00 $462,700.00 Benefit-Vision 53600 $3,376.14 $3,816.50 $3,840.00 $3,792.00 $3,792.00 Taxes-FICA/Medicare Employer 53700 $16,333.82 $17,351.13 $19,010.00 $19,900.00 $21,020.00 Allocate Personnel Costs 53900 -$25,190.00 -$24,680.00 $0.00 $0.00 Vacancy Factor 53980 -$200,000.00 -$96,657.70 -$104,025.99 Administrative Costs 60010 $300,450.00 $300,450.00 $300,450.00 $300,450.00 $300,450.00 Contract Srvcs-Legal 60440 $15,071.00 $52,611.42 $19,000.00 $62,800.00 $62,800.00 Contract Srvcs-Other 60480 $123,013.48 $86,349.14 $122,968.00 $226,950.00 $233,887.50 Contract Srvcs-Property Tax 60520 $163,387.62 $149,581.33 $158,800.00 $161,650.00 $166,499.50 Equipment-Computers <
$5000
60760 $4,420.12 $0.00 $23,100.00 $4,800.00 $5,500.00
Equipment < $5000 60800 $8,822.34 $27,868.43 $0.00 $0.00 $0.00 Equipment-Safety 60880 $73,335.73 $25,179.92 $36,200.00 $45,000.00 $55,000.00 Equipment-Software < $5000 60920 $0.00 $133.51 $1,500.00 $1,500.00 $1,500.00 Fees-Bank Administration 61000 $125.96 $198.64 $240.00 $300.00 $350.00 Fees-Credit Card Merchant 61200 $3,318.80 $490.52 $2,800.00 $2,500.00 $2,500.00 Debt Service-Principal 61280 $73,887.03 $60,741.00 $65,430.00 Fees-Filing 61440 $6,071.68 $6,178.14 $6,800.00 $6,500.00 $6,800.00 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 22 686 Fees-Investment Admin
Expense
61480 $1,046.52 $1,403.85 $1,200.00 $1,450.00 $1,500.00 Other Interest Expense 61560 $9,848.00 $18,580.66 $15,532.00 $16,440.00 $16,440.00 Lease-Vehicle 61920 $46,051.70 $0.00 $74,596.00 $0.00 $0.00 Maintenance-Building 62000 $18,196.14 $12,347.49 $16,150.00 $20,000.00 $20,000.00 Maintenance-Equipment 62080 $569.08 $818.08 $1,500.00 $1,500.00 $1,500.00 Maintenance-Radio
Equipment
62120 $5,297.75 $10,450.84 $8,500.00 $8,500.00 $8,500.00 Maintenance-Software
Licenses
62160 $10,602.60 $13,260.08 $15,870.00 $27,590.00 $29,150.00 Vehicle Fuel 62220 $160,624.13 $167,824.70 $151,200.00 $165,000.00 $173,250.00 Other-Special Dept
Expenditure
62440 $13,163.91 $10,963.00 $14,513.00 $18,055.00 $18,055.00 Postage 62680 $8,670.29 $3,101.80 $3,500.00 $5,880.00 $6,300.00 Printing 62720 $3,208.78 $2,288.04 $2,800.00 $3,300.00 $3,300.00 Program-AMR System
Enhancement
62860 $37,159.63 $407,481.99 $80,000.00 $80,000.00
Program-Community Relations 62960 $10,498.66 $7,025.08 $4,800.00 $8,761.00 $9,200.00 Program-Special Events 63360 $25,162.68 $29,648.47 $22,000.00 $32,000.00 $35,000.00 Staff-Uniform Expense 63800 $87.00 $359.52 $1,800.00 $1,500.00 $1,500.00 Subscription-Membership,
Dues,
63880 $6,409.00 $9,253.52 $5,626.00 $7,545.00 $7,545.00 Supplies-Maintenance 64040 $670.19 $418.35 $0.00 $1,200.00 $1,200.00 Supplies-Office 64080 $12,837.93 $7,100.41 $5,000.00 $9,969.00 $10,467.45 Supplies-EMS Medical 64175 $51,891.83 $67,500.71 $48,000.00 $74,000.00 $79,180.00 Supplies-Safety 64200 $17,194.09 $27,580.51 $14,390.00 $40,500.00 $29,500.00 Training-Conference/Meeting 64280 $4,801.50 $7,819.98 $9,865.00 $9,865.00 $9,865.00 Training & Development 64360 $18,737.32 $36,132.30 $21,846.00 $26,381.00 $26,892.00 Travel-Fire Mutual Aid Travel 64400 $40.00 $0.00 $0.00 $0.00 Utilities-Electric 64520 $17,136.00 $14,525.90 $19,410.00 $24,500.00 $25,725.00 Utilities-Telephone 64640 $65,747.47 $56,998.61 $61,984.00 $42,000.00 $44,100.00 Srvcs-Information Technology 69100 $224,996.28 $292,480.58 $346,450.00 $329,460.00 $345,950.00 Liab & Property Ins Charges 69200 $611,680.74 $744,293.67 $1,148,390.00 $1,093,250.00 $1,209,690.00 Prior Period Expense 62800 -$16,389.89 $0.00 $0.00
Total Murrieta Fire District: $3,917,884.10 $4,326,410.26 $5,298,923.99 $5,137,029.30 $5,486,566.32 Total: $4,713,642.67 $4,991,214.65 $6,145,205.52 $6,742,612.09 $7,134,959.52 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 23 687 Fire Fleet Maintenance
Fire Fleet – responsible for providing all mechanical and preventative work following state and federal mandates for 58 wheeled, motorized, towed, and all-terrain type vehicles for five (5) fire stations, fire inspection/prevention staff, EMS staff, and fire pool vehicles.

No. of Full-Time Equivalent Positions in FY26: 1
Expenditures Summary
$896,725
$195,017
(27.79% vs. prior year)
Fire Fleet Maintenance Proposed and Historical Budget vs. Actual Actual Budgeted
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 $0
$500K
$1M
$1.5M
$2M
$2.5M
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 24 688 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
OOOpppeeerrraaatttiiiooonnnsss &&& MMMaaaiiinnnttteeennnaaannnccceee (((666777...888%%%))) PPPeeerrrsssooonnnnnneeelll (((111888...222%%%)))
CCCaaapppiiitttaaalll (((999...888%%%)))
IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceee CCChhhaaarrrgggeeesss (((444...333%%%))) Budgeted and Historical Expenditures by Expense Type
Millions
Grey background indicates budgeted figures.

Internal Service Charges Capital Personnel Operations & Maintenance FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
0 0.5
1 1.5
2 2.5
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 25 689 Expenditures by Fund
General Fund Measure T
Maintenance-Vehicle 62200 $47,137.20 $0.00 $0.00 $0.00 $0.00 Vehicles 71060 $0.00 $0.00 $1.00 $0.00 $0.00
Total General Fund Measure T: $47,137.20 $0.00 $1.00 $0.00 $0.00 Murrieta Fire District
Salary & Wages 51020 $81,238.41 $85,274.87 $86,000.00 $104,110.00 $108,110.00 Overtime 51040 $2,224.42 $1,910.81 $954.00 $2,950.00 $2,950.00 FLSA Overtime 51044 $1,549.13 $1,600.00 $0.00 $0.00
Part-Time Salary (PERS) 51060 $1,133.85 $0.00 $0.00 $0.00 $0.00 Leave-Annual Buyout 51110 $1,528.31 $1,636.20 $1,400.00 $1,770.00 $1,820.00 Leave-Compensated
Absences/S
51120 $5,301.34 $2,883.79 $5,200.00 $3,110.00 $3,200.00 Allowance-Mobile
Communication
52200 $481.28 $482.60 $480.00 $479.96 $479.96
Allowance-Uniform 52300 $0.00 $600.00 $0.00 $0.00
Benefit-ADD/ Life Insurance 52400 $135.20 $135.20 $135.00 $273.00 $273.00 Benefit-Worker's
Compensation
52450 $3,119.70 $1,578.13 $3,263.00 $3,405.00 $3,776.00 Benefit-Deferred
Compensation
52700 $2,000.00 $1,600.00 $2,700.00 $0.00 $0.00
Benefit-Dental 52800 $1,246.17 $1,093.74 $1,176.00 $1,262.40 $1,262.40 Benefit-Short/Long Term
Disabi
53000 $665.73 $692.62 $663.00 $1,553.00 $1,553.00
Benefit-PERS Health 53300 $19,391.47 $19,688.60 $21,960.00 $23,800.00 $25,470.00 Benefit-PERS Retirement 53400 $30,829.38 $33,373.34 $41,100.00 $24,500.00 $26,500.00 Benefit-Vision 53600 $477.07 $477.06 $480.00 $474.00 $474.00 Taxes-FICA/Medicare
Employer
53700 $1,379.61 $1,382.76 $1,290.00 $1,550.00 $1,610.00 Vacancy Factor 53980 -$6,300.70 -$6,611.75
Equipment-Safety 60880 $493.31 $2,181.41 $6,000.00 $4,000.00 $5,500.00 Maintenance-Building 62000 $9,820.80 $270.94 $5,500.00 $4,500.00 $5,500.00 Maintenance-Software
Licenses
62160 $0.00 $0.00 $2,000.00 $2,000.00 $2,000.00
Maintenance-Vehicle 62200 $408,527.76 $423,463.11 $450,747.25 $587,250.00 $610,740.00 Staff-Uniform Expense 63800 $1,078.69 $886.98 $1,000.00 $1,300.00 $1,800.00 Supplies-Maintenance 64040 $3,105.14 $2,755.22 $6,758.00 $4,800.00 $5,300.00 Supplies-Office 64080 $176.60 $316.56 $1,500.00 $1,500.00 $1,500.00 Supplies-Safety 64200 $0.00 $0.00 $500.00 $1,000.00 $1,000.00 Training & Development 64360 $0.00 $29.34 $1,000.00 $1,208.00 $1,231.00 Srvcs-Information Technology 69100 $41,940.00 $45,468.59 $53,640.00 $37,110.00 $39,160.00 Liab & Property Ins Charges 69200 $1,652.04 $1,928.64 $4,060.00 $1,510.00 $1,580.00 Machinery & Equipment 71030 $87,610.00 $122,056.00
Total Murrieta Fire District: $617,946.28 $631,059.64 $701,706.25 $896,724.66 $968,233.61 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 26 690 Total: $665,083.48 $631,059.64 $701,707.25 $896,724.66 $968,233.61 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 27 691 Fire Operations
Mike Lopez
Deputy Chief Lopez
Fire Operations
Manages the Fire Investigation Team, which provides fire causation and origin determination and investigates all fires of a suspicious nature.

Administers the MFR Safety and Training Program handled by the Training Fire Captain.

MFR Emergency Medical Services (EMS):

Provides Advanced Life Support with emergency medical first responders in response to a variety of medical emergencies.

Provides MFR-based Tactical Medics to the Murrieta Police Department (MPD) SWAT for “hot zone” medical care and assistance to the MPD with calls involving altercations resulting in injuries.

The Technical Rescue Team provides for the rescue of persons trapped and injured beyond the scope of normal fire operations. These specialized rescues involve high/low angle, trench, swift water, vehicle extrication, structural collapse, and confined space rescue emergencies.

No. of Full-Time Equivalent Positions in FY26: 64
Expenditures Summary
$25,726,667
$1,343,179
(5.51% vs. prior year)
Fire Operations Proposed and Historical Budget vs. Actual Actual Budgeted
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 $0
$5M
$10M
$15M
$20M
$25M
$30M
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 28 692 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
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Budgeted and Historical Expenditures by Expense Type
Millions
Grey background indicates budgeted figures.

Capital Internal Service Charges Operations & Maintenance Personnel FY2020FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
0 5
10 15
20 25
30 City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 29 693 Expenditures by Fund
General Fund Measure T
Salary & Wages 51020 $1,246,385.77 $1,709,725.26 $1,792,720.00 $1,940,110.00 $2,271,910.00 Salary & Wages (Special) 51021 $1,617.26 $0.00 $0.00
Overtime 51040 $735,804.10 $708,386.00 $759,312.00 $589,320.00 $736,650.00 FLSA Standard Overtime 51043 $106,051.39 $131,281.19 $127,270.00 $111,150.00 $136,800.00 FLSA Overtime 51044 $61,608.62 $60,600.00 $0.00 $0.00
Strike Team Overtime 51045 $24,192.23 $85,278.72 $0.00 $80,088.00 $100,110.00 Leave-Compensated
Absences/S
51120 $37.59 $40.00 $40.00
Leave-Holiday Buyout 51140 $16,295.28 $40,954.67 $32,600.00 $44,230.00 $45,560.00 POST/Educational Certificate
P
51200 $0.00 $8,524.24 $27,570.00 $57,958.68 $57,958.68
Allowance-Mobile
Communication
52200 $388.98 $0.00 $479.96 $479.96
Allowance-Uniform 52300 $20,544.91 $23,823.35 $24,050.00 $24,050.00 $29,600.00 Benefit-ADD/ Life Insurance 52400 $3,677.48 $5,034.89 $5,369.00 $12,348.00 $15,216.00 Benefit-Worker's
Compensation
52450 $363,367.32 $367,719.57 $481,145.00 $763,336.00 $975,741.00 Benefit-Deferred
Compensation
52700 $557.14 -$557.14 $0.00 $0.00 $0.00
Benefit-Deferred Comp
NTWD401a
52701 $24,221.74 $32,400.00 $28,900.00 $0.00 $0.00
Benefit-Deferred Comp
ICMA401a
52702 $2,400.00 $0.00 $4,100.00 $0.00 $0.00
Benefit-Dental 52800 $13,804.46 $14,067.79 $15,288.00 $16,411.20 $20,198.00 Benefit-Short/Long Term
Disabi
53000 $2,139.43 $3,167.71 $3,324.00 $7,202.00 $8,450.00 Benefit-PERS Health 53300 $251,989.31 $307,905.46 $315,010.00 $285,540.00 $339,940.00 Benefit-PERS Retirement 53400 $275,131.72 $409,399.20 $449,800.00 $640,000.00 $772,000.00 Benefit-Tuition Reimb. 53500 $6,845.00 $10,949.00 $5,600.00 $0.00 $0.00 Benefit-Vision 53600 $5,284.39 $6,119.95 $6,240.00 $6,162.00 $7,584.00 Taxes-FICA/Medicare
Employer
53700 $32,624.36 $41,367.40 $39,100.00 $38,050.00 $45,970.00 Allocate Personnel Costs 53900 -$626,425.68 -$429,537.00 $0.00 $0.00 Vacancy Factor 53980 -$204,168.58 -$208,336.17
Equipment < $5000 60800 $0.00 $13,478.40 $7,000.00 $7,800.00 $8,500.00 Equipment-Furniture <
$5000
60840 $4,176.30 $8,500.00 $53,500.00 $53,500.00
Equipment-Safety 60880 $86.03 $0.00 $0.00 $0.00
Maintenance-Building 62000 $165,755.24 $138,599.98 $652,136.00 $330,500.00 $370,160.00 Staff-Uniform Expense 63800 $10,985.07 $0.00 $9,800.00 $9,800.00 $9,800.00 Srvcs-Information
Technology
69100 $21,340.00 $22,766.46 $26,860.00 $30,840.00 $32,520.00 Liab & Property Ins Charges 69200 $76,437.89 $82,026.34 $140,280.00 $320,680.00 $344,930.00 Machinery & Equipment 71030 $18,260.99 $0.00 $21,000.00 $0.00 Total General Fund Measure T: $2,781,111.84 $3,817,353.92 $5,022,574.00 $5,186,427.26 $6,175,281.47 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 30 694 Murrieta Fire District
Salary & Wages 51020 $5,747,963.41 $6,689,284.78 $6,976,610.00 $7,915,510.00 $8,009,910.00 Salary & Wages (Special) 51021 $5,399.98 $0.00 $0.00
Overtime 51040 $2,853,187.27 $2,765,269.29 $2,935,908.00 $2,876,000.00 $2,876,000.00 FLSA Standard Overtime 51043 $503,309.47 $579,370.16 $628,180.00 $549,500.00 $549,500.00 FLSA Overtime 51044 $206,472.13 $211,000.00 $0.00 $0.00 Strike Team Overtime 51045 $424,719.37 $327,333.02 $660,520.00 $700,000.00 $700,000.00 Leave-Compensated
Absences/S
51120 $5,945.91 $1,094.13 $11,800.00 $1,180.00 $1,220.00 Leave-Holiday Buyout 51140 $104,295.80 $162,013.46 $164,300.00 $174,970.00 $180,220.00 Leave-Sick Buyout 51160 $15,128.43 $0.00 $30,300.00 $0.00 $0.00 Leave-Vacation Buyout 51180 $29,498.09 $3,524.93 $58,800.00 $3,810.00 $3,920.00 POST/Educational Certificate
P
51200 $28,313.94 $23,416.66 $132,710.00 $297,252.02 $297,252.02 Allowance-Mobile
Communication
52200 $962.55 $965.20 $960.00 $479.96 $479.96
Allowance-Uniform 52300 $86,814.73 $88,782.25 $90,650.00 $92,500.00 $92,500.00 Benefit-ADD/ Life Insurance 52400 $17,362.30 $19,787.06 $25,104.00 $52,814.00 $52,814.00 Benefit-Worker's
Compensation
52450 $1,617,602.43 $1,395,276.87 $1,982,069.00 $3,311,853.00 $3,566,143.00 Benefit-Deferred
Compensation
52700 $2,121.76 -$1,491.76 $0.00 $0.00 $0.00
Benefit-Deferred Comp
NTWD401a
52701 $101,790.26 $124,923.85 $117,200.00 $0.00 $0.00
Benefit-Deferred Comp
ICMA401a
52702 $9,600.00 $0.00 $12,300.00 $0.00 $0.00
Benefit-Dental 52800 $57,622.80 $52,443.29 $57,624.00 $63,120.00 $63,120.00 Benefit-Short/Long Term
Disabi
53000 $11,430.21 $11,921.31 $11,892.00 $26,598.00 $26,598.00 Benefit-Retiree Medical 53100 $107,385.03 $116,504.76 $106,000.00 $125,830.00 $129,600.00 Benefit-PERS Health 53300 $1,070,095.64 $1,144,827.58 $1,191,110.00 $1,337,840.00 $1,431,790.00 Benefit-PERS Retirement 53400 $2,260,778.06 $2,533,901.24 $2,867,300.00 $3,236,900.00 $3,456,000.00 Benefit-Tuition Reimb. 53500 $36,801.53 $32,744.87 $55,800.00 $0.00 $0.00 Benefit-Vision 53600 $21,380.32 $22,424.78 $23,520.00 $23,700.00 $23,700.00 Taxes-FICA/Medicare
Employer
53700 $144,526.71 $154,539.63 $161,100.00 $165,020.00 $166,320.00 Allocate Personnel Costs 53900 -$554,691.92 -$586,873.86 Vacancy Factor 53980 $0.00 $0.00 -$857,354.79 -$884,770.71 Contract Srvcs-Other 60480 $25,884.54 $20,090.62 $22,900.00 $48,300.00 $48,300.00 Equipment < $5000 60800 $3,465.15 $7,928.89 $1,500.00 $7,500.00 $7,500.00 Equipment-Furniture <
$5000
60840 $15,796.44 $6,558.37 $7,400.00 $5,900.00 $7,400.00 Equipment-Safety 60880 $357.10 $2,462.73 $0.00 $2,500.00 $3,500.00 Maintenance-Building 62000 $141,806.90 $91,859.31 $96,000.00 $160,000.00 $180,000.00 Other-Special Dept
Expenditure
62440 $162.31 $309.03 $6,400.00 $17,000.00 $10,500.00
Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 31 695 Prior Period Expense 62800 $9,018.86 $0.00 $0.00 $0.00
Staff-Uniform Expense 63800 $10,277.79 $324.21 $10,030.00 $12,000.00 $12,000.00 Subscription-Membership,
Dues,
63880 $51.42 $230.27 $350.00 $470.00 $470.00
Supplies-Maintenance 64040 $38,312.10 $26,333.71 $27,000.00 $32,300.00 $34,500.00 Supplies-Office 64080 $4,045.58 $2,414.97 $3,500.00 $3,500.00 $3,500.00 Supplies-Safety 64200 $4,371.50 $12,659.57 $20,335.00 $21,300.00 $23,300.00 Training & Development 64360 $85,395.52 $53,489.13 $39,748.00 $47,999.00 $48,929.00 Travel-Fire Mutual Aid Travel 64400 $9,780.45 $6,020.83 $9,485.00 $20,000.00 $20,000.00 Utilities-Electric 64520 $87,653.19 $97,340.11 $98,387.00 $115,000.00 $119,600.00 Utilities-Natural Gas 64600 $16,118.50 $10,623.45 $11,342.00 $13,370.00 $14,172.00 Utilities-Water 64660 $27,859.60 $25,198.29 $34,480.00 $32,000.00 $34,500.00 Srvcs-Information
Technology
69100 $160,320.00 $171,911.15 $202,820.00 $211,280.00 $222,840.00 Liab & Property Ins Charges 69200 $104,291.62 $121,800.28 $256,480.00 $246,990.00 $257,010.00 Total Murrieta Fire District: $15,999,985.71 $17,121,903.27 $19,360,914.00 $20,540,239.27 $21,203,463.41 Total: $18,781,097.55 $20,939,257.19 $24,383,488.00 $25,726,666.53 $27,378,744.88 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 32 696 Fire Prevention
Douglas Strosnider
Fire Marshal
Fire Prevention – prevent and reduce the loss of life, injury, and property damage due to fire or natural disaster in a commercial, factory, institutional, business, educational, mercantile, and assembly occupancies.

No. of Full-Time Equivalent Positions in FY26: 7
Revenues Summary
$133,560
$32,684
(32.40% vs. prior year)
Fire Prevention Proposed and Historical Budget vs. Actual Actual Budgeted
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 $0
$25K
$50K
$75K
$100K
$125K
$150K
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 33 697 Revenue by Fund
Murrieta Fire District
License/PermitMiscellaneous
41169 $1,007.00 $14,420.50 $10,500.00 $15,200.00 $15,504.00 Chrg for Svc-Inspection
Charge
43305 $7,670.00 $35,009.68 $25,376.00 $36,960.00 $37,700.00 Chrg for Svc-Annual
Business I
43580 $63,499.67 $33,200.27 $35,000.00 $37,900.00 $38,700.00 Chrg for Svc-State
Mandated In
43583 $16,955.00 $41,177.72 $30,000.00 $43,500.00 $44,400.00 Misc.-Prior Year Revenues 47899 $3,371.19 $0.00 $0.00
Total Murrieta Fire District: $92,502.86 $123,808.17 $100,876.00 $133,560.00 $136,304.00 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
Expenditures Summary
$1,658,055
$245,756
(17.40% vs. prior year)
Fire Prevention Proposed and Historical Budget vs. Actual Actual Budgeted
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 $0
$500K
$1M
$1.5M
$2M
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 34 698 Expenditures by Expense Type
Budgeted Expenditures by Expense Type
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OOOpppeeerrraaatttiiiooonnnsss &&& MMMaaaiiinnnttteeennnaaannnccceee (((222444...666%%%))) IIInnnttteeerrrnnnaaalll SSSeeerrrvvviiiccceee CCChhhaaarrrgggeeesss (((777...888%%%))) Budgeted and Historical Expenditures by Expense Type
Millions
Grey background indicates budgeted figures.

Internal Service Charges Operations & Maintenance Personnel FY2020
FY2021
FY2022
FY2023
FY2024
FY2025
FY2026
FY2027
0 0.5
1 1.5
2 City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 35 699 Expenditures by Fund
General Fund Measure T
Salary & Wages 51020 $81,489.65 $90,736.64 $97,200.00 $99,700.00 $103,700.00 Salary & Wages (Special) 51021 $2,781.39 $0.00 $0.00
Overtime 51040 $3,113.53 $1,058.77 $8,136.00 $7,240.00 $7,240.00 FLSA Overtime 51044 $658.40 $0.00 $0.00 $0.00
Leave-Holiday Buyout 51140 $179.67 $190.00 $200.00
Allowance-Uniform 52300 $1,850.00 $1,850.00 $0.00 $1,850.00 $1,850.00 Benefit-ADD/ Life Insurance 52400 $135.20 $135.20 $135.00 $273.00 $273.00 Benefit-Worker's
Compensation
52450 $3,003.33 $1,664.05 $3,910.00 $3,400.69 $3,771.96 Benefit-Deferred
Compensation
52700 $2,042.86 $1,600.00 $2,700.00 $0.00 $0.00
Benefit-Dental 52800 $1,246.17 $1,093.74 $1,176.00 $1,262.40 $1,262.40 Benefit-Short/Long Term
Disabi
53000 $869.99 $770.02 $728.00 $1,790.00 $1,790.00
Benefit-PERS Health 53300 $12,416.96 $14,539.35 $10,160.00 $16,230.00 $17,370.00 Benefit-Vision 53600 $477.07 $477.06 $480.00 $474.00 $474.00 Taxes-FICA/Medicare
Employer
53700 $1,323.47 $1,393.13 $1,540.00 $1,550.00 $1,610.00 Vacancy Factor 53980 -$5,358.40 -$5,581.65
Srvcs-Information Technology 69100 $1,780.00 $2,904.40 $3,260.00 $2,050.00 $2,160.00 Liab & Property Ins Charges 69200 $7,611.81 $8,162.88 $13,960.00 $8,200.00 $8,950.00 Total General Fund Measure T: $120,141.43 $127,223.31 $143,385.00 $138,851.69 $145,069.71 Murrieta Fire District
Salary & Wages 51020 $595,370.84 $518,540.34 $637,800.00 $775,900.00 $817,400.00 Overtime 51040 $21,219.50 $25,301.33 $22,482.00 $47,000.00 $47,000.00 FLSA Overtime 51044 $1,545.57 $1,600.00 $0.00 $0.00
Leave-Administrative Buyout
Le
51100 $0.00 $2,322.29 $0.00 $2,510.00 $2,590.00
Leave-Annual Buyout 51110 $0.00 $9,022.58 $9,740.00 $10,030.00 Leave-Compensated
Absences/S
51120 $1,566.98 $534.73 $3,100.00 $580.00 $600.00
Leave-Holiday Buyout 51140 $187.30 $3,976.36 $400.00 $4,290.00 $4,420.00 Allowance-Mobile
Communication
52200 $367.88 $56.70 $0.00 $0.00 $0.00
Allowance-Uniform 52300 $7,123.32 $7,405.40 $1,850.00 $9,250.00 $9,250.00 Benefit-ADD/ Life Insurance 52400 $1,712.79 $966.15 $1,157.00 $3,481.00 $3,918.00 Benefit-Worker's
Compensation
52450 $48,406.59 $28,656.84 $43,069.00 $69,277.00 $79,439.00 Benefit-Deferred
Compensation
52700 $13,601.17 $7,744.55 $14,300.00 $0.00 $0.00
Benefit-Dental 52800 $7,155.83 $5,297.59 $7,056.00 $8,837.00 $8,837.00 Benefit-Short/Long Term
Disabi
53000 $4,988.88 $4,139.70 $4,026.00 $12,856.00 $12,856.00 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 36 700 Benefit-Retiree Medical 53100 $1,800.00 $1,848.00 $2,000.00 $2,000.00 $2,060.00 Benefit-PERS Health 53300 $97,104.88 $87,421.77 $76,280.00 $93,630.00 $98,990.00 Benefit-PERS Retirement 53400 $71,289.59 $38,138.26 $47,100.00 $120,900.00 $133,300.00 Benefit-Vision 53600 $2,738.16 $2,309.10 $2,880.00 $3,318.00 $3,318.00 Taxes-FICA/Medicare
Employer
53700 $9,294.32 $8,353.45 $9,610.00 $12,170.00 $12,690.00 Taxes-Unemployment
Insurance
53800 $67.00 $0.00 $0.00
Allocate Personnel Costs 53900 -$142,495.00 -$146,895.00 Vacancy Factor 53980 -$55,000.00 -$41,570.94 -$44,234.56 Contract Srvcs-Other 60480 $241,992.07 $287,103.53 $267,275.00 $323,250.00 $323,250.00 Equipment-Computers <
$5000
60760 $12,279.42 $1,426.49 $0.00 $0.00 $0.00
Equipment < $5000 60800 $3,894.63 $4,869.99 $0.00 $5,200.00 $5,200.00 Equipment-Furniture < $5000 60840 $2,959.74 $0.00 $0.00 $4,200.00 $4,410.00 Equipment-Safety 60880 $1,201.63 $546.07 $1,800.00 $4,800.00 $4,800.00 Maintenance-Software
Licenses
62160 $9,496.43 $13,840.84 $19,340.00 $33,073.00 $32,430.00 Other-Special Dept
Expenditure
62440 $1,845.03 $2,994.79 $2,500.00 $3,000.00 $3,500.00 Postage 62680 -$3,344.55 $0.00 $0.00
Printing 62720 $4,606.46 $1,120.08 $3,800.00 $5,800.00 $5,800.00 Program-Special Events 63360 $29.13 $0.00 $0.00
Staff-Uniform Expense 63800 $1,413.19 $1,829.91 $3,200.00 $3,700.00 $3,700.00 Subscription-Membership,
Dues,
63880 $4,755.27 $3,423.71 $4,749.00 $5,700.00 $5,900.00 Supplies-Maintenance 64040 $75.30 $360.51 $0.00 $850.00 $1,200.00 Supplies-Office 64080 $6,233.04 $2,997.15 $3,500.00 $6,500.00 $6,500.00 Supplies-Safety 64200 $3,054.74 $1,433.70 $2,500.00 $2,800.00 $3,200.00 Training-Conference/Meeting 64280 $31.05 $0.00 $0.00
Training & Development 64360 $19,818.48 $17,475.40 $7,790.00 $9,407.00 $9,589.00 Srvcs-Information Technology 69100 $53,120.00 $87,821.38 $98,620.00 $103,040.00 $108,750.00 Liab & Property Ins Charges 69200 $9,743.48 $15,395.27 $34,130.00 $16,210.00 $17,430.00 Total Murrieta Fire District: $1,257,170.44 $1,196,248.66 $1,268,914.00 $1,519,203.06 $1,591,227.44 Total: $1,377,311.87 $1,323,471.97 $1,412,299.00 $1,658,054.75 $1,736,297.15 Name ERP
Code
FY2023
Actual
FY2024
Actual
FY2025 Amended
Budget
FY2026
Proposed
FY2027
Proposed
City of Murrieta | 2025/26 - 2026/27 Proposed Book Page 37 701

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 17.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Agajanian, Economic Development Director
PREPARED BY: Scott Agajanian, Economic Development Director SUBJECT:

Transient Occupancy Tax Revenue Sharing Agreement

RECOMMENDATION
Conduct a Public Hearing on the Economic Development Subsidy Report; and Approve a Transient Occupancy Tax Revenue Sharing Agreement with Safar & Safar Brothers, Inc. for the property located just north of Joan Dunn Lane and East of Antelope Road at Assessor’s Parcel Numbers (APN) 384-240-003 and 384-240-004.

PRIOR ACTION/VOTE
None.

CITY COUNCIL GOAL
Aggressively pursue economic development.

BACKGROUND
The City of Murrieta (City) has identified tourism and leisure opportunities that attract residents and visitors as an Economic Development Goal of the General Plan. One of the supporting policies to meet this goal is to encourage the development of business-oriented hotels that capitalize on the superior freeway locations in Murrieta and the expanding office, professional, and technical job base. Business-oriented hotels provide stronger weekday hotel stays, which create a more stable and prosperous tourism industry. Another goal of the Economic Development Element of the General Plan is to create a sound, stable, and diversified economic base that features healthcare as a core industry, with a policy of promoting Murrieta as a center for medical/health services and technology through active encouragement and recruitment of medical office, medical research, and health care facilities in the City.

These two goals of promoting and encouraging health care services, and also promoting travel and tourism, have found a convergence in medical tourism, which happens when people need to travel for medical care.

Murrieta has become a regional hub of healthcare, and individuals travel to the City to have access to healthcare services that are available here. Healthcare providers in Murrieta, specifically in the northeast CITY OF MURRIETA Page 1 of 3 Printed on 6/12/2025
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Agenda Item No. 17.
healthcare services that are available here. Healthcare providers in Murrieta, specifically in the northeast corridor of Murrieta’s Innovation zoning, have struggled to meet the medical demands of the region in their current footprints. Loma Linda University Medical Center has announced expansion plans and has already expanded to add new hospital bed space. Kaiser Permanente has constructed an ambulatory surgery center and will follow up with a new hospital in this corridor. Every major medical center in the City has expanded or is planning an expansion at this time.

In September 2024, the Economic Development Department began a dialogue with Safar & Safar Brothers, Inc. (Developer), regarding the development of a hotel that would serve the needs of the medical industry in Murrieta. This conversation progressed, with the developer entering a Purchase and Sale Agreement (PSA) to acquire the property located at APNs 384-240-003 and 384-240-004. In addition, Safar & Safar Brothers, Inc. has completed a pre-application process with the City of Murrieta on this site, which is just north of Loma Linda Medical Center, for a proposed four-story, 122-room hotel.

There is considerable community interest in seeing a venue of this type opened in the City of Murrieta. The tourism, travel, and economic impact created through this type of hotel would have a substantial impact within the City. This hotel would not only benefit the City’s medical corridor but also serve to bring a new revenue stream to the City in the form of Transient Occupancy Tax (TOT) and also in new tourism spending that would come to the community. A pro forma prepared by the Developer has forecasted gross revenues of approximately $15 million to be generated in the first four years of operations. In addition, it is estimated that there would be $1,530,273 in TOT revenues for the City of Murrieta in the same four-year span.

To assist the Developer with financing this project, Safar & Safar Brothers, Inc., is requesting a TOT Revenue Share for this project that would provide them with fifty percent (50%) of the TOT for the first three years for an amount not to exceed $600,000. After that point in time, one hundred percent (100%) of TOT revenue from the hotel would go directly to the City of Murrieta. Given the revenue forecast by the hotel, it is anticipated that it would take just over three (3) years for this revenue-sharing agreement to be completed.

Many municipalities have approved similar TOT revenue-sharing agreements to incentivize hotel construction, including the City of Murrieta. On September 21, 2021, the Murrieta City Council approved a 15-year 50/50 split TOT revenue-sharing agreement for the Hotel Murrieta project, and on December 6, 2022, the Murrieta City Council approved a $1,000,000 revenue share for the Homewood Suites project.

In this case, the proposed hotel, a Woodspring Suites, is of a smaller scale and is asking for a smaller revenue -sharing agreement. Although the City of Murrieta would not typically create a revenue-sharing agreement, this hotel is going to support a region that has not developed any hospitality accommodations to date, and the growth of healthcare has created a dire need for support facilities. The region that this hotel will be located in, the need for additional ancillary businesses to support local healthcare providers, and the benefit to the community in bringing access to room stays near the City’s major medical centers, are all special circumstances that make this revenue- sharing agreement necessary to achieve the goals laid out in the City’s General Plan.

In addition to the direct Transient Occupancy Tax that will be created by this project, the project will create other economic impacts from the travel it generates, including Sales Tax and new Property Taxes for the site.

This new business will also be a job creator. generating an anticipated 20 full-time new jobs and eight (8) parttime jobs to start. In addition to those permanent jobs, there are indirect and induced jobs that will be created through the development of the hotel and its ongoing maintenance.

The City may enter into such an agreement with any developer, pursuant to Assembly Bill 562 as codified as California Government Code Section 53083, after conducting a public hearing and posting an Economic Development Subsidy Report outlining the entity involved, the duration of the agreement, a description of the subsidy with the purpose for its creation, projected tax revenues, and estimated number of jobs created. Those CITY OF MURRIETA Page 2 of 3 Printed on 6/12/2025
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Agenda Item No. 17.
subsidy with the purpose for its creation, projected tax revenues, and estimated number of jobs created. Those terms are outlined in this City Council presentation and the attached Agreement and Report.

This Agreement does not assume future approvals by the City for development or entitlement. It is for the sole purpose of finalizing the economic details that the City may choose to commit to at this time.

FISCAL IMPACT
The Woodspring Suites by Choice Hotels forecasts revenues of $15,302,730 in its first four (4) years, generating TOT revenues of $1,530,273 during that period of time. If approved, under the Agreement, the City is estimated to receive approximately $930,273 in new TOT revenues from this business in the first four (4) years and would share the estimated remaining $600,000 with Safar & Safar Brothers, Inc. Additional revenues that are not forecasted at this time are new sales taxes created from on-site dining and retail and offsite spending generated from new tourism within the City of Murrieta. The City would not be sharing any of these additional revenue streams, only the TOT revenues outlined in this Agreement.

ATTACHMENTS

1. TOT Sharing Agreement

2. Economic Development Subsidy Report
CITY OF MURRIETA Page 3 of 3 Printed on 6/12/2025
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01375.0021 2006830.2 1

TRANSIENT OCCUPANCY TAX SHARING AGREEMENT
This Transient Occupancy Tax Sharing Agreement (“Agreement”) dated ________________, 2025, is by and between the CITY OF MURRIETA, a municipal corporation (“City”), and SAFAR & SAFAR BROTHERS, INC., a California corporation (including its successors and assigns, collectively, “Owner”).

RECITALS
A. At the time of commencement of the revenue sharing agreement, the owner will be the owner of a fee interest in certain real property APNs 384-240-003 and 384-240-004 located in Murrieta, California (collectively, the “Property”).

B. Owner intends to develop a 122-room (approximate) hotel on the Property (the “Project”), which is expected to generate substantial future transient occupancy tax (“TOT”) for the benefit of City.

C. The Project will also include a medical office facility, which will alleviate some of the demands of local hospitals into an out-patient setting, providing a benefit to the community.

D. The proximity to major medical facilities will serve to meet the medical needs of the City and will provide needed hotel, conference and office space that could be utilized by nearby hospitals, providing a benefit to the community.

E. City finds that the Project’s benefits to the community based on the allocation of rooms and bed space for out-patient care as well as accommodations for health care professionals are substantial.

F. Owner has requested City assistance in making the Project economically viable, and City has agreed to provide assistance to Owner pursuant to a transient occupancy tax sharing arrangement, and otherwise on the terms and conditions outlined in this Agreement.

AGREEMENT

1. Sharing. Subject to Section 3, City agrees to reimburse to Owner an amount equal to fifty percent (50%) of Transient Occupancy Tax revenue (“TOT”) paid to the City by Owner in connection with the Project during the Term, as defined below, not to exceed an amount of Six-Hundred Thousand Dollars ($600,000.00) (“Owner’s Amount”). Each payment by the City to Owner of fifty percent (50%) of the TOT is an “Economic Development Subsidy”.

Due to the cap established by the Owner’s Amount, Owner agrees that the final Economic Development Subsidy payment may be less than fifty percent (50%) of the TOT paid to the City during the Term by Owner in connection with the Project.

2. Monthly Report & TOT Remittance. The Owner shall submit a monthly report of the Project’s occupancy and the TOT collected by the Project to the City’s Finance Director.

Together with the monthly report, the Operator shall remit a monthly TOT payment to the 705
01375.0021 2006830.2 2
City’s Finance Director in accordance with the requirements of the City’s Transient Occupancy Tax Ordinance (Murrieta Municipal Code Chapter 3.24).

3. Payment. Payments shall be due and payable as follows:
 The initial Economic Development Subsidy payment shall be made after (i) the Project receives a Certificate of Occupancy from City and (ii) thirty (30) days after the City receives the first transient occupancy monthly report and TOT payment generated by the Project (collectively, the “Commencement Date”). Thereafter, throughout the Term, each time the City receives a monthly Project TOT report and payment from the Owner, the City will verify the accuracy of the amount of TOT owed to the City and the City shall pay to the Owner the Economic Development Subsidy. Until the occurrence of both of the above-described conditions precedent, City shall have no obligation to make any payment of Economic Development Subsidy.  After the Commencement Date and continuing monthly thereafter until the Payment Termination Date, City shall pay to Owner the Economic Development Subsidy. In no event shall the aggregate of such TOT payments made by the City under this Agreement exceed the Owner’s Amount.
 Payments made by City to Owner under this Agreement will only be made solely from TOT generated by the Project and actually received by City.

4. Term. This Agreement shall terminate on the third anniversary of the Commencement Date (“Expiration Date”). City’s obligation to make any payments under this Agreement shall terminate on the earlier to occur of (i) the City making a payment to Owner after the third anniversary of the Commencement Date (“Term”), (ii) payment by City to Owner of entire amount of the Owner’s Amount (the “Payment Termination Date”), or (iii) Owner’s breach of its obligations under this Agreement.

5. Expiration of Agreement. This Agreement shall expire upon City’s payment of the Owner’s Amount or at the conclusion of the Term, whichever is the first to occur. The Owner agrees that upon the expiration or earlier termination of this Agreement, and assuming no separate agreement has been agreed to in writing between the Parties on this matter, all TOT revenue sharing between the Parties shall cease, and the City shall be entitled to receive one hundred percent (100%) of all future TOT generated by the Project.

6. Public Benefit/Public Purposes. The City Council has determined that encouraging economic development, including private investment that involves creation of new jobs and income in the City is a valid exercise of its powers and provides an important public benefit and serves an important public purpose. By authorizing the City to enter into this Agreement, the City Council has determined that the benefits accruing as a result of the transactions contemplated by this Agreement, including, without limitation, (i) direct benefits such as the increase in quality hotel rooms and their role in increasing visitors to the City; (ii) increased revenues from property, sales, business license, utility and Transient Occupancy Taxes (TOT), (iii) enhanced economic opportunities generated by the development of a new hotel serving the City, (iv) the acceleration of quality jobs and 706
01375.0021 2006830.2 3
infrastructure to the City represent fair consideration for all of the obligations to be undertaken by the City as contemplated by this Agreement, and (v) the Project will include medical office facilities alleviating demands of local hospitals.

7. Interest of Members of City. No member of the City Council of City and no other officer, employee or agent of the City who exercises any functions or responsibilities in connection with the carrying out of the City’s work shall have any personal interest, direct or indirect, in this Agreement.

8. No Obligation to Build or Operate. Both Parties acknowledge that the Project is currently in the proposal stages, and Owner shall have no liability to City for failure to build or operate a hotel as contemplated by the Parties herein.

9. Unsecured Obligation. Owner acknowledges and agrees that the payments to be made hereunder are an unsecured, special obligation of City payable only out of the TOT generated by the Project. Owner acknowledges and agrees that neither City's TOT from the Project, nor any revenues of City are, have been, or will be pledged or hypothecated by City to or for payment of amounts owing under this Agreement. If and when requested by City, Owner agrees to execute and deliver to City, within five (5) business days after receipt, a certificate acknowledging for the benefit of any and all third parties that City's obligation under this Agreement is an unsecured obligation of City for which neither City's TOT, nor any revenues of City are, have been, or will be pledged or hypothecated to or for payment.

10. Operating Covenant.
 Owner shall operate a hotel on the Property in accordance with this Agreement, from the Commencement Date until the Expiration Date. If Owner fails to operate the Property in a manner which generates TOT for more than two weeks (subject to temporary suspension due to government order or repair or rehabilitation of the hotel), then City shall be entitled to recover all previous payments by City to Owner hereunder up to the Owner’s Amount.

11. Default. Upon the default by City under this Agreement, including, without limitation, a failure to make a payment within thirty (30) days after receiving written notice from Owner that such payment is due, past due amounts shall bear interest at the lesser of three percent (3%) per annum or the maximum rate allowed by law at the time of the default.

Upon default by Owner, including, without limitation, a failure to comply with any term or this Agreement or any provision in Murrieta Municipal Code Chapter 3.24, City shall be entitled to terminate this Agreement.

12. Payments. All payments due hereunder are payable in lawful money of the United States of America.

13. Amendments. This Agreement may not be changed; modified, amended or terminated except by a writing executed by the party against whom enforcement of such change or termination is sought.
707
01375.0021 2006830.2 4

14. Authority. Owner and City (and the undersigned representatives of each) represent that each has full power, authority and legal right to execute and deliver this Agreement and that the respective obligations hereunder constitute valid and binding obligations of Owner and City.

15. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Venue shall be in Riverside County, California.

16. Assignment. Owner shall have the right to assign its interest in this Agreement to any person or entity which legally and validly succeeds to the interests of Owner in the Project, as well as to any lender providing financing to the Project.

17. Third Party Beneficiary. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other Person shall have any right of action based upon any provision of this Agreement.

18. Negation of Partnership. The Parties specifically acknowledge that the Project is a private development, that neither Party is acting as the agent of the other in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the Parties in the businesses of Owner, the affairs of the City, or otherwise, or cause them to be considered joint venturers or members of any joint enterprise.

19. Notices. All notices and other communications required or permitted to be given hereunder shall be in writing and shall be sent by: (a) certified or registered mail, postage pre-paid, return receipt requested, (b) personal delivery, or (c) a recognized overnight carrier that provides proof of delivery, and shall be addressed as follows:

If to Owner:

If to the City:

Safar & Safar Brothers, Inc.

Attn: Amanda Bui
19510 Van Buren Blvd, F3-484
Riverside, CA 92508
City of Murrieta
Attn: Economic Development Director
1 Town Square
Murrieta, CA 92562
With a Copy to: Aleshire & Wynder, LLP
Attn: Tiffany J. Israel
1 Park Plaza
Suite 1000
Irvine, CA 92614
708
01375.0021 2006830.2 5
Notices shall be deemed effective upon receipt or rejection only.

20. Insolvency. This Agreement and all of City's obligations hereunder shall terminate in the event a court shall have made or entered any decree or order: (i) adjudging Owner to be bankrupt or insolvent, (ii) approving as properly filed a petition (unless such petition is dismissed within ninety (90) days) seeking reorganization of Owner or an arrangement under the bankruptcy laws or any other applicable debtor's relief law or statute of the United States or any state thereof, (iii) appointing a receiver, trustee or assignee of Owner in bankruptcy or insolvency or for its property, unless such appointment is dismissed within ninety (90) days: (iv) directing the winding up or liquidation of Owner unless such decree or order is dismissed within ninety (90) days, or (v) Owner shall have voluntarily submitted to or filed a petition seeking any such decree or order.

21. Use of Terms. In all matters of interpretation, whenever necessary to give effect to any provision of this Agreement, the singular shall include the plural, the plural shall include the singular, each gender shall include the other, and the terms “City” and “Owner” shall include their respective heirs, successors and assigns.

22. Severability. If any provision or any word, term, clause or other part of any provision of this Agreement shall be invalid for any reason, the same shall be ineffective, but the remainder of this Agreement and the provisions hereof shall not be affected and shall remain in full force and effect.

23. Further Assurances. City and Owner agree to cooperate in including in this Agreement, by suitable amendment, any provision which may be reasonably requested by any proposed secured lender (“Mortgagee”) for the purpose of (i) adding commercially reasonable mortgagee protections, (ii) allowing such Mortgagee reasonable means to protect or preserve its security interest in the collateral, including its lien on the Property and the collateral assignment of this Agreement and/or (iii) clarifying terms or restructuring elements of the transactions contemplated hereby; provided, however, in no event shall City be obligated to materially modify any of Owner’s obligations or City’s rights under this Agreement in any manner not already contemplated in this Agreement.

24. Authority to Enter Agreement. All Parties have the requisite power and authority to execute, deliver and perform the Agreement. All Parties warrant that the individuals who have signed this Agreement have the legal power, right, and authority to bind each respective Party.

25. Amendment/Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by all Parties.

26. Indemnification. Owner shall defend, assume all responsibility for and hold the City, its council members, officers and employees, harmless from all demands, claims, actions and damages, of whatever type or nature, including all costs of defense and attorneys’ fees, to any person or property arising out of or caused by any of Owner’s activities under this Agreement, whether such activities or performance thereof be by Owner or anyone directly or indirectly employed or contracted with by Owner and whether such damage shall accrue or be discovered before or after commencement of operation of the Project. 709
01375.0021 2006830.2 6

27. Remedies. Upon the occurrence of a default, the City, at its option, may declare this Agreement to be in default and, in such event, the City shall have all the rights and remedies prescribed at law or in equity. Following an event of default, the City shall have no further obligation to disburse all or any portion of Reimbursement TOT.

28. Limitation of Legal Acts. Except as provided in Section 9, Default, in no event shall the City, or its officers, agents or employees, be liable in damages for any breach or violation of this Agreement, it being expressly understood and agreed that the Developer's sole legal remedy for a breach or violation of this Agreement by the City shall be a legal action in mandamus, specific performance or other injunctive or declaratory relief to enforce the provisions of this Agreement.

29. Attorneys’ Fees. In the event of litigation between the Parties arising out of this Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, including attorneys’ fees on appeal, and all other reasonable costs and expenses for investigation of such action, including the conducting of discovery, in addition to whatever other relief to which it may be entitled.

30. Compliance With Governmental Regulations. Owner shall, at its sole cost and expense, comply with all applicable municipal, county, state and federal laws, rules, regulations and ordinances now in force, or which may hereafter be in force, pertaining to its activities contemplated under this Agreement, including, but not limited to, all land use entitlements applicable to the Property; issuance of building and use permits and compliance with all federal and state labor laws (collectively, “Laws”). Supplementing the indemnity set forth in Section 26 above, Owner shall defend, indemnify and hold the City, its elected officials, officers, members, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure of Owner to comply with such Laws relating to this Agreement.

Specifically, by its execution of this Agreement, Owner certifies that it is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If any work being performed by Owner pursuant to or related to this Agreement is an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Owner agrees to fully comply with such Prevailing Wage Laws. If required, Owner shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the work on the project available to interested parties upon request, and shall post copies at the Owner’s principal place of business and the project site, and shall fully indemnify the City as described above for any failure to comply with such requirements.

31. Time is of the Essence. Time is of the essence of each and every provision of this Agreement.
710
01375.0021 2006830.2 7

32. Entire Agreement. This Agreement embodies the entire agreement between the Parties and supersedes any prior or contemporaneous understandings between the Parties related to the Agreement.

33. Waiver. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. No waiver shall be binding unless executing in writing by the party making the waiver.

34. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
[Signatures on following page]
711
01375.0021 2006830.2 8
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

ATTEST:
“CITY”:

CITY OF MURRIETA
By: ________________________________
City Manager
By: __________________________________
City Clerk
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
By:_________________________
City Attorney
“OWNER”
SAFAR & SAFAR BROTHERS, INC., a
California corporation
By: ____________________________
Name: Amanda N. Bui
Title: President
712
{Client Files/4540/1/K/S0643890.DOCX}
Government Code § 53083 Economic Development Subsidy Report Page 1

ECONOMIC DEVELOPMENT SUBSIDY REPORT
(GOVERNMENT CODE SECTION 53083)

REGARDING A TRANSIENT OCCUPANCY TAX SHARING AGREEMENT

BETWEEN THE CITY OF MURRIETA
AND
SAFAR & SAFAR BROTHERS, INC., A CALIFORNIA CORPORATION
AND

IN CONNECTION WITH A HOTEL DEVELOPMENT TO BE LOCATED AT APN #384-240-003 AND #384-240-004
Pursuant to Government Code Section 53083, the City Council of the City of Murrieta must hold a noticed public hearing and, prior to the public hearing, provide all of the following information in written form and available to the public and through the City’s website, regarding a proposed economic development subsidy to be provided by the City of Murrieta (“City”) pursuant to a Transient Occupancy Tax (“TOT”) Rebate Agreement (“Agreement”) by and between the City and Safar & Safar Brothers, Inc. (“Developer”).

This Economic Development Subsidy Report (“Report”) was published on City’s website in advance of the public hearing to be held on June 17, 2025. The purpose of this Report is to provide the information required pursuant to Government Code Section 53083 regarding the Agreement.

This Report shall remain available to the public and posted on the City’s website until the end date of the economic development subsidy, as further described in Section two (2) below.

1. The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy.

This Agreement is between the city and Safar & Safar Brothers, Inc., located at 19510 Van Buren Blvd, F3-484, Riverside, CA 92508, or its assignee, at APN # 384-240-003 and 384-240-004.

Safar & Safar Brothers, Inc., will own the business benefitting from the economic development subsidy.

2. The start and end dates and schedule, if applicable, for the economic development subsidy.

The proposed Transient Occupancy Tax Revenue Share Agreement will be presented to the City Council at a public hearing on June 17, 2025. The TOT Revenue Sharing Agreement will be for a three-year period (from commencement of operations) for a not-to-exceed $600,000. The A portion of the TOT generated by the new hotel constructed by Developer on the above-described property will be shared with the Developer, beginning after issuance of the Certificate of Occupancy, for a three-year-period if the hotel remains operational during said period.

3. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.
713
{Client Files/4540/1/K/S0643890.DOCX}
Government Code § 53083 Economic Development Subsidy Report Page 2 The Agreement proposes a maximum of $600,000 as an economic development subsidy with a 50/50 revenue split until that amount has been paid in the first three years of operations of the new hotel. This means that fifty percent (50%) of the revenue generated by Transient Occupancy Tax would go to the Developer, City retaining the other fifty percent (50%). At the end of the payout period, all future TOT revenues would be retained by the City.

4. A statement of the public purposes for the economic development subsidy.

The purpose of this economic development subsidy is to assist our medical services sector with new hospitality options in our innovation corridor. This hotel will benefit both Loma Linda University Medical Center and Kaiser Permanente by providing rooms services for traveling staff and patient families, and will assist with stays for outpatient services in the region. In addition, the development will generate new revenue funding sources for the City, create new job opportunities, as well as new tourism and destination components, and will specifically meet the Goal of the Economic Development Element of the City of Murrieta General Plan (E.D. 7.2) that states, “Encourage the development of business-oriented hotels that capitalize on the superior freeway locations in Murrieta and the expanding office, professional and technical job base.”

5. The projected tax revenue to the local agency as a result of the economic development subsidy.

The Transient Occupancy Tax Revenue forecast is for Safar & Safar Brothers, Inc. to receive a not to exceed total subsidy of $600,000 with a 50/50 revenue split until that amount has been earned during the first three years of operations. The project is estimated to achieve to generate sufficient Transient Occupancy Tax to fulfill this payment obligation in approximately 3 years from opening.

The forecasted Transient Occupancy Tax Revenue’s to the City will be $1,530,273 in the first four years, less $600,000 that will be paid to the Developer.

6. The net tax revenue accruing to the local agency as a result of the economic development subsidy.

The City will retain fifty percent of the Transient Occupancy Tax generated until the Developer has received a maximum of $600,000 in Transient Occupancy Tax during the first three years of the hotel’s operations, after which time the City retains one hundred percent of the Transient Occupancy Tax generated by the project. The City is estimated to retain a net of approximately $900,000 in Transient Occupancy Tax during the first four years of the project’s operation.

7. Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

It is anticipated that a total of 20 full-time and 8 part-time positions will be created at opening.

8. The net number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions.

All job creation outlined is based on future projections. To date, no resort rooms have been developed and no jobs created.
714

CITY OF MURRIETA
City Council Meeting Agenda
Report
6/17/2025
Agenda Item No. 18.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Jennifer Terry, Finance Manager
SUBJECT:

Fiscal Year 2024/25 Third Quarter Financial Status Report and Proposed Budget Adjustments

RECOMMENDATION
Receive and file the report;
Approve the adjustments to the Fiscal Year 2024/25 Operating Budget as referenced in the Fiscal Impact section of this report;
Approve the use of Sustainability Reserves and establish appropriations for previously approved Capital Improvement Projects; and
Approve the Updated Schedule of Authorized Positions List.

PRIOR ACTION/VOTE
On June 6, 2023, the City Council, the Boards of Directors of the Murrieta Fire District, the Community Services District, the Murrieta Library District, the Housing Authority, and the City Council acting as Successor to the Redevelopment Agency, adopted a series of Resolutions (23-4671, MFD 23-219, CSD 23-276, MLB 23- 17, RSA 23-29, and MHA 23-43) approving the Operating Budgets for Fiscal Years FY 2023/24 and 2024/25 (Vote: 4-0-1).

Subsequently, the City Council, the Boards of Directors of the MFD, CSD, MLD, SA, and the HA approved amendments to the Fiscal Year 2024/25 Operating Budget on August 20, 2024, November 19, 2024, December 3, 2024, and March 4, 2025 (Vote: 5-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

CITY OF MURRIETA Page 1 of 7 Printed on 6/12/2025
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Agenda Item No. 18.

BACKGROUND
The City of Murrieta (City) adopts a biennial budget every two years, starting in odd-numbered years. The budget period runs from July 1 to June 30. The Government Finance Officers Association (GFOA) recommends that all governments implement a formal process to compare the budget to actual results to monitor financial performance. To comply with these best practices, staff prepares quarterly budget reports for the City Council to review and consider. These reports ensure transparency and provide opportunities for staff to adjust the Operating Budget based on analyzed trends.

This Third Quarter Budget Update Report serves four (4) purposes:

1. Provide a Fiscal Year 2024/25 Budget Update through the Third Quarter of the Fiscal Year (July 1 - March 31, 2025);

2. Request City Council approval of Revenue budget adjustments based on year-to-date actuals and appropriate Expenditure budgets for several accounts in Attachment 3;

3. Approve the use of Sustainability Reserves and establish appropriations for previously Approved Capital Improvement Projects; and

4. Requests approval of the Updated Schedule of Authorized Positions List.

Third Quarter Budget Updates provide an update on Revenue collections and Expenditures to date. Staff has provided the City Council with three (3) significant updates to Revenues and Expenditures at the August 20, 2024, November 19, 2024, and March 3, 2025, City Council Meetings. This budget update includes a few new Expenditure requests and modifications to Revenue budgets based on year-to-date collections, all of which will be discussed later in the report. The table below provides a Citywide Summary of Revenues collected through the end of the Third Quarter, March 31, 2025. The discussion regarding Expenditures will follow the Revenue discussion.

FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Revenues
Taxes-Sales Tax $ 60,219,800$ 55,668,067$ 31,769,731 57% Taxes-Property 29,616,316 32,667,558 18,640,891 57%
Charges for Services 24,759,803 24,193,653 18,644,869 77% Other Misc Revenue 15,863,101 30,875,089 26,138,743 85% Special Assessments 11,786,341 11,907,560 6,317,113 53% Taxes-VLF/Property Tax Comp 10,027,400 11,114,975 5,755,770 52% Tax-Special Tax 9,387,543 9,387,543 4,996,831 53%
Taxes-Transient Occupancy Tax 5,546,000 2,580,000 1,729,770 67% Taxes-Franchises 4,710,000 4,802,800 1,786,416 37%
Taxes-Other 3,386,600 3,128,646 2,166,340 69%
License/Permit Fees 2,010,575 1,834,575 1,189,656 65%
Taxes-Business Licenses 1,065,400 1,086,708 845,368 78% Taxes-Property Transfer 800,000 575,000 401,069 70%
Loan/Bond/Lease Proceeds - - 6,696 0%
Total Revenue $ 179,178,879$ 189,822,174$ 120,389,262 63%

CITYWIDE
As of March 31, 2025, the City collected $120,389,262, in Revenue, which is approximately 63% of the $189,822,174, Amended Revenue Budget. Some Revenues, such as Property Taxes and Special Assessments, are not received monthly, unlike permit and recreation fees, which can be anticipated monthly.

Therefore, Revenue collections will not track at 75% of the budget through the nine months of the Fiscal Year.

The remaining collections of Property Taxes, Special Taxes, and Special Assessments are received in June CITY OF MURRIETA Page 2 of 7 Printed on 6/12/2025
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Agenda Item No. 18.

The remaining collections of Property Taxes, Special Taxes, and Special Assessments are received in June and July; hence, these Revenues will be reflected in the Fourth Quarter Budget Update.

Excluding Sales Tax, our Revenues are tracking strongly. Interest Earnings are still in the four percent (4%) range, which is helping to augment the decline in Sales Tax receipts. Property Taxes are also coming in higher than the budget.
· Sales Tax receipts are collected on a two-month delay. As of March 31, 2025, the City has collected Sales Tax receipts through February. For the first eight (8) months of collections, Sales Tax receipts are approximately $420,000, less than last Fiscal Year. The City had originally budgeted Sales Tax revenues to be three percent (3%) higher than in Fiscal Year 2023/24. However, as part of tonight’s action, a reduction of four percent (4%) in the Sales Tax budget, or approximately $2.2 million, is being proposed. · Other Miscellaneous Revenues are trending higher than what would normally be collected through the Third Quarter. The continued higher interest rates are generating higher interest earnings from our short and long-term investment accounts. This Revenue category also includes Miscellaneous Revenues, Revenue from Other Agencies, and Grant-Related Revenue, which fluctuates annually. o Included in the requested adjustments to the Operating Budget is a request to increase the interest earnings budgets across all funds to coincide with actual collections through March 31.

Additionally, there are requests to adjust other Miscellaneous Revenue accounts based on year -to-date actuals.
· Charges for Services include Revenues collected for specific benefits, government services, regulatory needs, or use of government property. Internal Service Charges are for services provided to all city departments by Risk Management and Information Services are included in this category. The City is tracking slightly above the Third Quarter 75% and have included a few requests to increase certain Charges for Services accounts.

Similar to the delay experienced in Sales Tax collections, Franchise Tax revenues are also received on a delayed schedule, which explains why only 37% has been collected year-to-date. This collection rate is consistent with the same period last year. All other revenue sources are tracking as expected or are close to projected levels.

The table below summarizes the Citywide Expenditures through March 31, 2025.

FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Expenditures
Personnel Costs $ 92,809,414$ 99,352,371$ 69,101,014 70% Operations & Maintenance 60,832,372 63,109,825 36,609,621 58% Capital Outlay 2,224,391 3,067,832 1,702,014 55%
Capital Improvement Plan Expenditures 9,000 1,890,525 9,516,026 503% Allocations 11,522,578 11,522,578 8,839,400 77%
Total Expenditures $ 167,397,756$ 178,943,130$ 125,768,075 70% Transfers
Transfer In 13,308,786 11,664,145 6,977,768 60%
Transfer Out 13,308,786 11,664,145 6,977,768 60%
Net Transfers $ 0 $ 0 $ 0

CITYWIDE
The City's Amended Expenditure Budget is $178,943,130, of which $125,768,075, or approximately 70%, has CITY OF MURRIETA Page 3 of 7 Printed on 6/12/2025
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Agenda Item No. 18.

The City's Amended Expenditure Budget is $178,943,130, of which $125,768,075, or approximately 70%, has been spent through March 31, 2025.
· Personnel expenditures are at 70% of the budget and are in line with the number of pay periods remaining for the fiscal year. Earlier in the Fiscal Year, staff evaluated the number of vacant positions each department had and established a vacancy factor to account for those unfilled positions. This vacancy factor will help ensure the budget is met as closely as possible. · Operations and Maintenance (O&M) Expenditures are at 58% of the budget. These Expenditures include day-to-day expenses such as utilities, supplies, training, software, equipment, and consulting services. Some of these Expenditures occur in one lump sum, while others are spread out over the course of the year. As of March 31, there is approximately $3.7 million in encumbrances in addition to our total expenses. Encumbrances are planned purchases that are anticipated to be completed by the end of the fiscal year. Taking into account those planned purchases, the current total is at 64% of the O&M Budget.
· Capital Outlay Expenditures are typically one-time purchases for vehicles, fixtures, and equipment. As of March 31, Capital Outlay Expenditures budgeted in the Operating Budget have consumed 55% of the Amended Budget. Like the O&M category, Capital Outlay also has encumbrances, which are planned purchases anticipated to be completed by the end of the fiscal year. Taking into account those planned purchases, the Capital Outlay Budget is 87%.
· Capital Improvement Plan (CIP) Expenditures are budgeted in the Capital Improvement Budget, which is budgeted in a sub-ledger of the Operating Budget; however, when CIP Projects incur expenses, the Expenditures are reflected on the General Ledger and appear in the total Expenditures to date. The CIP Budget provides for the significant maintenance or replacement of existing public facilities and assets and for the construction or acquisition of new ones. Funding for these expenditures typically utilizes Reserves set aside for Capital Projects or from the Fund Balances of Special Revenue Funds.

These expenditures have been categorized separately to signify that the expenditures are different from the Operating Budget.

Attachment 2 includes details for the Third Quarter Revenue and Expenditures by General Ledger Account through March 31, 2025.

Third Quarter Adjustments
Occasional adjustments to the Operating Budget are necessary. Given that we prepare a biennial or two-year budget, it is difficult to anticipate every need over the course of two years and to anticipate changes in economic conditions. This Budget Update requests a few department-requested Expenditure appropriations based on the actual costs of budgeted items and for unplanned expenditures. Additionally, staff is proposing to increase Revenues for Property Taxes and Interest Earnings and decrease Sales Tax, among other Revenue accounts that are in line with Fiscal Year 2024/25, actuals-to-date.

The proposed Citywide (all-funds) adjustments include an increase in Expenditures of $87,900 and a net increase in Revenues of $4,656,260. The Proposed Revenue and Expenditure Budget Updates affect the Operating Transfer to the Fire Districts, Community Services District, and the Library. As a result, the Transfer In and Transfer Out budgets are proposed to be reduced by $2,961,605. The following table provides a summary of the proposed Citywide changes.

FY 2024/25
Amended
Budget
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
Revenues
Taxes-Sales Tax $ 55,668,067 $ (2,204,107) -4% $ 53,463,960 Taxes-Property 32,667,558 2,419,821 7% 35,087,379
Charges for Services 24,193,653 256,231 1% 24,449,884
OthMiR30875089 4038739 13% 34913828

CITYWIDE
CITY OF MURRIETA Page 4 of 7 Printed on 6/12/2025
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Agenda Item No. 18.

FY 2024/25
Amended
Budget
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
Revenues
Taxes-Sales Tax $ 55,668,067 $ (2,204,107) -4% $ 53,463,960 Taxes-Property 32,667,558 2,419,821 7% 35,087,379
Charges for Services 24,193,653 256,231 1% 24,449,884
Other Misc Revenue 30,875,089 4,038,739 13% 34,913,828
Special Assessments 11,907,560 - 0% 11,907,560
Taxes-VLF/Property Tax Comp 11,114,975 - 0% 11,114,975
Tax-Special Tax 9,387,543 - 0% 9,387,543
Taxes-Transient Occupancy Tax 2,580,000 - 0% 2,580,000
Taxes-Franchises 4,802,800 - 0% 4,802,800
Taxes-Other 3,128,646 - 0% 3,128,646
License/Permit Fees 1,834,575 - 0% 1,834,575
Taxes-Business Licenses 1,086,708 - 0% 1,086,708
Taxes-Property Transfer 575,000 145,576 25% 720,576
Loan/Bond/Lease Proceeds - - 0% -
Total Revenue $ 189,822,174 $ 4,656,260 2% $ 194,478,434 FY 2024/25
Amended
Budget
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
Expenditures
Personnel Costs $ 99,352,371 $ 4,000 0.004% $ 99,356,371 Operations & Maintenance 63,109,825 83,900 0.133% 63,193,725 Capital Outlay 3,067,832 - 0% 3,067,832
Capital Improvement Plan Expenditures 1,890,525 - 0% 1,890,525 Allocations 11,522,578 - 0% 11,522,578
Total Expenditures $ 178,943,130 $ 87,900 0% $ 179,031,030 Contributions to Unassigned Fund
Balance 10,956,884 15,447,404
Total Expenditures Sources $ 189,900,014 $ 194,478,434
FY 2024/25
Amended
Budget
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
Transfers
Transfer In 11,664,145 (2,961,605) -22% 8,702,540
Transfer Out 11,664,145 (2,961,605) -22% 8,702,540
Net Transfers $ 0 $ 0 $ 0

CITYWIDE
Appropriation of Reserves
At the beginning of the Fiscal Year, the City Council approved Unassigned Fund Balances to be set aside for future Capital Improvement Projects. Three (3) of those projects were approved for construction in the Fiscal Year 2024/25 Capital Improvement Budget. Staff is asking the City Council to appropriate $120,000, from the Fleet Replacement Reserves for a portion of the cost of the Police Department Mobile Command Center, $200,000, from the Facility Replacement Reserves for the Police Department Locker Room project, and $900,000, for the Fire Facility Reserve for repairs concrete repairs and hook-up to water and sewer at Fire Station 1.

Staffing Changes
Staffing changes are needed from time to time for operational efficiency and effectiveness. There are two requests included in the proposed action. The proposed changes to the Schedule of Authorized Positions have CITY OF MURRIETA Page 5 of 7 Printed on 6/12/2025
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Agenda Item No. 18.
requests included in the proposed action. The proposed changes to the Schedule of Authorized Positions have a net zero effect on the Full-Time Equivalent (FTE) count for FY 2024/25, which will remain at 469.09 FTE positions (Attachment 5).

The change from Police Officers to Traffic Investigator modifies the Traffic Division structure, which allows for a career path and retention for officers interested in traffic investigations. The change from a Sr. Management Analyst to a Management Analyst is to be consistent with the current title of the incumbent. The title change for the Traffic Investigator position has no fiscal impact, as both positions have the same salary. There will be a small budgetary savings for the change from the Sr. Management Analyst to a Management Analyst, which will likely be accounted for as budgetary savings at the end of the fiscal year. The table below summarizes the requested changes.

Dept. Title FY25 Changes
TRAFFIC INVESTIGATOR I 2
POLICE OFFICER -2

POLICE/SUPPORT
MANAGEMENT ANALYST 1
SR. MANAGEMENT ANALYST -1
Total FTE Changes 0
Proposed FY 2024/25 Third Quarter Updates

POLICE/OPERATIONS
Fund Balance
The General Fund is projected to have an Unassigned Fund Balance of $29,069,144, at the end of Fiscal Year 2024/25. This balance takes into account an approximately $2.5 million negative variance between Revenues and Expenditures (or use of Unassigned Fund Balance), a $833,670 planned contribution to Operating Reserves, and Capital Improvement Project allocations of approximately $2 million.

Measure T Fund is projected to have an Unassigned Fund Balance of $20,270,495, at the end of the Fiscal Year. This balance takes into account an approx. $4.9 million positive variance between Revenues and Expenditures (or contribution to Unassigned Fund Balance), a $626,487, planned contribution to Operating Reserves, $1,220,000, planned use of reserve towards Capital Improvement Projects, and defunding of Capital Improvement Projects totaling $217,249.

The most appropriate time to report the Unassigned Fund Balance is at the end of the fiscal year, typically upon completion of the audit and the Annual Comprehensive Financial Report. All other times are projections and subject to change.

Operating Transfers from Measure T were offset against the beginning Unassigned Fund Balances for the Fire, Community Services, and Library Districts to bring their estimated ending balances to zero. Below is a summarized version of this information. A complete list of the overall changes by fund is included in Attachment 4.

Fund
Beg. Unassigned
Fund Bal., 7/1/24
Est. End. Unassigned
Fund Bal., 6/30/25
Use of Unassigned
Fund Balance
General Fund $ 34,483,419 $ 29,069,144 $ (5,414,276)
Measure T 14,473,840 20,270,495 5,796,655
Fire District Fund 865,430 0 (865,430)
CSD Fund 435,602 - (435,602)
Library Fund 517,683 - (517,683)
Total $ 50,775,974 $ 49,339,638 $ (1,436,336)
CITY OF MURRIETA Page 6 of 7 Printed on 6/12/2025
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6/17/2025
Agenda Item No. 18.

Fund
Beg. Unassigned
Fund Bal., 7/1/24
Est. End. Unassigned
Fund Bal., 6/30/25
Use of Unassigned
Fund Balance
General Fund $ 34,483,419 $ 29,069,144 $ (5,414,276)
Measure T 14,473,840 20,270,495 5,796,655
Fire District Fund 865,430 0 (865,430)
CSD Fund 435,602 - (435,602)
Library Fund 517,683 - (517,683)
Total $ 50,775,974 $ 49,339,638 $ (1,436,336)

FISCAL IMPACT
The proposed Third Quarter amendments to the Fiscal Year 2024/25 Operating Budget include an $87,900, increase in Expenditures and a $4,656,260, increase in revenue. The Proposed Revenue and Expenditure Budget Updates affect the Operating Transfer to the Fire Districts, Community Services District, and the Library. As a result, the Transfer In and Transfer Out budgets are proposed to be reduced by $2,961,605.

Attachment 3 includes a comprehensive list of the requested appropriations by the General Ledger account.

Additionally, staff is asking the City Council to approve the use of $1,220,000, in Sustainability Reserves and establish appropriations for Capital Improvement Projects that are currently approved, with construction underway.

ATTACHMENTS

1. FY 2024/25 Third Quarter Budget to Actual Report - Major Funds

2. FY 2024/25 Third Quarter Budget to Actual Report - All Funds

3. Proposed Third Quarter Budget Requests

4. Fund Balances for All Funds (Estimated)

5. Updated Fiscal Year 2024/25 Authorized Position List CITY OF MURRIETA Page 7 of 7 Printed on 6/12/2025
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Fiscal Year 2024/25 Third Quarter Budget Summary of Major Funds FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
RevenuesTaxes-Sales Tax 55,668,067 $ 31,769,731 $ 57% (2,204,107) $ -4% 53,463,960 $ Taxes-Property 32,667,558 18,640,891 57% 2,419,821 7% 35,087,379Charges for Services 24,193,653 18,644,869 77% 256,231 1% 24,449,884Other Misc Revenue 30,875,089 26,138,743 85% 4,038,739 13% 34,913,828Special Assessments 11,907,560 6,317,113 53% - 0% 11,907,560Taxes-VLF/Property Tax Comp 11,114,975 5,755,770 52% - 0% 11,114,975Tax-Special Tax 9,387,543 4,996,831 53% - 0% 9,387,543Taxes-Transient Occupancy Tax 2,580,000 1,729,770 67% - 0% 2,580,000Taxes-Franchises 4,802,800 1,786,416 37% - 0% 4,802,800Taxes-Other 3,128,646 2,166,340 69% - 0% 3,128,646License/Permit Fees 1,834,575 1,189,656 65% - 0% 1,834,575Taxes-Business Licenses 1,086,708 845,368 78% - 0% 1,086,708Taxes-Property Transfer 575,000 401,069 70% 145,576 25% 720,576Loan/Bond/Lease Proceeds - 6,696 0% - 0% -Total Revenue 189,822,174 $ 120,389,262 $ 63% 4,656,260 $ 2% 194,478,434 $ FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
ExpendituresPersonnel Costs 99,352,371 $ 69,101,014 $ 70% 4,000 $ 0.004% 99,356,371 $ Operations & Maintenance 63,109,825 36,609,621 58% 83,900 0.133% 63,193,725Capital Outlay 3,067,832 1,702,014 55% - 0% 3,067,832Capital Improvement Plan Expenditures 1,890,525 9,516,026 503% - 0% 1,890,525Allocations 11,522,578 8,839,400 77% - 0% 11,522,578Total Expenditures 178,943,130 $ 125,768,075 $ 70% 87,900 $ 0% 179,031,030 $ Contributions to Unassigned Fund Balance 10,956,884 15,447,404Total Expenditures Sources 189,900,014 $ $ 194,478,434 FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Used thru
03/31/2025
Proposed
Adjustments
%
Change
FY 2024/25
Proposed Amended
Budget
TransfersTransfer In 11,664,145 6,977,768 60% (2,961,605) -22% 8,702,540Transfer Out 11,664,145 6,977,768 60% (2,961,605) -22% 8,702,540Net Transfers 0 $ 0 $ 0 $ 0 $

CITYWIDE
5/16/2025
722
Fiscal Year 2024/25 Third Quarter Budget Summary of Major Funds FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
RevenuesTaxes-Sales Tax 28,770,000 $ 26,590,074 $ 15,215,333 $ 57% (985,914) $ 25,604,160 $ Taxes-VLF/Property Tax Comp 10,027,400 11,114,975 5,755,770 52% - 11,114,975Taxes-Property 9,914,100 10,900,917 6,745,099 62% 1,039,815 11,940,731Other Misc Revenue 4,726,903 9,925,661 10,724,788 108% 1,021,202 10,946,863Taxes-Franchises 4,652,000 4,744,800 1,770,534 37% - 4,744,800Charges for Services 4,867,960 4,388,160 3,167,110 72% 130,724 4,518,884License/Permit Fees 2,000,075 1,824,075 1,177,167 65% - 1,824,075Special Assessments 21,306 2,447 11% - 21,306Taxes-Transient Occupancy Tax 5,546,000 2,580,000 1,729,770 67% - 2,580,000Taxes-Business Licenses 1,065,400 1,086,708 845,368 78% - 1,086,708Taxes-Property Transfer 800,000 575,000 401,069 70% 145,576 720,576Transfer In - - 6,190 0% - -Total Revenue 72,369,838 $ 73,751,675 $ 47,540,643 $ 64% 1,351,403 $ 75,103,078 $ Use of Unassigned Fund Balance - 3,883,442 2,535,640Total Revenue Sources 72,369,838 $ 77,635,117 $ $ 77,638,717 FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
ExpendituresPersonnel Costs 48,999,585 $ 52,647,180 $ 34,644,285 $ 66% - $ 52,647,180 $ Operations & Maintenance 13,007,435 14,104,611 8,617,850 61% 3,600 14,108,211Capital Outlay 1,231,626 2,074,928 1,076,547 52% - 2,074,928Capital Improvement Plan Expenditures 63,190 37,350 59% - 63,190Allocations 7,594,685 7,594,685 5,696,014 75% - 7,594,685Transfer Out 1,150,523 1,150,523 575,262 50% - 1,150,523Total Expenditures 71,983,855 $ 77,635,117 $ 50,647,307 $ 65% 3,600 $ 77,638,717 $ Contribution to Unassigned Fund Balance - 385,983 -Total Expenditures Sources 72,369,838 $ 77,635,117 $ $ 77,638,717

GENERAL FUND
5/16/2025
723
Fiscal Year 2024/25 Third Quarter Budget Summary of Major Funds FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
RevenueTaxes-Sales Tax 31,449,800 $ 29,077,993 $ 16,554,398 $ 57% (1,218,193) $ 27,859,800 $ Total Revenue 31,449,800 $ 29,077,993 $ 16,554,398 $ 57% (1,218,193) $ 27,859,800 $ FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
ExpendituresPersonnel Costs 13,132,286 $ 12,751,274 $ 9,877,595 $ 77% 1,000 $ 12,752,274 $ Operations & Maintenance 2,599,796 2,252,865 852,063 38% 19,000 2,271,865 Capital Outlay 925,365 762,068 420,935 55% - 762,068
Allocations 928,500 928,500 696,375 75% - 928,500
Transfer Out 11,004,936 9,220,805 5,502,468 60% (2,961,605) 6,259,200 Total Expenditures 28,590,883 $ 25,915,512 $ 17,349,436 $ 67% (2,941,605) $ 22,973,906 $ Contributions to Unassigned Fund Balance 3,162,481 2,858,917 4,885,894Total Expenditures Uses 31,449,800 $ 29,077,993 $ $ 27,859,800

MEASURE T
5/16/2025
724
Fiscal Year 2024/25 Third Quarter Budget Summary of Major Funds FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
RevenueTaxes-Property 14,293,353 $ 16,079,768 $ 9,675,170 $ 60% 1,134,331 $ 17,214,099 $ Other Misc Revenue 961,425 1,151,554 2,386,420 207% 1,483,892 2,635,446 Charges for Services 538,826 460,876 460,976 100% 59,325 520,201 Special Assessments 1,577,711 1,577,711 849,131 54% - 1,577,711 License/Permit Fees 10,500 10,500 12,489 119% - 10,500
Transfer In 7,368,265 6,482,328 3,684,132 57% (2,653,548) 3,828,780 Total Revenue 24,750,080 $ 25,762,737 $ 17,068,319 $ 66% 24,000 $ 25,786,737 $ Use of Unassigned Fund Balance - 867,721 867,721Total Revenue Sources 24,750,080 $ 26,630,458 $ $ 26,654,458 FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
ExpendituresPersonnel Costs 20,178,327 $ 21,706,130 $ 17,097,285 $ 79% 3,000 $ 21,709,130 $ Operations & Maintenance 2,427,163 2,779,738 1,787,735 64% 21,000 2,800,738 Allocations 2,144,590 2,144,590 1,608,442 75% - 2,144,590 Total Expenditures 24,750,080 $ 26,630,458 $ 20,493,462 $ 77% 24,000 26,654,458 $

FIRE DISTRICT
5/16/2025
725
Fiscal Year 2024/25 Third Quarter Budget Summary of Major Funds FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
RevenueSpecial Assessments 1,927,712 $ 1,965,302 $ 1,151,819 $ 59% - $ 1,965,302 $ Charges for Services 531,775 522,775 514,247 98% 66,182 588,957 Other Misc Revenue 147,135 177,742 170,562 96% - 177,742 Transfer In 2,830,175 2,545,575 1,415,088 56% (62,382) 2,483,193 Total Revenue 5,436,797 $ 5,211,394 $ 3,251,716 $ 62% 3,800 $ 5,215,195 $ Use of Unassigned Fund Balance 0 375,602 375,602Total Revenue Sources 5,436,797 $ 5,586,996 $ $ 5,590,796 FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
ExpendituresPersonnel Costs 2,085,122 $ 2,276,849 $ 1,801,833 $ 79% - $ 2,276,849 $ Operations & Maintenance 3,324,482 3,282,954 2,534,312 77% 3,800 3,286,754 Capital Outlay 50,000 50,000 43,661 87% - 50,000
Allocations (22,807) (22,807) 180,362 -791% - (22,807)
Total Expenditures 5,436,797 $ 5,586,996 $ 4,560,168 $ 82% 3,800 $ 5,590,796 $

COMMUNITY SERVICES DISTRICT
5/16/2025
726
Fiscal Year 2024/25 Third Quarter Budget Summary of Major Funds FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% of Budget
Used thru
3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
RevenueTaxes-Property 2,467,294 $ 2,745,304 $ 1,686,650 $ 61% 245,675 $ 2,990,979 $ Other Misc Revenue 95,200 147,090 139,594 95% - 147,090 Charges for Services 20,300 20,900 18,939 91% - 20,900
Transfer In 806,496 192,902 403,248 209% (245,675) (52,773) Total Revenue 3,389,290 $ 3,106,196 $ 2,248,431 $ 72% 0 $ 3,106,196 $ Use of Unassigned Fund Balance 0 517,683 517,683
Total Revenue Sources 3,389,290 $ 3,623,879 $ $ 3,623,880 FY 2024/25
Adopted
Budget
FY 2024/25
Amended
Budget
FY 2024/25
YTD thru
3/31/2025
% Expended
thru 3/31/2025
Proposed
Adjustments
FY 2024/25
Proposed Amended
Budget
ExpendituresPersonnel Costs 2,058,853 $ 2,326,510 $ 1,501,970 $ 65% - $ 2,326,510 $ Operations & Maintenance 814,337 795,969 468,283 59% - 795,969 Capital Outlay 17,400 2,700 2,648 98% - 2,700
Allocations 498,700 498,700 374,025 75% - 498,700
Total Expenditures 3,389,290 $ 3,623,879 $ 2,346,926 $ 65% - $ 3,623,880 $

LIBRARY
5/16/2025
727
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED

REVENUES
1100000 40001 Taxes‐Property‐Currentrent 8,563,200 $ $ 9,441,517 $ 5,351,729 57%1100000 40002 Taxes‐VLF/Property Tax Compty Tax Com 10,027,400 11,114,975 5,755,770 52%1100000 40003 Taxes‐Current‐Unsecuredcured 383,000 425,000 478,985 113%1100000 40004 Taxes‐Prior Year 204,000 250,000 194,470 78%1100000 40006 Taxes‐Current‐Supplementallemental 135,000 135,000 148,933 110%1100000 40007 Taxes‐Current‐SBOE 129,500 150,000 107,038 71%1100000 40008 Taxes‐Current‐HOX 74,400 74,400 35,244 47%1100000 40011 Taxes‐RDA Disolution Distribon Distribut 425,000 425,000 428,699 101%1100000 40015 Taxes‐Sales Tax Rev. Abatement2500 (204,000) (195,840) (94,197) 48%1100000 40016 Taxes‐Sales Tax2500 28,974,000 26,785,914 15,309,529 57%1100000 40019 Taxes‐Franchises 4,640,000 4,732,800 1,759,284 37%1100000 40020 Taxes‐Business Licenses 1,065,400 1,086,708 845,368 78%1100000 40023 Taxes‐Property TransferTax 800,000 575,000 401,069 70%1100000 40024 Taxes‐TOT STVR 75,000 80,000 73,989 92%1100000 40025 Taxes‐Transient Occupancy Tax 5,471,000 2,500,000 1,655,781 66%1100000 40026 Taxes‐Motor Vehicle Lic In Lie 129,600 129,600 174,551 135%1100000 41110 Chrg for Svc‐Waste Management 550,000 550,000 200,000 36%1100000 41146 Lic/Permit‐Permit Fee STVRPermits Non                                          ‐ ‐ 235 01100000 43402 Chrg for Svc‐Admin CostCost 497,230 472,230 372,922 79%1100000 44401 Interest‐Income 400,000 4,110,670 4,055,996 99%1100000 44421 Interest‐To Be Distributed                                          ‐ ‐                                      ‐ 01100000 44422 Interest‐Non Distributable 78,911 250,000 236,660 95%1100000 44451 Interest‐Unrealized Gain/LosseGain/Los                                          ‐ ‐ 814,416 01100000 44462 Lease/Rental‐IncomeGain/Loss ‐                                  ‐ 3,000 0%1100000 45539 Fines‐Miscellaneous Fines 750 2,500 1,530 61%1100000 47802 Misc‐Directnl Sign ProgSign Program 9,000                                  ‐ 9,000 0%1100000 47810 Misc‐Lawsuit Settlementsement ‐ 246,155 246,155 100%1100000 47813 Misc‐Other ReimbursementsSales                                          ‐ ‐ 474 01100000 47845 Misc‐Sale of Non‐Capital AsCapital Asset                                          ‐ ‐ 20 01100000 47853 Misc‐OtherShort 62,400 200,000 158,557 79%1100000 47899 Misc.‐Prior Year RevenuesGovPartner                                          ‐ ‐ 3,747 01100000 81025 Proceeds from Sale of LandAssets ‐ 67,704 67,704 100% 5/13/2025
1 728
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1101200 47899 Misc.‐Prior Year RevenuesGovPartner                                          ‐ ‐ 43,702 01101400 47899 Misc.‐Prior Year RevenuesGovPartner                                          ‐ ‐ 575 01101600 41169 License/Permit‐MiscellaneousPermit 3,000                                  ‐ 1,500 0%1101600 42221 Intergvt Rev ‐State ReimbReimbursemen                                         ‐ ‐ 1,353,253 01101600 43415 Chg for Svc‐Reimb Damage Citye to City                                          ‐ ‐ 17,341 01101600 47853 Misc‐OtherShort ‐ 30,600 30,503 100%1101600 47813 Other Misc Revenue                                          ‐ ‐ 643 01101700 43416 Chrg for Srv‐Ins Recov/Subrogance/Subr                                          ‐ ‐ 4,613 01102100 43802 Chrg for Svc‐Notary ServicesServices 200                                     ‐ 200 0%1102200 47853 Misc‐OtherShort 200 200 45 23%1102400 41030 Chrg for Svc‐ApplealsAdminFee 250                                     ‐ 250 0%1102400 43801 Chrg for Svc‐PhotoCopy/MicroCopying/M 100,000 40,800 38,680 95%1102400 43802 Chrg for Svc‐Notary ServicesServices 500                                     ‐ 500 0%1102400 47853 Misc‐OtherShort 1,500 1,500 2,260 151%1102600 41035 Chrg for Svc‐CC Convenience Fe ‐ 1,500 832 55%1102600 41121 License/Permit‐Permit Issue FeIssue Fee 2,500 2,500 268 11%1102600 43401 Chrg for Svc‐CFD AdministrativAdministr 145,000 149,350 111,406 75%1102600 43414 Chrg for Svc‐Recovery of Costsery of Cos ‐ 5,000 4,615 92%1102600 45539 Fines‐Miscellaneous Fines 45,000 45,900 25,867 56%1102600 47805 Misc‐Bus Pass SalesSales 300 300 660 220%1102600 47852 Misc‐Cash Over/Short                                          ‐ ‐ (841) 01102600 47853 Misc‐OtherShort 3,000 3,000 3,148 105%1103120 41035 Chrg for Svc‐CC Convenience Fe ‐ 1,550 1,134 73%1103120 43416 Chrg for Srv‐Ins Recov/Subrogance/Subr 780                                     ‐ 780 0%1103120 47815 Misc‐Reimbursements ‐ 250 38 15%1103120 47853 Misc‐OtherShort 2,000 2,000 696 35%1103130 42224 Intergvt Rev‐Other AgencyAgency 2,500,000 3,000,000 2,299,379 77%1103130 47815 Misc‐Reimbursements 20,000 15,000 648 4%1103160 40019 Taxes‐Franchises 12,000 12,000 11,250 94%1103160 42221 Intergvt Rev ‐State ReimbReimbursemen ‐                                     ‐ 250 0%1103160 42223 Intergvt Rev‐County ReimbRiemburseme 10,000 10,000 6,875 69%1103160 43612 Chrg for Svc‐Police SecuritySecurity 20,000 25,200 28,752 114%1103160 43625 Chrg for Svc‐Police ServicesServices ‐                                  ‐ 5,000 0% 5/13/2025
2 729
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1103160 45501 Fines‐Traffic Safety 175,000 125,000 51,804 41%1103160 45523 Fines‐P.C. 1202.5 60,000 60,000 52,361 87%1103160 47853 Misc‐OtherShort ‐ 4,500 2,757 61%1103180 42221 Intergvt Rev ‐State ReimbReimbursemen 216,500 216,500 217,160 100%1103180 42222 Intergvt Rev‐Federal ReimbReimbursem 33,000 33,000 88,922 269%1103180 42223 Intergvt Rev‐County ReimbRiemburseme 164,522 164,522 111,185 68%1103180 42224 Intergvt Rev‐Other AgencyAgency 583,000 583,000 330,959 57%1103180 42255 Intergvt Rev‐State P.O.S.T.P.O.S.T. 85,000 85,000 43,986 52%1103180 43612 Chrg for Svc‐Police SecuritySecurity 20,000 66,300 123,581 186%1103180 43625 Chrg for Svc‐Police ServicesServices 50,000 50,000 50,854 102%1103180 47813 Misc‐Other ReimbursementsSales                                          ‐ ‐ 1,005 01103180 47853 Misc‐OtherShort 5,000 5,000 1,890 38%1104140 40056 Special Assess‐Abatement ‐ 21,306 2,447 11%1104140 42223 Intergvt Rev‐County ReimbRiemburseme 25,000                                ‐ 25,000 0%1104140 42256 Intergvt Rev‐Vehicle AbatementAbatem 12,000 12,000 7,748 65%1104140 43305 Chrg for Svc‐Inspection ChargeCharges 10,000                                ‐ 10,000 0%1104140 43421 Chrg for Services‐Abatement 10,000 12,000 15,051 125%1104140 43636 Chrg for Svc‐Vector ControlControl 17,000 5,000 7,914 158%1104140 45512 Fines‐Administrative Citations 30,000 30,000 18,341 61%1104140 47803 Misc‐Vacant Home Property Registration 3,000 3,000 3,649 122%1104400 41121 License/Permit‐Permit Issue FeIssue Fee 525,000 325,000 198,496 61%1104400 41146 Lic/Permit‐Permit Fee STVRPermits Non 30,375 10,375 6,297 61%1104400 43301 Chrg for Svc‐Plan ChecksChecks 575,000 325,000 260,960 80%1104400 43305 Chrg for Svc‐Inspection ChargeCharges 5,000 5,000 2,030 41%1104400 43308 Chrg for Svc‐General Plan FeePlan Fee 27,000 20,000 8,130 41%1104400 43414 Chrg for Svc‐Recovery of Costsery of Cos ‐                                ‐ 27,500 0%1104400 47813 Misc‐Other ReimbursementsSales                                          ‐ ‐ 10,501 01104400 47853 Misc‐OtherShort 10,000 10,000 4,067 41%1104600 41132 License/Permit‐Permits ResidenResiden 278,200 300,000 198,410 66%1104600 41133 Lic/Permit‐MiscPermits ResidenPermits 406,600 500,000 302,905 61%1104600 41144 License/Permit‐Permits Non ResNon Res 144,450 144,450 149,603 104%1104600 41145 Lic/Permit‐MiscPermits Non ResPermits 26,750 26,750 35,580 133%1104600 41157 License & Permit‐Misc.PermitPermit 133,750 125,000 81,408 65% 5/13/2025
3 730
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1104600 41169 License/Permit‐MiscellaneousPermit 411,950 350,000 171,830 49%1104600 42233 Intergvt Rev‐SB118/AB1379 CASPAgency 26,750 20,000 5,483 27%1104600 43301 Chrg for Svc‐Plan ChecksChecks 675,000 800,000 557,858 70%1104600 47853 Misc‐OtherShort 22,470 30,000 20,065 67%1105000 41121 License/Permit‐Permit Issue FeIssue Fee 6,000 6,000 5,310 88%1105000 43726 Chrg for Svc‐Special EventsEvents 25,000 25,000 12,611 50%1105000 47705 Misc.‐Donations/SponsorSponsors 8,000                                  ‐ 8,000 0%1105100 42223 Intergvt Rev‐County ReimbRiemburseme ‐ 75,000 49,200 66%1105100 42224 Intergvt Rev‐Other AgencyAgency ‐ 166,160 56,161 34%1106120 41121 License/Permit‐Permit Issue FeIssue Fee 15,000 15,000 16,176 108%1106120 41157 License & Permit‐Misc.PermitPermit 8,000 8,000 4,451 56%1106120 41158 License/Permit‐TransportationPermit 8,500 9,500 6,201 65%1106120 43301 Chrg for Svc‐Plan ChecksChecks 1,400,000 1,400,000 970,537 69%1106120 43305 Chrg for Svc‐Inspection ChargeCharges 700,000 350,000 281,187 80%1106120 43415 Chg for Svc‐Reimb Damage Citye to City 40,000 40,000 96,102 240%1106120 47853 Misc‐OtherShort ‐ 107,350 92,344 86%1106145 47813 Misc‐Other ReimbursementsSales 5,000                                  ‐ 5,000 0%1106155 47817 Misc‐LCFS Credits ‐ 30,000 27,940 93%1110000 40015 Taxes‐Sales Tax Rev. Abatement2500 (25,200) (20,200) (2,302) 11%1110000 40016 Taxes‐Sales Tax2500 31,475,000 29,098,193 16,556,700 57%1120000 47815 Misc‐Reimbursements ‐ 136,600 136,600 100%1180000 44401 Interest‐Income 900 3,700 3,615 98%1180030 45501 Fines‐Traffic Safety 10,000 10,000 7,959 80%1190000 44401 Interest‐Income 2,300                                  ‐ 1,150 0%1193120 42221 Intergvt Rev ‐State ReimbReimbursemen 6,000                                  ‐ 6,000 0%1193120 45534 Fines‐False Alarm 65,000 65,000 92,420 142%1270000 44401 Interest‐Income 9,000 59,640 59,191 99%1270060 46601 Develop Partic‐Developer Impac 100,000 106,412 40,406 38%1280000 44401 Interest‐Income ‐ 277,800 272,466 98%1290000 44401 Interest‐Income 500 12,320 12,115 98%1290060 46601 Develop Partic‐Developer Impac 80,000 36,434 18,270 50%1300000 44401 Interest‐Income 4,100 57,680 56,279 98%1300060 46601 Develop Partic‐Developer Impac 160,000 72,282 21,936 30% 5/13/2025
4 731
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1310000 44401 Interest‐Income 10,000 44,770 43,052 96%1310060 46601 Develop Partic‐Developer Impac 100,000 48,740 9,722 20%1320000 44401 Interest‐Income 17,000 51,690 50,636 98%1330000 44401 Interest‐Income 30,000 195,090 190,704 98%1330060 46601 Develop Partic‐Developer Impac 1,100,000 441,686 158,920 36%1340000 44401 Interest‐Income 40,000 171,310 168,168 98%1340060 46601 Develop Partic‐Developer Impac 120,000 185,232 39,863 22%1350000 44401 Interest‐Income ‐ 352,880 346,284 98%1360000 44401 Interest‐Income 6,800 120,640 118,473 98%1360060 46601 Develop Partic‐Developer Impac 300,000 188,576 59,298 31%1370000 44401 Interest‐Income 3,600 63,540 62,385 98%1370060 46601 Develop Partic‐Developer Impac 190,000 70,414 15,349 22%1380000 44401 Interest‐Income 90,000 381,660 375,018 98%1380060 46601 Develop Partic‐Developer Impac 1,260,000 871,331 345,205 40%1400000 44401 Interest‐Income 2,000 6,650 6,526 98%1410000 44401 Interest‐Income 1,000 8,665 8,662 100%1510000 40001 Taxes‐Property‐Currentrent 12,129,969 13,298,841 7,509,893 56%1510000 40003 Taxes‐Current‐Unsecuredcured 543,000 643,000 699,543 109%1510000 40004 Taxes‐Prior Year 396,987 404,927 274,031 68%1510000 40006 Taxes‐Current‐Supplementallemental 188,000 408,000 209,128 51%1510000 40007 Taxes‐Current‐SBOE 137,500 200,000 132,920 66%1510000 40008 Taxes‐Current‐HOX 105,000 105,000 49,488 47%1510000 40011 Taxes‐RDA Disolution Distribon Distribut 792,897 1,020,000 800,167 78%1510000 44401 Interest‐Income 71,600 80,000 55,089 69%1510000 44462 Lease/Rental‐IncomeGain/Loss 121,054 121,054 93,287 77%1510000 47702 Miscellaneous‐Donations 2,500 2,500 5,400 216%1510000 47813 Misc‐Other ReimbursementsSales ‐ 25,000 31,501 126%1510000 47821 Misc‐Special Events‐BarbequeBarbeque 18,991                                ‐ 25,000 0%1510000 47853 Misc‐OtherShort 2,280 3,000 2,250 75%1513520 40041 Spec Assess‐Unit of Benefit Assessment 1,559,111 1,559,111 839,477 54%1513520 40042 Spec Assess‐Unit of Benefit Prior Year 18,600 18,600 9,654 52%1513520 41169 License/Permit‐MiscellaneousPermit                                          ‐ ‐ 105 01513520 42221 Intergvt Rev ‐State ReimbReimbursemen 715,000 715,000 2,198,892 308% 5/13/2025
5 732
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1513520 43301 Chrg for Svc‐Plan ChecksChecks 145,000 145,000 178,997 123%1513520 43305 Chrg for Svc‐Inspection ChargeCharges 110,000 110,000 129,325 118%1513520 43573 Chrg for Svc‐Fire EngineeringEngineering 75,500 75,500 50,318 67%1513520 43579 Chrg for Svc‐Other Fire ServicServices 15,000 40,000 24,933 62%1513520 45520 Fines‐AML System Enhancement ‐                             ‐ 150,000 0%1513520 45539 Fines‐Miscellaneous Fines 30,000                                ‐ 30,000 0%1513590 41169 License/Permit‐MiscellaneousPermit 10,500 10,500 12,384 118%1513590 43305 Chrg for Svc‐Inspection ChargeCharges 25,376 25,376 20,364 80%1513590 43580 Chrg for Svc‐Annual Business IBusiness I 142,000 35,000 28,004 80%1513590 43583 Chrg for Svc‐State Mandated InMandate 25,950 30,000 29,034 97%1610000 44401 Interest‐Income ‐ 29,060 28,201 97%1710000 44401 Interest‐Income 20,000 41,300 41,316 100%1710000 47853 Misc‐OtherShort 1,000                                  ‐ 1,000 0%1715120 47706 Misc.‐Donate‐Military BannerMilitary Ba                                          ‐ ‐ 190 01715120 47853 Misc‐OtherShort 20,000 20,000 12,879 64%1715144 40052 Spec Assess‐Measure WW Rates & 751,808 789,398 449,209 57%1715144 41035 Chrg for Svc‐CC Convenience Fe                                          ‐ ‐ 14,618 01715144 43711 Chrg for Svc‐Recreation Prograation Pro 367,500 367,500 286,437 78%1715144 43712 Chrg for Svc‐Park UsageUsage 15,000 15,000 6,318 42%1715144 43713 Chrg for Svc‐Adult & Youth Spolt and Yo 10,000 5,000 4,746 95%1715144 43714 Chrg for Svc‐Pool ProgramsPrograms                                          ‐ ‐ 1,729 01715144 43715 Chrg for Svc‐Rec MembershipsPark Mem 8,500 8,500 11,804 139%1715144 43726 Chrg for Svc‐Special EventsEvents 3,150 3,150 2,641 84%1715144 44461 Lease/Rental‐Community RoomGain/Lo 15,000 15,000 19,718 131%1715144 44462 Lease/Rental‐IncomeGain/Loss 10,000 10,000 16,803 168%1715144 47705 Misc.‐Donations/SponsorSponsors                                          ‐ ‐ 565 01715144 47815 Misc‐Reimbursements                                          ‐ ‐ 953 01715162 40052 Spec Assess‐Measure WW Rates & 1,175,904 1,175,904 702,610 60%1715162 43301 Chrg for Svc‐Plan ChecksChecks 1,000 2,000 1,800 90%1715162 43305 Chrg for Svc‐Inspection ChargeCharges 1,125                                  ‐ 1,125 0%1715162 43415 Chg for Svc‐Reimb Damage Citye to City 500                                     ‐ 500 0%1715162 43726 Chrg for Svc‐Special EventsEvents                                          ‐ ‐ 6,711 01715162 43737 Chg for Ser‐Field Electrc Rmbric Reimbu 65,000 65,000 116,563 179% 5/13/2025
6 733
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1715162 44462 Lease/Rental‐IncomeGain/Loss 80,135 89,442 77,688 87%1715162 47853 Misc‐OtherShort 1,000 1,000 450 45%1715166 43712 Chrg for Svc‐Park UsageUsage 60,000 55,000 60,880 111%1800050 40051 Spec Assess‐Rates & Charges& Charges 1,802,653 1,802,653 965,858 54%1810050 40051 Spec Assess‐Rates & Charges& Charges 188,571 192,342 107,339 56%1820050 40051 Spec Assess‐Rates & Charges& Charges 463,044 472,305 263,586 56%1830050 40051 Spec Assess‐Rates & Charges& Charges 42,034 42,875 23,927 56%1840050 40051 Spec Assess‐Rates & Charges& Charges 101,378 103,406 57,707 56%1850050 40051 Spec Assess‐Rates & Charges& Charges 14,424 14,712 8,210 56%1860050 40051 Spec Assess‐Rates & Charges& Charges 55,403 56,511 31,528 56%1880050 40051 Spec Assess‐Rates & Charges& Charges 135,830 138,547 77,318 56%1890050 40051 Spec Assess‐Rates & Charges& Charges 4,673 4,766 2,660 56%2000000 44401 Interest‐Income 100 1,000 1,224 122%2000050 40053 Spec Assess‐LLD 519,985 514,785 271,493 53%2020000 44401 Interest‐Income 200 2,710 2,766 102%2020050 40053 Spec Assess‐LLD 147,800 147,800 75,917 51%2030000 44401 Interest‐Income ‐ 310 335 108%2030050 40053 Spec Assess‐LLD 18,328 18,328 12,723 69%2040000 44401 Interest‐Income 500 3,855 3,823 99%2040050 40053 Spec Assess‐LLD 58,882 58,882 31,148 53%2050000 44401 Interest‐Income ‐ 90 39 44%2050050 40053 Spec Assess‐LLD 27,009 27,009 15,216 56%2060000 44401 Interest‐Income 300 1,985 1,965 99%2060050 40053 Spec Assess‐LLD 19,338 19,338 10,018 52%2070000 44401 Interest‐Income 40 610 611 100%2070050 40053 Spec Assess‐LLD 31,332 31,332 16,455 53%2080000 44401 Interest‐Income 1,800 3,680 3,693 100%2080050 40053 Spec Assess‐LLD 151,834 148,797 77,847 52%2090000 44401 Interest‐Income 50 840 846 101%2090050 40053 Spec Assess‐LLD 57,205 57,205 30,002 52%2100000 44401 Interest‐Income 300                                         ‐                                      ‐ 02100050 40053 Spec Assess‐LLD 157,153 157,153 82,094 52%2110050 40053 Spec Assess‐LLD 50,231 50,231 27,097 54% 5/13/2025
7 734
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
2120000 44401 Interest‐Income 3,000 43,500 43,381 100%2120050 40053 Spec Assess‐LLD 709,241 709,241 376,456 53%2130000 44401 Interest‐Income ‐                                       ‐ 50 0%2130050 40053 Spec Assess‐LLD 312,025 312,025 164,142 53%2140000 44401 Interest‐Income ‐ 1,185 1,202 101%2140050 40053 Spec Assess‐LLD 57,831 57,831 30,215 52%2150000 44401 Interest‐Income 500 400 319 80%2150050 40053 Spec Assess‐LLD 121,589 121,589 62,457 51%2160000 44401 Interest‐Income 2,500 11,480 11,588 101%2160050 40053 Spec Assess‐LLD 655,076 648,525 344,678 53%2170000 44401 Interest‐Income 700 3,910 3,878 99%2170050 40053 Spec Assess‐LLD 64,367 64,367 34,527 54%2180000 44401 Interest‐Income 2,000 1,310 1,307 100%2180050 40053 Spec Assess‐LLD 111,065 111,065 56,525 51%2190000 44401 Interest‐Income 3,700 2,280 1,826 80%2190050 40053 Spec Assess‐LLD 438,916 416,970 225,854 54%2200000 44401 Interest‐Income 3,200 5,080 4,998 98%2200050 40053 Spec Assess‐LLD 191,441 181,869 98,546 54%2210000 44401 Interest‐Income 4,500 15,885 15,717 99%2210050 40053 Spec Assess‐LLD 314,348 314,348 162,074 52%2220000 44401 Interest‐Income ‐ 260 259 100%2220050 40053 Spec Assess‐LLD 7,381 7,381 3,925 53%2230000 44401 Interest‐Income 500 8,520 8,531 100%2230050 40053 Spec Assess‐LLD 197,982 197,982 105,784 53%2240000 44401 Interest‐Income 250 210 236 112%2240050 40053 Spec Assess‐LLD 37,450 37,450 20,074 54%2250000 44401 Interest‐Income 7,000 13,200 12,851 97%2250050 40053 Spec Assess‐LLD 344,569 344,569 162,146 47%2260000 44401 Interest‐Income 80 800 795 99%2260050 40053 Spec Assess‐LLD 12,616 12,616 6,701 53%2270000 44401 Interest‐Income 400 8,835 8,741 99%2270050 40053 Spec Assess‐LLD 92,979 92,979 46,885 50%2280000 44401 Interest‐Income ‐ 520 554 107% 5/13/2025
8 735
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
2280050 40053 Spec Assess‐LLD 67,866 67,866 33,933 50%2290000 44401 Interest‐Income 50 388 382 99%2290050 40053 Spec Assess‐LLD 9,069 9,069 3,628 40%2310000 44401 Interest‐Income ‐ 100 110 110%2310050 40053 Spec Assess‐LLD ‐ 64,521 32,763 51%3020000 44401 Interest‐Income 10,000 445,520 438,961 99%3020060 42211 Intergvt Rev‐Local TransportatTransport 2,635,000 3,388,000 2,384,035 70%3060000 40031 Taxes‐2103 Gas Tax 1,211,900 1,024,441 760,072 74%3060000 40032 Taxes‐2105 Gas Tax 766,100 699,270 473,434 68%3060000 40033 Taxes‐2106 Gas Tax 478,500 440,815 307,920 70%3060000 40034 Taxes‐2107 Gas Tax 920,100 954,120 614,914 64%3060000 40035 Taxes‐2107.5 Gas Tax 10,000 10,000 10,000 100%3060000 44401 Interest‐Income 70,000 340,260 334,534 98%3070000 42221 Intergvt Rev ‐State ReimbReimbursemen 2,107,697 2,904,570 1,760,700 61%3070000 42224 Intergvt Rev‐Other AgencyAgency                                          ‐ ‐ 1,760 03070000 44401 Interest‐Income ‐ 201,410 196,120 97%3110000 40001 Taxes‐Property‐Currentrent 2,144,500 2,360,310 1,336,433 57%3110000 40003 Taxes‐Current‐Unsecuredcured 96,000 100,800 124,401 123%3110000 40004 Taxes‐Prior Year 48,982 68,382 48,616 71%3110000 40006 Taxes‐Current‐Supplementallemental 33,370 63,370 37,191 59%3110000 40007 Taxes‐Current‐SBOE 22,000 30,000 19,794 66%3110000 40008 Taxes‐Current‐HOX 19,000 19,000 8,801 46%3110000 40011 Taxes‐RDA Disolution Distribon Distribut 103,442 103,442 111,412 108%3110000 44401 Interest‐Income 15,000 57,390 60,353 105%3110000 44461 Lease/Rental‐Community RoomGain/Lo 3,600 3,600 4,644 129%3110000 47804 Misc‐Lost Book ReplacementReplaceme 1,600 1,600 2,617 164%3110000 47848 Misc‐Promotional Item SalesCapital Asse 1,000 500 114 23%3110050 41035 Chrg for Svc‐CC Convenience Fe ‐ 400 540 135%3110050 43801 Chrg for Svc‐PhotoCopy/MicroCopying/M 4,000 4,000 7,855 196%3110050 43802 Chrg for Svc‐Notary ServicesServices 300 300 390 130%3110050 43803 Chrg for Svc‐Passport Servicesort Service 16,000 16,000 10,154 63%3110050 45539 Fines‐Miscellaneous Fines 30,000 20,000 10,509 53%3110050 47701 Donation‐Friends of the Librarof the Libr 38,000 58,000 49,200 85% 5/13/2025
9 736
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
3110050 47702 Miscellaneous‐Donations 2,200 2,200 9,448 429%3110050 47815 Misc‐Reimbursements 3,800 3,800 2,711 71%3115900 41035 Chrg for Svc‐CC Convenience Fe ‐                                     ‐ 200 0%3160000 44401 Interest‐Income 25,000 100 134,094 134094%3190000 44401 Interest‐Income ‐ 14,200 62 0%3190060 42224 Intergvt Rev‐Other AgencyAgency ‐ 167,464 55,000 33%3220000 44401 Interest‐Income 12,000 80,900 13,914 17%3220000 44422 Interest‐Non Distributable 32,000 32,000 125 0%3220000 47853 Misc‐OtherShort 6,500                                  ‐ 6,500 0%3230000 44401 Interest‐Income ‐ 30,930 79,401 257%3360000 44401 Interest‐Income 4,000 1,935 30,483 1575%3360060 42232 Intergvt Rev‐AB2766 FundsAgency 143,000 143,000 108,701 76%3380000 44401 Interest‐Income ‐ 2,500 1,938 78%3380000 47810 Misc‐Lawsuit Settlementsement ‐ 31,658 280,057 885%3410000 42222 Intergvt Rev‐Federal ReimbReimbursem                                          ‐ ‐ 44,572 03410000 44401 Interest‐Income ‐                                       ‐ 20 0%3410010 42222 Intergvt Rev‐Federal ReimbReimbursem 590,000 590,000 24,715 4%3530000 42223 Intergvt Rev‐County ReimbRiemburseme 10,000                                ‐ 10,000 0%3530000 42224 Intergvt Rev‐Other AgencyAgency 12,400                                ‐ 12,400 0%3530000 44401 Interest‐Income 250 6,000 13,212 220%3530010 42221 Intergvt Rev ‐State ReimbReimbursemen                                         ‐ ‐ 319,893 03530050 42221 Intergvt Rev ‐State ReimbReimbursemen 29,840 27,828 55,764 200%3530060 42221 Intergvt Rev ‐State ReimbReimbursemen ‐                             ‐ 145,720 0%3550030 42222 Intergvt Rev‐Federal ReimbReimbursem ‐ 274,471 175,318 64%3550030 47813 Other Misc Revenue                                          ‐ ‐ 56 03570050 42221 Intergvt Rev ‐State ReimbReimbursemen ‐ 41,627 799,000 1919%3570050 42222 Intergvt Rev‐Federal ReimbReimbursem                                          ‐ ‐ 763 03570050 42224 Intergvt Rev‐Other AgencyAgency                                          ‐ ‐ 5,475 03580030 42221 Intergvt Rev ‐State ReimbReimbursemen ‐ 44,687 230,489 516%3580040 42221 Intergvt Rev ‐State ReimbReimbursemen                                         ‐ ‐ 450,650 03580050 42221 Intergvt Rev ‐State ReimbReimbursemen                                         ‐ ‐ 28,465 03610000 44401 Interest‐Income ‐ 267,440 37 0%3610030 42222 Intergvt Rev‐Federal ReimbReimbursem                                          ‐ ‐ 1,096 0 5/13/2025
10 737
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
3740000 44401 Interest‐Income ‐ 114,000 259,564 228%3760030 42222 Intergvt Rev‐Federal ReimbReimbursem ‐ 15,978 25,967 163%3770000 44401 Interest‐Income ‐                                  ‐ 1,000 0%3770030 42222 Intergvt Rev‐Federal ReimbReimbursem ‐                          ‐ 4,041,014 0%3770040 42222 Intergvt Rev‐Federal ReimbReimbursem ‐                             ‐ 157,040 0%3770050 42222 Intergvt Rev‐Federal ReimbReimbursem                                          ‐ ‐ 194,188 03800000 44401 Interest‐Income ‐                                     ‐ 460 0%3800060 42222 Intergvt Rev‐Federal ReimbReimbursem                                          ‐ ‐ 1,800 04020000 44401 Interest‐Income 420 8,430 456 5%4020030 42221 Intergvt Rev ‐State ReimbReimbursemen 8,000 8,000 2,031 25%4030000 44401 Interest‐Income ‐ 5,040 8,248 164%4040000 44401 Interest‐Income 650 2,650 4,281 162%4110000 44401 Interest‐Income 1,000 38,180 3,328 9%4110030 42221 Intergvt Rev ‐State ReimbReimbursemen 280,561 280,561 220,233 78%4310000 44401 Interest‐Income 4,700 5,175 37,508 725%4316120 40051 Spec Assess‐Rates & Charges& Charges 488,000 512,000 154,259 30%5020000 44401 Interest‐Income ‐ 11,490 5,082 44%5110000 44401 Interest‐Income ‐ 38,800 11,281 29%5130000 44401 Interest‐Income ‐ 195,120 37,720 19%5510000 44401 Interest‐Income 60,000 90,000 191,523 213%5510060 46601 Develop Partic‐Developer Impac 110,000 484,139 183,142 38%5760000 44401 Interest‐Income ‐ 33,630 50,057 149%6010000 40013 Taxes‐RDA Increment 02‐24992499 100,000                             ‐ 100,000 0%6010000 44401 Interest‐Income ‐                                     ‐ 200 0%6020000 40013 Taxes‐RDA Increment 02‐24992499 2,841,569 2,841,569 533,972 19%6020000 44401 Interest‐Income 1,000 75,860 38,589 51%6550000 44401 Interest‐Income 50 450 329 73%6560000 40018 Taxes‐Special Taxes Mello‐Roos ‐                          ‐ 3,610,887 0%6560000 44401 Interest‐Income ‐ 47,000 (35,726) -76%6570000 40018 Taxes‐Special Taxes Mello‐Roos ‐                             ‐ 626,438 0%6570000 44401 Interest‐Income ‐ 9,300 (6,259) -67%6580000 40018 Taxes‐Special Taxes Mello‐Roos ‐ 3,494,250 2,920,750 84%6580000 44401 Interest‐Income ‐ 18,000 (21,889) -122% 5/13/2025
11 738
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
7010000 44401 Interest‐Income ‐ 43,750 76,938 176%7018100 43416 Chrg for Srv‐Ins Recov/Subrogance/Subr                                          ‐ ‐ 95,820 07018100 43913 Chrg for Svc‐Risk ManagementManagem 14,003,582 14,003,582 10,792,911 77%7018100 47813 Misc‐Other ReimbursementsSales 2,500                                  ‐ 2,500 0%7150000 44401 Interest‐Income 6,000 105,050 34,630 33%7150000 81020 Proceeds from Sale of CapitalAssets                                          ‐ ‐ 3,266 07156160 81020 Proceeds from Sale of CapitalAssets                                          ‐ ‐ 3,430 07260000 44401 Interest‐Income 25,000 16,140 105,346 653%7268340 40019 Taxes‐Franchises 58,000 58,000 15,882 27%7268340 43901 Chrg for Svc‐GIS ProcessingProcessing 18,500 18,500 10,721 58%7268340 43902 Chrg for Svc‐Information Technrmation T 4,778,860 4,778,860 3,584,145 75%8100000 44401 Interest‐Income 5,000 15,000 15,792 105%8110000 40018 Taxes‐Special Taxes Mello‐Roos 9,387,543 1,655,969 2,076,081 125%8110000 44401 Interest‐Income ‐ 188,000 419,363 223%8119100 44401 Interest‐Income                                          ‐ ‐ 4,764 0 TOTAL REVENUES $ 179,178,879 $ 189,822,174 $ 120,389,262 63%EXPENDITURES 1100060 62000 Maintenance‐Building $                                      ‐ ‐ $ $ 149 0 1101000 51080 Part‐Time Salary (PARS) 85,900 89,350 54,234 61%1101000 52450 Benefit‐Worker's Compensation 3,161 3,288 1,724 52%1101000 53200 Benefit‐PARS Retirement 1,117 1,162 705 61%1101000 53700 Taxes‐FICA/Medicare Employer 1,250 1,300 786 60%1101000 60480 Contract Srvcs‐Other 1,000                                     ‐                                      ‐ 01101000 62440 Other‐Special Dept Expenditure 3,000 3,000 1,825 61%1101000 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 398 01101000 62720 Printing 700 700 719 103%1101000 63880 Subscription‐Membership, Dues, & Publ                                          ‐ ‐ 477 01101000 64080 Supplies‐Office 1,500 1,500 382 25%1101000 64360 Training & Development 50,000 43,500 18,300 42%1101000 64640 Utilities‐Telephone 5,000 5,000 4,009 80%1101000 69100 Srvcs‐Information Technology 33,790 33,790 25,342 75%1101000 69200 Liab & Property Ins Charges 11,340 11,340 8,505 75% 5/13/2025
12 739
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1101200 60440 Contract Srvcs‐Legal 180,000 300,000 313,110 104%1101400 51020 Salary & Wages 1,540,000 1,678,500 1,005,474 60%1101400 51022 Salary & Wages (EOC)                                          ‐ ‐ 3,358 01101400 51040 Overtime 240 288 613 213%1101400 51042 Overtime (EOC)                                          ‐ ‐ 194 01101400 51080 Part‐Time Salary (PARS)                                          ‐ ‐ 11,530 01101400 51100 Leave‐Administrative Buyout Leave 26,000 26,000 6,786 26%1101400 51110 Leave‐Annual Buyoutave 45,000 45,000 150,716 335%1101400 51140 Leave‐Holiday Buyout 400                                     ‐ 400 0%1101400 52000 Allowance‐Auto 13,800 13,800 8,572 62%1101400 52200 Allowance‐Mobile CommunicationDevic 3,470 3,470 2,027 58%1101400 52400 Benefit‐ADD/ Life Insurance 9,010 9,237 2,726 30%1101400 52450 Benefit‐Worker's Compensation 11,860 12,927 7,395 57%1101400 52700 Benefit‐Deferred CompensationMatchin 11,200 11,200 10,212 91%1101400 52701 Benefit‐Deferred Comp NTWD401aMatc                                          ‐ ‐ 48,967 01101400 52702 Benefit‐Deferred Comp ICMA401aMatch 38,900                                ‐ 38,900 0%1101400 52800 Benefit‐Dental 10,584 11,760 6,718 57%1101400 53000 Benefit‐Short/Long Term Disability 7,900 8,527 4,673 55%1101400 53100 Benefit‐Retiree Medicals 11,000 11,000 7,892 72%1101400 53200 Benefit‐PARS Retirement                                          ‐ ‐ 150 01101400 53300 Benefit‐PERS Health 151,101 173,931 108,260 62%1101400 53400 Benefit‐PERS Retirement 168,700 223,700 132,987 59%1101400 53500 Benefit‐Tuition Reimb. 600 600 2,260 377%1101400 53600 Benefit‐Vision 4,320 4,800 2,549 53%1101400 53700 Taxes‐FICA/Medicare Employer 22,330 24,350 17,999 74%1101400 53800 Taxes‐Unemployment Insurance                                          ‐ ‐ 2,900 01101400 53980 Vacancy Factor ‐                            ‐ (162,420) 0%1101400 60440 Contract Srvcs‐Legal 25,000 40,000 609 2%1101400 60480 Contract Srvcs‐Other 30,000 22,500 6,744 30%1101400 62160 Maintenance‐Software Licenses ‐ 200 173 86%1101400 62280 Other‐City Manager Contingency 20,000 20,000 1,501 8%1101400 62440 Other‐Special Dept Expenditure 1,000 1,000 402 40%1101400 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 10,727 0 5/13/2025
13 740
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1101400 62680 Postage 1,000 1,000 855 86%1101400 62720 Printing 500 500 339 68%1101400 62800 Prior Period Expense                                          ‐ ‐ 141 01101400 62976 Program‐ ICSC                                          ‐ ‐                                      ‐ 01101400 63120 Program‐Marketing ‐ 35,000 1,230 4%1101400 63880 Subscription‐Membership, Dues, & Publ 42,220 5,375 6,920 129%1101400 64080 Supplies‐Office 1,000 1,000 699 70%1101400 64360 Training & Development 34,400 31,500 22,415 71%1101400 69100 Srvcs‐Information Technology 216,900 216,900 162,675 75%1101400 69200 Liab & Property Ins Charges 198,340 198,340 148,755 75%1101600 51020 Salary & Wages                                          ‐ ‐                                      ‐ 01101600 51040 Overtime                                          ‐ ‐                                      ‐ 01101600 51044 FLSA Overtime                                          ‐ ‐                                      ‐ 01101600 53100 Benefit‐Retiree Medicals 1,003,000 1,003,000 665,709 66%1101600 53300 Benefit‐PERS Health 16,000 16,000 8,447 53%1101600 53400 Benefit‐PERS Retirement 8,000 8,000 4,713 59%1101600 60015 TOT Agreement                                          ‐ ‐ 279,202 01101600 60320 Contract Srvcs‐Consultant 62,500 110,601 24,883 22%1101600 60440 Contract Srvcs‐Legal ‐ 301,211 3,607 1%1101600 60480 Contract Srvcs‐Other 190,000 412,182 143,609 35%1101600 60520 Contract Srvcs‐Property Tax 115,500                             ‐ 115,500 0%1101600 60840 Equipment‐Furniture < $5000 20,000 10,000 4,980 50%1101600 61050 Fees‐Misc Admin                                          ‐ ‐ (0) 01101600 61440 Fees‐Filing                                          ‐ ‐ 10,000 01101600 61560 Other Interest Expense                                          ‐ ‐ 10,308 01101600 61720 Fees‐Property Taxes 16,500 20,000 12,878 64%1101600 61910 Lease‐Facility Rent ‐ 168,571 72,009 43%1101600 62000 Maintenance‐Building ‐ 25,000 54,020 216%1101600 62280 Other‐City Manager Contingency 180,000 176,000 101,140 57%1101600 62440 Other‐Special Dept Expenditure 18,600 18,600 9,482 51%1101600 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 6,080 01101600 62680 Postage                                          ‐ ‐ 49 01101600 62720 Printing 5,000                                  ‐ 5,000 0% 5/13/2025
14 741
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1101600 62800 Prior Period Expense                                          ‐ ‐ 13,333 01101600 62960 Program‐Community Relations 80,912 80,912 92,747 115%1101600 63120 Program‐Marketing                                          ‐ ‐                                      ‐ 01101600 63880 Subscription‐Membership, Dues, & Publ 61,400 80,475 93,879 117%1101600 64360 Training & Development 5,000 6,000 6,199 103%1101600 64520 Utilities‐Electric ‐ 18,284 8,859 48%1101600 64600 Utilities‐Natural Gas ‐ 1,000 168 17%1101600 64640 Utilities‐Telephone ‐                                ‐ 19,200 0%1101600 64660 Utilities‐Water ‐                                  ‐ 5,000 0%1101600 69200 Liab & Property Ins Charges 111,335 111,335 83,501 75%1101600 71150 Improvements Other than Buildings ‐ 18,127 103 1%1101600 53800 Taxes‐Unemployment Insurance                                          ‐ ‐ 30 01101700 51020 Salary & Wages                                          ‐ ‐ (14) 01101700 51022 Salary & Wages (EOC)                                          ‐ ‐ 962 01101700 51040 Overtime                                          ‐ ‐ 14,956 01101700 51042 Overtime (EOC)                                          ‐ ‐ 4,330 01101700 51044 FLSA Overtime                                          ‐ ‐ 495 01101700 51045 Strike Team Overtime                                          ‐ ‐ 1,637 01101700 62440 Other‐Special Dept Expenditure                                          ‐ ‐ 645 01101700 64040 Supplies‐Maintenance                                          ‐ ‐ 2,936 01101700 64080 Supplies‐Office                                          ‐ ‐ 100 01101700 64400 Travel‐Fire Mutual Aid Travel                                          ‐ ‐ 1,274 01101700 62040 Maintenance‐Landscape                                          ‐ ‐                                      ‐ 01101800 60480 Contract Srvcs‐Other 1,000                                     ‐                                      ‐ 01101800 62440 Other‐Special Dept Expenditure 131,140 98,648 98,648 100%1101800 63480 Srvcs‐Animal Control Services 301,690 424,334 318,249 75%1101800 60440 Contract Srvcs‐Legal                                          ‐ ‐ 390 01102100 51020 Salary & Wages 474,800 483,400 305,112 63%1102100 51022 Salary & Wages (EOC)                                          ‐ ‐ 326 01102100 51040 Overtime 150                                       ‐ 90 0%1102100 51042 Overtime (EOC)                                          ‐ ‐ 22 01102100 51044 FLSA Overtime ‐                                     ‐ 100 0%1102100 51110 Leave‐Annual Buyoutave 22,100 22,100 414 2% 5/13/2025
15 742
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1102100 51140 Leave‐Holiday Buyout 400 400 399 100%1102100 52000 Allowance‐Auto 3,600 3,600 2,482 69%1102100 52200 Allowance‐Mobile CommunicationDevic 480 480 532 111%1102100 52400 Benefit‐ADD/ Life Insurance 1,295 1,295 695 54%1102100 52450 Benefit‐Worker's Compensation 3,657 3,724 2,207 59%1102100 52700 Benefit‐Deferred CompensationMatchin 4,100                                  ‐ 4,100 0%1102100 52701 Benefit‐Deferred Comp NTWD401aMatc 7,500 7,500 3,400 45%1102100 52800 Benefit‐Dental 4,704 4,704 1,982 42%1102100 53000 Benefit‐Short/Long Term Disability 2,693 2,693 1,408 52%1102100 53300 Benefit‐PERS Health 39,960 39,960 32,677 82%1102100 53400 Benefit‐PERS Retirement 44,100 48,700 31,367 64%1102100 53600 Benefit‐Vision 1,920 1,920 751 39%1102100 53700 Taxes‐FICA/Medicare Employer 6,890 7,010 4,449 63%1102100 53980 Vacancy Factor ‐                              ‐ (31,590) 0%1102100 60440 Contract Srvcs‐Legal ‐ 2,000 551 28%1102100 60480 Contract Srvcs‐Other ‐ 17,503 8,592 49%1102100 62440 Other‐Special Dept Expenditure 2,000 2,000 525 26%1102100 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 1,839 01102100 63880 Subscription‐Membership, Dues, & Publ 940                                         ‐ 200 01102100 64080 Supplies‐Office 2,000 2,000 19 1%1102100 64360 Training & Development 12,200 12,000 9,568 80%1102100 64640 Utilities‐Telephone 600                                         ‐                                      ‐ 01102100 69100 Srvcs‐Information Technology 25,960 25,960 19,470 75%1102100 69200 Liab & Property Ins Charges 53,260 53,260 39,945 75%1102200 51020 Salary & Wages 587,000 500,000 363,599 73%1102200 51022 Salary & Wages (EOC)                                          ‐ ‐ 474 01102200 51040 Overtime 140 189 283 150%1102200 51042 Overtime (EOC)                                          ‐ ‐ 86 01102200 51044 FLSA Overtime                                          ‐ ‐ 139 01102200 51110 Leave‐Annual Buyoutave 7,200 7,200 12,900 179%1102200 52200 Allowance‐Mobile CommunicationDevic 480 480 331 69%1102200 52400 Benefit‐ADD/ Life Insurance 2,100 1,828 876 48%1102200 52450 Benefit‐Worker's Compensation 4,521 3,852 2,640 69% 5/13/2025
16 743
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1102200 52700 Benefit‐Deferred CompensationMatchin 8,000 8,000 5,743 72%1102200 52800 Benefit‐Dental 7,056 5,880 4,166 71%1102200 53000 Benefit‐Short/Long Term Disability 4,454 3,727 2,547 68%1102200 53100 Benefit‐Retiree Medicals 2,000 2,000 942 47%1102200 53300 Benefit‐PERS Health 116,040 94,710 63,353 67%1102200 53400 Benefit‐PERS Retirement 47,700 42,400 29,681 70%1102200 53600 Benefit‐Vision 2,880 2,400 1,581 66%1102200 53700 Taxes‐FICA/Medicare Employer 8,510 7,260 5,508 76%1102200 60020 Advertising 11,000 11,000 3,000 27%1102200 60440 Contract Srvcs‐Legal 300,000 240,000 316,433 132%1102200 60480 Contract Srvcs‐Other 31,480 101,978 58,245 57%1102200 62440 Other‐Special Dept Expenditure 40,450 40,450 11,766 29%1102200 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 6,755 01102200 62680 Postage 1,000 1,000 434 43%1102200 63640 Pre‐Employment Expenses 146,600 146,600 72,987 50%1102200 63760 Staff‐Recruitment Expense 15,500 15,500 5,798 37%1102200 63880 Subscription‐Membership, Dues, & Publ 13,490 7,475 4,746 63%1102200 64080 Supplies‐Office 4,000 4,000 2,215 55%1102200 64360 Training & Development 27,300 27,300 9,853 36%1102200 69100 Srvcs‐Information Technology 212,860 212,860 159,645 75%1102200 69200 Liab & Property Ins Charges 63,940 63,940 47,955 75%1102400 51020 Salary & Wages 661,500 626,800 390,533 62%1102400 51022 Salary & Wages (EOC)                                          ‐ ‐ 917 01102400 51040 Overtime 11,400 8,190 10,375 127%1102400 51042 Overtime (EOC)                                          ‐ ‐ 220 01102400 51044 FLSA Overtime ‐ 400 512 128%1102400 51100 Leave‐Administrative Buyout Leave 400                                     ‐ 400 0%1102400 51110 Leave‐Annual Buyoutave 17,900 17,900 18,029 101%1102400 51140 Leave‐Holiday Buyout 400                                     ‐ 400 0%1102400 52000 Allowance‐Auto                                          ‐ ‐ 2,482 01102400 52200 Allowance‐Mobile CommunicationDevic 480 480 1,205 251%1102400 52400 Benefit‐ADD/ Life Insurance 1,732 1,597 917 57%1102400 52450 Benefit‐Worker's Compensation 5,181 4,900 2,913 59% 5/13/2025
17 744
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1102400 52700 Benefit‐Deferred CompensationMatchin 8,100 8,100 3,860 48%1102400 52701 Benefit‐Deferred Comp NTWD401aMatc                                          ‐ ‐ 1,440 01102400 52800 Benefit‐Dental 8,232 7,056 4,166 59%1102400 53000 Benefit‐Short/Long Term Disability 4,577 4,108 2,513 61%1102400 53100 Benefit‐Retiree Medicals 2,000 2,000 942 47%1102400 53300 Benefit‐PERS Health 127,310 105,980 62,134 59%1102400 53400 Benefit‐PERS Retirement 62,100 61,600 29,656 48%1102400 53600 Benefit‐Vision 3,360 2,880 1,581 55%1102400 53700 Taxes‐FICA/Medicare Employer 9,760 9,230 6,140 67%1102400 60040 Advertising‐Legal 40,000 25,000 22,587 90%1102400 60440 Contract Srvcs‐Legal 13,000 40,000 264,222 661%1102400 60480 Contract Srvcs‐Other 16,800 28,500 29,895 105%1102400 60760 Equipment‐Computers < $5000                                          ‐ ‐                                      ‐ 01102400 60920 Equipment‐Software < $5000 81,948 81,948 65,749 80%1102400 62080 Maintenance‐Equipment 3,074                                  ‐ 3,074 0%1102400 62160 Maintenance‐Software Licenses ‐                                ‐ 10,000 0%1102400 62440 Other‐Special Dept Expenditure 12,200 12,200 5,348 44%1102400 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 1,909 01102400 62680 Postage 700 700 261 37%1102400 62720 Printing 700 700 82 12%1102400 63520 Srvcs‐Elections 120,000 120,000 2,914 2%1102400 63880 Subscription‐Membership, Dues, & Publ 3,545 3,845 2,436 63%1102400 64080 Supplies‐Office 2,500 2,500 171 7%1102400 64360 Training & Development 5,875 5,875 1,792 30%1102400 64640 Utilities‐Telephone                                          ‐ ‐ 320 01102400 69100 Srvcs‐Information Technology 273,330 273,330 204,998 75%1102400 69200 Liab & Property Ins Charges 71,250 71,250 53,438 75%1102600 51020 Salary & Wages 1,603,000 1,550,900 824,070 53%1102600 51022 Salary & Wages (EOC)                                          ‐ ‐ 464 01102600 51040 Overtime 14,700 12,330 (423) -3%1102600 51042 Overtime (EOC)                                          ‐ ‐ 197 01102600 51044 FLSA Overtime ‐ 1,000 667 67%1102600 51080 Part‐Time Salary (PARS) 20,810                                   ‐                                      ‐ 0 5/13/2025
18 745
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1102600 51100 Leave‐Administrative Buyout Leave 1,500 1,500 787 52%1102600 51110 Leave‐Annual Buyoutave 29,000 29,000 25,739 89%1102600 51120 Leave‐Compensated Absences/S                                          ‐ ‐ 837 01102600 51140 Leave‐Holiday Buyout 400                                     ‐ 400 0%1102600 52000 Allowance‐Auto 3,600 3,600 2,482 69%1102600 52200 Allowance‐Mobile CommunicationDevic 1,200 1,200 827 69%1102600 52400 Benefit‐ADD/ Life Insurance 4,486 4,052 1,851 46%1102600 52450 Benefit‐Worker's Compensation 12,612 12,055 5,940 49%1102600 52700 Benefit‐Deferred CompensationMatchin 20,700 20,700 13,888 67%1102600 52701 Benefit‐Deferred Comp NTWD401aMatc                                          ‐ ‐ 3,400 01102600 52702 Benefit‐Deferred Comp ICMA401aMatch 3,900                                  ‐ 3,900 0%1102600 52800 Benefit‐Dental 19,992 18,816 9,471 50%1102600 53000 Benefit‐Short/Long Term Disability 11,378 10,473 5,251 50%1102600 53100 Benefit‐Retiree Medicals 8,000 8,000 3,768 47%1102600 53300 Benefit‐PERS Health 294,700 281,950 162,500 58%1102600 53400 Benefit‐PERS Retirement 158,900 197,200 95,942 49%1102600 53500 Benefit‐Tuition Reimb. 1,400 1,400 3,500 250%1102600 53600 Benefit‐Vision 8,160 7,680 3,596 47%1102600 53700 Taxes‐FICA/Medicare Employer 23,750 22,690 12,458 55%1102600 53980 Vacancy Factor ‐                            ‐ (175,110) 0%1102600 60200 Contract Srvcs‐Audit 55,265 97,595 45,810 47%1102600 60320 Contract Srvcs‐Consultant ‐                                ‐ 10,000 0%1102600 60440 Contract Srvcs‐Legal 16,000 35,000 16,358 47%1102600 60480 Contract Srvcs‐Other 54,600 41,020 59,361 145%1102600 60520 Contract Srvcs‐Property Tax 98,000 98,000 61,711 63%1102600 60800 Equipment < $5000 3,700 3,000 451 15%1102600 60840 Equipment‐Furniture < $5000 15,000                                   ‐                                      ‐ 01102600 61000 Fees‐Bank Administration ‐ 20,900 21,916 105%1102600 61200 Fees‐Credit Card Merchant 74,000 25,000 2,380 10%1102600 61480 Fees‐Investment Admin Expense 50,100 49,100 31,726 65%1102600 62160 Maintenance‐Software Licenses 51,770 56,830 63,344 111%1102600 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 3,773 01102600 62680 Postage 9,179 9,179 8,826 96% 5/13/2025
19 746
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1102600 62720 Printing 6,325 5,725 3,080 54%1102600 63127 Program‐Bus Passes 300 300 855 285%1102600 63760 Staff‐Recruitment Expense 320 140 179 128%1102600 63880 Subscription‐Membership, Dues, & Publ 3,950 4,180 4,716 113%1102600 64080 Supplies‐Office 4,900 4,700 2,869 61%1102600 64280 Training‐Conference/Meeting 17,500 17,500 8,235 47%1102600 64360 Training & Development 3,580 2,280 1,594 70%1102600 64370 Travel‐Mileage 1,000 500 273 55%1102600 69100 Srvcs‐Information Technology 360,170 360,170 270,128 75%1102600 69200 Liab & Property Ins Charges 186,480 186,480 139,860 75%1102600 53800 Taxes‐Unemployment Insurance                                          ‐ ‐ 4,743 01103120 51020 Salary & Wages 386,600 406,100 284,428 70%1103120 51040 Overtime 720 720 988 137%1103120 51044 FLSA Overtime ‐ 1,100 201 18%1103120 51100 Leave‐Administrative Buyout Leave 400 400 1,434 359%1103120 51110 Leave‐Annual Buyoutave 41,400 41,400 114,028 275%1103120 51120 Leave‐Compensated Absences/S 6,700 6,700 102 2%1103120 52200 Allowance‐Mobile CommunicationDevic 1,200 1,200 827 69%1103120 52300 Allowance‐Uniform 1,850 1,850 1,276 69%1103120 52400 Benefit‐ADD/ Life Insurance 1,398 1,398 549 39%1103120 52450 Benefit‐Worker's Compensation 30,039 31,333 24,977 80%1103120 52700 Benefit‐Deferred CompensationMatchin 1,700 1,700 1,103 65%1103120 52701 Benefit‐Deferred Comp NTWD401aMatc 5,100 5,100 4,400 86%1103120 52800 Benefit‐Dental 2,352 2,352 1,561 66%1103120 53000 Benefit‐Short/Long Term Disability 1,745 1,745 1,051 60%1103120 53100 Benefit‐Retiree Medicals 4,000 4,000 1,884 47%1103120 53300 Benefit‐PERS Health 36,960 36,960 28,612 77%1103120 53400 Benefit‐PERS Retirement 133,300 227,450 175,622 77%1103120 53600 Benefit‐Vision 960 960 593 62%1103120 53700 Taxes‐FICA/Medicare Employer 5,620 6,020 5,902 98%1103120 60440 Contract Srvcs‐Legal 42,000 60,000 31,920 53%1103120 60480 Contract Srvcs‐Other 893,139 589,836 397,480 67%1103120 60880 Equipment‐Safety 55,700 52,974 38,871 73% 5/13/2025
20 747
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1103120 61200 Fees‐Credit Card Merchant ‐ 2,000 703 35%1103120 61440 Fees‐Filing 1,400 1,400 2,258 161%1103120 61960 Maintenance‐General Maint/Repa 13,000 13,000 784 6%1103120 62000 Maintenance‐Building 244,000 194,000 98,319 51%1103120 62120 Maintenance‐Radio Equipment                                          ‐ ‐ 3,815 01103120 62160 Maintenance‐Software Licenses 42,000 42,000 45,946 109%1103120 62200 Maintenance‐Vehicle 352,200 494,693 246,833 50%1103120 62220 Vehicle Fuel 430,000 430,000 282,672 66%1103120 62440 Other‐Special Dept Expenditure 33,250 39,250 32,416 83%1103120 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 534 01103120 62680 Postage 10,000 10,000 7,406 74%1103120 62720 Printing 22,500 22,500 11,013 49%1103120 62800 Prior Period Expense                                          ‐ ‐ 8,969 01103120 63040 Program‐Dare 25,000                                ‐ 25,000 0%1103120 63060 Program‐Citizens AcademyAcademy 5,500 5,500 1,409 26%1103120 63065 Program‐ExplorerExplorer 12,000 12,000 9,893 82%1103120 63160 Program‐Police Athletic League 1,000 1,000 407 41%1103120 63440 Program‐Youth Court 4,000 4,000 852 21%1103120 63800 Staff‐Uniform Expense 19,500 19,500 15,258 78%1103120 63880 Subscription‐Membership, Dues, & Publ 22,320 22,320 17,561 79%1103120 64040 Supplies‐Maintenance 15,000 15,000 12,599 84%1103120 64080 Supplies‐Office 40,900 30,900 17,904 58%1103120 64200 Supplies‐Safety 176,800 121,820 78,671 65%1103120 64280 Training‐Conference/Meeting 1,500 1,500 327 22%1103120 64360 Training & Development                                          ‐ ‐                                      ‐ 01103120 64480 Utilities‐Communications 13,200 13,200 9,121 69%1103120 64520 Utilities‐Electric 140,000 140,000 85,989 61%1103120 64600 Utilities‐Natural Gas 10,000 10,000 2,200 22%1103120 64640 Utilities‐Telephone 116,000 116,000 110,872 96%1103120 64660 Utilities‐Water 16,000                                ‐ 16,000 0%1103120 69100 Srvcs‐Information Technology 444,160 444,160 333,120 75%1103120 69200 Liab & Property Ins Charges 432,800 432,800 324,600 75%1103120 71030 Machinery & Equipment 80,278 470,666 290,388 62% 5/13/2025
21 748
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1103120 71060 Vehicles 1,000,000 1,569,787 786,057 50%1103130 51020 Salary & Wages 2,604,750 2,688,650 1,739,507 65%1103130 51040 Overtime 537,900 437,490 271,801 62%1103130 51044 FLSA Overtime ‐ 100,700 62,200 62%1103130 51060 Part‐Time Salary (PERS)                                          ‐ ‐ 129,350 01103130 51080 Part‐Time Salary (PARS) 73,240                             ‐ 177,410 0%1103130 51110 Leave‐Annual Buyoutave 97,300 97,300 8,319 9%1103130 51120 Leave‐Compensated Absences/S 7,400 7,400 3,626 49%1103130 51140 Leave‐Holiday Buyout 50,500 50,500 37,574 74%1103130 51200 POST/Educational Certificate Pay                                          ‐ ‐ 9,219 01103130 52300 Allowance‐Uniform 20,600 22,400 7,939 35%1103130 52400 Benefit‐ADD/ Life Insurance 5,320 5,320 2,791 52%1103130 52450 Benefit‐Worker's Compensation 24,741 26,769 16,111 60%1103130 52700 Benefit‐Deferred CompensationMatchin 52,400 52,400 41,753 80%1103130 52800 Benefit‐Dental 36,456 36,456 22,926 63%1103130 53000 Benefit‐Short/Long Term Disability 21,108 21,108 12,567 60%1103130 53100 Benefit‐Retiree Medicals 2,000 2,000 1,884 94%1103130 53300 Benefit‐PERS Health 492,470 492,470 348,949 71%1103130 53400 Benefit‐PERS Retirement 346,900 583,600 404,200 69%1103130 53500 Benefit‐Tuition Reimb. 7,000 7,000 7,379 105%1103130 53600 Benefit‐Vision 14,880 14,880 8,694 58%1103130 53700 Taxes‐FICA/Medicare Employer 46,620 50,090 33,341 67%1103130 53980 Vacancy Factor ‐                            ‐ (700,000) 0%1103130 60480 Contract Srvcs‐Other 7,000 12,071 10,854 90%1103130 60800 Equipment < $5000 15,000 5,000 5,645 113%1103130 62080 Maintenance‐Equipment 500 500 1,439 288%1103130 62120 Maintenance‐Radio Equipment 45,000 5,000 125 3%1103130 62160 Maintenance‐Software Licenses 198,479 114,127 73,116 64%1103130 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 4,756 01103130 63800 Staff‐Uniform Expense                                          ‐ ‐ 84 01103130 63880 Subscription‐Membership, Dues, & Publ 2,639 2,639 2,309 88%1103130 64080 Supplies‐Office 2,000 2,000 2,297 115%1103130 64280 Training‐Conference/Meeting 1,000 1,000 2,210 221% 5/13/2025
22 749
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1103130 64320 Training‐POST 10,000 10,000 8,070 81%1103130 64360 Training & Development 28,415 18,415 12,997 71%1103130 64480 Utilities‐Communications 47,301 94,969 60,669 64%1103130 64640 Utilities‐Telephone 11,000 11,000 4,881 44%1103130 69100 Srvcs‐Information Technology 87,820 87,820 65,865 75%1103130 71030 Machinery & Equipment 3,348                                  ‐ 3,348 0%1103130 63400 Program‐Undercover/Investigati                                          ‐ ‐                                      ‐ 01103160 51020 Salary & Wages 8,064,802 8,937,612 5,688,959 64%1103160 51022 Salary & Wages (EOC)                                          ‐ ‐ 154 01103160 51040 Overtime 1,775,543 1,609,284 1,236,103 77%1103160 51044 FLSA Overtime ‐ 125,400 85,011 68%1103160 51060 Part‐Time Salary (PERS) 18,390                                ‐ 19,940 0%1103160 51080 Part‐Time Salary (PARS)                                          ‐ ‐ 2,840 01103160 51100 Leave‐Administrative Buyout Leave 9,500                                  ‐ 9,500 0%1103160 51110 Leave‐Annual Buyoutave 98,300 98,300 62,206 63%1103160 51120 Leave‐Compensated Absences/S 117,900 117,900 82,343 70%1103160 51140 Leave‐Holiday Buyout 479,200 479,200 262,781 55%1103160 51170 Leave‐Personal BuyoutBuyout 6,000                                  ‐ 6,000 0%1103160 51200 POST/Educational Certificate Pay 361,757 353,957 26,280 7%1103160 52100 Allowance‐Safety                                          ‐ ‐ 4,376 01103160 52300 Allowance‐Uniform 108,902 107,102 66,302 62%1103160 52400 Benefit‐ADD/ Life Insurance 6,094 6,039 3,172 53%1103160 52450 Benefit‐Worker's Compensation 933,603 1,031,964 734,508 71%1103160 52700 Benefit‐Deferred CompensationMatchin 121,300 121,300 113,739 94%1103160 52800 Benefit‐Dental 75,723 74,547 48,418 65%1103160 53000 Benefit‐Short/Long Term Disability 19,241 19,007 11,513 61%1103160 53100 Benefit‐Retiree Medicals 20,000 20,000 10,362 52%1103160 53200 Benefit‐PARS Retirement                                          ‐ ‐ 37 01103160 53300 Benefit‐PERS Health 1,364,429 1,340,909 876,842 65%1103160 53400 Benefit‐PERS Retirement 2,007,840 3,156,782 1,802,132 57%1103160 53500 Benefit‐Tuition Reimb. 9,100 9,100 (350) -4%1103160 53600 Benefit‐Vision 30,907 30,427 18,178 60%1103160 53700 Taxes‐FICA/Medicare Employer 143,015 157,651 104,621 66% 5/13/2025
23 750
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1103160 53950 Recovered Costs‐Benefit Allocfit Allocati                                          ‐ ‐ (6,495) 01103160 60880 Equipment‐Safety                                          ‐ ‐                                      ‐ 01103160 61960 Maintenance‐General Maint/Repa 2,500 2,500 5,729 229%1103160 62160 Maintenance‐Software Licenses 140 140 14,549 10392%1103160 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 54,043 01103160 62800 Prior Period Expense                                          ‐ ‐ 187 01103160 63050 Program‐SWAT 39,000 35,000 22,458 64%1103160 63880 Subscription‐Membership, Dues, & Publ 210                                     ‐ 210 0%1103160 63960 Supplies‐K‐9 32,500 28,500 11,965 42%1103160 64280 Training‐Conference/Meeting                                          ‐ ‐                                      ‐ 01103160 64360 Training & Development                                          ‐ ‐                                      ‐ 01103160 69100 Srvcs‐Information Technology 356,180 356,180 267,135 75%1103160 69200 Liab & Property Ins Charges 1,240,240 1,240,240 930,180 75%1103160 71030 Machinery & Equipment 13,000                                ‐ 13,000 0%1103180 51020 Salary & Wages 5,972,250 6,889,550 4,549,942 66%1103180 51040 Overtime 776,730 732,096 687,997 94%1103180 51044 FLSA Overtime ‐ 70,600 44,649 63%1103180 51080 Part‐Time Salary (PARS) 28,368                                ‐ 29,510 0%1103180 51100 Leave‐Administrative Buyout Leave 18,900 18,900 1,111 6%1103180 51110 Leave‐Annual Buyoutave 266,600 266,600 74,180 28%1103180 51120 Leave‐Compensated Absences/S 50,200 50,200 31,804 63%1103180 51140 Leave‐Holiday Buyout 291,000 291,000 143,729 49%1103180 51170 Leave‐Personal BuyoutBuyout 30,600                                ‐ 30,600 0%1103180 51200 POST/Educational Certificate Pay 244,880 252,680 33,000 13%1103180 52100 Allowance‐Safety                                          ‐ ‐ 2,550 01103180 52200 Allowance‐Mobile CommunicationDevic 1,440 1,440 1,324 92%1103180 52300 Allowance‐Uniform 62,600 66,200 41,635 63%1103180 52400 Benefit‐ADD/ Life Insurance 6,811 6,866 3,945 57%1103180 52450 Benefit‐Worker's Compensation 524,004 620,670 496,210 80%1103180 52700 Benefit‐Deferred CompensationMatchin 110,000 110,000 96,104 87%1103180 52800 Benefit‐Dental 59,976 62,328 41,669 67%1103180 53000 Benefit‐Short/Long Term Disability 20,254 20,488 13,986 68%1103180 53100 Benefit‐Retiree Medicals 29,000 29,000 16,171 56% 5/13/2025
24 751
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1103180 53200 Benefit‐PARS Retirement 369                                     ‐ 384 0%1103180 53300 Benefit‐PERS Health 1,017,870 1,041,390 719,875 69%1103180 53400 Benefit‐PERS Retirement 1,611,200 2,746,950 1,982,516 72%1103180 53500 Benefit‐Tuition Reimb. 20,100 20,100 9,915 49%1103180 53600 Benefit‐Vision 24,480 25,440 15,812 62%1103180 53700 Taxes‐FICA/Medicare Employer 98,290 113,110 82,207 73%1103180 60480 Contract Srvcs‐Other 86,410 86,410 26,681 31%1103180 60760 Equipment‐Computers < $5000 5,000                                  ‐ 5,000 0%1103180 60800 Equipment < $5000 8,000 8,000 5,786 72%1103180 60880 Equipment‐Safety 5,000 5,000 7,082 142%1103180 61560 Other Interest Expense 2,400 2,400 581 24%1103180 62080 Maintenance‐Equipment 500                                     ‐ 500 0%1103180 62160 Maintenance‐Software Licenses 30,402 35,914 28,101 78%1103180 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 70,818 01103180 62800 Prior Period Expense                                          ‐ ‐ 721 01103180 63400 Program‐Undercover/Investigative Expe 34,000 34,000 8,898 26%1103180 63520 Srvcs‐Elections                                          ‐ ‐                                      ‐ 01103180 63800 Staff‐Uniform Expense                                          ‐ ‐                                      ‐ 01103180 63880 Subscription‐Membership, Dues, & Publ 7,314 12,514 15,638 125%1103180 64080 Supplies‐Office 5,000 5,000 6,681 134%1103180 64200 Supplies‐Safety 13,803 13,803 5,938 43%1103180 64280 Training‐Conference/Meeting                                          ‐ ‐                                      ‐ 01103180 64320 Training‐POST 174,212 166,202 123,161 74%1103180 64360 Training & Development 183,140 183,140 164,903 90%1103180 64480 Utilities‐Communications 77,544 14,875 9,676 65%1103180 69100 Srvcs‐Information Technology 369,660 369,660 277,245 75%1103180 69200 Liab & Property Ins Charges 1,102,400 1,102,400 826,800 75%1104100 51020 Salary & Wages 546,600 546,600 357,196 65%1104100 51022 Salary & Wages (EOC)                                          ‐ ‐ 357 01104100 51100 Leave‐Administrative Buyout Leave 600                                     ‐ 600 0%1104100 51110 Leave‐Annual Buyoutave 17,000 17,000 15,270 90%1104100 52000 Allowance‐Auto 3,600 3,600 2,482 69%1104100 52200 Allowance‐Mobile CommunicationDevic 1,200 1,200 827 69% 5/13/2025
25 752
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action

KEY ACCOUNT DESCRIPTION
2024/25

ADOPTED BUDGET
2024/25

AMENDED BUDGET

YTD THRU
3/31/2025 % USED
1104100 52400 Benefit‐ADD/ Life Insurance 1,979 1,979 875 44%1104100 52450 Benefit‐Worker's Compensation 4,209 4,347 2,594 60%1104100 52700 Benefit‐Deferred CompensationMatchin 6,000 6,000 5,889 98%1104100 52701 Benefit‐Deferred Comp NTWD401aMatc                                          ‐ ‐ 1,862 01104100 52702 Benefit‐Deferred Comp ICMA401aMatch 4,600                                  ‐ 4,600 0%1104100 52800 Benefit‐Dental 4,704 4,704 2,815 60%1104100 53000 Benefit‐Short/Long Term Disability 3,457 3,457 1,951 56%1104100 53300 Benefit‐PERS Health 72,060 72,060 50,958 71%1104100 53400 Benefit‐PERS Retirement 43,800 47,000 25,825 55%1104100 53600 Benefit‐Vision 1,920 1,920 1,067 56%1104100 53700 Taxes‐FICA/Medicare Employer 7,940 8,180 5,426 66%1104100 60020 Advertising 15,000 10,000 11,174 112%1104100 60440 Contract Srvcs‐Legal 19,000 19,000 20,305 107%1104100 60480 Contract Srvcs‐Other 30,000 30,000 15,000 50%1104100 62170 Maintenance‐MIC 5,000 5,000 300 6%1104100 62200 Maintenance‐Vehicle 2,000                                  ‐ 2,000 0%1104100 62440 Other‐Special Dept Expenditure 500 3,500 880 25%1104100 62520 Other‐Suspense‐Expenses                                          ‐ ‐ 18,036 01104100 62680 Postage 1,000 500 235 47%1104100 62720 Printing 10,000 500 330 66%1104100 62976 Program‐ ICSC 40,000 40,000 13,103 33%1104100 62977 Program‐Innovation CenterCenter 22,500                                ‐ 22,500 0%1104100 62978 Program‐Shop Local ProgramCenter 50,000 40,000 15,424 39%1104100 62979 Program‐Data AnalysisCenter 20,000 17,500 4,000 23%1104100 63120 Program‐Marketing 60,000 43,000 27,360 64%1104100 63121 Program‐MIC Marketing 20,000 20,000 6,718 34%1104100 63880 Subscription‐Membership, Dues, & Publ 49,560 47,500 28,133 59%1104100 63881 Subscription‐MIC MembershpDues& Pu 8,500 8,500 3,656 43%1104100 63921 Supplies‐MIC 1,500                                  ‐ 1,500 0%1104100 64080 Supplies‐Office 1,500 1,500 323 22%1104100 64280 Training‐Conference/Meeting                                          ‐ ‐ 1,243 01104100 64440 Travel‐Official Meetings 2,000 2,000 17 1%1104100 69100 Srvcs‐Information Technology 38,050 38,050 28,537 75% 5/13/2025
26 753
Fiscal Year 2024/25 Third Quarter Update ‐ June 3, 2025 Council Action