Special Joint Meeting of the City Council and JCSD Board of Directors

# MINUTES CITY OF EASTVALE

## 1\. CALL TO ORDER

## 2\. ROLL CALL

## City Staff

## 3\. PLEDGE OF ALLEGIANCE

## 4\. PUBLIC COMMENT

* * *

## 5\. CITY COUNCIL/BOARD OF DIRECTOR BUSINESS

## 5.1 Update Regarding Transfer of Frontages Maintenance from JCSD to City of Eastvale (City of Eastvale and JCSD)

General Manager Berch and Interim City Manager Garcia reported on the status of the transfer agreement, and the work accomplished to date by both agencies.

City Attorney Vega elaborated on the parachute clause and explained the need for both agency staffs to receive direction on the matter by both governing bodies.

Both governing bodies had various comments, concerns, and questions regarding the parachute clause of the subject agreement.

Legal Counsels Riddell and Byrens, as well as City Attorney Vega provided responses to questions and comments accordingly.

After significant discussion and dialogue, both governing bodies agreed to hear the matter further in their respective closed sessions and provide staff with direction thereafter. Accordingly, staff from both agencies would coordinate a date and time for the next joint meeting.

## 5.2 Leal Property Development Update (City of Eastvale)

Interim City Manager Garcia announced that this item would be pulled from tonight’s agenda.

## 5.3 Volunteer Programs (City of Eastvale)

Community Safety Director Terfehr provided an informational PowerPoint presentation on volunteer opportunities within the City of Eastvale.

## 5.4 Upcoming Events (City of Eastvale and JCSD)

Parks Director Lawson provided an oral report on upcoming JCSD events.

City Clerk/Communications Director Donohue provided an information PowerPoint presentation on upcoming Eastvale events.

## 5.5 Drought Update (JCSD)

Community Affairs Supervisor Tarzi provided a PowerPoint Drought presentation regarding ongoing drought conditions, and local and state regulations.

Supervisor Tarzi responded to questions regarding state regulations concerning water use, water storage, and water conservation rebates.

Eastvale City Council Special Joint Meeting Minutes September 22, 2022 Page - 2

* * *

## 5.6 Opportunities for Future Collaboration and Partnerships

Mayor Lorimore inquired about establishing the date and time for the next Joint Meeting, at which time both agencies agreed that both agency staffs could coordinate a date and time once both agencies have direction on the subject agreement matter.

Councilmember Rigby proposed that the following topics be considered for future discussion: Parks Operations Budget and ECP Phase II.

ADJOURNMENT – JCSD Board President McLaughlin adjourned the regular meeting at 7:38 p.m. The next regular meeting of the Eastvale City Council is scheduled for Wednesday, September 28, 2022, 2022, at 6:30 p.m. The next regular meeting of the JCSD Board of Directors is scheduled for Monday, September 26, 2022, at 6:00 p.m.

Marc A. Donohue, MMC City Clerk/Communications Director

Eastvale City Council Special Joint Meeting Minutes September 22, 2022 Page - 3

SPECIAL JOINT MEETING OF THE EASTVALE CITY COUNCIL AND THE JURUPA COMMUNITY SERVICES DISTRICT BOARD OF DIRECTORS Eastvale Community Center 13820 Schleisman Road, Eastvale, CA 92880 Thursday, September 22, 2022 6:00 P.M. City Councilmembers JCSD Board of Directors Clint Lorimore, Mayor Kenneth J. McLaughlin, President Todd Rigby, Mayor Pro Tem Jane F. Anderson, Vice President Christian Dinco, Councilmember Lupe R. Nava, Director Brandon Plott, Councilmember Bart Moreno, Director Jocelyn Yow, Councilmember Betty Folsom, Director 1. CALL TO ORDER 2. ROLL CALL 3. PLEDGE OF ALLEGIANCE 4. PUBLIC COMMENT This Agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action or direction shall be taken on any item not appearing on the following Agenda. Unless legally privileged, all supporting documents, including staff reports, and any writings or documents provided to a majority of the City Council after the posting of this agenda are available for review at Eastvale City Hall, 12363 Limonite Avenue, Eastvale, CA 91752 or you may contact the City Clerk’s Office, at (951) 361-0900 Monday through Thursday from 7:30 a.m. to 5:30 p.m. and available online at www.eastvaleca.gov. If you wish to speak before the City Council/Board of Directors, please complete a Speaker Form identifying which item(s) you wish to address. Please return the completed form to the City Clerk prior to being heard before the Council. Speakers Forms are available at the front table of the entryway to the Community Center In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the City Clerk’s Office at (951) 361-0900. Regular meetings are recorded and made available on the City’s website at www.eastvaleca.gov. Meeting recordings are uploaded to the City’s website within 24 hours (unless otherwise noted) after the completion of the meeting. Any member of the public may address the Council/Board of Directors on items within the Council’s/Board of Directors’ subject matter jurisdiction, but which are not listed on this agenda during PUBLIC COMMENTS. However, no action may be taken on matters that are not part of the posted agenda. We request comments made on the agenda be made at the time the item is considered and that comments be limited to three minutes per person with a maximum of six minutes (time may be donated by one person). Please address your comments to the Council/Board of Directors and do not engaged in dialogue with individual Councilmembers/Directors, staff, or members of the audience. Blue speaker forms are available at the front table to the entrance of meeting location.

Agenda of the September 22, 2022 Joint Board Special Meeting Page 2 5. CITY COUNCIL/BOARD OF DIRECTOR BUSINESS 5.1 Update Regarding Transfer of Frontages Maintenance from JCSD to City of Eastvale (City of Eastvale and JCSD) 5.2 Leal Property Development Update (City of Eastvale) 5.3 Volunteer Programs (City of Eastvale) 5.4 Upcoming Events (City of Eastvale and JCSD) 5.5 Drought Update (JCSD) 5.6 Opportunities for Future Collaboration and Partnerships ADJOURNMENT – The next regular meeting of the Eastvale City Council is scheduled for Wednesday, September 28, 2022, at 6:30 p.m. at Eastvale City Hall Council Chambers, 12363 Limonite Avenue, Suite 900, Eastvale, CA 91752. The next regular meeting of the Jurupa Community Services District Board of Directors is scheduled for Monday, September 26, 2022, at 6:00 p.m. in the JCSD Board Room, 11201 Harrel Street, Jurupa Valley, CA 91752. AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing Agenda was posted at the following locations: City Hall, 12363 Limonite Avenue, Suite 910 and website of the City of Eastvale (www.eastvaleca.gov,) not less than 24 hours prior to the meeting. Dated this September 15, 2022. Marc A. Donohue, MMC City Clerk/Communications Director AFFIDAVIT OF POSTING I, Maria E. Ayala, Board Secretary to the Jurupa Community Services District, certify under penalty of perjury under the laws of the State of California that a copy of this agenda has been posted no less than 24 hours prior to the meeting at the District’s main office located at 11201 Harrel Street, Jurupa Valley, and at the Eastvale Community Center located at 13820 Schleisman Road, Eastvale. Dated this September 15, 2022. Maria E. Ayala Secretary to the Board of Directors

12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 | eastvaleca.gov AGENDA STAFF REPORT Joint Meeting of the Eastvale City Council and JCSD Board of Directors Agenda Item No. 5.1 September 22, 2022 Transfer of Frontage Landscape Maintenance Responsibility Prepared By: Erica Vega, City Attorney Recommended Action(s) It is recommended that the Eastvale City Council and JCSD Board of Directors discuss and provide staff and legal counsel with direction on whether the proposed Agreement for the Transfer of Frontage Landscape Maintenance Responsibility should include provisions outlining the conditions under which JCSD would resume frontage landscape maintenance responsibilities. Summary The City is requesting that the Agreement include a commitment by JCSD to resume frontage landscape maintenance if the Agreement is invalidated or JCSD is otherwise unable to transfer to the City the CFD special tax revenues it levies and collects for the purposes of funding frontage landscape maintenance. Background City and JCSD staff, and their respective legal counsels, have been negotiating the terms of a proposed Agreement to facilitate the transfer of responsibility for the maintenance of frontage landscaping from JCSD to the City. The draft Agreement requires JCSD to continue to levy the CFD special taxes that currently fund frontage landscape maintenance, which total approximately $3 million annually, and transfer those revenues to the City. The City will utilize those funds to perform frontage landscape maintenance. During these discussions, the City raised a concern regarding what would happen if the Agreement is invalidated or due to other unforeseen circumstances JCSD is unable to transfer the CFD special tax revenues to the City as contemplated. The City requested that a provision be added to the Agreement to address this possibility. While the possibility of such circumstances arising may be small, the impact to the City’s General Fund would be significant if the City is required to continue to maintain the frontage landscaping without receiving any special tax revenues from JCSD to fund this work. JCSD staff have objected to including a provision of this nature in the proposed Agreement. Given the impasse, both City and JCSD staff agree that policy direction from the City Council and Board of Directors is needed for discussions regarding the Agreement to move forward. Environmental

12363 Limonite Avenue | Suite 910 | Eastvale, CA 91752 951.361.0900 | eastvaleca.gov Not applicable. Strategic Plan Action - Priority Level: 3 | Target #: 3 | Goal #: 6 Ensure that City revenues align with expenditures (Priority Level #3, Target #3, Goal #6) Fiscal Impact There is no impact on the General Fund at this time. The fiscal impact of the proposed Agreement on the City’s General Fund will vary depending on the direction received from the City Council and Board of Directors. Attachment(s) Draft Agreement

03586.00000\35033693.2 1 AGREEMENT BETWEEN CITY OF EASTVALE AND JURUPA COMMUNITY SERVICES DISTRICT FOR TRANSFER OF LANDSCAPE MAINTENANCE RESPONSIBILITIES WITHIN CITY STREET FRONTAGES AND MEDIANS This agreement (“Agreement”) is executed by and between the City of Eastvale, California, a California general law city (“City”), and Jurupa Community Services District, a local governmental entity (“District” and together with the City, the “Parties”), as follows: RECITALS A. Prior to incorporation of the City, the District entered into agreements with the County of Riverside, California (“County”) pursuant to the Joint Exercise of Powers Act (Government Code sections 6500 et seq.) dated as of July 1, 2000, March 16, 2004, November 21, 2006, and July 1, 2008 (“County Agreements”) to serve as the County’s agent for the maintenance of landscaping within street frontages and medians then owned by the County, and now owned by the City, as successor in interest to the County, utilizing revenues derived from the levy of special taxes within Community Facilities Districts (“CFDs”) formed by the District pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Government Code Section 53311, et seq.(the “Act”) for the purpose of funding the acquisition, improvement, operation and maintenance of District parks and park facilities within the City of Eastvale, and also the maintenance of landscaping within street frontages and medians that are the subjects of the County Agreements. B. Since its incorporation as a city, by which the City became the County’s successor in interest under the County Agreements, the District has continued to serve as the City’s agent responsible for maintaining landscaping within those street frontages and medians that are the subjects of the County Agreements. District has also maintained landscaping within street frontages and medians within the City of Eastvale in the City that are not the subject of the County Agreements. The street frontages and medians where the District has maintained landscaping within the City are identified on Exhibit “A,” attached hereto and incorporated herein (“City Landscape”). C. In accordance with Sections 53313 and 53316.2 of the Act, a community facilities district may finance services within an area and on facilities to be owned and operated by a public agency other than the agency that created the community facilities district, subject to the approval of a joint community facilities agreement or joint exercise of powers agreement between the Parties. The Parties have entered into various joint community facilities agreements for the CFDs that are not the subject of the County Agreements. The County Agreements are joint exercise of powers agreements adopted pursuant to Section 53316.2 of the Act. It is the intention of the Parties that this Agreement shall constitute a “joint community facilities agreement” within the meaning of Section 53316.2(a) of the Act by and between the City and the District. D. The County Agreements provide that upon termination thereof, the District’s Board of Directors, as the legislative body of each affected CFD, will continue to levy special taxes within each such CFD and deliver a proportional share of the annual special tax revenues derived from

03586.00000\35033693.2 2 special tax levies within that CFD to the City, as successor in interest to the County, for the City’s use in performing landscape maintenance itself within those street frontages and medians, with the understanding that the City may elect to augment that revenue from the City’s own funding sources. E. The City and the District wish to terminate the agency relationship between them by which the District has been maintaining the City Landscape on behalf of the City, such that the City itself will undertake such landscape maintenance responsibility utilizing a share of the revenues derived from the levy of special taxes within the District’s CFDs for that purpose. TERMS 1. Recitals. The above recitals are true and correct, are incorporated herein and form a part of this Agreement. 2. Termination of County Agreements; Maintenance of City Landscape. The County Agreements shall terminate at the end of the day on ______________, 2022. Commencing ___________, 2022, the District shall no longer act as the City’s agent for the maintenance of City Landscape and City shall assume all such responsibility. By entering into this Agreement, District waives its rights under Section 3 of the County Agreements to written notice ninety (90) days in advance of the date by which the City, as the successor in interest to the County, will assume responsibility for maintenance for the City Landscape. 3. Delivery of Annual CFD Special Tax Revenues. The CFDs formed by the District for purposes which include the levy of special taxes to fund the cost of maintenance of City Landscape are identified on Exhibit “B,” attached hereto and incorporated herein (“Landscape CFDs”). District shall continue to levy and collect special taxes on parcels of taxable property in the Landscape CFDs to pay the annual costs of the operation and maintenance of the District’s public parks and park facilities within its corporate boundaries and provide funds to City to pay the costs of maintenance of the City Landscape payable from the Landscape CFDs in each year (“City Maintenance Special Taxes”). Not later than May 15 of each year, the District shall provide the City with a proposed amount to be levied in each Landscape CFD for City Maintenance Special Taxes, which shall include an administrative charge of the District for the calculation and distribution of the City Maintenance Special Taxes, based upon the schedule shown in Exhibit “C,” attached hereto. Exhibit “C” also shows the formula which the parties agree will be used to calculate the City Maintenance Special Taxes and District administrative charge related thereto. The amount of special taxes calculated in each year may increase according to the rate and method of apportionment of the special taxes for each respective Landscape CFD and the Act. City agrees that each year the District’s governing body shall provide for the levy of the maximum amount of special taxes permitted by the special tax formula approved by the voters for each of the identified Landscape CFDs. City acknowledges and agrees that the District shall have the final determination as to the total amount of the levy for the Landscape CFDs for all purposes of the special taxes. If, for any reason, there is a reduction of the total amount of the levy, the portion attributable to the City Maintenance Special Taxes shall not be reduced disproportionately to the other components of the special tax levy. City acknowledges and agrees that an annual District Administrative Charge, as defined in Exhibit C, will be paid to the District to reimburse JCSD for

03586.00000\35033693.2 3 all costs incurred for assessment, processing and management of the Landscape CFDs. The District shall transmit to the City by June 30 of each year, the City Maintenance Special Taxes which have been collected by the County and distributed to the District net of the District Administrative Charge. The delivery of funds by the District to the City shall be by wire or electronic transfer into the account directed by the City, in writing. 4. City’s Expenditures of Landscape CFDs Special Tax Revenues. The City covenants and agrees that the special tax revenues generated within the Landscape CFDs shall be expended by the City only for the purpose of maintaining landscaping located within the City Landscape for which such special tax levies have been authorized by the voters of the Landscape CFDs. The City agrees to indemnify and defend the District from and against any claims by taxpayers within the Landscape CFDs, or others, that City Maintenance Special Taxes have not been expended by the City on or after the effective date of this Agreement for the purpose for which such taxes have been levied within the Landscape CFDs. 5. Assignment of Landscape Maintenance Contracts. The District has executed certain agreements (“Landscape Maintenance Contracts”) with landscape maintenance contractors, identified as Exhibits “D-1” through “D-__” attached hereto and incorporated herein. Effective ___________, 2022, this Agreement shall constitute a partial assignment of each of the Landscape Maintenance Contracts by the District to the City, to the extent that such Landscape Maintenance Contracts are for work to be performed within the City Landscape, and the City hereby agrees to accept such assignments without execution of further documents to effect such assignments. On and after _____________, 2022, the City shall assume all of the District’s rights and obligations with respect to each of the Landscape Maintenance Contracts to the extent that such Landscape Maintenance Contracts are for work to be performed within the City Landscape, and shall perform the obligations undertaken by the District in each, and shall receive the benefits of performance by each of the contractors engaged to perform landscape maintenance services under each such contract. No later than ____________, 2022, the District shall provide the City with written acceptance of the assignments from all contractors that have executed the Landscape Maintenance Contracts. 6. Release and Indemnification. (a) Street Frontage. On and after ______________, 2022, the City agrees to release the District from any further responsibility to maintain landscaping within the City Landscape. The District’s sole obligation will be to continue to levy and collect special taxes within the Landscape CFDs, and to deliver to the City the City Maintenance Special Taxes collected by District as provided in Section 3 of this Agreement. The City agrees to accept the City Landscape in “as is condition” on _______, 2022, and to be responsible for the condition of the landscaping on and after that date. Notwithstanding the foregoing, District agrees to transfer to the City all unexpended money which the District has appropriated for capital improvements to the City Landscape as of ____________, 2022. (b) Special Taxes. The City acknowledges and agrees that the levy of special taxes within the Landscape CFDs is governed by the respective rate and method of apportionment of the special tax and is subject to the limitations of the Constitution and laws of the State of California. The District makes no representation or warranty as to its ability to levy the City Maintenance

03586.00000\35033693.2 4 Special Taxes or the duration of such levy. By its execution of this Agreement and the acceptance of the funds to be delivered by the District to the City hereunder, City agrees that it will not challenge the levy of special taxes and the allocation to expenditures thereof, for any fiscal year prior to the date of this Agreement. 7. Dispute Resolution. The City and the District agree to exercise best efforts to resolve any differences arising from this Agreement amicably, and to cooperate with each other in the transition of City Landscape maintenance responsibilities as provided in this Agreement. In the event of a dispute arising from the interpretation or implementation of this Agreement, either party may give written notice of such dispute or disagreement to the other party. No later than 21 days thereafter the Parties shall meet and attempt to resolve the disagreement or dispute in good faith. If such effort fails, the Parties agree to equally share the expense of a mutually acceptable mediator to help reach an amicable resolution within the next subsequent 21 days. The parties may agree to extend the time for mediation efforts. If mediation does not result in a mutually acceptable resolution, either party shall be entitled to pursue all other available remedies, including litigation in any court having jurisdiction within Riverside County, California. 8. Cooperation; Additional. The District and the City acknowledge that it may be necessary to execute documents other than those specifically referred to herein in order to complete the transactions contemplated by this Agreement. Therefore, each party hereto hereby agrees to cooperate with the other by executing such other documents or taking such other action as may be reasonably necessary to complete the transactions contemplated by this Agreement in accordance with the intent of the Parties as evidenced in this Agreement. The District is currently working on a capital project to construct a recycled water system for portions of Eastvale and Jurupa Valley. The City agrees to convert the current potable irrigation system to recycled water when recycled water facilities become available for the City Landscape. 9. Amendment. This Agreement may be amended only by a written instrument executed by the Parties hereto or their successors in interest. 10. Waiver. All waivers of this Agreement must be in writing and signed by the appropriate authorities of the Parties hereto. 11. Severability. If any provision of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining portions hereof shall not, in any way, be affected or impaired thereby. 12. Integration. This Agreement constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations, negotiations and understandings of the Parties hereto, oral or written, are hereby superseded and merged herein. 13. Notices, Demands and Communication. Formal notices, demands and communications between the District and City hereunder shall be sufficiently given if personally served, delivered by Federal Express or other nationally recognized overnight delivery service or mailed by registered or certified mail, postage prepaid, return receipt requested, to the principal offices of the Parties, as set forth below. Such written notices, demands and communications may

03586.00000\35033693.2 5 be sent in the same manner to such other address as a party may from time to time designate for such Party by notice given as provided in this Section. Such notices, etc., shall be deemed received upon delivery if personally served, three (3) business days after sending by registered or certified mail, return receipt requested or one (1) business day after sending by Federal Express or other nationally recognized overnight delivery service. If to City: City of Eastvale 12363 Limonite Ave. Suite 910 Eastvale, CA 91752 Attention: City Manager With a copy to: Burke, Williams & Sorensen, LLP 1770 Iowa Ave., Suite 240 Riverside, CA 92507 Attn: Erica Vega If to JCSD: Jurupa Community Services District 11201 Harrell Street Jurupa Valley, CA 91752 Attn: General Manager. With a copy to: Best Best & Krieger LLP 3390 University Avenue, 5th Floor Riverside, CA 92501 Attn: Michael Riddell 14. Interpretation. The rule of construction to the effect that any ambiguities are to be resolved against the drafting Party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. The Section headings are for purposes of convenience only, and shall not be construed to limit or extend the meaning of this Agreement. 15. Transfer of Landscape LMDs. The City and the District acknowledge that the District maintains additional landscaping of street frontages and medians owned by the City and located within the City, not identified in this Agreement, and has formed assessment districts within which property is assessed to fund the maintenance of that additional landscaping. The City and the District agree to undertake separate proceedings, by joint resolution of their respective governing bodies, to transfer those assessment districts from the District to the City, upon completion of which the City will assume responsibility for such maintenance and the District will be discharged of further responsibility. Adoption of the joint resolution by the governing bodies of the City and the District shall occur concurrently with the approval of such resolution. 16. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. (Signature page follows)

03586.00000\35033693.2#35033693v2<iManage> - JCSD:Agreement with City of Eastvale to transfer landscape S-1 IN WITNESS