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09/27/2016CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● SEPTEMBER 27, 2016 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s office at (909) 824-6621 at least 48 hours prior to the meeting. If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov <http://www.grandterrace-ca.gov> CALL TO ORDER Convene City Council Invocation Pledge of Allegiance ROLL CALL Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Sylvia Robles    Council Member Jackie Mitchell    Council Member Doug Wilson    Council Member Bill Hussey    A. SPECIAL PRESENTATIONS Presentation of Commendation to San Bernardino County Fire Department Battalion Chief Steve Lasiter Operation Safe Passage Update from Lt. Wolfe, San Bernardino County Sheriff's Department Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 2 B. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. November City Council Meeting Schedule RECOMMENDATION: 1. Cancel the November 8, 2016 and November 22, 2016 meetings; and 2. Schedule a City Council Meeting on November 15, 2016 at 6:00 p.m. DEPARTMENT: CITY CLERK 3. Monthly Financial Report for July 2016 RECOMMENDATION: Receive and file the Monthly Financial Report for the period ending July 31, 2016. DEPARTMENT: FINANCE 4. Approval of Check Register No. 08312016 in the Amount of $1,593,181.58 RECOMMENDATION: Approve Check Register No. 08312016 in the amount $1,593,181.58, as submitted, which includes the Check Register Account Index for Fiscal Year 2016-17. DEPARTMENT: FINANCE 5. Fund Balance Designation - Implementation of Governmental Accounting Standards Board (GASB) Statement No. 54 RECOMMENDATION: 1. Adopt A Resolution revising Fiscal Policy No. 3.06, Reserves, to include GASB Statement No. 54 (Fund Balance Reporting and Governmental Fund Type Definitions) requirements; and 2. Adopt the General Fund balance commitments for FY2015-16 year-end as shown in the Fiscal Impact section. DEPARTMENT: FINANCE Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 3 6. Award of Lease Agreement to Xerox for Two Multi-Purpose Machines RECOMMENDATION: 1. Award the 60 Month Lease Agreement to Xerox for the two multi-purpose machines at a monthly rate of $625.32 plus applicable taxes; and 2. Authorize the City Manager to execute the agreement and purchase order for the lease and additional imprint cost for an annual aggregate amount not to exceed $15,000. DEPARTMENT: CITY CLERK C. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. D. CITY COUNCIL COMMUNICATIONS Council Member Bill Hussey Council Member Doug Wilson Council Member Jackie Mitchell Mayor Pro Tem Sylvia Robles Mayor Darcy McNaboe E. PUBLIC HEARINGS To speak on Public Hearing Items, please fill out a Request to Speak Form and give it to the City Clerk. Each person will be allowed 3 minutes to address the City Council. If you challenge in court any action taken concerning a Public Hearing item, you may be limited to raising only those issues you, or someone else, raised at the Public Hearing described in this notice or in written correspondence delivered to the City at, or prior to, the Public Hearing. All Public Hearings will be conducted following this format: a) Public Hearing opened b) Written communication c) City Council questions/staff comments Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 4 d) Applicant's comments (applicant not limited to 3 minutes) e) Oral - favor and opposition (speakers limited to 3 minutes) f) Applicant’s rebuttal (applicant not limited to 3 minutes) g) Public Hearing closed h) City Council deliberation 7. Zoning Code Amendment 16-01 Pertaining to the Maximum Number of Dogs and Cats Per Residence RECOMMENDATION: 1. Conduct a public hearing and 2. Waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA AMENDING TABLE 18.10.030 (PERMITTED USES) OF SECTION 18.10.030 (USE REGULATIONS) OF CHAPTER 18.10 (RESIDENTIAL DISTRICTS) OF THE GRAND TERRACE MUNICIPAL CODE AS IT PERTAINS TO THE MAXIMUM NUMBER OF DOGS AND CATS PER RESIDENCE DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 8. Tentative Tract Map 16-01 (Tentative Tract Map No. 18604) Variance 16-01 RECOMMENDATION: 1. Conduct a public hearing; and 2. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AN ENVIRONMENTAL EXEMPTION AND APPROVING VARIANCE 16-01 AND TENTATIVE TRACT MAP NO. 16-01 (TENTATIVE TRACT MAP NO. 18604) A SUBDIVISON OF A TWO ACRE SITE INTO A SMALL LOT SUBDIVISION TOTALING 17 LOTS PURSUANT TO PLANNED RESIDENTIAL DEVELOPMENT STANDARDS LOCATED AT 22394 AND 22404 VAN BUREN STREET (APNS 1167-341-02, 78 AND 79) DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 9. Approval of a Disposition and Development Agreement by and Between the City of Grand Terrace and Dr. Terry McDuffee RECOMMENDATION: 1. Conduct a public hearing; 2. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 5 GRAND TERRACE AND DR. TERRY MCDUFFEE FOR THE PURCHASE OF CITY OWNED PROPERTY LOCATED AT THE SOUTHWEST CORNER OF COMMERCE WAY AND MICHIGAN STREET (1167-141-08) AND FINDING THAT THIS PROJECT IS EXEMPT FROM CEQA REVIEW PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES 3. Authorize the Mayor to sign the Agreement; and 4. Authorize the City Manager to take all necessary actions to implement the Agreement. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 10. 2013-2021 Housing Element and Related General Plan and Zoning Amendments RECOMMENDATION: 1. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING GENERAL PLAN AMENDMENT 16-01 AMENDING THE 2013- 2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16-01a) 2. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND AMENDING THE LAND USE ELEMENT AND LAND USE MAP IN CONFORMANCE WITH PROGRAM 2 OF THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16-01b); and 3. Read by title only, waive further reading and Introduce an ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING ZONING CODE AMENDMENT 16-01 REVISING TITLE 18 OF THE MUNICIPAL CODE AND ZONE CHANGE 16-01 REVISING THE ZONING MAP IN CONFORMANCE WITH THE GENERAL PLAN HOUSING ELEMENT AND LAND USE ELEMENT DEPARTMENT: PLANNING & DEVELOPMENT SERVICES F. UNFINISHED BUSINESS 11. Adoption of 2016 Building Codes RECOMMENDATION: Read by title only, waiver further reading and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 6 SECTION 15.08.010 OF CHAPTER 15.08 (BUILDING CODE), SECTION 15.10.010 OF CHAPTER 15.10 (RESIDENTIAL CODE), SECTION 15.12.010 OF CHAPTER 15.12 (ELECTRICAL CODE), SECTION 15.16.010 OF CHAPTER 15.16 (PLUMBING CODE), SECTION 15.17.010 OF CHAPTER 15.17 (GREEN BUILDING STANDARDS), AND SECTION 15.20.010 OF CHAPTER 15.20 (MECHANICAL CODE) OF TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE GRAND TERRACE MUNICIPAL CODE, ADOPTING THE 2016 CALIFORNIA BUILDING CODE, INCLUDING THE 2016 CALIFORNIA REFERENCED STANDARD CODE, 2016 CALIFORNIA RESIDENTIAL CODE, 2016 CALIFORNIA ELECTRICAL CODE, 2016 CALIFORNIA PLUMBING CODE, 2016 CALIFORNIA GREEN BUILDING STANDARDS CODE, AND 2016 CALIFORNIA MECHANICAL CODE DEPARTMENT: PLANNING & DEVELOPMENT SERVICES G. NEW BUSINESS 12. Treasurer's Report as of June 30, 2016 RECOMMENDATION: Receive and file the Treasurer's Report for the period ending June 30, 2016. DEPARTMENT: FINANCE 13. Monthly Business License Report for July 2016 RECOMMENDATION: Receive and file the Monthly Business License Report for the period ending July 31, 2016. DEPARTMENT: FINANCE 14. Professional Services Agreement with Kosmont Companies to Assist the City with the Liquidation of Properties Identified in the Long Range Property Management Plan (LRPMP) and Develop Strategies to Access New State Economic Development Programs. RECOMMENDATION: Approve Professional Services Agreement with Kosmont Companies in an amount not to exceed $30,000 (Attachment VI). DEPARTMENT: CITY MANAGER 15. Exclusive Negotiations Agreement with the Lewis Group RECOMMENDATION: Approve Four Month Exclusive Negotiations Agreement with the Lewis Group. DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 7 16. Update City of Grand Terrace Conflict of Interest Code RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO. 2014-64 IN ITS ENTIRETY AND ADOPTING A CONFLICT OF INTEREST CODE APPLICABLE TO DESIGNATED POSITIONS, INCLUDING TO MEMBERS AND STAFF OF THE OVERSIGHT BOARD TO THE GRAND TERRACE REDEVELOPMENT AGENCY, SUCCESSOR AGENCY TO THE GRAND TERRACE REDEVELOPMENT AGENCY, GRAND TERRACE PUBLIC FINANCE AUTHORITY, AND TO THE GRAND TERRACE SUCCESSOR AGENCY HOUSING AUTHORITY DEPARTMENT: CITY CLERK 17. Award of Contract for Public Works Yard Parking Lot Improvement Project RECOMMENDATION: 1. Award a Construction Contract to Mike Roquet Construction, Inc. for Public Works Yard Parking Lot Improvement Project 2. Authorize City Manager to execute the Contract and any necessary Change Orders for this project. DEPARTMENT: PUBLIC WORKS 18. Adoption of a Resolution to apply for, and accept if awarded, funds from the California Department of Parks and Recreation’s Habitat Conservation Fund RECOMMENDATION: Adopt a RESOLUTION OF THE CITY COUNCIL AUTHORIZING STAFF TO APPLY FOR A GRANT FROM THE HABITAT CONSERVATION FUND TO BUILD TRAILHEAD AMENITIES ON CITY OWNED LAND AT THE CORNER OF OBSERVATION AND VAN BUREN DEPARTMENT: CITY MANAGER H. BOARD, COMMISSION AND COMMITTEE UPDATES 19. Planning Commission Minutes - April 21, 2016 20. Planning Commission Minutes - June 2, 2016 I. CITY MANAGER COMMUNICATIONS J. CLOSED SESSION - NONE Agenda Grand Terrace City Council September 27, 2016 City of Grand Terrace Page 8 ADJOURN The Next Regular City Council Meeting will be held on Tuesday, October 11, 2016 at 6:00 p.m. Agenda item requests must be submitted in writing to the City Clerk’s office no later than 14 calendar days preceding the meeting. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: November City Council Meeting Schedule PRESENTED BY: Pat Jacquez-Nares, City Clerk RECOMMENDATION: 1. Cancel the November 8, 2016 and November 22, 2016 meetings; and 2. Schedule a City Council Meeting on November 15, 2016 at 6:00 p.m. 2030 VISION: This staff report supports our Mission, our Core Value of open and inclusive government and our Goal to engage in proactive communication by engaging the community’s participation. BACKGROUND/DISCUSSION: The City of Grand Terrace will hold an election on November 8, 2016 for three vacancies. This election date is the same day as the City Council meeting. There are four candidates’ two incumbents and two residents for the three vacancies. Staff is requesting that the City Council cancel this meeting and reschedule it to November 15, 2016 at 6:00 p.m. This will allow for full community engagement in the City’s election as the polls will close at 8:00 p.m. on Election Day. The November 22, 2016 City Council meeting falls on the Thanksgiving holiday week. Staff is also requesting that this meeting be cancelled. Any potential items that would be discussed will be presented at the November 8th or November 15th meeting depending on the Council’s action on the November 8th meeting. FISCAL IMPACT: None APPROVALS: Pat Jacquez-Nares Completed 09/21/2016 1:42 PM City Attorney Completed 09/21/2016 2:40 PM Finance Completed 09/22/2016 7:37 AM City Manager Completed 09/22/2016 1:12 PM 2 Packet Pg. 9 City Council Pending 09/27/2016 6:00 PM 2 Packet Pg. 10 AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Monthly Financial Report for July 2016 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Receive and file the Monthly Financial Report for the period ending July 31, 2016. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: The Finance Department has developed a Monthly Financial Report (MFR), which will be submitted to the City Council each month. The attached MFR is for the period ending July 31, 2016. The purpose of the MFR is to identify actual revenues received, and expenditures incurred, for the current fiscal year and compare them to the Approved Budget and fiscal year-to-date (YTD) expected amounts. The MFR encompasses the City’s two major funds: General Fund and Child Care Fund. DISCUSSION: The Fiscal Year (FY) 2016-17 Approved Budget amounts are presented in the attached MFR for reference purposes. Any adjustments to the Approved Budget that may occur during the fiscal year will also be reflected in the report. The “expected” revenues reflect an analysis of revenue receipts that have, historically, been received as of this month in the fiscal year. The resulting positive or negative variances shown in the MFR are in comparison to these “expected” receipts. The timing of expenditures is more evenly distributed during the fiscal year than revenue receipts; however, it is not entirely straight-line in nature. For example, some months have three pay periods rather than two. Also, debt service payments are only made twice a year. Additionally, certain expenditure postings, such as the cost allocation plan, are made quarterly rather than monthly. All of these factors are reflected in the YTD “expected” expenditures shown in the MFR. As part of the MFR, staff will include explanations of significant variances between YTD actual revenues and expenditures, and those that are “expected” at that point in the 3 Packet Pg. 11 fiscal year. This analysis and reporting process is intended to keep the City Council informed regarding the City’s financial position relative to the budget, and to identify any financial issues or concerns that arise during the fiscal year so appropriate and timely action can be taken in response to these variances. When reviewing the charts that provide the current monthly status of both revenues and expenditures, it is helpful to bear in mind that some of the fluctuations from month to month may be due to the following:  Invoices were not submitted to the City in a timely manner; and  Invoices may have required further review by the authorizing department. In addition, the MFR has been redesigned to provide more transparency by providing charts that compare actual receipts and expenditures against expected and approved budgets. Each category has 2 charts: 1. the 1st chart shows the actual receipts or expenditures incurred for the current fiscal year (FY2015-16) and is compared to the prior year (2014-15) actuals; and 2. the 2nd chart shows the total annual amounts incurred, for the current year, the prior year and is compared to the “expected” amounts for the current year. FISCAL IMPACT: GENERAL FUND In order to provide a better understanding of the General Fund’s fiscal condition on a monthly basis, the Monthly Financial Report has been revised to reflect the net surplus or deficit of actual revenues versus actual expenditures. However, as stated earlier, revenues are not necessarily evenly distributed each month while expenditures are more streamlined. It is recommended to bear in mind that this may result in a significant surplus or deficit in a particular month and may not be reflective of the City’s overall fiscal condition. Detailed explanations will be provided for any significant variances. The table below reflects the General Fund’s revenue and expense statement as of July 31, 2016 with a net deficit of $233,529. This is consistent with the receipt of revenues which are normally received in the later part of the year. REVENUES Approved Budget July Expected July YTD % Approved Budget July YTD Actuals July YTD % Approved Budget Positive (Negative) Variance from Expected Property Tax 1,674,000 0 0.0% 0 0.0% 0 3 Packet Pg. 12 Residual Receipts - RPTTF 778,000 0 0.0% 0 0.0% 0 Franchise Fees 500,000 0 0.0% 0 0.0% 0 Licenses, Fees & Permits 328,458 23,212 7.1% 24,198 7.4% 987 Sales Tax 858,000 0 0.0% 0 0.0% 0 Sales Tax - Econ Dev Agrmt (120,000) 0 0.0% 0 0.0% 0 Proceeds from Sale of Property 260,000 0 0 Intergovernmental Revenue/Grants 5,000 0 0.0% 0 0.0% 0 Charges for Services 114,700 14,985 13.1% 11,393 9.9% (3,592) Fines & Forfeitures 58,500 5,480 9.4% 2,068 3.5% (3,412) Miscellaneous 2,800 0 0.0% 110 3.9% 110 Use of Money & Property 23,000 1,037 4.5% 1,715 7.5% 678 Waste Water Receipts 300,000 0 0.0% 0 0.0% 0 4,782,458 44,714 0.9% 39,484 0.8% (5,230) APPROVED USE OF FUND BALANCE Payment of City Hall Loan 1,040,090 1,040,090 1,040,090 TOTAL REVENUES & USE OF FUND BAL. 5,822,548 1,084,804 1,079,574 EXPENDITURES BY CATEGORY Approved Budget July Expected July YTD % Approved Budget July YTD Actuals July YTD % Approved Budget Positive (Negative) Variance from Expected Salaries 792,146 64,694 8.2% 55,262 7.0% 9,432 Benefits 403,286 30,896 7.7% 28,773 7.1% 2,123 Professional/Contractual Services 3,262,436 177,142 5.4% 181,470 5.6% (4,328) Materials & Supplies 207,226 8,987 4.3% 7,230 3.5% 1,757 Lease of Facility/Equipment 7,652 158 2.1% 0 0.0% 158 Utilities 131,413 84 0.1% 279 0.2% (195) Debt Service 0 0 0 (0) Overhead Cost Allocation (281,736) 0 0.0% 0 0.0% 0 Transfers Out 126,500 0 0.0% 0 0.0% 0 4,648,923 281,961 6.1% 273,013 5.9% 8,948 Payment of City Hall Loan 1,040,090 1,040,090 1,040,090 TOTAL EXPENDITURES 5,689,013 1,322,051 1,313,103 REVENUES 4,782,458 44,714 39,484 USE OF FUND BALANCE 1,040,090 1,040,090 1,040,090 SUB-TOTAL 5,822,548 1,084,804 1,079,574 3 Packet Pg. 13 EXPENDITURES (4,648,923) (281,961) (273,013) PAYMENT OF CITY HALL LOAN (1,040,090) (1,040,090) (1,040,090) SUB-TOTAL (5,689,013) (1,322,051) (1,313,103) NET 133,535 (237,247) (233,529) ATTACHMENTS:  JUL2016 Monthly Financial Report (PDF) APPROVALS: Cynthia Fortune Completed 09/21/2016 2:27 PM Finance Completed 09/21/2016 2:27 PM City Attorney Completed 09/21/2016 2:43 PM City Manager Completed 09/21/2016 6:57 PM City Council Pending 09/27/2016 6:00 PM 3 Packet Pg. 14 City of Grand Terrace Monthly Financial Report For the Period Ending July 31, 2016 3.a Packet Pg. 15 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) Table of Contents GENERAL FUND Revenue Summaries Revenue Assumptions ........................................................................................... 4 Revenue Monthly Financial Detail ......................................................................... 5 Revenue Monthly History: Property Tax ................................................................................................... 7 Sales Tax ........................................................................................................ 8 Licenses, Permits & Fees ............................................................................... 9 Franchise Fees ............................................................................................... 10 Expenditure Monthly Financial Detail by Category ..................................................... 12 Expenditure Monthly History by Category: Salaries ........................................................................................................... 13 Benefits ........................................................................................................... 14 Professional/Contractual Services .................................................................. 15 Materials & Supplies ....................................................................................... 16 3.a Packet Pg. 16 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) GENERAL FUND REVENUE 3.a Packet Pg. 17 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) REVENUE ASSUMPTIONS: 1. Property Tax receipts are usually received twice a year: in December and May. 2. Residual Receipts – Redevelopment Property Tax Trust Fund (RPTTF) receipts are received twice a year: June for the July - December period and January for the January - June period. 3. Franchise Fee receipts are received monthly and quarterly; usually 30 - 45 days after the month or quarter end. 4. Sales Tax receipts are received monthly; the State distributes (advances) sales tax revenues usually 60 days after the close of the month; then has a quarterly “true-up.” 5. Waste Water receipts are received annually, usually at the first month of the fiscal year. 6. All other receipts are based on historical receipt pattern. 3.a Packet Pg. 18 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) REVENUES Approved Budget July Expected July YTD % Approved Budget July YTD Actuals July YTD % Approved Budget Positive (Negative) Variance from Expected Tax Property Tax 1,674,000 0 0.0%0 0.0%0 TTF Residual Receipts - RPTTF 778,000 0 0.0%0 0.0%0 ees Franchise Fees 500,000 0 0.0%0 0.0%0 mits Licenses, Fees & Permits 328,458 23,212 7.1%24,198 7.4%987 Tax Sales Tax 858,000 0 0.0%0 0.0%0 ent Sales Tax - Econ Dev Agrmt (120,000)0 0.0%0 0.0%0 Proceeds from Sale of Property 260,000 0 0 ants Intergovernmental Revenue/Grants 5,000 0 0.0%0 0.0%0 ces Charges for Services 114,700 14,985 13.1%11,393 9.9%(3,592) res Fines & Forfeitures 58,500 5,480 9.4%2,068 3.5%(3,412) ous Miscellaneous 2,800 0 0.0%110 3.9%110 erty Use of Money & Property 23,000 1,037 4.5%1,715 7.5%678 pts Waste Water Receipts 300,000 0 0.0%0 0.0%0 4,782,458 44,714 0.9%39,484 0.8%(5,230) APPROVED USE OF FUND BALANCE Payment of City Hall Loan 1,040,090 1,040,090 1,040,090 TOTAL REVENUES & USE OF FUND BAL.5,822,548 1,084,804 1,079,574 City of Grand Terrace FY 2015-16 General Fund Monthly Financial Report For the Period Ending July 31, 2016 3.a Packet Pg. 19 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 )       This page left intentionally blank.       3.a Packet Pg. 20 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY REVENUE - Property Tax (2016-17 vs. 2015-16) $0 $0 $19,750 $2,686 $43,792 $133,872 $581,548 $50,251 $7,588 $122,994 $625,131 $18,564 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 2015-16 1,606,176 - - - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 21 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY REVENUE - Sales Tax (2016-17 vs. 2015-16) $0 $0 $29,595 $42,500 $56,500 $65,035 $49,874 $56,500 $77,239 $52,600 $47,574 $285,030 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 - 50,000 100,000 150,000 200,000 250,000 300,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 2015-16 $762,448 $0 $0 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 22 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY REVENUE - Licenses, Permits & Fees (2016-17 vs. 2015-16) $17,097 $10,453 $15,994 $13,004 $16,329 $8,565 $48,502 $41,187 $27,556 $34,443 $22,471 $47,561 $24,198 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 - 10,000 20,000 30,000 40,000 50,000 60,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 2015-16 $303,162 $24,198 $23,212 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 23 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY REVENUE - Franchise Fees (2016-17 vs. 2015-16) $0 $0 $26,663 $11,962 $71,031 $0 $24,572 $43,469 $41,436 $136,344 $69,205 $68,175 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 2015-16 $492,856 $0 $0 - 100,000 200,000 300,000 400,000 500,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 24 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) GENERAL FUND EXPENDITURE BY CATEGORY 3.a Packet Pg. 25 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) City of Grand Terrace FY 2015-16 General Fund Monthly Financial Report For the Period Ending July 31, 2016 EXPENDITURES BY CATEGORY Approved Budget July Expected July YTD % Approved Budget July YTD Actuals July YTD % Approved Budget Positive (Negative) Variance from Expected Salaries 792,146 64,694 8.2%55,262 7.0%9,432 Benefits 403,286 30,896 7.7%28,773 7.1%2,123 Professional/Contractual Services 3,262,436 177,142 5.4%181,470 5.6%(4,328) Materials & Supplies 207,226 8,987 4.3%7,230 3.5%1,757 Lease of Facility/Equipment 7,652 158 2.1%0 0.0%158 Equipment 0 0 0 0 Capital Projects 0 0 0 0 Utilities 131,413 84 0.1%279 0.2%(195) Debt Service 0 0 0 (0) Overhead Cost Allocation (281,736)0 0.0%0 0.0%0 Transfers Out 126,500 0 0.0%0 0.0%04,648,923 281,961 6.1%273,013 5.9%8,948 Payment of City Hall Loan 1,040,090 1,040,090 1,040,090 TOTAL EXPENDITURES 5,689,013 1,322,051 1,313,103 REVENUES 4,782,458 44,714 39,484 USE OF FUND BALANCE 1,040,090 1,040,090 1,040,090 SUB-TOTAL 5,822,548 1,084,804 1,079,574 EXPENDITURES (4,648,923)(281,961)(273,013) PAYMENT OF CITY HALL LOAN (1,040,090)(1,040,090)(1,040,090) SUB-TOTAL (5,689,013)(1,322,051)(1,313,103) NET 133,535 (237,247)(233,529) 3.a Packet Pg. 26 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY EXPENDITURE - Salaries (2016-17 vs. 2015-16) $55,881 $51,814 $52,468 $49,353 $44,587 $41,926 $64,982 $46,940 $48,226 $46,955 $58,222 $71,022 55,262 - - - - - - - - - - - - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 Actuals 2015-16 Actuals $632,376 $55,262 $64,694 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 27 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY EXPENDITURE - Benefits (2016-17 vs. 2015-16) $26,333 $16,766 $33,942 $15,837 $18,974 $27,935 $32,135 $15,828 $31,028 $48,381 $22,577 $44,598 28,773 - - - - - - - - - - - - 10,000 20,000 30,000 40,000 50,000 60,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 Actuals 2015-16 Actuals $334,335 $28,773 $30,896 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 28 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY EXPENDITURE - Professional Services (2016-17 vs. 2015-17) $179,594 $258,228 $294,350 $211,637 $226,602 $327,636 $254,145 $251,835 $306,903 $229,293 $259,334 $337,478 181,470 - - - - - - - - - - - - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 Actuals 2015-16 Actuals 3,137,034 181,470 177,142 100,000 600,000 1,100,000 1,600,000 2,100,000 2,600,000 3,100,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 29 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) MONTHLY EXPENDITURE - Materials & Supplies (2015-16 vs. 2014-15) $13,786 $18,516 $5,164 $4,919 $23,089 $10,892 $8,704 $15,023 $22,965 $14,333 $22,894 $28,568 - 5,000 10,000 15,000 20,000 25,000 30,000 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2016-17 2015-16 Actuals $188,853 $7,230 $8,987 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected FY2015-16 Actuals FY2016-17 Actuals FY2016-17 Expected 3.a Packet Pg. 30 At t a c h m e n t : J U L 2 0 1 6 M o n t h l y F i n a n c i a l R e p o r t ( 2 0 2 5 : M o n t h l y F i n a n c i a l R e p o r t f o r J u l y 2 0 1 6 ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Approval of Check Register No. 08312016 in the Amount of $1,593,181.58 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Approve Check Register No. 08312016 in the amount $1,593,181.58, as submitted, which includes the Check Register Account Index for Fiscal Year 2016-17. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The check register, for the period ending August 31, 2016, has been prepared in accordance with Government Code §37202 and is hereby submitted for the City Council’s approval. The check register lists all vendor payments for the preceding month, along with a brief description of the type of goods or services purchased and the account code(s) associated with each payment. Check Register No. 08312016 lists all payments made to vendors and employee reimbursements during the month of July. The attached index to the Check Register is a guideline account list only and is not intended to replace the comprehensive chart of accounts used by the City and CRA Successor Agency. Expenditure account number formats are XX-XXX-XXX [Fund- Department-Account]. Expenditures may be made from trust/agency accounts (Fund 23-XXX-) or temporary clearing accounts which do not have a budgetary impact. A total of $1,593,181.58 in accounts payable checks were issued during the period for services, reimbursements, supplies and contracts and are detailed in the attached check register. Payments larger than $10,000: Check No. Payee Description Amount 73093 BOYS & GIRLS CLUB SUMMER SWIM PROGRAM $10,306.00 4 Packet Pg. 31 Check No. Payee Description Amount 73102 SB COUNTY SHERIFF FY 2016-17 CAL ID ASSESSMENT FEE 14,575.36 73105 WILLDAN FINANCIAL SERVICES JUL 2016 FINANCE DEPT SERVICES 32,521.20 73120 CALPERS UNFUNDED ACCRUED LIABILITY 291,019.00 73139 MEDIASTAR COUNCIL CHAMBER AUDIO AND LIGHT UPGRADE 19,765.80 73143 CA PUB EMPLOYEE RETIRE SYSTEM SEP PERS HEALTH INSURANCE 13,141.17 73144 CALPERS UNFUNED ACCRUED LIABILITY 50,225.37 73214 SB COUNTY DEPT OF PUBLIC WORKS FY 2016-17 FLOOD CONTROL AGREEMENT 25,477.00 73217 WILLDAN FINANCIAL SERVICES AUG 2016 FINANCE DEPT SERVICES 36,908.80 Wire #: 8092016 US BANK TRUST NATL ASSOC 2011 A & B TAX ALLOCATION BONDS 920,909.72 TOTAL CHECKS ISSUED OVER $10,000 $1,414,849.42 Payroll costs for the month ending August 31, 2016 Pay Per. Period Ending Period Pay Date Amount 4 08/12/2016 Period 07/30/2016 – 08/12/2016 08/18/2016 $63,122.27 5 08/26/2016 Period 08/13/2016 – 08/26/2016 09/01/2016 69,773.60 TOTAL PAYROLL FOR AUG 2016 $132,895.87 FISCAL IMPACT: All disbursements were made in accordance with the Approved Budget for Fiscal Year 2016-17 in the amount of $1,593,181.58. ATTACHMENTS:  A - Check Register Account Index (PDF)  B - Check Register No. 08312016 (PDF) 4 Packet Pg. 32 APPROVALS: Cynthia Fortune Completed 09/14/2016 9:55 AM Finance Completed 09/14/2016 9:57 AM City Attorney Completed 09/16/2016 8:32 AM City Manager Completed 09/21/2016 6:48 PM City Council Pending 09/27/2016 6:00 PM 4 Packet Pg. 33 Fund No.Fund Name Dept No.Department Cost Center Acct No.General Account Numbers 09 CHILD CARE FUND 110 CITY COUNCIL 110 SALARIES/WAGES 10 GENERAL FUND 120 CITY MANAGER 115 OVERTIME 11 STREET FUND 125 CITY CLERK 120 COUNCIL STIPENDS 12 STORM DRAIN FUND 140 FINANCE 138 MEDICARE / SUI 13 PARK FUND 160 CITY ATTORNEY 139 EMPLOYEES' BENEFIT PLAN 14 AB 3229 COPS FUND 172 BUILDING & SAFETY 140 RETIREMENT 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS 142 HEALTH/LIFE INSURANCE 16 GAS TAX FUND 180 COMMUNITY EVENTS 143 WORKERS' COMPENSATION 17 TRAFFIC SAFETY FUND 185 RENTAL INSPECTION PROGRAM 210 OFFICE EXPENSE 18 TRANS. DEV. ACT (T D A FUND)187 ENFORCEMENT PROGRAM 218 NON-CAPITAL FURN/SMALL TOOLS 19 FACILITIES DEVELOPMENT FUND 190 GENERAL GOVERNMENT (NON-DEPT)220 SPECIAL DEPARTMENTAL EXP 20 MEASURE I FUND 195 FACILITIES MAINTENANCE 230 ADVERTISING 21 WASTE WATER DISPOSAL FUND 370 COMMUNITY DEV (PLANNING)235 COMMUNICATIONS 22 COMMUNITY DEV. BLOCK GRANT 380 MGT INFORMATION SYSTEMS 238 UTILITIES 25 SPRING MOUNTAIN RANCH FUND 410 LAW ENFORCEMENT 240 RENTS & LEASES 26 LSCPG/ LGHTG ASSESSMENT DIST.411 ASSET FORFEITURES 245 MAINT BLDG GRNDS EQUIPMNT 31 S/A RDA OBLIGATION FUND 430 RECREATION SERVICES 246 MAINT/OPER OF EQUIPMNT 32 S/A CAPITAL PROJECTS FUND 441 CHILD CARE - NUTRITION GRANT 250 PROFESSIONAL SERVICES 33 S/A DEBT SERVICE FUND 445 CHILD CARE - TINY TOTS 251 BANKING SERVICE CHARGES 36 S/A 2011 TABS BOND PROCEEDS 446 CHILD CARE - AFTER SCHOOL 255 CONTRACTUAL SERVICES 37 S/A CRA PROJECTS TRUST 447 CHILD CARE - PRE-SCHOOL 260 INSURANCE & SURETY BONDS 46 CIP - STREET IMPROVEMENT PROJECTS 450 PARKS MAINTENANCE 265 MEMBERSHIPS & DUES 47 CIP - BARTON RD. BRIDGE PROJECT 510 STREET & SIGNAL LIGHTING 268 TRAINING 48 CIP - CAPITAL PROJECTS FUND 600 WEST SIDE PARK 270 TRAVEL/CONFERENCES/MTGS 52 HOUSING AUTHORITY 601 TRACT 14471 PICO & ORIOLE 271 MILEAGE 61 COMMUNITY BENEFITS FUND 602 FORREST CITY PHASE II 272 FUEL & VEHICLE MAINTENANCE 64 PUBLIC SAFETY FUND 625 NPDES 273 VEHICLE ALLOWANCE 65 SENIOR BUS PROGRAM FUND 631 STORM DRAIN MAINTENANCE 300 DEBT SERVICE 66 CAL RECYCLE GRANT 801 PLANNING COMMISSION 570 WASTEWATER TREATMENT 70 FIXED ASSED/EQUIP REPL FUND 804 HISTORICAL & CULTURAL COMM.700 COMPUTER-RELATED 805 SENIOR CITIZENS PROGRAM 701 VEHICLES & EQUIPMENT 808 EMERGENCY OPERATIONS PROG. 999 TRANSFERS City of Grand Terrace Check Register Index 4.a Packet Pg. 34 At t a c h m e n t : A - C h e c k R e g i s t e r A c c o u n t I n d e x ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check Total 73088 08/03/2016 DAILY JOURNAL CORPORATION B2891842 PUBLIC NOTICES 07/08/2016 Check # E 10-125-230-000-000 125.69 125.69 125.69 73089 08/03/2016 HDL COREN CONE 0022993-IN 2015-16 CAFR STATISTICAL REPORTS 07/25/2016 E 10-140-250-000-000 645.00 645.00 645.00 73090 08/03/2016 HOME DEPOT CREDIT SERVICE 6035322500233683 junJUN 2016 HOME DEPOT CHARGES 06/29/2016 E 10-195-245-000-000 313.86 E 10-450-245-000-000 1,818.65 2,132.51 2,132.51 73091 08/03/2016 PROGREEN BUILDING MAINTENANCE 15041 NOV 2015 JANITORIAL SERVICE 11/09/2015 E 09-440-244-000-000 1,050.00 1,050.00 1,050.00 73092 08/03/2016 SYSCO RIVERSIDE INC 603290544 A FY 2015-16 C.CARE FOOD SUPPLIES 04/20/2016 E 09-440-220-000-000 273.54 273.54 273.54 73093 08/03/2016 BOYS GIRLS CLUB 916 FY 2016-17 SUMMER SWIM PROGRAM 07/31/2016 E 10-120-250-303-000 10,306.00 10,306.00 10,306.00 73094 08/03/2016 CITY NEWSPAPER GROUP 23909 ADOPTION ORDINANCE 296 PUBLICATION 07/19/2016 E 10-125-230-000-000 97.13 97.13 23910 CHILD CARE ENROLLMENT AD 07/19/2016 B 23-200-14-00 52.00 52.00 149.13 4.b Packet Pg. 35 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73095 08/03/2016 HIGH TECH SECURITY SYSTEMS 117536 C.CARE SECURITY ALARM & FIRE MONITORING SVCS07/19/2016 B 23-200-14-00 101.53 101.53 101.53 73096 08/03/2016 MAILFINANCE INC N6020126 AUG-NOV POSTAGE MACHINE LEASE 07/03/2016 E 10-190-211-000-000 414.00 414.00 414.00 73097 08/03/2016 DARCY MCNABOE AUG 2016 DM AUG HEALTH INSURANCE REIMBURSEMENT 08/03/2016 E 10-110-142-000-000 409.03 409.03 409.03 73098 08/03/2016 OFFICE DEPOT 850897310001 OFFICE SUPPLIES 07/14/2016 E 10-140-210-000-000 46.07 46.07 851200701001 OFFICE SUPPLIES 07/15/2016 E 10-140-210-000-000 10.09 10.09 851200587001 OFFICE SUPPLIES 07/15/2016 E 10-140-210-000-000 9.35 9.35 65.51 73099 08/03/2016 PROGREEN BUILDING MAINTENANCE 15117 JUL 2016 JANITORIAL SERVICES 07/05/2016 E 09-447-228-000-000 1,020.00 1,020.00 1,020.00 73100 08/03/2016 ROADRUNNER SELF STORAGE INC 20389 JUL 2016 STORAGE LEASE 07/15/2016 E 10-140-241-000-000 248.00 248.00 248.00 73101 08/03/2016 SYLVIA ROBLES JUL2016 HLTH-SRJUL 2016 HEALTH INSURANCE REIMB-SROBLES 08/03/2016 E 10-110-142-000-000 485.41 485.41 485.41 4.b Packet Pg. 36 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73102 08/03/2016 SB COUNTY SHERIFF 15846 FY 2016-17 CAL ID ASSESSMENT FEE 07/28/2016 E 10-410-258-000-000 14,575.36 14,575.36 14,575.36 73103 08/03/2016 SO CA EDISON COMPANY JUL 2016 EDISONJUL 2016 ENERGY USAGE 08/03/2016 E 10-172-238-000-000 174.91 E 10-175-238-000-000 174.91 E 10-190-238-000-000 6,775.31 E 10-450-238-000-000 574.80 E 16-510-238-000-000 406.29 8,106.22 8,106.22 73104 08/03/2016 TIME WARNER CABLE 8448..7245 AUG AUG 2016 SENIOR CENTER CABLE SERVICES 08/03/2016 E 10-805-238-000-000 151.09 151.09 151.09 73105 08/03/2016 WILLDAN FINANCIAL SERVICES 010-32014 JUL 2016 FINANCE DEPT. SERVICES 08/02/2201 E 10-140-250-000-000 32,521.20 32,521.20 32,521.20 73106 08/03/2016 DOUG WILSON JUL2016 HLTH REIM-DWJUL 2016 HEALTH REIMBURSEMENT - WILSON 08/03/2016 E 10-110-142-000-000 320.06 320.06 320.06 73107 08/05/2016 ACCENT GRAPHICS AND DESIGN 16-0769 FY 2016-17 BUDGET BOOK COPIES 08/05/2016 E 10-190-212-000-000 1,093.50 1,093.50 1,093.50 73108 08/08/2016 ARROWHEAD CREDIT UNION JUL/AUG VISA JUL/ AUG VISA CHARGES- SUMMER FOOD PRGRM07/11/2016 E 09-448-220-000-000 181.41 181.41 181.41 4.b Packet Pg. 37 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73109 08/08/2016 SYSCO RIVERSIDE INC 607121775 FOOD FOR THE SUMMER FOOD PROGRAM 07/12/2016 E 09-448-220-000-000 338.71 338.71 607219030 FOOD FOR THE SUMMER FOOD PROGRAM 07/21/2016 E 09-448-220-000-000 91.40 91.40 607079032 FOOD FOR THE SUMMER FOOD PROGRAM 07/07/2016 E 09-448-220-000-000 61.20 61.20 491.31 73110 08/10/2016 CA DEPT OF TRANSPORTATION SL161120 APR-JUN 2016 INTERCHANGE MAINTENANCE 07/13/2016 E 16-510-238-000-000 330.34 330.34 330.34 73111 08/10/2016 EAGLE AERIAL SOLUTIONS 19791 FY 2015-16 WEB BASED SERVICE FOR AERIAL VIEW IMAGES AND MURALS06/29/2016 E 10-370-250-000-000 4,254.63 4,254.63 19790 FY 2015-16 WEB BASED SERVICE FOR AERIAL VIEW IMAGES AND MURALS06/29/2016 E 10-370-250-000-000 4,145.00 4,145.00 19792 FY 2015-16 WEB BASED SERVICE FOR AERIAL VIEW IMAGES AND MURALS06/29/2016 E 10-370-250-000-000 494.64 494.64 8,894.27 73112 08/10/2016 FAMILY SERVICES ASSOCIATION FSA 4TH Q CDBG SENIOR NUTRITION PROGRAM 06/29/2016 E 22-425-305-000-000 4,718.11 4,718.11 4,718.11 73113 08/10/2016 MICHEAL BAKER INTERNATIONAL 9498480 FY 2015-16 PLNG COMM MINUTES TRANSCRIPTION SRVS07/15/2016 E 10-370-250-000-000 910.00 910.00 910.00 73114 08/10/2016 RYAN STEPHENS 00297297 REIMBURSEMENT FOR STALE DATED ADP CHK 0029729706/29/2016 E 10-801-120-000-000 46.18 46.18 46.18 4.b Packet Pg. 38 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73115 08/10/2016 WILLDAN 002-16879 JUN 2016 ENGINEERING SVCS 07/06/2016 E 16-175-255-100-000 2,210.00 2,210.00 2,210.00 73116 08/10/2016 AMERICAN FIDELITY ASSURANCE CO B490352 AUG EMP PAID ACCIDENT/SUPP LIFE 08/01/2016 B 23-250-20-00 502.64 502.64 502.64 73117 08/10/2016 ARROWHEAD UNITED WAY PR END 07292016 UWPR END 07292016 UNITED WAY CONTRIBUTIONS 07/29/2016 B 10-022-65-00 5.00 5.00 5.00 73118 08/10/2016 AT AND T JUL 2016 AT&T BJUL 2016 AT&T 08/10/2016 E 09-440-235-000-000 619.35 E 10-190-235-000-000 486.59 E 10-450-235-000-000 103.40 E 10-805-235-000-000 265.61 E 10-808-235-000-000 167.63 1,642.58 1,642.58 73119 08/10/2016 AWARD COMPANY OF AMERICA 14211 PLAQUES/DOCUMENT HOLDERS 07/29/2016 E 10-120-210-000-000 1,563.50 1,563.50 1,563.50 4.b Packet Pg. 39 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73120 08/10/2016 CALPERS 100000014790521ANNUAL UNFUNDED ACCRUED LIABILITY PAYMENT FOR PLAN 160907/01/2016 E 09-445-140-000-000 16,858.19 E 09-446-140-000-000 42,198.81 E 09-447-140-000-000 83,512.99 E 10-120-140-000-000 14,043.00 E 10-175-140-000-000 8,594.00 E 10-185-140-000-000 27,869.00 E 10-370-140-000-000 43,658.00 E 10-450-140-000-000 7,366.00 E 16-175-140-000-000 40,267.00 E 22-425-140-000-000 6,093.01 290,460.00 100000014790532ANNUAL UNFUNDED ACCRUED LIABILITY PAYMENT FOR PLAN 2715907/01/2016 E 10-190-140-000-000 504.00 504.00 100000014790539ANNUAL UNFUNDED ACCRUED LIABILITY PAYMENT FOR PLAN 3010407/01/2016 E 10-190-140-000-000 55.00 55.00 291,019.00 73121 08/10/2016 CALPERS 457 PLAN PR END 07292016 457PR END 07292016 EMPLOYEE 457 PLAN CONTRIBUTIONS07/29/2016 B 10-022-63-00 992.31 992.31 992.31 73122 08/10/2016 CHAMPION FIRE SYSTEMS INC 40122 FY 2016-17 SMOKE DETECTOR MONITORING 08/03/2016 E 10-195-245-000-000 380.00 380.00 380.00 73123 08/10/2016 CLEAN STREET 82967 JUL STREET SWEEPING SERVICES 07/31/2016 E 16-900-254-000-000 4,833.34 4,833.34 4,833.34 73124 08/10/2016 DATA QUICK B1-2557276 JUL 2016 UPDATES TO PROPERTY DATA PROGRAM08/01/2016 E 10-172-250-000-000 87.00 E 10-370-250-000-000 43.50 130.50 130.50 4.b Packet Pg. 40 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73125 08/10/2016 EZ SUNNYDAY LANDSCAPE 10905 JULY MONTHLY MAINTENANCE 07/19/2016 E 10-195-255-000-000 200.00 E 10-450-255-000-000 3,300.00 E 26-600-255-000-000 160.00 E 26-601-255-000-000 80.00 3,740.00 3,740.00 73126 08/10/2016 GOPHER PATROL 190353 JUL GOPHER REMOVAL SVCS - PARKS, CITY HALL08/03/2016 E 10-450-245-000-000 85.00 85.00 85.00 73127 08/10/2016 WILLIAM HUSSEY JULY 2016 WH JUL 2016 HEALTH INS REIMB-WH 08/10/2016 E 10-110-142-000-000 150.00 150.00 150.00 73128 08/10/2016 ICC REGIONAL OFFICE 0243560 HANDOUT SCORE 08/10/2016 E 10-175-210-000-000 25.00 25.00 25.00 73129 08/10/2016 MIDAMERICA ADMIN AND RETIRE PR END 07129016 ARSPR END 0729016 ARS RETIREMENT CONTRIBUTIONS07/29/2016 B 10-022-68-00 345.26 345.26 345.26 4.b Packet Pg. 41 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 850589045001 73130 08/10/2016 OFFICE DEPOT 849290086001 OFFICE SUPPLIES 07/06/2016 E 10-370-210-000-000 148.21 148.21 OFFICE SUPPLIES 07/13/2016 E 10-125-221-000-000 102.41 102.41 853692643001 OFFICE SUPPLIES 07/28/2016 E 10-370-210-000-000 75.03 75.03 849290214001 OFFICE SUPPLIES 07/06/2016 E 10-370-210-000-000 19.29 19.29 853692699001 OFFICE SUPPLIES 07/28/2016 E 10-175-210-000-000 9.51 9.51 354.45 73131 08/10/2016 OTIS ELEVATOR COMPANY SAU06425V716 ELEVATOR MAINT & SVC - ANNUAL 06/20/2016 E 10-195-246-000-000 4,651.78 4,651.78 4,651.78 73132 08/10/2016 PROTECTION ONE 3020955 JUN-SEP1ST QTR ALARM MONITORING SERVICE 06/16/2016 E 10-195-247-000-000 140.70 140.70 2588440 JUN-SEP1ST QTR ALARM MONITORING SERVICE 06/16/2016 E 10-195-247-000-000 120.39 120.39 261.09 73133 08/10/2016 PUBLIC EMPLOYEES RETIREMENT PR END 07292016 PERSPR END 07292016 PERS RETIREMENT CONTRIBUTIONS07/29/2016 B 10-022-62-00 8,145.72 8,145.72 8,145.72 73134 08/10/2016 SO CA EDISON COMPANY JUL 2016 EDISON-BJUL 2016 ENERGY USAGE 08/10/2016 E 09-440-238-000-000 1,999.55 E 16-510-238-000-000 96.17 2,095.72 2,095.72 4.b Packet Pg. 42 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73135 08/10/2016 SO CA GAS COMPANY JUL2016 NATURAL GASJUL2016 NATURAL GAS 08/10/2016 E 09-440-238-000-000 43.21 E 10-190-238-000-000 105.27 E 10-805-238-000-000 99.72 248.20 JUL2016 CNG GASJUL2016 CNG GAS 08/01/2016 E 09-440-272-000-000 2.60 E 10-175-272-000-000 7.80 E 10-185-272-000-000 2.60 13.00 261.20 73136 08/10/2016 SPARKLETTS 9637116 080116 JUL2016 BOTTLED WATER-CITYHALL 08/01/2016 E 09-440-238-000-000 157.70 E 10-190-238-000-000 151.89 E 10-805-238-000-000 108.93 418.52 418.52 73137 08/17/2016 CA STATE CONTROLLER 001699 2015 FRANCHISE TAX BOARD OFFSET PROGRAM 07/29/2016 R 10-500-07 59.80 59.80 59.80 73138 08/17/2016 MEDIASTAR MS10334 REPLACE AND UPGRADE AUDIO SYSTEM IN COUNCIL CHAMBERS06/25/2016 E 70-110-700-001-000 18,277.56 18,277.56 MS10335 REWIRE LIGHTING SYSTEM 06/25/2016 E 70-110-700-001-000 1,488.24 1,488.24 19,765.80 73139 08/17/2016 LYNN MERRILL 2 NPDES INSPECTION SERVICES 06/29/2016 E 10-625-220-000-000 856.74 856.74 856.74 73140 08/17/2016 UTILITY COST MANAGEMENT LLC 21685 AUDIT OF UTILITY BILLS FINDING 07/19/2016 E 10-450-238-000-000 56.78 56.78 56.78 4.b Packet Pg. 43 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73141 08/17/2016 VOLOGY INV398116 IT EQUIPMENT PURCHASE 04/19/2016 E 70-125-700-001-000 2,493.74 2,493.74 INV399451 IT EQUIPMENT PURCHASE 05/03/2016 E 70-125-700-001-000 1,108.08 1,108.08 INV402283 IT EQUIPMENT PURCHASE 06/15/2016 E 70-125-700-001-000 931.38 931.38 INV401378 IT EQUIPMENT PURCHASE 06/02/2016 E 70-125-700-001-000 286.20 286.20 4,819.40 73142 08/17/2016 JEREMY BRIGGS LU 16-01 PLANNING REIMBURSEMENT LU 16-01 08/17/2016 R 10-420-10 97.00 97.00 97.00 73143 08/17/2016 CA PUB EMPLOYEES RETIRE SYSTEM2100 SEP 2016 PERS HEALTH INSURANCE 08/15/2016 E 09-447-142-000-000 1,010.33 B 10-022-61-00 4,776.23 E 10-120-142-000-000 1,481.31 E 10-125-142-000-000 435.70 E 10-175-142-000-000 1,583.88 E 10-190-142-000-000 1,096.30 E 10-370-142-000-000 435.70 E 10-450-142-000-000 690.55 E 16-175-142-000-000 274.03 E 32-200-142-000-000 813.31 E 65-425-142-000-000 543.83 13,141.17 13,141.17 4.b Packet Pg. 44 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73144 08/17/2016 CALPERS 100000014790521 aJUL UNFUNDED ACCRUED LIABILITY PLAN 1609 07/01/2016 E 09-445-140-000-000 1,456.58 E 09-446-140-000-000 3,646.07 E 09-447-140-000-000 7,215.68 E 10-120-140-000-000 1,213.34 E 10-175-140-000-000 742.54 E 10-185-140-000-000 2,407.93 E 10-190-140-000-000 32.76 E 10-370-140-000-000 3,772.13 E 10-450-140-000-000 636.44 E 16-175-140-000-000 3,479.15 E 22-425-140-000-000 526.45 25,129.07 100000014808151AUG UNFUNDED ACCRUED LIABILITY PLAN 1609 08/01/2016 E 09-445-140-000-000 1,456.58 E 09-446-140-000-000 3,646.06 E 09-447-140-000-000 7,215.68 E 10-120-140-000-000 1,213.34 E 10-175-140-000-000 742.54 E 10-185-140-000-000 2,407.93 E 10-370-140-000-000 3,772.13 E 10-450-140-000-000 636.44 E 16-175-140-000-000 3,479.15 E 22-425-140-000-000 526.45 25,096.30 50,225.37 73145 08/17/2016 CHEVRON TEXACO CARD SERVICES 48132447 JUL 2016 VEHICLE FUEL 08/06/2016 E 10-175-272-000-000 492.81 E 10-185-272-000-000 24.89 517.70 517.70 73146 08/17/2016 CINTAS CORPORATION 150 150813836 CHILD CARE SUPPLIES 07/27/2016 E 09-447-220-000-000 121.29 121.29 121.29 73147 08/17/2016 DAILY JOURNAL CORPORATION B2898959 PUBLIC NOTICE 07/02/2016 E 10-125-230-000-000 152.35 152.35 152.35 4.b Packet Pg. 45 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73148 08/17/2016 GT AREA CHAMBER OF COMMERCE 9083-DUES FY 2016-17 MEMBERSHIP DUES 08/01/2016 E 10-120-265-000-000 150.00 150.00 150.00 73149 08/17/2016 HIGH TECH SECURITY SYSTEMS 117744 SEP C.CARE SECURITY ALARM & FIRE MONITORING SVCS08/01/2016 E 09-447-247-000-000 90.00 B 23-200-14-00 101.53 191.53 117120 AUG C.CARE SECURITY ALARM & FIRE MONITORING SVCS07/01/2016 E 09-447-228-000-000 90.00 90.00 281.53 73150 08/17/2016 JONES AND MAYER 78465 FY 2016-17 LEGAL SERVICES 08/17/2016 E 10-160-250-000-000 5,167.00 5,167.00 78466 FY 2016-17 LEGAL SERVICES 07/29/2016 E 32-200-251-000-000 1,979.50 1,979.50 7,146.50 73151 08/17/2016 LINCOLN NATIONAL LIFE INSURANC LCLN SEP 2016 SEP LIFE/AD&D/DEP LIFE/WI/LTD 08/30/2016 B 10-022-66-00 869.45 869.45 869.45 73152 08/17/2016 MUNICIPAL CODE CORPORATION 00272719 JULY ANNUAL WEB HOSTING 07/14/2016 E 10-125-250-000-000 650.00 650.00 650.00 4.b Packet Pg. 46 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73153 08/17/2016 OFFICE DEPOT 851241487001 ELECTION OFFICE SUPPLIES 07/18/2016 E 10-125-221-000-000 59.16 59.16 853619894001 OFFICE SUPPLIES 07/28/2016 E 10-120-210-000-000 55.08 55.08 853880411001 OFFICE SUPPLIES 07/29/2016 E 65-425-220-000-000 38.44 38.44 853880479001 OFFICE SUPPLIES 07/29/2016 E 10-175-210-000-000 15.93 15.93 168.61 73154 08/17/2016 SO CA EDISON COMPANY JUL 2016 EDISON-CJUL 2016 ENERGY USAGE 08/17/2016 E 16-510-238-000-000 5,159.29 E 26-600-238-000-000 49.80 E 26-601-238-000-000 41.50 E 26-602-238-000-000 58.10 5,308.69 5,308.69 73155 08/17/2016 TIME WARNER CABLE 8448...4289 AUG-SEPAUG-SEP CHILD CARE CABLE/INTERNET SERVICES08/17/2016 E 09-440-238-000-000 99.99 99.99 8448..7046 AUG-SEPAUG-SEP CITY HALL CABLE SERVICES 08/17/2016 E 10-805-238-000-000 68.84 68.84 168.83 73156 08/17/2016 VERIZON WIRELESS 9769522334 JUL PUBLIC WORKS & C. CARE CELL PHONES 08/17/2016 E 09-445-235-000-000 20.00 E 09-446-235-000-000 40.00 E 10-175-240-000-000 241.20 E 10-185-235-000-000 174.78 E 16-510-236-000-000 381.53 857.51 857.51 73157 08/17/2016 WILLDAN 002-16999 JUL BUILDING OFFICIAL COVERAGE 08/04/2016 E 10-172-250-100-000 2,860.00 2,860.00 2,860.00 4.b Packet Pg. 47 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73158 08/17/2016 XEROX CORPORATION 085659484 JUL W7556P PRINTER: LEASE & IMPRESSIONS 08/01/2016 E 10-190-212-000-000 410.79 E 10-190-700-000-000 287.53 698.32 085659483 JUL W5755A PRINTER: LEASE & IMPRESSIONS 08/01/2016 E 10-190-212-000-000 36.20 E 10-190-700-000-000 305.97 342.17 1,040.49 73159 08/18/2016 BARTEL ASSOCIATES LLC 16-311 OPEB ACTUARIAL VALUATION SVCS 05/06/2016 E 10-190-250-000-000 3,750.00 3,750.00 3,750.00 73160 08/18/2016 BARTEL ASSOCIATES LLC 16-396 OPEB ACTUARIAL CONSULTING SVCS 06/07/2016 E 10-190-250-000-000 6,000.00 6,000.00 6,000.00 73161 08/18/2016 CALPERS 100000014790532 AANNUAL UNFUNDED ACCRUED LIABILITY PAYMENT FOR PLAN 2715907/01/2016 E 10-190-140-000-000 522.42 522.42 522.42 73162 08/18/2016 CALPERS 100000014790539 AANNUAL UNFUNDED ACCRUED LIABILITY PAYMENT FOR PLAN 3010407/01/2016 E 10-190-140-000-000 56.65 56.65 56.65 73163 08/24/2016 INTERWEST CONSULTING GROUP 28262 I215/BARTON INTERCHANGE PROJECT 07/25/2016 E 16-175-255-300-000 1,687.50 1,687.50 1,687.50 73164 08/24/2016 SECURITY LINES US 819 PARKS VIDEO SERVER UPGRADES WITH POD SOFTWARE01/27/2016 E 64-175-710-402-000 5,124.60 5,124.60 5,124.60 4.b Packet Pg. 48 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73165 08/24/2016 ACCELA INC 774375 INV-ACC22300 JUL MINUTETRAQ SUBSCRIPTION & HOSTING 05/01/2016 E 10-125-250-000-000 550.00 550.00 INV-ACC22301 AUG MINUTETRAQ SUBSCRIPTION & HOSTING 08/22/2016 E 10-125-250-000-000 550.00 550.00 INV-ACC22296 JUL MINUTETRAQ SUBSCRIPTION & HOSTING 08/22/2016 E 10-125-250-000-000 540.00 540.00 INV-ACC22297 AUG MINUTETRAQ SUBSCRIPTION & HOSTING 08/22/2016 E 10-125-250-000-000 540.00 540.00 2,180.00 73166 08/24/2016 AMERICAN FIDELITY ASSURANCE CO B503070 SEP EMP PAID ACCIDENT/SUPP LIFE 09/01/2016 B 23-250-20-00 412.28 412.28 412.28 73167 08/24/2016 AMERICAN FIDELITY ASSURANCE CO 1341699A SEP EMP PAID FLEX SPEND/DEP CARE 08/05/2016 B 23-250-10-00 495.00 495.00 495.00 4.b Packet Pg. 49 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73168 08/24/2016 ARROWHEAD CREDIT UNION JUL/AUG VISA JUL/AUG VISA CHARGES 08/24/2016 E 09-441-220-000-000 C. CARE FOOD SUPP 577.25 E 09-446-220-000-000 C. CARE FOOD SUPP 25.19 E 09-447-210-000-000 C. CARE OFFICE SUPP 74.43 E 09-447-220-000-000 C. CARE FOOD SUPP 109.79 E 09-447-228-000-000 C. CARE OFFICE SUPP 35.09 E 10-110-270-000-000 COUNCIL SUPPLIES 27.93 E 10-120-210-000-000 CM OFFICE SUPP 72.96 E 10-120-270-000-000 CM LEAGUE OF CA CONFR.525.00 E 10-125-270-000-000 LEAGUE OF CA CONFR.675.00 E 10-140-210-000-000 OFFICE SUPP 28.08 E 10-140-268-000-000 TRAINING AICPA 249.00 E 10-175-210-000-000 OFFICE SUPP 201.96 E 10-175-246-000-000 REPAIR SUPP 30.00 E 10-185-210-000-000 OFFICE SUPP 28.03 E 10-190-220-000-000 ORAL BOARD MAINT WRK 46.15 E 10-195-246-000-000 MAINT YARD GATE INSP 135.00 E 10-450-245-000-000 MAINT SUPP 521.87 E 16-900-254-000-000 STREET SWEEP REC 99.00 E 65-425-272-000-000 BUS FUEL 100.00 E 70-110-700-001-000 FURINTURE CONF RM 2,989.00 6,550.73 6,550.73 73169 08/24/2016 ARROWHEAD UNITED WAY PR END 08122016 UWPR END 08122016 UNITED WAY CONTRIBUTIONS 08/12/2016 B 10-022-65-00 5.00 5.00 5.00 73170 08/24/2016 CA STATE CONTROLLER LSL1 FY 2016-17 AUDIT CONFIRMATION FEES 08/24/2016 E 10-140-250-000-000 100.00 100.00 100.00 73171 08/24/2016 CAL STRIPE INC 16098-EW 2016-17 VAN BUREN TARFFIC CALMING 07/11/2016 E 16-175-250-303-000 1,538.61 1,538.61 1,538.61 73172 08/24/2016 CALPERS 457 PLAN PR END 08122016 457PR END 08122016 EMPLOYEE 457 PLAN CONTRIBUTIONS08/12/2016 B 10-022-63-00 1,085.03 1,085.03 1,085.03 4.b Packet Pg. 50 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73173 08/24/2016 CINTAS CORPORATION 150 150721588 CHILD CARE SUPPLIES 08/10/2016 E 09-447-220-000-000 355.22 355.22 355.22 73174 08/24/2016 CITY NEWSPAPER GROUP 23853 NOTICE OF HEARING 07/05/2016 E 10-125-230-000-000 93.89 93.89 93.89 73175 08/24/2016 DAILY JOURNAL CORPORATION B2835679 PUBLIC NOTICE 01/18/2016 E 10-125-230-000-000 206.80 206.80 B2869265 PUBLIC NOTICE 04/15/2016 E 10-125-230-000-000 173.80 173.80 B2840932 PUBLIC NOTICE 02/05/2016 E 10-125-230-000-000 100.36 100.36 B2840937 PUBLIC NOTICE 02/05/2016 E 10-125-230-000-000 93.89 93.89 B2840936 PUBLIC NOTICE 02/05/2016 E 10-125-230-000-000 84.18 84.18 659.03 73176 08/24/2016 DIVISION OFTHE STATE ARCHITECT SB 1186 4TH QTR2016 SB1186 4TH QTR COLLECTION 08/24/2016 B 23-200-86-00 53.70 53.70 53.70 73177 08/24/2016 EYEMED FIDELITY SECURITY LIFE 2918148 AUG EMPLOYEE PAID VISION INSURANCE 08/01/2016 B 10-022-61-00 105.21 105.21 105.21 4.b Packet Pg. 51 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73178 08/24/2016 FRUIT GROWERS SUPPLY 91790480 LANDSCAPE MAINTENANCE SUPPLIES 08/09/2016 E 10-195-245-000-000 15.99 E 10-450-245-000-000 67.41 83.40 91783477 LANDSCAPE MAINTENANCE SUPPLIES 07/13/2016 E 10-450-245-000-000 36.82 36.82 91791855 LANDSCAPE MAINTENANCE SUPPLIES 08/15/2016 E 10-450-245-000-000 17.68 17.68 137.90 73179 08/24/2016 EDWARD GIROUX 00621916 REPLACEMENT OF STALE PAYROLL CHECK 08/24/2016 E 10-801-120-000-000 46.17 46.17 46.17 73180 08/24/2016 GOPHER PATROL 185727 FY 2016-17 GOPHER REMOVAL SVCS - PARKS, CITY HALL07/13/2016 E 10-450-245-000-000 400.00 400.00 189880 FY 2016-17 GOPHER REMOVAL SVCS - PARKS, CITY HALL08/11/2016 E 10-450-245-000-000 400.00 400.00 186235 FY 2016-17 GOPHER REMOVAL SVCS - PARKS, CITY HALL07/08/2016 E 10-450-245-000-000 85.00 85.00 885.00 73181 08/24/2016 HOUR GLASS AND MIRROR INC 13778 WINDOW REPLACEMENT 07/28/2016 B 23-200-14-00 346.00 346.00 346.00 73182 08/24/2016 HOUSTON AND HARRIS PCS INC 16-19735 FY 2016-17 TO PERFORM MAINTENANCE YARD CLARIFIER CLEAN-OUT07/11/2016 E 10-631-255-000-000 1,000.00 1,000.00 1,000.00 73183 08/24/2016 LEVEL 3 COMMUNICATIONS 46086267 AUG PHONE AND INTERNET SERVICES 08/17/2016 E 10-190-235-000-000 1,312.66 1,312.66 1,312.66 4.b Packet Pg. 52 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # INV18106 73184 08/24/2016 DARCY MCNABOE SEP 2016 DM SEP HEALTH INSURANCE REIMBURSEMENT 08/24/2016 E 10-110-142-000-000 409.03 409.03 409.03 73185 08/24/2016 MIDAMERICA ADMIN AND RETIRE PR END 08129016 ARSPR END 08122016 ARS RETIREMENT CONTRIBUTIONS08/12/2016 B 10-022-68-00 214.95 214.95 214.95 73186 08/24/2016 JACQUELINE MITCHELL AUG 2016 JM AUG 2016 HEALTH REIMBURSEMENT-MITCHELL 08/24/2016 E 10-110-142-000-000 225.00 225.00 225.00 73187 08/24/2016 MUNISERVICES LLC 0000042535 JUL 2016 DISCOVERY BUSINESS LICENSE SRVCS 07/31/2016 E 10-140-250-000-000 630.35 630.35 0000042546 JUL 2016 BUSINESS LICENSE SRVCS 07/31/2016 E 10-140-250-000-000 580.03 580.03 1,210.38 73188 08/24/2016 GOVERNMENTJOBS COM INC NEOGOVINV187065 FY2016-17 NEOGOV SUBSCRIPTION & RENEWAL 08/09/2016 E 10-120-210-000-000 3,126.64 3,126.64 FY2016-17 NEOGOV SUBSCRIPTION & RENEWAL 06/06/2016 E 10-120-210-000-000 3,050.00 3,050.00 INV187066 FY2016-17 NEOGOV SUBSCRIPTION & RENEWAL 08/09/2016 E 10-120-210-000-000 750.00 750.00 6,926.64 73189 08/24/2016 PUBLIC EMPLOYEES RETIREMENT PR END 08122016 PERSPR END 08122016 PERS RETIREMENT CONTRIBUTIONS08/12/2016 B 10-022-62-00 8,243.00 8,243.00 8,243.00 4.b Packet Pg. 53 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73190 08/24/2016 RIVERSIDE HIGHLAND WATER CO JUN/JUL 2016 RHWCJUN/JUL 2016 WATER USE 08/24/2016 E 09-440-238-000-000 242.14 E 10-190-238-000-000 967.23 E 10-450-238-000-000 5,958.26 E 10-805-238-000-000 1,935.74 E 26-600-239-000-000 291.26 E 26-601-239-000-000 59.80 E 32-600-214-000-000 52.76 E 32-600-216-000-000 13.18 E 32-600-301-000-000 13.18 E 32-600-307-000-000 26.36 E 32-600-326-000-000 26.36 E 48-600-330-010-000 90.66 E 52-700-238-001-000 13.18 E 52-700-238-002-000 13.18 9,703.29 9,703.29 73191 08/24/2016 ROADRUNNER SELF STORAGE INC 20510 AUG 2016 STORAGE LEASE 08/15/2016 E 10-140-241-000-000 248.00 248.00 248.00 73192 08/24/2016 SANTA FE BUILDING MAINTENANCE 15117 JUL 2016 JANITORIAL SERVICES 07/31/2016 E 10-195-245-000-000 593.33 E 10-450-245-000-000 450.00 1,043.33 1,043.33 73193 08/24/2016 SIEMENS INDUSTRY INC 5610016623 JUL TRAFFIC SIGNAL MAINTENANCE 08/16/2016 E 16-510-255-000-000 702.00 702.00 5620012436 JUL 2016 SIGNAL RESPONSE CALL OUTS 08/16/2016 E 16-510-255-000-000 100.79 100.79 802.79 4.b Packet Pg. 54 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73194 08/24/2016 SITEONE LANDSCAPE SUPPLY 76940383 FY 2016-17 PARKS IRRIGATION SUPPLIES 07/27/2016 E 10-450-245-000-000 349.04 349.04 77230755 FY 2016-17 PARKS IRRIGATION SUPPLIES 08/17/2016 E 10-450-245-000-000 306.07 306.07 77133428 FY 2016-17 PARKS IRRIGATION SUPPLIES 08/10/2016 E 10-450-245-000-000 264.43 264.43 919.54 73195 08/24/2016 SO CA GAS COMPANY JUL2016 GAS 2 JUL2016 NATURAL GAS USAGE 08/15/2016 E 10-190-238-000-000 14.30 14.30 14.30 73196 08/24/2016 RYAN STEPHENS 00621917 REPLACEMENT OF STALE PAYROLL CHECK 08/24/2016 E 10-801-120-000-000 46.17 46.17 46.17 73197 08/24/2016 SYSCO RIVERSIDE INC 608022050 FY 2016-17 C.CARE FOOD SUPPLIES 08/02/2016 E 09-441-220-000-000 1,318.97 E 09-446-220-000-000 207.33 1,526.30 607051602 FY 2016-17 C.CARE FOOD SUPPLIES 07/05/2016 E 09-441-220-000-000 1,342.85 1,342.85 607051603 FY 2016-17 C.CARE FOOD SUPPLIES 07/05/2016 E 09-441-220-000-000 464.66 464.66 608022051 FY 2016-17 C.CARE FOOD SUPPLIES 08/02/2016 E 09-446-220-000-000 203.42 203.42 3,537.23 73198 08/24/2016 TIME WARNER CABLE 8448..3825 SEP SEP 2016 CIVIC CENTER CABLE SERVICES 08/24/2016 E 10-805-238-000-000 58.91 58.91 58.91 4.b Packet Pg. 55 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73199 08/24/2016 TRAFFIC MANAGEMENT INC 301256 FY 2016-17 GENERAL TRAFFIC SUPPLIES & SIGNS 07/19/2016 E 16-900-229-000-000 451.44 451.44 300316 FY 2016-17 GENERAL TRAFFIC SUPPLIES & SIGNS 07/12/2016 E 16-900-229-000-000 95.23 95.23 301257 FY 2016-17 GENERAL TRAFFIC SUPPLIES & SIGNS 07/19/2016 E 16-900-229-000-000 48.60 48.60 595.27 73200 08/24/2016 VALLEY TIRE COMPANY 108415 TIRE REPAIRS 08/09/2016 E 09-446-272-000-000 85.00 85.00 85.00 73201 08/24/2016 WILLDAN 002-17000 JUL 2016 PLAN CHECK/INSPECTION SERVICES 08/04/2016 E 10-172-250-000-000 2,710.00 2,710.00 2,710.00 73202 08/31/2016 THE COMMUNITY FOUNDATION 2 CBF - GT COMMUNITY DAY - 06/04/2016 06/04/2016 E 61-461-400-000-000 2,000.00 2,000.00 2,000.00 73203 08/31/2016 KEVIN HOWARD BEARDSLEY 068-16 VIDEOOGRAPHER & VIDEO TRANSFER SERVICES 08/24/2016 E 10-125-250-000-000 300.00 300.00 300.00 73204 08/31/2016 CINTAS CORPORATION 150 150729301 CHILD CARE SUPPLIES 08/24/2016 E 09-447-220-000-000 355.22 355.22 355.22 4.b Packet Pg. 56 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73205 08/31/2016 CITY NEWSPAPER GROUP 24037 PUBLICATION NOTICE 08/15/2016 E 10-125-230-000-000 259.00 259.00 23997 NOTICE OF SPECIAL MEETING 08/09/2016 E 10-370-230-000-000 252.52 252.52 24039 NATIONAL LOGISTICS HEARING NOTICE 08/15/2016 E 10-370-230-000-000 246.06 246.06 24038 PUBLICATION NOTICE 08/15/2016 E 10-125-230-000-000 220.16 220.16 23852 NOTICE OF PUBLICATION: TOBACCO 07/05/2016 E 10-125-230-000-000 116.55 116.55 1,094.29 73206 08/31/2016 EZ SUNNYDAY LANDSCAPE 11304 AUG MONTHLY MAINTENANCE 08/20/2016 E 10-195-255-000-000 200.00 E 10-450-255-000-000 3,300.00 E 26-600-255-000-000 160.00 E 26-601-255-000-000 80.00 3,740.00 3,740.00 73207 08/31/2016 FIREMASTER 0000345310 MAINTENANCE OF SR CNTR KITCHEN HOOD 08/12/2016 E 10-805-246-000-000 285.00 285.00 285.00 73208 08/31/2016 FOX OCCUPATIONAL MEDICAL CTR 68679-70762 PROGRAM ENROLLMENT FEE 07/05/2016 E 10-190-224-000-000 15.00 15.00 15.00 73209 08/31/2016 FRUIT GROWERS SUPPLY 91786585 LANDSCAPE MAINTENANCE SUPPLIES 07/26/2016 E 10-450-245-000-000 21.90 21.90 21.90 4.b Packet Pg. 57 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73210 08/31/2016 HIGH TECH SECURITY SYSTEMS 117200 AUG SECURITY ALARM & FIRE MONITORING SVCS07/01/2016 E 10-175-246-000-000 25.00 E 10-195-247-000-000 25.00 E 10-450-246-000-000 25.00 75.00 117817 SEP SECURITY ALARM & FIRE MONITORING SVCS 08/01/2016 E 10-175-246-000-000 25.00 E 10-195-247-000-000 25.00 E 10-450-246-000-000 25.00 75.00 150.00 73211 08/31/2016 INTERWEST CONSULTING GROUP 28760 PERMIT TECH TRAINING 08/23/2016 E 10-172-268-000-000 625.92 625.92 625.92 73212 08/31/2016 OFFICE DEPOT 857675335001 PAPER, INK, AND KITCHEN SUPPLIES 08/17/2016 E 10-190-220-000-000 5,163.09 5,163.09 857675929001 KITCHEN SUPPLIES 08/16/2016 E 10-190-220-000-000 24.66 24.66 5,187.75 73213 08/31/2016 CESQG PROGRAM S B COUNTY FIRE DEPARTMENTCOGT0804 SHARP CONTAINERS 1 GALLON 08/04/2016 E 10-195-246-000-000 161.92 161.92 161.92 73214 08/31/2016 SB COUNTY DEPT OF PUBLIC WORKSFC 006-17 FY 2016-17 FLOOD CONTROL AGREEMENT 07/12/2016 E 10-625-220-000-000 25,477.00 25,477.00 25,477.00 73215 08/31/2016 SHELL FLEET MANAGEMENT 0000008000209687608JUL 2016 FUEL VEHICLE 08/05/2016 E 10-175-272-000-000 325.55 325.55 325.55 73216 08/31/2016 TODD PETERS ELECTRIC 0810016-01 ELECTRICAL REPAIRS 08/10/2016 E 10-195-246-000-000 916.00 916.00 916.00 4.b Packet Pg. 58 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) Invoice #Date Vendor Invoice Description Check RegisterCITY OF GRAND TERRACEAs of 8/31/2016 Inv. Date Amount Paid Check TotalCheck # 73217 08/31/2016 WILLDAN FINANCIAL SERVICES 010-32179 AUG 2016 FINANCE DEPT. SERVICES 08/31/2016 E 10-140-250-000-000 36,908.80 36,908.80 36,908.80 73218 08/31/2016 DOUG WILSON AUG2016 HLTH REIM-DWAUG2016 HEALTH REIMBURSEMENT - WILSON 08/31/2016 E 10-110-142-000-000 320.06 320.06 320.06 8092016 08/09/2016 US BANK TRUST NATL ASSOC GTTAB2011B 0901162011B TAX ALLOCATION BONDS 09/01/2016 E 33-300-209-020-000 174,755.00 E 33-300-209-021-000 290,000.00 B 36-010-05-00 -237.42 464,517.58 GTTAB2011A 0901162011A TAX ALLOCATION BONDS - PRINCIPAL 09/01/2016 E 33-300-209-010-000 403,922.50 132 checks in this report Total Checks:1,593,181.58 E 33-300-209-011-000 310,000.00 B 36-010-05-00 -257,530.36 456,392.14 920,909.72 4.b Packet Pg. 59 At t a c h m e n t : B - C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ( 2 0 0 9 : A p p r o v a l o f C h e c k R e g i s t e r N o . 0 8 3 1 2 0 1 6 ) This page left intentionally blank. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Fund Balance Designation - Implementation of Governmental Accounting Standards Board (GASB) Statement No. 54 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: 1. Adopt Resolution 2016-____ revising Fiscal Policy No. 3.06, Reserves, to include GASB Statement No. 54 (Fund Balance Reporting and Governmental Fund Type Definitions) requirements; and 2. Adopt the General Fund fund balance commitments for FY2015-16 year-end as shown in the Fiscal Impact section. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: Established in 1984, the Governmental Accounting Standards Board (GASB) is the authoritative body that establishes accounting and financial reporting standards for governmental entities, such as the City of Grand Terrace. GASB pronouncements and statements comprise the majority of Generally Accepted Accounting Principles (GAAP). GASB Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis - for State and Local Governments, retained the required fund balance classification requirements: 1. Reserved: has already been set aside for specific purposes and not available for appropriation; 2. Unreserved-Designated: available for appropriation but is limited or restricted for its use; and 3. Unreserved-Undesignated: available for appropriation without any limitations. Considerable differences were found in how governments interpret and apply the standards for fund balance reporting which affected the amounts that were reported as reserved and unreserved fund balances. 5 Packet Pg. 60 In February 2009, the GASB issued Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions. Statement 54 is designed to modify fund balance reporting in governmental funds with the intention to improve financial reporting by providing fund balance categories and classifications that will be more easily understood by the users of our annual financial statements. Fund balance refers to the difference between assets (what the City owns) and liabilities (what the City owes) in the governmental balance sheet. Users of governmental financial statements examine fund balance information to identify the available resources of the governmental entity. Statement 54 sets criteria for fund balance reporting that more clearly defines categories of fund balance. With more concisely defined categories, the nature and extent of the constraints placed on a government’s fund balance are clearer and more transparent. DISCUSSION: FUND BALANCE To establish uniformity, GASB Statement 54 created five new classifications of fund balance. Each classification depicts the relative strength of the spending constraint for which the resources can be used. From most to least constrained, the new classifications of fund balance are: 1. Non-spendable: Nonspendable fund balance includes amounts that are not in a spendable form (inventory, for example) or are required to be maintained intact (the principal of an endowment fund, or deposits for example). 2. Restricted: Restricted fund balance includes amounts constrained to specific purposes by their providers (such as grant providers, bondholders, and higher levels of government) through constitutional provisions or enabling legislation (balances in special revenue funds are restricted fund balances since their amounts are restricted for a specific purpose). 3. Committed: Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority, in this case, City Council. Commitments may be changed or lifted only by City Council through the same formal action that imposed the constraint originally. As approved by City Council in the previous year, the City’s General Fund committed fund balances consisted of: a) Contingencies; b) Equipment Replacement (Fixed Asset Fund); c) Other Post Employment Benefits (OPEB); and d) Budget Stabilization. 5 Packet Pg. 61 4. Assigned: Assigned fund balance comprises amounts intended to be used by the governing body (City Council) for specific purposes. The intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In this cause, staff is requesting that the City Council delegate to the City Manager and/or the Finance Director the authority to assign fund balance. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are intended to be used for the purpose of that fund. 5. Unassigned: Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund. Positive unassigned amounts will be reported only in the general fund. POLICY Part of the City’s implementation of Statement 54 is the formal adoption of a Policy. Since the City has an adopted a Reserves Policy, the action being considered in this Staff Report is to adopt a resolution that approves the revised Reserves Policy which will incorporate Statement 54. The revised policy will outline the five new components of the fund balance and the delegation to the City Manager and/or Finance Director of the responsibility for the assignment of fund balance amounts for specific purposes for inclusion and presentation in the annual financial statements. In addition to the financial statement presentation of fund balance components, Statement 54 specifically addresses stabilization (reserve) arrangements that set aside amounts for use in emergency situations or when revenue shortages or budgetary imbalance arise. Governments are allowed to report such amounts in the general fund as restricted, committed or assigned fund balance (or a combination of all three categories and unassigned fund balance as well), if the amounts meet the applicable definitions and criteria in Statement 54 and are included in the Policy. Upon City Council adoption of the FY2015-16 Operating Budget, the following funds have been separately reported as “Special Revenue Funds:” 1. Fixed Asset Fund; 2. Community Benefits Fund; and 3. Public Safety Services Fund. With the implementation of Statement 54, these funds would be combined with the General Fund’s fund balance for reporting purposes in the annual financial statements 5 Packet Pg. 62 according to the policy; however, City staff will continue to provide separate fund reports to City Council that show these funds individual fund balances. The policy will also include a stabilization reserve to equal two (2) months of operating revenues (estimated based on budgeted revenues but reported based on actual reported revenues), as stated in the Generally Accepted Accounting Principles (GAAP). The proposed stabilization reserve that will eventually be reported as committed fund balance, as well as the three prior funds mentioned above. Fund Balance can only be committed by the City Council by ordinance or resolution as the government's highest level of decision-making authority. Although the City’s FY2014-15 financials reported fund balance as required by Statement 54, the City had not adopted a fund balance policy that exhibited these requirements. The City Council must adopt a fund balance policy that is compliant with GASB 54. The attached resolution will include the City Council authorizing the City Manager and/or Finance Director to assign fund balance showing the City's intent to use funds for a certain purpose. FISCAL IMPACT: There is no fiscal impact to implementing Statement 54. Total fund balance reported with or without Statement 54 would be the same; only the components of fund balance will be altered. At the FY2015-16 June Monthly Financial Report presented to City Council, the General Fund’s unaudited year-end fund balance is estimated at $1,581,319. The Table below proposed how the General Fund fund balance will be reported in the City’s financial statements for FY2015-16 and include the balances from the previous three funds mentioned that will be rolled into the General Fund: Fixed Asset Fund, Community Benefits Fund and the Public Safety Services Fund: GENERAL FUND - Fund Balance, FY2015-16 Nonspendable Prepaid Costs $0 Deposits 0 $0 Restricted for: Community Development Projects (e.g. Parks Fund, Facilities Fund) 0 Public Safety (e.g. SLESF Fund) 0 Public Works (e.g. Street Fund & other transportation funds) 0 0 Committed to: Committed to Contingencies (2 months of operating revenue) 800,000 5 Packet Pg. 63 Committed to Other Post-Employment Benefits Obligations (OPEB) 261,500 Committed to Budget Stabilization 519,891 1,581,391 Committed to Equipment Replacement (Fixed Asset Fund) 389,697 Committed to Community Services (Community Benefits Fund) 12,606 Committed to Additional Public Safety (Public Safety Services Fund) 161,188 563,491 Unassigned 0 Total Fund Balance $2,144,882 ATTACHMENTS:  Resolution to Adopt Reserves Policy 3.06 (DOC)  23.3.06_Revised Reserves Policy 09272016 (DOC) APPROVALS: Cynthia Fortune Completed 09/18/2016 7:42 PM Finance Completed 09/18/2016 7:42 PM City Attorney Completed 09/19/2016 11:33 AM City Manager Completed 09/21/2016 6:45 PM City Council Pending 09/27/2016 6:00 PM 5 Packet Pg. 64 This page left intentionally blank. RESOLUTION NO. 2016-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE REVISED RESERVES POLICY, POLICY NO. 3.06 WHEREAS, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions; and WHEREAS, for financial statement reporting purposes, GASB Statement No. 54 defines Nonspendable amounts as those that are not in a spendable form or are required to be maintained intact; and WHEREAS, for financial statement reporting purposes, GASB Statement No. 54 defines Restricted amounts as those that are constrained to specific purposes by their providers through constitutional provisions or enabling legislation; and, WHEREAS, for financial statement reporting purposes, GASB Statement No. 54 defines Committed amounts as those constrained to specific purposes by the government itself; and WHEREAS, for financial statement reporting purposes, GASB Statement No. 54 defines Assigned amounts as those the government intends to use for a specific purpose; and WHEREAS, the City Council's Fiscal Policy No. 3.06, Reserves, has been modified, for financial statement reporting purposes, to include: a) GASB Statement No. 54 classifications of fund balances; b) General Fund contingency; c) Authorization and Action to Commit fund balances; and d) Authorization and Action to Assign fund balances. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE VALLEY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. The Revised Reserves Fiscal Policy (No. 3.06), attached hereto as “Exhibit A”, is hereby approved; and 2. The City Manager and/or the Finance Director are hereby authorized to assign fund balance for a specific purpose in accordance with and in relation to the City’s Reserves policy, attached hereto. BE IT FURTHER RESOLVED that this Resolution shall take effect immediately upon the date of its adoption. 5.a Packet Pg. 65 At t a c h m e n t : R e s o l u t i o n t o A d o p t R e s e r v e s P o l i c y 3 . 0 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 27th day of September, 2016: Darcy McNaboe, Mayor ATTEST: Pat Jacques-Nares, City Clerk 5.a Packet Pg. 66 At t a c h m e n t : R e s o l u t i o n t o A d o p t R e s e r v e s P o l i c y 3 . 0 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) Exhibit A Reserves Policy (No. 3.06) 5.a Packet Pg. 67 At t a c h m e n t : R e s o l u t i o n t o A d o p t R e s e r v e s P o l i c y 3 . 0 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) This page left intentionally blank. City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 1 of 42 I. PURPOSE AND SCOPE To define the policy for establishing and maintaining cash reserves needed for prudent financial management of the City. II. POLICY A. Introduction The City will maintain cash balances to preserve the City’s credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters or catastrophic events, and other financial hardships or downturns in the local or national economy. 2. Contingencies for unforeseen operating needs. 3. Future debt service requirements. 4. Fixed asset replacements. 5. Cash flow requirements. 6. Legal requirements. B. Budgetary Reserves 1. A contingency account will be budgeted each fiscal year in the Non- Departmental cost center to provide for unanticipated expenditures of a nonrecurring nature. Authorization to expend funds from this account will require approval of the City Manager. 2. A General Fund Contingency Reserve account will be established and maintained at the level recommended by the Government Finance Officers Association of the United States & Canada (GFOA), which is a minimum of two months of regular General Fund operating revenues or expenditures (whichever is considered most predictable), to serve as a buffer against unexpected local disasters or catastrophic events, and other financial hardships or downturns in the local or national economy. The City will use General Fund operating revenues as the basis for establishing the two- month reserve target. C. Fund Balance Reserves 1. An Equipment Replacement Reserve will be maintained in an Equipment Replacement Fund to fund replacement costs of existing equipment, vehicles, computers and office furnishings as they reach the end of their useful lives. 5.b Packet Pg. 68 At t a c h m e n t : 2 3 . 3 . 0 6 _ R e v i s e d R e s e r v e s P o l i c y 0 9 2 7 2 0 1 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 2 of 42 a. The City will strive to maintain a minimum fund balance in the Equipment Replacement Fund of at least the average annual replacement cost of the current items accounted for in this fund. b. Contributions to the Equipment Replacement Reserve will be made through annual depreciation charges in accordance with the City’s Fixed Asset Policy. 2. Reserves for Encumbrance and Continuing Appropriations will be established at the end of each fiscal year to reserve fund balance in the amount equal to the City’s unpaid obligations at fiscal year-end. 3. Reserve levels for Debt Service Funds shall be established as prescribed by the applicable bond covenants adopted at the time of the issuance of debt. 4. Other reserves, such as for cash flow or capital needs, will be reviewed and established each fiscal year as needed. The City shall report fund balances in accordance with the Governmental Accounting Standards Board (GASB) Statement 54, which requires fund balance to be classified in one of five categories as follows:  Non-spendable fund balance includes amounts that are not in a spendable form (inventory, for example) or are required to be maintained intact (the principal of an endowment fund, for example).  Restricted fund balance includes amounts constrained to specific purposes by their providers (such as grant providers, bondholders, and higher levels of government) through constitutional provisions or enabling legislation.  Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City Council, the government's highest level of decision-making authority. These funds include:  Fixed Asset Fund - funds may only be used for equipment replacement of for the purchase of new equipment;  Community Benefits Fund - funds may only be used for City Council approved grants to benefit the community;  Public Safety Services Fund - funds may only be used for Formatted: Indent: Left: 0.99" 5.b Packet Pg. 69 At t a c h m e n t : 2 3 . 3 . 0 6 _ R e v i s e d R e s e r v e s P o l i c y 0 9 2 7 2 0 1 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 3 of 42 additional public safety services as determined by the City Manager and approved by City Council.  Commitments may be changed or lifted only by City Council, the government taking the same formal action that imposed the constraint originally.  Assigned fund balance comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund.  Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund. Positive unassigned amounts will be reported only in the general fund. General Fund Contingency The City shall maintain a committed General Fund contingency reserve equal to two months of operating revenues. If the reserve level falls below the minimum level, the City will seek to replenish fund balance within a reasonable timeframe. The reserves will be used to provide for temporary financing of unanticipated extraordinary needs of an emergency nature, such as economic uncertainties or a local disaster. Intended to act as a short-term solution to fiscal needs, the contingency reserve will be drawn down as the funding source of last resort. Authorization and Action to Commit Fund Balance The City Council, as the government's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur Formatted: Indent: Left: 1.75" Formatted: Font: Italic, Underline Formatted: Font: Italic, Underline 5.b Packet Pg. 70 At t a c h m e n t : 2 3 . 3 . 0 6 _ R e v i s e d R e s e r v e s P o l i c y 0 9 2 7 2 0 1 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 4 of 42 within the fiscal reporting period; however the amount can be determined subsequently. Authorization and Action to Assign Fund Balance The City Council may assign fund balance to a specific purpose in relation to this fund balance policy. By resolution, the Council has also authorized the City Manager and/or Finance Director to assign fund balance. Assignments by the City Manager or Finance Director do not require formal action by the City Council; however, each assignment must be approved by either of the authorized officials before the item can be presented in the financial statements. D. Use of and Replenishment of General Fund Contingency Reserve 1. The General Fund Contingency Reserve is intended to act as a buffer to protect service levels during difficult economic times or as a result of catastrophic events that require significant unanticipated expenditures. 2. During such times, or as a result of such events, the General Fund Contingency Reserve may decline below the target level (two months of operating revenues) with City Council authorization. Once the difficult fiscal times pass, the General Fund Contingency Reserve will be replenished to its target level as soon as funding permits, as determined by the City Council through the annual budget process. 3. Appropriate sources for replenishment of the General Fund Contingency Reserve include one-time revenues and other sources not necessary to support ongoing services. E. Policy Versus Appropriation of Reserves This policy establishes target reserve levels for the prudent financial management of the City. However, specific appropriation of funds into the various reserve accounts will be subject to the annual budget adoption process or other City Council budgetary action. Formatted: Font: Italic, Underline 5.b Packet Pg. 71 At t a c h m e n t : 2 3 . 3 . 0 6 _ R e v i s e d R e s e r v e s P o l i c y 0 9 2 7 2 0 1 6 ( 1 9 7 2 : F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Award of Lease Agreement to Xerox for Two Multi-Purpose Machines PRESENTED BY: Pat Jacquez-Nares, City Clerk RECOMMENDATION: 1. Award the 60 Month Lease Agreement to Xerox for the two multi-purpose machines at a monthly rate of $625.32 plus applicable taxes; and 2. Authorize the City Manager to execute the agreement and purchase order for the lease and additional imprint cost for an annual aggregate amount not to exceed $15,000. 2030 VISION STATEMENT: This staff report promotes our Core Values of Positive and Productive Work Environment and Exceptional Customer Service. BACKGROUND/DISCUSSION: The City had lease agreements for both its multi-purpose machines with Xerox which have now expired and the City is currently on a month to month with them. The term of this new lease is 60 months. The pricing is fixed for the term of the lease and includes all maintenance, parts, and consumable supplies. On one of the machines (W7970P), there will be an additional monthly cost per black and white imprints over 10,000 at a rate of $0.0050 and for color imprints over 2,500 at a rate of $0.0406 these rates are lower than what the City has had in the past from Xerox. This is the machine that is used on the second floor and is shared by the City Manager, City Clerk, and Finance Department and will be the main color printer for all departments. In previous year, the average for both the lease and the imprints was approximately $1,000 monthly. Staff has increased the use of the color copies and has reflected that in the approximate monthly imprint allocation below. Staff received three bids from the following vendors: Vendor Machine 5955 APT Machine W7970P Totals Xerox (Attachment A) $299.01 $326.31 $625.32 plus tax All Imprints Included B/W Imprints over 10,000 charged at $0.0050 each Imprint Overage Billed Monthly for both B/W and Color Imprints 6 Packet Pg. 72 Color Imprints over 2,500 charged at $0.0406 each ImageSource (Attachment B) $299.00 $326.01 $625.01 B/W Imprints over 10,000 charged at $0.0049 B/W Imprints over 10,000 charged at $0.0050 Imprint Overages Billed Monthly for both B/W and Color Imprints Color Imprints over 2,500 charged at $0.0406 each Below Vendor quoted similar machines as follows: Vendor Machine Machine Totals Burtronics (Attachment C) Lanier MP 5054 Lanier MP C6003 $915.77 both per month Price includes: B/W Imprints: 10,000 combined for both machines; over 10,000 charged at $0.0055 ea. Color Imprints: 9,000 combined for both machines; over 9,000 charged at $0.0456 ea. Imprint Overage Billed Quarterly Based on the quotes received, Xerox is the lowest responsible bidder, and therefore staff is recommending that City Council approve the lease agreement as follows: Vendor Annual Bid Amount: Xerox $8,300.00 Approximate Annual Imprint Allowance $6,700.00 NOT TO EXCEED ANNUAL TOTAL $15,000.00 Once approved by City Council, the agreement be signed and the purchase order will be issued to the vendor. FISCAL IMPACT: 6 Packet Pg. 73 The award of the contract to Xerox as outlined herein, was budgeted from the General Fund and approved by City Council at the adoption of the FY2016-17 budget. Approved Line Item in FY2016-17: Fund Account Account Title Approved Budget General 10-190-700-000 Lease $8,600.00 General 10-190-212-000 Imprints $7,000.00 TOTAL BUDGET $15,600.00 ATTACHMENTS:  Attachment A - Xerox Proposal & Agreement (PDF)  Attachment B - ImageSource Proposal & Agreement (PDF)  Attachment C - Burtronics - Proposal (DOCX) APPROVALS: Pat Jacquez-Nares Completed 09/21/2016 5:48 PM City Attorney Completed 09/22/2016 11:46 AM Finance Completed 09/22/2016 10:35 AM City Manager Completed 09/22/2016 1:13 PM City Council Pending 09/27/2016 6:00 PM 6 Packet Pg. 74 This page left intentionally blank. Lease Agreement 0 5 4 6 0 1 7 0 1 0 0 1 0 0 3 0 WS N49277 09/1/2016 07:58:05 Confidential - Copyright© 2008 XEROX CORPORATION. All rights reserved.Page 1 of 3 Customer:GRAND TERRACE, CITY OF BillTo:CITY OF GRAND TERRACE 22795 BARTON RD GRAND TERRACE, CA 92313-5271 Install: CITY OF GRAND TERRACE FINANCE 22795 BARTON RD GRAND TERRACE, CA 92313-5271 Tax ID#: . State or Local Government Negotiated Contract : 072716000 Authorized Signature Customer acknowledges receipt of the terms of this agreement which consists of 3 pages including this face page. Signer: ___________________________________ Phone: (909)824-6621 x212 Signature:Date: TOTAL SATISFACTION GUARANTEE Thank You for your business! This Agreement is proudly presented by Xerox and Kristian Murphy (506)631-5642 For information on your Xerox Account, go to www.xerox.com/AccountManagement Solution Product Description Item Agreement Information Trade Information Requested Install Date 1. 5955APT (WORKCENTRE 5955) - 3 Hole Punch Kit - I-series-1 Line Fax - Off Finisher 50sheet - Customer Ed - Analyst Services Lease Term: 60 months Purchase Option: FMV None 9/1/2016 2. W7970P (WORKCENTRE 7970) - Br Finisher 2/3 Hole - I-series-1 Line Fax - Customer Ed - Analyst Services Lease Term:60 months Purchase Option: FMV - Xerox WC5755P S/N XEH486722 Trade-In as of Payment 72 9/16/2016 Monthly Pricing Item Lease Minimum Payment Print Charges Meter Volume Band Per Print Rate Maintenance Plan Features 1. 5955APT $299.01 1: BW All Prints $0.0000 - Consumable Supplies Included for all prints - Pricing Fixed for Term ATTACHMENT A 6.a Packet Pg. 75 At t a c h m e n t : A t t a c h m e n t A - X e r o x P r o p o s a l & A g r e e m e n t ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) Lease Agreement 0 5 4 6 0 1 7 0 1 0 0 2 0 0 3 0 WS N49277 09/1/2016 07:58:06 Confidential - Copyright© 2008 XEROX CORPORATION. All rights reserved. Page 2 of 3 Monthly Pricing (Cont’d) Item Lease Minimum Payment Print Charges Meter Volume Band Per Print Rate Maintenance Plan Features 2. W7970P $326.31 1: BW 1 - 10,000 10,001+ Included $0.0050 2: Color 1 - 2,500 2,501+ Included $0.0406 - Consumable Supplies Included for all prints - Pricing Fixed for Term Total $625.32 Minimum Payments (Excluding Applicable Taxes) 6.a Packet Pg. 76 At t a c h m e n t : A t t a c h m e n t A - X e r o x P r o p o s a l & A g r e e m e n t ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) Lease Agreement 0 5 4 6 0 1 7 0 1 0 0 3 0 0 3 1 WS N49277 09/1/2016 07:58:06 Confidential - Copyright© 2008 XEROX CORPORATION. All rights reserved. Page 3 of 3 Terms and Conditions INTRODUCTION: 1. NEGOTIATED CONTRACT. The Products are subject solely to the terms in the Negotiated Contract identified on the face of this Agreement, and, for any option you have selected that is not addressed in the Negotiated Contract, the then-current standard Xerox terms for such option. GOVERNMENT TERMS: 2. REPRESENTATIONS & WARRANTIES. This provision is applicable to governmental entities only. You represent and warrant, as of the date of this Agreement, that: (1) you are a State or a fully constituted political subdivision or agency of the State in which you are located and are authorized to enter into, and carry out, your obligations under this Agreement and any other documents required to be delivered in connection with this Agreement (collectively, the "Documents"); (2) the Documents have been duly authorized, executed and delivered by you in accordance with all applicable laws, rules, ordinances and regulations (including all applicable laws governing open meetings, public bidding and appropriations required in connection with this Agreement and the acquisition of the Products) and are valid, legal, binding agreements, enforceable in accordance with their terms; (3) the person(s) signing the Documents have the authority to do so, are acting with the full authorization of your governing body and hold the offices indicated below their signatures, each of which are genuine; (4) the Products are essential to the immediate performance of a governmental or proprietary function by you within the scope of your authority and will be used during the Term only by you and only to perform such function; and (5) your payment obligations under this Agreement constitute a current expense and not a debt under applicable state law and no provision of this Agreement constitutes a pledge of your tax or general revenues, and any provision that is so construed by a court of competent jurisdiction is void from the inception of this Agreement. 3. FUNDING. This provision is applicable to governmental entities only. You represent and warrant that all payments due and to become due during your current fiscal year are within the fiscal budget of such year and are included within an unrestricted and unencumbered appropriation currently available for the purchase/maintenance of the Products, and it is your intent to use the Products for the entire term and to make all payments required under this Agreement. If (1) through no action initiated by you, your legislative body does not appropriate funds for the continuation of this Agreement for any fiscal year after the first fiscal year and has no funds to do so from other sources, and (2) you have made a reasonable but unsuccessful effort to find a creditworthy assignee acceptable to Xerox in its sole discretion within your general organization who can continue this Agreement, this Agreement may be terminated. To effect this termination, you must, at least 30 days prior to the beginning of the fiscal year for which your legislative body does not appropriate funds, notify Xerox in writing that your legislative body failed to appropriate funds and that you have made the required effort to find an assignee. Your notice must be accompanied by payment of all sums then owed through the current year under this Agreement and must certify that the canceled Equipment is not being replaced by equipment performing similar functions during the ensuing fiscal year. You will return the Equipment, at your expense, to a location designated by Xerox and, when returned, the Equipment will be in good condition and free of all liens and encumbrances. You will then be released from any further payment obligations beyond those payments due for the current fiscal year (with Xerox retaining all sums paid to date). PRICING PLAN/OFFERING SELECTED: 4. FIXED PRICING. If "Pricing Fixed for Term" is identified in Maintenance Plan Features, the maintenance component of the Minimum Payment and Print Charges will not increase during the initial Term of this Agreement. GENERAL TERMS & CONDITIONS: 5. REMOTE SERVICES. Certain models of Equipment are supported and serviced using data that is automatically collected by Xerox or transmitted to or from Xerox by the Equipment connected to your network ("Remote Data") via electronic transmission to a secure off-site location ("Remote Data Access"). Remote Data Access also enables Xerox to transmit Releases of Software to you and to remotely diagnose and modify Equipment to repair and correct malfunctions. Examples of Remote Data include product registration, meter read, supply level, Equipment configuration and settings, software version, and problem/fault code data. Remote Data may be used by Xerox for billing, report generation, supplies replenishment, support services, recommending additional products and services, and product improvement/development purposes. Remote Data will be transmitted to and from you in a secure manner specified by Xerox. Remote Data Access will not allow Xerox to read, view or download the content of any of your documents or other information residing on or passing through the Equipment or your information management systems. You grant the right to Xerox, without charge, to conduct Remote Data Access for the purposes described above. Upon Xerox's request, you will provide contact information for Equipment such as name and address of your contact and IP and physical addresses/locations of Equipment. You will enable Remote Data Access via a method prescribed by Xerox, and you will provide reasonable assistance to allow Xerox to provide Remote Data Access. Unless Xerox deems Equipment incapable of Remote Data Access, you will ensure that Remote Data Access is maintained at all times Maintenance Services are being performed. 6.a Packet Pg. 77 At t a c h m e n t : A t t a c h m e n t A - X e r o x P r o p o s a l & A g r e e m e n t ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) This page left intentionally blank. 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(S e e Co n n e c t K e y Se c t i o n ) Pa p e r l e s s Fa x Ki t pr o v i d e s fa x i n g fr o m yo u r PC as we l l as fo r w a r d i n g in c o m i n g fa x e s on t o yo u r ne t w o r k Sin g l e Pa s s Do c u m e n t Fe e d e r in c r e a s e s sc a n sp e e d by ov e r 65 % US B Pr i n t & Sc a n Ca p a b i l i t i e s fo r th e "o n th e go " us e r Au t o m a t e d me t e r re a d s an d su p p l y fu l f i l l m e n t Co m m o n Cr i t e r i a Ce r t i f i c a t i o n me e t i n g all Go v e r n m e n t co m p l i a n c e s Qu a r t e r l y Ac c o u n t Re v i e w s by Ce r t i f i e d Ac c o u n t Ex e c u t i v e 2,50 0 10 ,00 0 Pr i c e in c l u d e s all ma i n t e n a n c e , su p p l i e s , to n e r , pa r t s , la b o r , eq u i p m e n t de l i v e r y , se t u p , an d st a f f tr a i n i n g (e x c l u d e s pa p e r an d st a p l e s ) Xe r o x To t a l Sa t i s f a c t i o n Gu a r a n t e e $0 .04 0 6 $0 . 0 0 $0 .00 4 9 $0 . 0 0 $3 2 6 .01 $2 9 9 .00 xe r o x • )> ~ () I s; : m z -i ll J 6. b Pa c k e t P g . 7 8 Attachment: Attachment B - ImageSource Proposal & Agreement (2024 : Award of Lease Agreement to September 15, 2016 City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Pat Jacquez-Nares, image s.2formi~ s~ Thank you for the confidence you have placed in Xerox for your document needs. We appreciate the opportunity to work with you on this project and others for many years down the road. Please note: The lease agreement does not commence until after equipment delivery. Pursuant to Sec. 1 agreement; line 4 "This agreement becomes valid upon execution by us and will start on the day we pay the supplier", which is after authorization of equipment and delivery acceptance. We look forward to a smooth installation and training phase of this project. Thank you again for your business and we will do all we can to keep you totally satisfied with our products, service ar:id support. xerox• 6.b Packet Pg. 79 At t a c h m e n t : A t t a c h m e n t B - I m a g e S o u r c e P r o p o s a l & A g r e e m e n t ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) Xerox Financial Services LLC 45 Glover Avenue Norwalk CT 06856 Lease Agreement -Fair Market Value xerox Lease Agreement Number: Dealer Name: I !•1•n•••tl Full Legal Name • OBA Grand Terrace, City of Billing Address 22795 Barton Rd. City Grand Terrace State CA I ZIP Code 92313 Phone 909-825-3825 I Contact Name Contact Email Lessee PO# (Optional) liiil.11•11• , •.. Quantity Model and Description Quantity Model and Description 1 Xerox WorkCentre 7970i 1 Xerox WorkCentre 5955i Equipment location (if different from Billing Address) TERM, PAYMENT AND PURCHASE OPTION INFORMATION Initial Lease Term (in Months): _6_0 __ _ Monthly lease Payment:$ 625.01 plus applicable Taxes Down Payment Received:$ 0 · 00 Purchase Option (Check One): Iii Fair Market Value 0 Other _____ _ LESSEE ACCEPTANCE BY YOUR SIGNATURE BELOW, YOU ACKNOWLEDGE THAT YOU ARE ENTERING INTO A NON-CANCELLABLE LEASE AND THAT YOU HAVE READ AND AGREED TO All APPLICABLE TERMS AND CONDITIONS SET FORTH ON PAGES 1 AND 2 OF THIS LEASE. Authorized Signer Date I Federal Tax ID# (Required) x Print Name Title (indicate President, Partner, Proprietor, etc.) II!•• Accepted By: Xerox Financial Services LLC I Name and Title • .4~~: 1. Definitions. The words "you· and "your" mean the legal entity identified in "Lessee Information· above, and "XFS," "we," ·us," "Lessor" and ·our" mean Xerox Financial Services LLC. "Dealer" means the entity identified in 'Dealer Name' above. 'Discount Rate' means a rate equal to the 1-year Treasury Constant Maturity rate as published in the Selected Interest Rates table of the Federal Reserve statistical release H.15(519) or successor publication for the week ending immediately prior to the Inception Date. "Equipmenr means the items identified in 'Equipmenr above and in any attached Equipment schedule, plus any Software (as defined in Section 3 hereof), attachments, accessories, replacements, replacement parts, substitutions, additions and repairs thereto. 'Inception Date' means (a) the date Dealer delermines Equipmenl installed by Dealer is operating satisfactorily and is available for your use, or (b) the date Equipment identified by Dealer as being installable by you is delivered to your premises. 'Lease' means this Lease Agreement, including any attached Equipment schedule. 'Lease Paymenr means the Monthly Lease Payment specified above, which includes the fixed component of maintenance charges payable to Dealer under the Maintenance Agreement, plus Taxes. "Maintenance Agreemenr means a separate agreement between you and Dealer for maintenance and support purposes. "Origination Fee" means a one-time fee of $125 billed on your first invoice which you agree to pay, covering the origination, documentation, processing and certain other initial costs for the Lease. 'Party' means you or XFS, and 'Parties· means both you and XFS. "Term· means the Initial Lease Term plus any subsequent renewal or extension terms. ·ucc· means the Uniform Commercial Code of the State of Connecticut (C.G.S.A. §§42a-1-101 et seq.). 2. Lease, Payments and Late Payments. You agree and represent all Equipment was selected, configured and negotiated by you based upon your own judgment and has been, or is being, supplied by Dealer. At your request, XFS has acquired, or will accuire, the same to lease to you under this lease and you agree to lease the same from XFS. The Initial Lease Term, which is indicated above, commences on the Inception Date. You agree to pay XFS the first Lease Payment 30 days after the Inception Date; each subsequent Lease Payment, which may include charges you, Dealer and XFS agree will be invoiced by us, shall be payable on the same date of each month thereafter, whether or not XFS invoices you. If any payment is not paid in full within 5 days after its due date, you will pay a late charge of the greater of 10% of the amount due or $25, not to exceed the maximum amount permitted by law. For each dishonored or returned payment. you will be assessed the applicable returned item fee, which shall not exceed $35. Restrictive covenants on any method of payment will be ineffective. 3. Equipment and Software. To the extent that the Equipment includes intangible property or associated services such as software licenses, such intangible property shall be referred to as 'Software.' You acknowledge and agree that that XFS has no right, trtle or interest in the Software and you will comply throughout the Lease Term with any license and/or other agreement ('Software license') with the supplier of the Software ("Software Supplier"). You are responsible for entering into any required Software license with the Software Supplier no later than the Lease Inception Date. You agree the Equipment is for your lawful business use in the United States (including its possessions and territories), will not be used for personal, household or family purposes, and is not being accuired for resale. You will not attach the Equipment as a fixture to real estate or make any permanent alterations to it. 4. Non-Cancellable lease. THIS LEASE CANNOT BE CANCELLED OR TERMINATED BY YOU PRIOR TO THE END OF THE INITIAL LEASE TERM. YOUR OBLIGATION TO MAKE All LEASE PAYMENTS, AND TO PAY All OTHER AMOUNTS DUE OR TO BECOME DUE, IS ABSOLUTE AND UNCONDITIONAL AND NOT SUBJECT TO DELAY, REDUCTION, SET-OFF, DEFENSE, COUNTERCLAIM OR RECOUPMENT FOR ANY REASON WHATSOEVER, IRRESPECTIVE OF THE PERFORMANCE OF THE EQUIPMENT, DEALER, ANY THIRD PARTY OR XFS. Any pursued claim by you against XFS for alleged ..... , I Date '"'" • breach of our obligations hereunder shall be asserted solely in a separate action; provided, however, that your obligations under this Lease shall continue unabated. 5. End of lease Options. For any purchase option designated on the first page hereof, if you are not in default and if you provide no greater than 150 days and no less than 60 days' prior written notice to XFS, you may, at the end of the Initial Lease Term, either (a) purchase all, but not less than all, of the Equipment 'AS IS, WHERE IS' and WITHOUT ANY WARRANTY AS TO CONDITION OR VALUE at the time of purchase by paying the amount of such purchase option, plus Taxes, (b) enter into a new lease on mutually agreeable terms, or (c) de-install and return the Equipment, at your expense, fully insured, to a continental US location XFS specifies. If no purchase option is specified, you sh'all elect either alternative (b) or (c) in the preceding sentence. If you have not elected one of the above options, you shall be deemed to have entered into a new lease with a 3 month term on terms and conditions identical to this lease, except that either party may terminate the new lease at the end of its 3 month term on 30 days' prior written notice and, when this new lease terminates, shall take one of the actions identified in (a) (b) or (c) in the preceding sentence or be deemed to have entered into another new lease with a 3 month term as provided in this sentence. The purchase options shall be exercised, with respect to each item of Equipment on the day immediately following the date of expiration of the Lease Term of such item, and by the delivery at such time by you to XFS of payment, in cash or by certified check, of the amount of the applicable purchase price for the Equipment. 'Fair Market Value' shall be determined by XFS in our sole but reasonable discretion. Upon payment of the applicable amount, XFS shall, upon your request, execule and deliver to you a bill of sale for the Equipment on an 'AS IS," "WHERE IS," 'WITH All FAUL TS" basis, without represenlation or warranty of any kind or nature whatsoever. After such payment, you may trade-in the Equipment as part of another transaction with XFS and, if you do, you must pass unencumbered title of the Equipment being traded-in to XFS. 6. Equipment Return. If the Equipment is returned to XFS, it shall be in the same condition as when delivered to you, normal wear and tear excepted and, if not in such condition, you will be liable for all expenses XFS incurs to return the Equipment to such 'normal wear and tear" condition. IT IS SOLELY YOUR RESPONSIBILITY TO SECURE ANY SENSITIVE DATA AND PERMANENTLY DELETE SUCH DATA FROM THE INTERNAL MEDIA STORAGE PRIOR TO RETURNING THE EQUIPMENT TO XFS. YOU SHALL HOLD XFS HARMLESS FROM YOUR FAILURE TO SECURE AND PERMANENTLY DELETE All SUCH LESSEE DATA AS OUTLINED IN THIS SECTION. 7. Equipment Delivery and Maintenance. Equipment will be delivered to you by Dealer at the location specified on the first page hereof or in an Equipment schedule, and you agree to execute a Delivery & Acceptance Certificate at XFS's request (and confirm same via telephone and/or electronically) confirming that you have received, inspected and accepted the Equipment, and that XFS is authorized lo fund the Dealer for the Equipment. If you reject the Equipment, you assume all responsibility for any purchase order or other contract issued on your behatt directly with Dealer. Equipment may not be moved to another location without first obtaining XFS's written consent, which shall not be unreasonably withheld. You shall permit XFS to inspect Equipment and any maintenance records relating thereto during your normal business hours upon reasonable notice. You represent you have entered into a Maintenance Agreement with Dealer to maintain the Equipment in good working order in accordance with the manufacturer's maintenance guidelines, and to provide you with supplies for use with the Equipment. You understand and acknowledge that XFS is acting solely as an administrator for Dealer with respect to the billing and collecting of the charges under the Maintenance Agreement included in the Lease Payments. IN NO EVENT Will XFS BE LIABLE TO YOU FOR ANY BREACH BY THE DEALER OF ANY OF ITS OBLIGATIONS TO YOU, NOR Will ANY OF YOUR OBLIGATIONS UNDER THIS LEASE BE AFFECTED, MODIFIED, RELEASED OR EXCUSED BY ANY ALLEGED BREACH BY DEALER. Page 1of 2 FMV Final Rev. 5.1.2014 6.b Packet Pg. 80 At t a c h m e n t : A t t a c h m e n t B - I m a g e S o u r c e P r o p o s a l & A g r e e m e n t ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) Xerox Financial Services LLC 45 Glover Avenue Norwalk, CT 06856 Lease Agreement -Fair Market Value xerox 8. Equipment Ownership. Labeling and UCC Filing. If and to the extent a court deems.this Lease to be a security agreemenl under the UCC, and otherwise for precaulionary purposes only, you granl XFS a first priority security interest in your interest in the Equipment and all proceeds thereof in order to secure your performance under this Lease. XFS is and shall remain the sole owner of the Equipment, except the Software. XFS may label the Equipment to identify our ownership interest in it. You authorize XFS to file by any permissible means a UCC financing statement to show, and to do all other acts to protect, our interest in the Equipment. You agree to pay any filing fees and administrative costs for the filing of such financing statements. You agree to keep the Equipment free from any liens or encumbrances and to promptly notify XFS tt there is any change in your organization such that a refiling or amendment to XFS's UCC financing statement against you becomes necessary. 9. Assignment. YOU MAY NOT ASSIGN, SELL, PLEDGE, TRANSFER, SUBLEASE OR PART WITH POSSESSION OF THE EQUIPMENT, THIS LEASE OR ANY OF YOUR RIGHTS OR OBLIGATIONS UNDER THIS LEASE (COLLECTIVELY 'ASSIGNMENT") WITHOUT XFS'S PRIOR WRIITEN CONSENT, WHICH SHALL NOT BE UNREASONABLY WITHHELD, BUT SUBJECT TO THE SOLE EXERCISE OF XFS'S REASONABLE CREDIT DISCRETION AND EXECUTION OF ANY NECESSARY ASSIGNMENT DOCUMENTATION. If XFS agrees to an Assignment, you agree to pay the applicable assignment fee and reimburse XFS for any costs we incur in connection with that Assignment. XFS may sell, assign or transfer all or any part of the Equipment, this Lease and/or any of our rights (but none of our obligations) under this Lease. XFS's assignee will have the same rights that we have to the extent assigned (but none of our obligations) and YOU AGREE NOT TO ASSERT AGAINST SUCH ASSIGNEE ANY CLAIMS, DEFENSES, COUNTERCLAIMS, RECOUPMENTS, OR SET-OFFS THAT YOU MAY HAVE AGAINST XFS. XFS agrees and acknowledges that any Assignment by us will not materially change your obligations under this Lease. 10. Taxes. You will be responsible for, indemnify and hold XFS harmless from, all applicable taxes, fees or charges, (including sales, use, personal property and transfer taxes, other than net income taxes), plus interest and penalties) assessed by any governmental entity on the Equipment, this Lease, or the amounts payable under this Lease (collectively, "Taxes'), which will be included in XFS's invoice to you unless you timely provide continuing proof of your tax exempt status. If Equipment is delivered to a jurisdiction where certain taxes are calculated and paid at the time of lease initiation, you authorize XFS to finance and adjust your Lease Payment to include such Taxes over the Initial Lease Term unless you require otherwise. Unless and until XFS notifies you in writing to the contrary, XFS will file all personal property tax returns covering the Equipment and will pay the personal property taxes levied or assessed thereon. XFS MAKES NO WARRANTY, EXPRESS OR IMPLIED, REGARDING THE TAX OR ACCOUNTING TREATMENT OF THIS LEASE. 11. Equipment Warranty Information and Disclaimers. XFS IS MERELY A FINANCIAL INTERMEDIARY, AND HAS NO INVOLVEMENT IN THE SALE, DESIGN, MANUFACTURE, CONFIGURATION, DELIVERY, INSTALLATION, USE OR MAINTENANCE OF THE EQUIPMENT. THEREFORE, WITH RESPECT TO EQUIPMENT, XFS DISCLAIMS, AND YOU WAIVE SOLELY AGAINST XFS, ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON·INFRINGEMENT AND FITNESS FOR PARTICULAR PURPOSE, AND XFS MAKES NO REPRESENTATIONS OF ANY KIND OR TYPE, INCLUDING, BUT NOT LIMITED TO, THE EQUIPMENT'S SUITABILITY, FUNCTIONALITY, DURABILITY, OR CONDITION. Since you have selected the Equipment and the Dealer, you acknowledge that you are aware of the name of the manufacturer of each item of Equipment and agree that you will contact each manufacturer and/or Dealer for a description of any warranty rights you may have under the Equipment supply contract, sales order, or otherwise. Provided you are not in default hereunder, XFS hereby assigns to you any warranty rights we may have against Dealer or manufacturer with respect to the Equipment. If the Equipment is returned to XFS, such rights are deemed reassigned by you to XFS. IF THE EQUIPMENT IS NOT PROPERLY INSTALLED, DOES NOT OPERA TE AS WARRANTED, BECOMES OBSOLETE, OR IS UNSATISFACTORY FOR ANY REASON WHATSOEVER, YOU SHALL MAKE ALL RELATED CLAIMS SOLELY AGAINST MANUFACTURER OR DEALER AND NOT AGAINST XFS, AND YOU SHALL NEVERTHELESS CONTINUE TO PAY ALL LEASE PAYMENTS AND OTHER SUMS PAYABLE UNDER THIS LEASE. 12. Liability and Indemnification. XFS IS NOT RESPONSIBLE FOR ANY LOSSES, DAMAGES, EXPENSES OR INJURIES OF ANY KIND OR TYPE, INCLUDING, BUT NOT LIMITED TO, ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (COLLECTIVELY, "CLAIMS"), TO YOU OR ANY THIRD PARTY CAUSED BY THE EQUIPMENT OR ITS USE, EXCEPT THOSE CLAIMS ARISING DIRECTLY AND PROXIMATELY FROM XFS'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. In addition, except for Claims arising directly and proximately from XFS's gross negligence or willful misconduct, you assume the risk of liability for, and hereby agree to indemnify and hold safe and harmless, and covenant to defend, XFS, its employees, officers and agents from and against: (a) any and all Claims (including legal expenses of every kind and nature) arising out of the manufacture, purchase, shipment and delivery of the Equipment to you, acceptance or rejection, ownership, leasing, possession, operation, use, return or other disposition of the Equipment, including, without limitation, any liabilities that may arise from patent or latent defects in the Equipment (whether or not discoverable by you), any claims based on absolute tort liability or warranty and any claims based on patent, trademark or copyright infringement; and (b) any and all loss or damage of or to the Equipment. 13. Default and Remedies. You will be in default under this Lease if (1) XFS does not receive any payment within 10 days after its due date, or (2) you breach any other obligation in this Lease or any other agreement with XFS. If you default, and such default continues for 10 days after XFS provides notice to you, XFS may, in addition to other remedies (including requesting the Dealer to cease performing under the Maintenance Agreement), require you to promptly return the Equipment as provided in Sections 5 and 6 hereof, and require immediate payment, as liquidated damages for loss of bargain and not as a penalty, of the sum of: (a) all amounts then due, plus interest from the due date until paid at the rate of 1.5% per month; (b) the Lease Payments remaining in the Initial Lease Term (including the fixed maintenance component thereof, tt permitted under the Maintenance Agreement), discounted at the Discount Rate to the date of default, and (c) Taxes. In addition, if you do not return the Equipment as required above, you agree to pay XFS the then determined Fair Market Value thereof, as reasonably determined by XFS, as of the end of the Initial Lease Term, discounted at the Discount Rate to the date of default. You agree to pay all reasonable costs, including attorneys' fees and disbursements, incurred by XFS to enforce this Lease. 14. Risk of Loss and Insurance. You assume and agree to bear the entire risk of loss, theft, destruction or other impairment of the Equipment upon delivery. You, at your own expense, (i) shall keep Equipment insured against loss or damage at a minimum of full replacement value thereof, and (ii) shall carry public liability insurance against bodily injury, including death, and against property damage in the amount of at least $2 million (collectively, 'Required Insurance'). All such Required Insurance shall be with loss payable to 'XFS, its successors and/or assigns, as their interests may appear,' and shall be with companies reasonably acceptable to XFS. In addition, XFS shall be simila~y named as an additional insured on all public liability insurance policies. The Required Insurance shall provide for 30 days' prior notice to XFS of cancellation. YOU MUST PROVIDE XFS OR OUR DESIGNEES WITH SATISFACTORY WRITIEN EVIDENCE OF REQUIRED INSURANCE WITHIN 30 DAYS OF THE INCEPTION DATE OR ANY SUBSEQUENT WRITIEN REQUEST BY XFS OR OUR DESIGNEES. IF YOU DO NOT DO SO, THEN IN LIEU OF OTHER REMEDIES FOR DEFAULT, XFS IN OUR DISCRETION AND AT OUR SOLE OPTION MAY (BUT IS NOT REQUIRED TO) OBTAIN INSURANCE FROM AN INSURER OF XFS'S CHOOSING, WHICH MAY BE AN XFS AFFILIATE, IN SUCH FORMS AND AMOUNTS AS XFS DEEMS REASONABLE TO PROTECT XFS'S INTERESTS (COLLECTIVELY "EQUIPMENT INSURANCE"). EQUIPMENT INSURANCE WILL COVER THE EQUIPMENT AND XFS; IT WILL NOT NAME YOU AS AN INSURED AND MAY NOT COVER ALL OF YOUR INTEREST IN THE EQUIPMENT AND WILL BE SUBJECT TO CANCELLATION AT ANY TIME. YOU AGREE TO PAY XFS PERIODIC CHARGES FOR EQUIPMENT INSURANCE (COLLECTIVELY "INSURANCE CHARGES") THAT INCLUDE: AN INSURANCE PREMIUM THAT MAY BE HIGHER THAN IF YOU MAINTAINED THE REQUIRED INSURANCE SEPARATELY; A FINANCE CHARGE OF UP TO 1.5% PER MONTH ON ANY ADVANCES MADE BY XFS OR OUR AGENTS; AND COMMISSIONS, BILLING AND PROCESSING FEES; ANY OR ALL OF WHICH MAY GENERATE A PROFIT TO XFS OR OUR AGENTS. XFS MAY ADD INSURANCE CHARGES TO EACH LEASE PAYMENT. XFS shall discontinue billing or debiting Insurance Charges for Equipment Insurance upon receipt and review of satisfactory evidence of Required Insurance. You must promptly nottty XFS of any loss or damage to Equipment which makes any item of Equipment unfit for continued or repairable use. You hereby irrevocably appoinl XFS as your attorney-in-fact to execute and endorse all checks or drafts in your name to collect under any such Required Insurance. Insurance proceeds from Required Insurance or Equipment Insurance received shall be applied, at XFS's option, to (x) reslore lhe Equipmenl so lhal ii is in the same condition as when delivered to you (normal wear and tear excepted), or (y) tt the equipment is not restorable, to replace it with like-kind condilion equipment from the same manufaclurer or (z) pay to XFS, the greater of (i) the total unpaid Lease Payments for the entire term hereof (discounted to present value at lhe Discount Rate) plus XFS's residual interest in such Equipment (herein agreed to be 20% of the Equipment's original cost to XFS) plus any other amounts due to XFS hereunder, or (ii) the Fair Market Value of the Equipment immediately prior to the loss or damage, as reasonably delermined by XFS. NO LOSS OR DAMAGE TO EQUIPMENT, OR XFS'S RECEIPT OF INSURANCE PROCEEDS, SHALL RELIEVE YOU OF ANY OF YOUR REMAINING OBLIGATIONS UNDER THIS LEASE. Notwithslanding procurement of Equipment Insurance or Required Insurance, you remain primarily liable for performance under this Section in the event the applicable insurance carrier fails or refuses to pay any claim. YOU AGREE (I) TO ARBITRATE ANY DISPUTE WITH XFS, OUR AGENTS OR ASSIGNS REGARDING THE EQUIPMENT INSURANCE AND/OR INSURANCE CHARGES UNDER THE RULES OF THE AMERICAN ARBITRATION ASSOCIATION IN FAIRFIELD COUNTY, CT, (II) THAT ARBITRATION (NOT A couRn SHALL BE THE EXCLUSIVE REMEDY FOR SUCH DISPUTES; AND (Ill) THAT CLASS ARBITRATION IS NOT PERMITIED. This arbitration requirement does not apply to any other provision of this Lease. 15. Finance Lease and Lessee Waivers. The parties agree this Lease is a "Finance Lease" under UCC Article 2A. You waive, solely against XFS and its successors and assigns, (a) all rights and remedies conferred on a lessee under Article 2A (Sections 508-522) of the UCC (C.G.S.A. §§42a·2A-724-737), and (b) any rights you now or later may have which require XFS to sell, lease or otherwise use any Equipment to reduce our damages including our realization of the remaining value of the Equipment, or which may otherwise limit or modify any of our rights or remedies. 16. Authorization of Signer and Credit Review. You represent that you may lawfully enter into, and perform, this Lease, that the individual signing this Lease on your behalf has all necessary authority to do so, and that all financial information you provide completely and accurately represents your financial condition. You agree to furnish financial information that XFS may request now, including your tax identification number, and you authorize XFS to obtain credit reports on you in the future should you default or fail to make prompt payments under this Lease. 17. Original and Sole Controlling Document: No Modifications Unless in Writing. This Lease conslitutes lhe entire agreement between the Parties as to the subjects addressed herein, and representations or statements not included herein are not part of this Lease and are not binding on the Parties. You agree that an executed copy of this Lease that is signed by your authorized representative and by XFS's authorized representative (an original manual signature or such signature reproduced by means of a reliable electronic form, such as electronic transmission of a facsimile or electronic signature) shall be marked 'original' by XFS and shall constitute the only original document for all purposes. All other copies shall be duplicates. To the extent this Lease constitutes chattel paper (as defined in the UCC), no security interest in this Lease may be created except by the possession or transfer of the copy marked 'original' by XFS. IF A PURCHASE ORDER OR OTHER DOCUMENT IS ISSUED BY YOU, NONE OF ITS TERMS AND CONDITIONS SHALL HAVE ANY FORCE OR EFFECT, AS THE TERMS AND CONDITIONS OF THIS LEASE EXCLUSIVELY GOVERN THE TRANSACTION DOCUMENTED HEREIN. THE DEALER AND ITS REPRESENTATIVES ARE NOT OUR AGENTS AND ARE NOT AUTHORIZED TO MODIFY OR NEGOTIATE THE TERMS OF THIS LEASE. THIS LEASE MAY NOT BE AMENDED OR SUPPLEMENTED EXCEPT IN A WRITIEN AGREEMENT SIGNED BY AUTHORIZED REPRESENTATIVES OF THE PARTIES AND NO PROVISIONS CAN BE WAIVED EXCEPT IN A WRITING SIGNED BY XFS. XFS's failure to object to terms contained in any communication from you will not be a waiver or modification of the terms of this Lease. You authorize XFS to insert or correct missing information on this Lease, including but not limited to your proper legal name, lease numbers, serial numbers and other information describing the Equipment, so long as there is no material impact to your financial obligations. 18. Governing Law. Jurisdiction. Venue and JURY TRIAL WAIVER. THIS LEASE IS GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CONNECTICUT (WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD OTHERWISE REQUIRE APPLICATION OF LAWS OF ANOTHER JURISDICTION). THE JURISDICTION AND VENUE OF ANY ACTION TO ENFORCE THIS LEASE, OR OTHERWISE RELATING TO THIS LEASE, SHALL BE IN A FEDERAL OR STATE COURT IN FAIRFIELD COUNTY, CONNECTICUT OR, EXCLUSIVELY AT XFS'S OPTION, IN ANY OTHER FEDERAL OR STATE COURT WHERE THE EQUIPMENT IS LOCATED OR WHERE XFS'S OR YOUR PRINCIPAL PLACES OF BUSINESS ARE LOCATED, AND YOU HEREBY WAIVE ANY RIGHT TO TRANSFER VENUE. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION RELATED TO OR ARISING OUT OF THIS LEASE. 19. Miscellaneous. Your obligations under the "Taxes' and 'Liability' Sections commence upon execution, and survive the expiration or ea~ier termination, of this Lease. Notices under this Lease must be in writing. Notices to you will be sent to the 'Billing Address" provided on the first page hereof, and notices to XFS shall be sent to our address provided on the first page hereof. Notices will be deemed given 5 days after mailing by first class mail or 2 days after sending by nationally recognized overnight courier. Invoices are not considered notices and are not governed by the notice terms hereof. You authorize XFS to communicate with you by any electronic means (including cellular phone, email, automatic dialing and recorded messages) using any phone number (including cellular) or electronic address you provide to us. If a court finds any term of this Lease unenforceable, the remaining terms will remain in effect. The failure by either Party to exercise any right or remedy will not constitute a waiver of such right or remedy. If more than one party has signed this Lease as lessee, each such party agrees that its liability is joint and several. The following four sentences control over every other part of this Lease. Both Parties will comply with applicable laws. XFS will not charge or collect any amounts in excess of those allowed by applicable law. Any part of this Lease that would, but for the last four sentences of this Section, be read under any circumstances to allow for a charge higher than that allowed under any applicable legal limit, is modified by this Section to limit the amounts chargeable under this Lease to the maximum amount allowed under the legal limit. If, in any circumstances, any amount in excess of that allowed by law is charged or received, any such charge will be deemed limited by the amount legally allowed and any amount received by XFS in excess of that legally allowed will be applied by us to the payment of amounts legally owed under this Lease or refunded to you. ____ Customer Initial Page 2 of 2 FMV Final Rev. 5.1.2014 6.b Packet Pg. 81 At t a c h m e n t : A t t a c h m e n t B - I m a g e S o u r c e P r o p o s a l & A g r e e m e n t ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) ATTACHMENT C DIGITAL COPIER SYSTEM PROPOSAL Prepared For: Prepared by: BURTRONICS BUSINESS SYSTEM Rick Shaeffer 9/21/2016 BURTRONICS RECOMMENDED PRODUCT CONFIGURATION Option #1 2 Lanier MFP’s ________________________________________________ Provide 1 New Lanier MP C6003 Full Color Digital Copier Document Solution: o Automatic Duplex Printing o 60 prints per minute o Print up to “11”x 17” from the drawers o Booklet Finisher W/ Hole Punch o Copy/Print/ Scan o Scan to Email/Folder Provide 1 New Lanier MP 5054 Full Color Digital Copier Document Solution: o Automatic Duplex Printing o 50 prints per minute o Print up to “11”x 17” from the drawers o Staple Finisher W/ Hole Punch Unit o Copy/Print/ Scan o Scan to Email/Folder Special Pricing Lease: $915.77 Per Month (60 Months FMV) Plus applicable tax Lanier Copiers All Inclusive Service Pricing: All Parts, Service, Labor, Toner as listed above for the term of the lease. Lease INCLUDES: 10,000 B/W Prints Per Month AND 9,000 Color Prints Per Month (Overages Billed QUARTERLY @ .0055 for B/W and .0456 for Color) 6.c Packet Pg. 82 At t a c h m e n t : A t t a c h m e n t C - B u r t r o n i c s - P r o p o s a l ( 2 0 2 4 : A w a r d o f L e a s e A g r e e m e n t t o X e r o x f o r T w o M u l t i - P u r p o s e M a c h i n e s ) This page left intentionally blank. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Zoning Code Amendment 16-01 Pertaining to the Maximum Number of Dogs and Cats Per Residence PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: 1) Conduct a public hearing and 2) Waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA AMENDING TABLE 18.10.030 (PERMITTED USES) OF SECTION 18.10.030 (USE REGULATIONS) OF CHAPTER 18.10 (RESIDENTIAL DISTRICTS) OF THE GRAND TERRACE MUNICIPAL CODE AS IT PERTAINS TO THE MAXIMUM NUMBER OF DOGS AND CATS PER RESIDENCE 2030 VISION STATEMENT: This report supports our City’s Vision Statement: Grand Terrace is an exceptionally safe and well managed City, known for its natural beauty and recreational opportunities; a vibrant and diverse local economy; a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations. BACKGROUND: Zoning Code Amendment 16-01 proposes to amend the Residential Chapter of the Zoning Code as it pertains to the keeping of cats and dogs, to allow a maximum of four pets, in any combination (i.e. 4 dogs, 4 cats, 3 dogs/1 cat, 3 cats/1 dog, etc.), as long as the total does not exceed four. On September 1, 2016, the Planning Commission conducted a public hearing and concluded the hearing by voting 4-0 to adopt a Resolution recommending the City Council adopt an ordinance amending Chapter 18.10 of the Zoning Code. DISCUSSION: Presently, the City’s Zoning Code allows for the keeping of two dogs and two cats, maximum of four animals. Several years ago, the City management at that time, made a determination that more than two dogs could be licensed per household as long as 7 Packet Pg. 83 the total did not exceed four. Additionally, state law requires jurisdictions to license all dogs as mechanism of ensuring that they are vaccinated. This then results in a situation where the City must license, yet turn around and enforce the Zoning Code limit. A review of nearby jurisdictions revealed that most of the cities allow at least four dogs within residential dwellings: Jurisdiction Number of animals allows Grand Terrace 2 dogs and 2 cats, maximum of 4, but no more than 2 dogs and 2 cats Colton 10 dogs Loma Linda 4 dogs and 4 cats, maximum of 8, but no more than 4 dogs and 4 cats City of Riverside Maximum 4 dogs, and maximum 10 cats City of Redlands Maximum 3 dogs and maximum 3 cats, 6 total County of Riverside Maximum 4 dogs, and maximum 9 cats County of San Bernardino Based on size of property. A 7,200 square foot lot (R1 lot) is allowed a total of two animals (dogs/cats), a lot of 20,000 square feet is maxed out at a total of 5. The proposed amendment to allow a combination of four dogs and/or cats, or any combination not to exceed four is consistent with past practice and is in keeping with adjacent jurisdictions that allow a maximum of four dogs. FISCAL IMPACT: No fiscal impact to the General Fund. ATTACHMENTS:  Ordinance_ZCA 16-02_9.12.2016 (DOC) APPROVALS: Sandra Molina Completed 09/12/2016 5:50 PM Finance Completed 09/13/2016 2:44 PM City Attorney Completed 09/13/2016 3:14 PM City Manager Completed 09/21/2016 6:48 PM City Council Pending 09/27/2016 6:00 PM 7 Packet Pg. 84 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA AMENDING TABLE 18.10.030 (PERMITTED USES) OF SECTION 18.10.030 (USE REGULATIONS) OF CHAPTER 18.10 (RESIDENTIAL DISTRICTS) OF THE GRAND TERRACE MUNICIPAL CODE AS IT PERTAINS TO THE MAXIMUM NUMBER OF DOGS AND CATS PER RESIDENCE WHEREAS, pursuant to Sections 65800 and 65850 of the California Government Code, the City may adopt ordinances to regulate the use of buildings, structures, and land as between industry, business, residences, and open space, and other purposes; to regulate the location, height, bulk, number of stories and size of buildings and structures, the size and use of lots, yards, courts and other open spaces, the percentage of a lot which may be occupied by a building or structure, and the intensity of land use; and to establish requirements for off-street parking, in compliance with the California Government Code. WHEREAS, the Zoning Code presently allows a resident to keep a maximum of four pets consisting of two dogs and two cats; WHEREAS, City desires to amend the Zoning Code so that families have the option of keeping any combination of pets, as long as the total number does not exceed four. WHEREAS, the Project is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) which states that activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment is not subject to CEQA because the zoning overlay and establishment of provisions for transitional residential uses does not result in any direct or reasonably foreseeable impact to the environment. WHEREAS, on September 1, 2016, the Planning Commission conducted a duly noticed public hearing at the City Council Chambers located at 22795 Barton Road, Grand Terrace, California, and concluded said hearing by voting to recommend the City Council of the City of Grand Terrace introduce the herein ordinance to revise Chapter 18.10 (Residential Districts) of Title 18 of the Municipal Code; and WHEREAS, on September 27, 2016, the City Council conducted a duly noticed public hearing at the City Council Chambers located at 22795 Barton Road, Grand Terrace, California, and concluded said hearing on that date; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. 7.a Packet Pg. 85 At t a c h m e n t : O r d i n a n c e _ Z C A 1 6 - 0 2 _ 9 . 1 2 . 2 0 1 6 ( 1 9 9 6 : Z o n i n g C o d e A m e n d m e n t _ A n i m a l L i c e n s i n g ) Page 2 of 6 NOW THEREFORE, it is hereby found, determined, and resolved by the City Council of the City of Grand Terrace, as follows SECTION 1. The Planning Commission hereby specifically finds that all of the facts set forth in the above Recitals, are true and correct. SECTION 2. The City Council hereby finds that the Project is not subject to environmental review pursuant to Section 15060(c)(2) of CEQA. SECTION 3. Based on substantial evidence presented to the City Council during the September 27, 2016, public hearing, including public testimony, and written and oral staff reports, the Planning Commission specifically finds as follows with regard to Zone Code Amendment 16-01: 1. The Code Amendment will not be detrimental to the health, safety, morals, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendment or within the city because the Zoning Code already allows a maximum of four pets comprised of two dogs and two cats. The Code would merely provide residents the option of keeping a maximum of four pets total, dogs and/or cats. 2. The Code Amendment will not be injurious to property or improvements in the neighborhood or within the city because it will not preclude the continued use and/or development of surrounding properties. 3. The Code Amendment is consistent with the latest adopted General Plan because the General Plan designates residential land uses within the City, and the keeping of pets is a quality of life issue for many Grand Terrace residents. It also promotes Goal 2.1 to provide for balanced growth… and maintenance of a healthy diversified community. SECTION 4. Table 18.10.030.B (Permitted Uses) of Section 18.10.030 (Use Regulations) of Chapter 18.10 (Residential Districts) of the Grand Terrace Municipal Code is hereby amended as follows: “Section 18.10.030 - Use regulations. Uses listed in Table 18.10.030 shall be allowed in one or more of the residential districts as indicated in the columns below each district heading. Permitted uses are indicated by the letter "P" while the letter "C" indicates uses which require a conditional use permit. 7.a Packet Pg. 86 At t a c h m e n t : O r d i n a n c e _ Z C A 1 6 - 0 2 _ 9 . 1 2 . 2 0 1 6 ( 1 9 9 6 : Z o n i n g C o d e A m e n d m e n t _ A n i m a l L i c e n s i n g ) Page 3 of 6 TABLE 18.10.030 PERMITTED USES RH R20 R10 R7.2 R2 R3 R3- S R3- 20 B. Residential Accessory Structures Accessory Structure P P P P P P Pd P Second Family Unit (As Permitted Per Chapter 18.63) P P P P P P - - Guest House C C C C C C - - Private Garage P P P P P P - P Private Swimming Pool P P P P P P Pd P Home occupation (As Permitted Per Chapter 5.06) P P P P P P Pd P Keeping of Cats and Dogs (No more than four dogs or four cats, or a combination of dogs and cats that total no more than Four (4) P P P P P P Pd P Other Accessory Uses (As Approved by the Planning Director) P P P P P P Pd P SECTION 5. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion of it irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions of it be declared invalid or unconstitutional. If for any reason any portion of this ordinance is declared invalid, or unconstitutional, then all other provisions shall remain valid and enforceable. SECTION 6. This ordinance shall take effect thirty days from the date of adoption. SECTION 7. First read at a regular meeting of the City Council held on the 27th of September, 2016, and finally adopted and ordered posted at a regular meeting of said City Council on the 11th or October, 2016. 7.a Packet Pg. 87 At t a c h m e n t : O r d i n a n c e _ Z C A 1 6 - 0 2 _ 9 . 1 2 . 2 0 1 6 ( 1 9 9 6 : Z o n i n g C o d e A m e n d m e n t _ A n i m a l L i c e n s i n g ) Page 4 of 6 ATTEST: ____________________________ ______________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 7.a Packet Pg. 88 At t a c h m e n t : O r d i n a n c e _ Z C A 1 6 - 0 2 _ 9 . 1 2 . 2 0 1 6 ( 1 9 9 6 : Z o n i n g C o d e A m e n d m e n t _ A n i m a l L i c e n s i n g ) Page 5 of 6 I, Pat Jacquez-Nares, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced on the 27th of September, 2016 and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 11th of October, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ Pat Jacquez-Nares City Clerk Approved as to form: ___________________________________ Richard L. Adams, II City Attorney 7.a Packet Pg. 89 At t a c h m e n t : O r d i n a n c e _ Z C A 1 6 - 0 2 _ 9 . 1 2 . 2 0 1 6 ( 1 9 9 6 : Z o n i n g C o d e A m e n d m e n t _ A n i m a l L i c e n s i n g ) Page 6 of 6 Exhibit 1 Section 18.10.030 - Use regulations. Uses listed in Table 18.10.030 shall be allowed in one or more of the residential districts as indicated in the columns below each district heading. Permitted uses are indicated by the letter "P" while the letter "C" indicates uses which require a conditional use permit. TABLE 18.10.030 PERMITTED USES RH R20 R10 R7.2 R2 R3 R3- S R3- 20 B. Residential Accessory Structures Accessory Structure P P P P P P Pd P Second Family Unit (As Permitted Per Chapter 18.63) P P P P P P - - Guest House C C C C C C - - Private Garage P P P P P P - P Private Swimming Pool P P P P P P Pd P Home occupation (As Permitted Per Chapter 5.06) P P P P P P Pd P Keeping of Cats and Dogs (No more than four dogs or four cats, or a combination of dogs and cats that total no more than Four (4) P P P P P P Pd P Other Accessory Uses (As Approved by the Planning Director) P P P P P P Pd P 7.a Packet Pg. 90 At t a c h m e n t : O r d i n a n c e _ Z C A 1 6 - 0 2 _ 9 . 1 2 . 2 0 1 6 ( 1 9 9 6 : Z o n i n g C o d e A m e n d m e n t _ A n i m a l L i c e n s i n g ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Tentative Tract Map 16-01 (Tentative Tract Map No. 18604) Variance 16-01 PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: 1) Conduct a public hearing; and 2) Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AN ENVIRONMENTAL EXEMPTION AND APPROVING VARIANCE 16-01 AND TENTATIVE TRACT MAP NO. 16- 01 (TENTATIVE TRACT MAP NO. 18604) A SUBDIVISON OF A TWO ACRE SITE INTO A SMALL LOT SUBDIVISION TOTALING 17 LOTS PURSUANT TO PLANNED RESIDENTIAL DEVELOPMENT STANDARDS LOCATED AT 22394 AND 22404 VAN BUREN STREET (APNS 1167-341-02, 78 AND 79) VISION STATEMENT This Project supports the City’s 2030 Vision Plan, Goal #3 Promote Economic Development. BACKGROUND: Mr. Darryl Moore, representing Aegis Builders, Inc. has submitted Tentative Tract Map 16-01 (TTM 18604), Site and Architectural Review 16-01, Variance 16-01 and Environmental 16-05 proposing to combine two parcels measuring approximately two acres and subdivide them into a small lot subdivision totaling seventeen lots, served by a private street. The Applicant is proposing to utilize the Planned Residential Development standards contained in the Zoning Code for development of the subdivision. The homes proposed on the lots vary in size between 1,950 square feet to 2,140 square feet. Variance 16-01 is to deviate from the required setbacks on Lots 11 and 12 and the minimum lot size on Lot 11. The Project site is made up of two parcels located on the north side of Van Buren Street, adjacent to the Gage Canal. The site is an irregularly shaped parcel zoned R3- High Density Residential and is located at 22394 and 22404 Van Buren Street (APNs 1167-341-02, 78 and 79). Pursuant to the City’s Subdivision Ordinance, the City Council has final approval 8 Packet Pg. 91 authority on tentative tract maps. However, the Planning Commission has reviewing authority and makes a recommendation to the City Council on the tentative tract map. The Planning Commission has approval authority on Site and Architectural Review applications. On September 1, 2015, the Planning Commission conducted a public hearing and voted to recommend City Council approval of Variance 16-01 and Tentative Tract Map 16-01 (TTM 18604). At the same hearing the Planning Commission approved Site and Architectural Review 16-01, and granted a variance deviate from setback requirements for Lot 11 and 12. DISCUSSION: The Project Site zoned R3. It is an irregular polygon shaped lot and relatively flat that gradually slopes from east to west. It fronts along Van Buren Street, a 66-foot wide collector street. The site contains two existing residences which are proposed to be demolished. The Gage Canal is located along the west boundary. Properties to the north and east are zoned R3 and properties the south and west are zoned R1-7.2. General Plan/Zoning Consistency The Project site is designated Medium Density Residential (MDR) on the General Plan Land Use Map. The MDR designation includes both single family detached and multiple family attached development, which may include small lot single family developments or attached multi-family developments including townhomes, condominiums, and apartments at densities of 6-12 dwelling units per acre. The Subdivision is consistent with the General Plan. The Project is also consistent with the zone district. The site is zoned R3 Medium Family Residential. This district is intended for medium density multiple family development, at a density of 12 dwelling units per gross acre. which is intended for single and multiple family uses. Ordinance No. 260 established Section 18.10.090 Planned Residential Development standards intended, in part, to allow for flexibility and creativity in the development of infill lots otherwise constrained due to lot size, configuration and/or surroundings. The use of the PDR standards is permissible in the R3 zone district and provided the site is at least 22,000 square feet in size. This site qualifies for use of the PDR standards and Staff recommends its applicability to the Project. The PDR standards allow small lot subdivisions with lots measuring a minimum of 3,500 square feet. The building setbacks for small lot subdivisions are 15 feet at the rear, 5 8 Packet Pg. 92 feet and 8 feet side yards, and an average of 18 feet at the front, but no less than 16 feet. As it relates to the tentative tract map, the Applicant has filed Variance 16-01 to allow a lot size of 3,468 square feet for Lot 11 instead of 3,500 square feet. The deviation does not impact the viability of the proposed lots and staff recommends approval of the Variance. Tentative Tract Map/Conceptual Grading The tentative tract map also serves as the conceptual grading plan. The tentative tract map shows grading, easements, public improvements, and the location of existing utilities (water, sewer, street lights, etc.). Pad elevations are indicated on each lot. Generally, lots will be decreasing in elevation from south to north. Lots will drain to the private street and flow to an onsite basin. There are two private easements on the property. Along the north and west property lines is a 10 foot wide easement for drainage and sewer purposes that serves the development to the north. A 24 inch storm drain pipe and an 8 inch sewer pipe are existing within the easement. Along the west boundary the storm drain pipe runs very near to the property line. The City requires block walls to be constructed along the boundaries of tract map. In order to construct the wall along the west boundary, the storm drain pipe is proposed to be reconstructed to accommodate the block wall. The Applicant will be required to obtain authorization from the easement holder prior to work on the storm drain pipe. The Applicant also proposes to drain storm waters into the drain pipe within the easement and this would also require authorization from the easement holder. The Applicant has expressed concern of what would happen if authorization is not obtained to move the storm drain. In that case, Staff is proposing a new Condition, Condition No.42, that if the Applicant, with due diligence is unable to obtain authorization, that the City may approve installation of a vinyl fence along the west boundary line. This decision would be made at least 90 days after the Applicant first contacts the easement holder. Installation of a vinyl fence is not preferable to the City or the Applicant; however, if the Applicant cannot obtain authorization, this condition allows the project to move forward. There are two existing Edison power poles along the Project frontage. The City’s Zoning Code requires undergrounding of all public utilities in conjunction with development. The Applicant will underground the easterly power pole, but is requesting to keep the westerly power pole in place. The Site and Architectural Review Board and City Council have the authority so allow this power pole to remain in place. In consideration, the 8 Packet Pg. 93 Applicant has agreed to improve the street frontage in front of the Gage Canal. The Applicant will construct asphalt, curb, gutter sidewalks and landscaping improvements. Side Yard Easements The Applicant is proposing to establish side yard easements which would extend the side yard of adjacent lots and allow greater usability. This is a concept that the Applicant indicates has been successful. While adjacent property owners would enjoy and maintain the easement area, structures would not be allowed to be constructed within the easement because setbacks could not be met. The side yard easement would be part of the final tract map, and their use and operation contained in the CC&R’s. Circulation/Access The Applicant will install standard improvements along Van Buren Street, including curb, gutter, sidewalk, and street lighting, and repave Van Buren Street to the centerline. Tesoro Court is a private street that will be maintained by a Homeowner’s Association. Tesoro Court is proposed to be 36 feet wide which is permissible for private streets. Parking will only be allowed on one side of the street. Because the Project Site is narrow on the north end, a standard cul de sac bulb cannot be accommodated to allow an emergency turn. Instead a hammerhead is proposed, and this is acceptable to County Fire. Additionally, given the small size of the Project County Fire is not requesting a second access point. Housing Product The Planning Commission approved the housing product for the Project. The homes are proposed to be two story homes and a mix of four different housing plans. All but two of the seventeen homes will be four bedrooms with three baths. Each house will have a covered entry porch, and an attached two car garage. Architectural styles include options for Spanish, Country and Santa Barbara styles. . Environmental Review: The Project to construct a single-story residence and garage is categorically exempt per the California Environmental Quality Act, Code of Regulations, Title 14, Section 15332, which exempts infill development when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses; is on a site of no value to endangered, threatened, or rare species; is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. A Notice of Exemption has been included for adoption. 8 Packet Pg. 94 Public Notice: Public notice of the Project was provided, including publishing in the Grand Terrace City News and mailing notices to property owners within 300 feet of the Project site, 10 days prior to the meeting date. In addition, a copy of the notice was posted in three public places. To date, City staff has not received any comments regarding the proposed Project. FISCAL IMPACT: There is no adverse fiscal impact to the General Fund as the Applicant is responsible for the payment of filing and permit fees, which benefits the General Fund. ATTACHMENTS:  CC Resolution_TTM 16-01 (DOC)  Exhibits of Tentative Tract Map_VB (PDF)  Notice of Exemption_Council Action (DOC) APPROVALS: Sandra Molina Completed 09/16/2016 1:12 PM Finance Completed 09/18/2016 5:59 PM City Attorney Completed 09/19/2016 2:45 PM Sandra Molina Completed 09/22/2016 12:04 PM City Manager Completed 09/22/2016 1:10 PM City Council Pending 09/27/2016 6:00 PM 8 Packet Pg. 95 This page left intentionally blank. Page 1 of 10 RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AN ENVIRONMENTAL EXEMPTION AND APPROVING VARIANCE 16-01 AND TENTATIVE TRACT MAP NO. 16- 01 (TENTATIVE TRACT MAP NO. 18604) A SUBDIVISON OF A TWO ACRE SITE INTO A SMALL LOT SUBDIVISION TOTALING 17 LOTS PURSUANT TO PLANNED RESIDENTIAL DEVELOPMENT STANDARDS LOCATED AT 22394 AND 22404 VAN BUREN STREET (APNS 1167-341-02, 78 AND 79) WHEREAS, Aegis Builders, Inc., represented by Darryl Moore (“Applicant”), has filed applications for Tentative Tract Map 16-01 (Tentative Tract Map No. 18604) to subdivide two acres into a small lot subdivision totaling 17 lots. A concurrent Variance application (Variance 16-01) was submitted to deviate from the lot standards for Lots 11 and 12; along with Site and Architectural Review 16-01 for approval of the site layout, architectural plans and pursuant to Planned Residential Development standards. (“Project”). WHEREAS, the Project site is zoned R3-Medium Density Residential and designated Medium Density Residential on the General Plan Land Use Map, located 22394 and 22404 Van Buren Street, identified as Assessor’s Parcel Number 1167-341- 02, -78, and -79). The Project site contains two single family residences. WHEREAS, the Project qualifies for an environmental exemption pursuant to Section 15332 of the California Environmental Quality Act (CEQA) Guidelines, which exempts infill projects when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses, the property has no value as habitat for any rare, endangered, or threatened species, the site is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. WHEREAS, on September 15, 2016, the Planning Commission conducted a duly noticed public hearing at the Council Chambers located at 22795 Barton Road, Grand Terrace, California and concluded the hearing on said date by voting to recommend City Council approval of the Project. WHEREAS, on September 1, 2016, the City Council conducted a duly noticed public hearing at the Council Chambers located at 22795 Barton Road, Grand Terrace, California and concluded the hearing on said date. WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY RESOLVE AS FOLLOWS: 8.a Packet Pg. 96 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 2 of 10 1. The City Council hereby finds that the Project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15332. The Notice of Exemption prepared in connection with the Project has been reviewed and considered and reflects the independent judgment of the City Council, and is recommended for adoption. 2. The City Council finds as follows with respect to Variance 16-01 relating to lot area for Lot 11: a. A special circumstance regarding the size, shape, topography, location or surroundings of the subject property exists. The irregular polygon shaped parcel is narrower to the north and due to this narrowness and design of emergency turn around results in a lot area of 3,468 square feet, 35 square feet less than the minimum requirements for Lot 11. Because of the irregular shape the location of the private street and turn around is in its most logical location. b. Because of the special circumstance, the strict application of the zoning ordinance deprives the subject property of privileges enjoyed by other property in the vicinity and under identical zoning classification. The irregular shape of the property precludes the applicant’s ability to design Lot 11. Strict application of the zoning code would result in a lesser number of lots with lot sizes greater than the intent of the PDR standards. c. The granting of the variance will not constitute the grant of special privileges inconsistent with the limitations upon other properties in the vicinity and district in which the property is situated. The granting of the variance would not grant a special privilege; rather it will provide the ability to develop the subject lot at comparable densities as adjacent properties and as anticipated in the General Plan. d. The granting of the variance will not authorize a use or activity which is not otherwise expressly authorized by the district governing the parcel of property. The granting of the variance would not authorize an unpermitted use because small lot subdivisions are permitted in the R3 zone district. e. The granting of the variance will not result in a situation inconsistent with the latest adopted general plan. The density of 8.5 is consistent with the MDR General Plan designation which planned for a maximum density of 12 units per acre. f. Conditions necessary to secure the above findings are made a part of the approval of the variance. 3. The City Council finds as follows with respect to Tentative Tract Map 16-01 (Tentative Tract Map No. 18604): a. The proposed subdivision is consistent with the City General Plan and any applicable specific plan for the area. The proposed small lot subdivision 8.a Packet Pg. 97 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 3 of 10 Project at a density of 8.5 dwelling units per acre is consistent with the Medium Density Residential (MDR) General Plan designation, which is intended for single and multiple family development. It conforms to several General Plan policies relating to the construction of roadways and utilities to serve the Project, and Housing Element policies to encourage housing development of various types and designs. The Project is consistent with the provisions of the Zoning Code, except for Lots 11 which does not meet the minimum lot area standard. However, consistent with the provisions of the Zoning Code, the Applicant has filed a Variance application. b. The design or improvement of the proposed subdivision is consistent with the City General Plan and any applicable specific plan for the area. The density of 8.5 dwelling units per acre conforms to the density limitation of 6- 12 dwelling units per acre of the MDR designation. The Project conforms to several General Plan policies relating to the construction of roadways and utilities to serve the Project, and Housing Element policies to encourage housing development of various types and designs. c. The site is physically suitable for the type and proposed density of development proposed by the tentative map. The site can support the Project at the proposed density of 8.5 dwelling units per acre. The Variance is necessitated by the irregular lot shape. d. The design of the subdivision and proposed improvements are not likely to cause significant environmental damage or substantially and avoidably injure fish or wildlife or their habitat. The Project is infill development and qualifies for an environmental exemption, pursuant to Section 15332 of the California Environmental Quality Act (CEQA) Guidelines.. e. The design of the subdivision and the type of improvements are not likely to cause serious public health problems. f. The design of the subdivision provides for future passive or natural heating and cooling opportunities in the subdivision to the extent feasible. g. The design of the subdivision and the type of improvements will not conflict with easements acquired by the public at large for access through or use of property within the proposed subdivision, or the design of the alternate easements which are substantially equivalent to those previously acquired by the public will not be provided. h. In approving the subdivision the approving authority has considered its effects and the effects of adopted ordinances and actions relating to the review and approval of subdivisions on the housing needs of the region and balanced those needs against the public service needs of its residents and available fiscal and environmental resources. 4. The City Council finds as follows with respect to Section 18.10.090 Planned Residential Development: 8.a Packet Pg. 98 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 4 of 10 a. The development includes only uses allowed within the base zoning district. The R3-Medium Density Residential de signation allows infill residential development subject to R3 standards, and the Project conforms to those standards. b. The development is compatible with other development within the zoning district and general neighborhood of the proposed project. The Project is compatible with the zoning district and general neighborhood which is a mixture of single and multiple family residential housing. The small lot subdivision provides a transition from between traditional detached single family uses and attached multiple family uses to the north. c. The project would produce a development of higher quality and greater excellence of design than that might otherwise result from using the standard development regulations. The Project is a higher quality residential project, with moderate sized homes and enhanced building architecture. d. The subject site is adequate in terms of size, shape, topography, and circumstances to accommodate the proposed development. The site is small infill lot, constrained by lot configurations; however, the site is able to accommodate the project density. e. The project includes improved quality of life provisions and enhanced amenities, including an additional and appropriate variety of structure placement and orientation opportunities, appropriate mix of structure sizes, high quality architectural design, common open space, landscaping, parking areas, private open space, and sustainable improvement standards. BE IT FURTHER RESOLVED THAT based on the findings and conclusions set forth above, the City Council adopts a Notice of Exemption prepared for the Project and approves Tentative Tract Map 16-01 (Tentative Tract Map No. 18604) a small lot subdivision pursuant to Planned Residential Development standards and Variance 16-01, subject to the following conditions of approval. General Conditions of Approval: 1. Approval of Tentative Tract Map 16-01 (Tentative Tract Map No. 18604) and Variance 16-01 is granted to subdivide a two acre site into a small lot subdivision consisting of 17 lots on property located at 22394 and 22404 Van Buren Street, identified as Assessor’s Parcel Number 1167-341-02, -78, and -79). Variance 16- 01 grants a less area of 3,468 square feet for Lot 11. This approval is granted based on the application materials submitted by Aegis Builders, Inc. represented by Darryl Moore on April 14, 2016, as modified on July 21, 2016, and August 10, 2016, including the revised tentative tract map, site plan, architectural elevations/floor plans and conceptual landscape plan. These plans are approved as submitted and conditioned herein, and shall not be further altered except as 8.a Packet Pg. 99 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 5 of 10 modified by these conditions of approval, and unless reviewed and approved by the affected departments. 2. This approval shall expire twenty-four (24) months from the date of adoption of this resolution. This approval shall become null and void if a final map has not been timely filed prior to the expiration date in accordance with the provisions of the Subdivision Map Act. An extension of time may be granted by the Planning and Development Services Director upon submittal of a time extension request and appropriate filing fees. In granting any such time extension the City may impose new conditions and standards on the tentative map, pursuant to Section 66452.6(e) of the California Government Code. 3. The applicant shall defend, indemnify and hold harmless the City and its agents, officers, attorneys and employees from any claim, action, or proceeding (collectively referred to as "proceeding") brought against the City or its agents, officers, attorneys or employees to attack, set aside, void, or annul the City's decision to approve the tentative tract development, approval or authorization and approvals conditions or approval and certifications under CEQA and/or any mitigation monitoring program, but excluding any subdivision approval governed by California Government Code § 66474.9, and which action is brought within the time period provided for in Government Code Section 66499.37. This indemnification shall include, but not limited to, damages, fees and/or costs awarded against the City, if any, and cost of suit, attorneys' fees and other costs liabilities and expenses incurred in connection with such proceeding whether incurred by applicant, the City, and/or the parties initiating or bringing such proceeding.. The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own attorney to represent the City, its officers, employees, and agents in the defense of the matter. The applicant shall defend, indemnify and hold harmless the City, its agents, officers, employees and attorneys for all costs incurred in additional investigation and/or study of, or for supplementing, preparing, redrafting, revising, or amending any document (such as a notice of exemption, negative declaration, EIR, specific plan or General Plan amendment), if made necessary by said proceeding and if applicant desires to pursue securing such approvals, after initiation of such proceeding, which are conditioned on the approval of such documents, and shall Indemnify the City for all the City's costs, fees, and damages that the City incurs in enforcing these indemnification provisions. 4. Any details which are inconsistent with requirements of state and local ordinances, conditions of approval, or City policies must be specifically modified to comply with state and local ordinances, conditions of approval, or City policies, or must be approved in the final map or improvement plan approvals 5. The applicant shall comply with all requirements of the Subdivision Map Act, and Title 17 (Subdivisions) contained in the Grand Terrace Municipal Code. 8.a Packet Pg. 100 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 6 of 10 6. In the event that exhibits and written conditions are inconsistent, the written conditions shall prevail. 7. The applicant shall comply with all requirements of the Building and Safety Division, including the conditions of approval contained in the Memorandum dated August 3, 2016, attached hereto as Exhibit 1. 8. The applicant shall comply with all requirements of the Public Works Department, including the conditions of approval contained in the Memorandum dated August 23, 2016, attached hereto as Exhibit 2. 9. The applicant shall comply with all requirements of the City of Colton Public Works Department Water & Wastewater Department, including the conditions of approval contained in their letter dated May 4, 2016, attached hereto as Exhibit 3. 10. The applicant shall comply with all requirements of the San Bernardino County Fire Department, Office of the Fire Marshal Community Safety Division, including the conditions of approval contained in their letter dated July 27, 2016, attached hereto attached hereto as Exhibit 4. 11. Upon approval of these conditions and prior to becoming final and binding, the applicant must sign and return an “Acceptance of Conditions” form. The form and content shall be prepared by the Planning and Development Services Department. Conditions Prior to Final Map Approval: 12. A final soils report shall be submitted to the City for review and approval. Any recommendations included in the soil study shall be incorporated into the design of the precise grading and paving plan as appropriate. 13. The applicant shall prepare improvement plans, in accordance with the City Subdivision Ordinance. 14. The final tract map shall be revised to show access rights restricted on Lot 1 and 17 abutting Van Buren Street. 15. Lots 1 and 17 shall take access along Tesoro Street. 16. The side yard easements shall state that structures are not permitted within the easement area. 17. If any public improvement required as part of the approval of the subdivision will not be completed and accepted prior to approval of the final tract map, then prior to a determination of a complete and timely filing of the final tract map, the subdivider, at his expense, shall be required to enter into a subdivision improvement agreement, with the City to complete said public improvements in accordance with the City’s Subdivision Ordinance. Performance of said agreement shall be guaranteed by the security specified in the Subdivision Ordinance (GTMC Title 17) and Section 66499 et seq. of the Subdivision Map Act. 8.a Packet Pg. 101 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 7 of 10 18. Provide a “will serve” letter from the Riverside Highland Water Company. 19. A final tract prepared by, or under the direction of a registered civil engineer authorized to practice land surveying, or a licensed land surveyor, must be processed through the City prior to being filed with the County Recorder. 20. The applicant shall submit a title report and subdivision guarantee showing all fee interest holders, all interest holders whose interest could ripen into a fee, all trust deeds, together with the names of the trustee and all easement holders. The account for this title report shall remain open until the final parcel map is filed with the County Recorder. No easements shall be granted and recorded until after the final map is recorded, unless approved by the City Engineer and subordinated to any City easements by a certification upon the title sheet of the final map, prior to the grant. 21. The applicant shall incorporate into the project design all existing easements within the project boundaries. In the case where easements are proposed to be abandoned, the applicant shall obtain abandonment of said easements from the affected easement holder(s). If this requirement cannot be accomplished, the project shall be redesigned accordingly and as approved by the City. 22. Easements for all on-site facilities, public and private, shall be reviewed and approved by the City Engineer prior to recordation. Such easements may include, but are not limited to, sewer, water, electric, gas, telephone, storm drains, detention basins, and landscaping 23. Pay all required fees for the processing and approval of the final tract map. 24. Prior to final map approval, all on-site and off-site curbs, gutters, paving, street lights, sewer laterals, water services, utilities, grading, storm drain improvements shall be installed or sufficient surety shall be posted to the satisfaction of the City to guarantee their installation. 25. Prior to final map approval, plans and specifications for the water system facilities shall be submitted for approval to the Riverside Highland Water Company. The subdivider shall submit an agreement and other evidence, satisfactory to the City, indicating that the subdivider has entered into a contract with the water purveyor guaranteeing payment and installation of the water improvements. 26. Prior to the final map approval, there shall also be filed with the City Engineer, a statement from the water purveyor indicating subdivider compliance with the Fire Department’s fire flow requirements. 27. Improvement plans for utility connections and services, including water, fire hydrant and/or fire sprinklers, sewer, storm drain, gas, electric, phone, and television, shall be submitted to and approved by the City. 28. Sewer improvement plans must be approved by the City of Colton Wastewater & Utilities Department. 8.a Packet Pg. 102 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 8 of 10 29. Access rights shall be granted to the City for the purpose of allowing access over private drives within the development for all City vehicles, including police, fire, and other emergency vehicles. The document(s) recording this access shall be prepared by the applicant for review and approval by the City Engineer, prior to recordation. 30. The applicant shall construct public improvements along the City of Riverside (Gage Canal) street frontage. Public improvements shall consist of half street width paving overlay after utility installations on the entire length of the project (minimum 2 inch asphalt overlay with an asphalt grind), curb, gutter, sidewalk, street lights, signage and striping Street improvements will be required to extend beyond the frontage of the project to blend the street flows for drainage and traffic. 31. Final map shall be filed with the County recorder and one (1) Mylar copy of the filed map shall be submitted to the City offices prior to the issuance of any building permits. 32. The project shall be constructed in accordance with all the approved plans and conditions of approval, including but not limited to site plans, grading plans, wall plans, and building elevations. 33. Construction and operational activities associated with the project shall comply with the regulations of the City’s Noise Ordinance, Chapter 8.108 of the Grand Terrace Municipal Code. 34. All perimeter walls shall be decorative, which may include the incorporation of stucco, split-face block, stone veneer and/or other materials that match the colors and materials of the project. 35. Perimeter walls shall be constructed prior to acceptance of the final map, and adjacent owner authorization shall be obtained prior to construction on shared property lines. 36. The developer shall pay all applicable development impact fees in effect at the time that construction permits are issued by the City. 37. During all project site construction, the construction contractor shall limit all construction-related activities that would result in high noise levels to between the hours of 7:00 a.m. to 8:00 p.m. Monday through Saturday. No construction activities are allowed on Sundays and federal holidays except for emergencies, and/or subject to approval by the Building Official, which shall not be unreasonably withheld. 38. All construction equipment shall be equipped with suitable muffler systems. 39. All construction activity related to this project shall comply with the City’s Noise Ordinance as stipulated in Chapter 8.108 of the Municipal Code. 40. The applicant shall submit a declaration of covenants, conditions and 8.a Packet Pg. 103 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 9 of 10 restrictions (CC&R's) establishing a Home Owner's Association subject to review and approval by the Community and Development Director and the City Attorney approval. Such declaration shall set forth provisions for maintenance of all common areas, payment of taxes and all other privileges and responsibilities of the common ownership. The CC&R's shall include provisions prohibiting the homeowners' association (HOA) from quitclaiming, selling or otherwise transferring the land held in common ownership to private property owners. The CC&R’s shall include the following provisions: a. The City shall be made a party of the CC&R's. The City's participation shall be specifically limited to enforcement of the HOA's maintenance obligation. b. The provisions of approved CC&R's shall not be amended without the prior approval of the Planning and Development Services Director and City Attorney who at his or her discretion may refer the matter to the City Council. Requests for amendments to existing CC&R's shall be submitted to the Planning and Development Services Department. c. The Covenants, Conditions and Restrictions shall disclose the location of the existing ten (10) foot sewer and drainage easements, and shall state that no permanent structural encroachments shall be installed within the easements. d. Privacy fencing, concrete stoops or pavers, and plant material, excluding trees, shall be permitted within the easements. However, the property owner shall obtain an encroachment permit, and enter into a hold harmless agreement with the City of Grand Terrace, in the event that these improvements must be removed to access the easement. Replacement of these materials shall be at the expense of the property owner and/or homeowner’s association. 41. The applicant shall deposit a minimum of $2,000.00 to cover the City Attorney’s cost of reviewing the CC&R’s. 42. The Applicant shall make a reasonable diligent effort to obtain permission from the drainage easement holder to relocate the existing storm drain for the purpose of constructing a decorative block wall along the west boundary. If after ninety (90) days from original contact, the Applicant is unsuccessful in securing authorization, and demonstrates to the Director of Planning and Development Services of said reasonable diligent effort, the Applicant may install a vinyl fence along the west boundary. 8.a Packet Pg. 104 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 10 of 10 PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 1st day of September, 2016. AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Tom Comstock City Clerk Chairman 8.a Packet Pg. 105 At t a c h m e n t : C C R e s o l u t i o n _ T T M 1 6 - 0 1 [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Building and Safety Conditions of Approval Date: August 3, 2013 Applicant: Kenneth J. Catanzarite and Darryl Moore Address of Applicant: 2331 W. Lincoln Ave, Anaheim, CA 92801 Site Location: 22394 & 22404 Van Buren Street, Tentative Tract No.16-01 Arch. Review 16-01, Variance 16-01 and Environmental 16-02, proposed Tract Map No. 18604. W.O. # 12-2.1143 Provide four (4) construction plans and required documentation for review of the proposed project. Below is a list of the plans and documents Building and Safety will need for plan review. The initial plan review will take approximately three weeks on most projects. You have received a work order number: 12-2.1143 for the proposed project, this number will be needed to obtain information regarding your plan review. Plan review fees and permit fees will be charged at the time plans are approved and are ready to issue. Provide the following sets of plans and documents. Building and Safety submittal’s required at first plan review. (4) Architectural Plans (4) Structural Plans (2) Structural Calculations (4) Plot/Site Plans (4) Electrical Plans (4) Electrical Load Calculations (4) Plumbing Plans/Isometrics, Water, Sewer and Gas (4) Mechanical Plans (4) Mechanical Duct Layout Plans (2) Roof and Floor Truss Plans (2) Title 24 Energy Calculations (2) Soils and Hydrology Reports Building & Safety General Information All structures shall be designed in accordance with the 2013 California Building Code, 2013 California Mechanical Code, 2013 California Plumbing Code, and the 2013 California Electrical EXHIBIT 1 8.b Packet Pg. 106 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Building and Safety Conditions of Approval Code, 2013 Residential Code and the 2013 California Green Buildings Standards adopted by the State of California. If the building plans are submitted before January 1, 2017 the plans will be reviewed under the 2013 California Building Codes, however if the plans are submitted after January 1, 2017 the plans will be reviewed under the 2016 California Building Codes. All work performed in the public right of way shall comply with the San Bernardino County Public Works Standards or standards approved by the Public Works Director or City Engineer. The Developer/Owner is responsible for the coordination of the final occupancy. The Developer/Owner shall obtain clearances from each department and division prior to requesting a final building inspection from Building & Safety. Each agency shall sign the bottom of the Building & Safety Job Card. Building & Safety inspection requests and Public Works inspection requests can be made twenty four (24) hours in advance for next day inspection. Please contact (909) 825-3825. You may also request inspections at the Building & Safety public counter. All construction sites must be protected by a security fence and screening. The fencing and screening shall be maintained at all times to protect pedestrians. Toilet facilities shall be provided for construction workers and such facilities shall be maintained in a sanitary condition. Construction toilet facilities of the non sewer type shall conform to ANSI ZA.3. Prior to building permits, applicant shall enter into a recycling agreement for construction waste according to Ordinance No. 243. A deposit will be required as part of this ordinance. Recycling receipts from the recycled company responsible for accepting the materials shall be kept in the construction office for viewing by the City Inspector. Burrtec Waste Industries has a Franchise Agreement with the City to recycle waste. Waste from the project will need to be disposed at a Burrtec Waste Industries facility. No waste shall be disposed of at any other waste facility. If waste is disposed of at an unapproved facility, funds from the deposit will be used to offset the waste stream. Construction projects which require temporary electrical power shall obtain an Electrical Permit from Building & Safety. No temporary electrical power will be granted to a project unless one of the following items is in place and approved by Building & Safety and the Planning Department. (A) Installation of a construction trailer. or, (B) Security fenced area where the electrical power will be located. 8.b Packet Pg. 107 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Building and Safety Conditions of Approval Installation of construction/sales trailers must be located on private property. No trailers can be located in the public street right of way. Building Permit Conditions 1. Prior to issuance of building permits, on site water service shall be installed and approved by the responsible agency. On site fire hydrants shall be approved by the Fire Department. No flammable materials will be allowed on the site until the fire hydrants are established and approved. 2. Prior to issuance of building permits, site grading certification and pad certifications shall be submitted to Building & Safety. Prior to concrete placement, submit a certification for the finish floor elevation and set backs of the structures. The certification needs to reflect that the structure is in conformance with the precise grading plans. Compaction reports shall accompany pad certifications. 3. Prior to issuance of building permits, provide Building & Safety with a will service letter from the City of Colton Waste Water Department. 4. All construction projects shall comply with the National Pollutant Discharge Elimination Systems (NPDES) and the current San Bernardino County MS4 stormwater permit. 8.b Packet Pg. 108 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Public Works Conditions of Approval Date: August 23, 2016 Applicant: Kenneth J. Catanzarite and Darryl Moore Address of Applicant: 2331 W. Lincoln Ave, Anaheim, CA 92801 Site Location: 22394 & 22404 Van Buren Street, Tentative Tract No.16-01 Arch. Review 16-01, Variance 16-01 and Environmental 16-02, proposed Tract Map No. 18604. Provide construction plans and required documentation for review of the proposed project as follows: (1) Grant Deed showing all easements. (1) Street Water Utility Plans. (1) Street Improvement Plans prepared by a licensed Civil Engineer. (1) Tentative Tract Map Plans (1) Sewer Plan Sheets (1) Rough and Precise Grading Plans (1) Water Quality Management Plan, (WQMP) and Erosion Control Plan (1) Storm water Pollution Prevention Plan (1) Soils, Hydrology, and Hydraulics Reports All work performed in the public right of way shall comply with the San Bernardino County Public Works Standards or standards approved by the Public Works Director. All construction sites must be protected by a security fence and screening. The fencing and screening shall be maintained at all times to protect pedestrians. Toilet facilities shall be provided for construction workers and such facilities shall be maintained in a sanitary condition. Special Conditions: 1. The existing street power pole owned by Edison shall be underground. 2. Street cut permits are required before work begins in the public right of way. A street cut deposit will be collected for each street cut and held for two years. 8.b Packet Pg. 109 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) 3. The applicant shall dedicate and construct all missing or damaged public improvements. The missing or damaged public improvements shall include, but are not limited to, pavement, curb, gutter, sidewalk, driveway approach, and street lights. 4. Provide half street width paving overlay after utility installations on the entire length of the project. Minimum 2 inch asphalt overlay with an asphalt grind. All Grindings shall be recycled. 5. The Applicant shall submit proposed sewer plans to the City of Colton for plan review. Applicant shall pay all plan review fees and permit fees for the sewer review to the City of Colton. Please provide a written “Will Serve” letter and approved sewer plans to the City of Grand Terrace before any permits are issued. 6. The applicant shall submit proposed water plans to the Riverside Highland Water Company for plan review. Applicant shall pay all plan review fees and permit fees for the water review to Riverside Highland Water Company. Please provide a written “Will Serve” letter and approved plans to the City of Grand Terrace before any permits are issued. 7. Applicant shall submit proposed water plans for fire hydrants to the County of San Bernardino Fire Department for plan review. Applicant shall pay all plan review fees and permit fees for the fire hydrant system review to the County of San Bernardino Fire Department. 8. Submit the proposed tract map to the City of Riverside Gage Canal Department for conditions and approvals. This project may require new curb and gutter as well as an approach next to the existing gates of the Gage Canal. Obtain a construction encroachment permit from Riverside Gage Canal. 9. Provide 11-foot right of way dedication on Van Buren Street along the entire frontage of the property and provide paving, curb, gutter, sidewalk, street lights, signage and stripping and repave to a half width street improvement. Street improvements will be required to extend beyond the frontage of the project to blend the street flows for drainage and traffic. 10. The street curb returns and ramps at the intersection on Tesoro Court and Van Buren Street shall be constructed per San Bernardino County Standard 110. The radius of these curbs shall be a minimum of 30 feet. 11. Minimum driveway grades shall be consistent with San Bernardino County Standard 131. Riverside County Standard driveway approach can also be used. 12. Monumentation: If any activity on this project disturbs any survey monuments, the disturbed monumnetation shall be located and referenced by or under the direction of a licensed land surveyor or a registered civil engineer authorized to practice land surveying 8.b Packet Pg. 110 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) prior to commencement of any activity with the potential to disturb the monumnetation, and a corner record or record of survey of the references shall be filled with the County. 13. Provide a letter from adjacent property owners giving their consent to allowing the relocation of their stormdrain and any other utility line that may need relocation. Also said letter should give their consent to allowing the proposed connection to their utility line. If no such consent is given, developer must provide separate utility lines to serve the new development. The C, C, and R’s document must stipulate the maintenance agreement for any shared utilities. 14. A blockwall is required around the perimeter of the property. 15. All existing easements must be shown on improvement plans and tract map. 16. Tesoro Street must be dedicated to the City as Public Access Easement and Utilities Easement. 17. Provide a street light at the ingress to the property as well as every 200 feet along the frontage of the property. 18. The City desires to pave the entire width of Van Buren Street at the completion of this project. Developer’s contractor should be encouraged to negotiate with City to perform said work. 19. All frontage improvements should be dedicated to the City as an 11’-wide easement. 20. The annexation to the City Streetlight and Landscape District must occur before the recordation of the Tract Map. 21. The private roadway “Tesoro Court” must be constructed per the County of San Bernardino’s standards for local roads. 22. Parking shall only be permitted on one side of Tesoro Street. 8.b Packet Pg. 111 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 1 of 2 CITY OF COLTON PUBLIC WORKS DEPARTMENT WATER & WASTEWATER DIVISION CONDITIONS OF APPROVAL 1.THE DEVELOPMENT SHALL MEET ALL THE REQUIREMENTS AS SET FORTH BY THE WATER/WASTEWATER DEPARTMENT FOR SEWER AND PRE-TREATMENT FACILITIES. 2.ALL CONSTRUCTION SHALL CONFORM TO THE CURRENT EDITION OF THE SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION (GREEN BOOK), AND THE CURRENT STANDARDS AND SPECIFICATIONS OF THE CITY OF COLTON WATER/WASTEWATER DEPARTMENT. 3.WASTEWATER QUESTIONNAIRE SHALL BE SUBMITTED TO WATER/WASTEWATER DIVISION FOR REVIEW AND COMMENT. NO PROJECT WILL BE APPROVED UNLESS THIS INFORMATION IS RECEIVED PRIOR TO SUBMITTAL FOR PLAN CHECK. 4.DEVELOPER IS REQUIRED TO HAVE A REGISTERED CIVIL ENGINEER PREPARE A SEWER IMPROVEMENT PLAN. THE PLAN MUST SHOW THE SIZE AND LOCATION OF THE EXISTING OR PROPOSED SEWER CONNECTION TO THE EXISTING ON-SITE SEWER MAIN OR THE SEWER COLLECTION SYSTEM WITH THE REQUIRED CLEANOUT AT PROPERTY LINE. SEWER CIVIL ENGINEERING PLANS SHALL BE SUBMITTED WITH AN ENGINEER’S COST ESTIMATE ALONG WITH THE SEWER CALCULATIONS TO SUPPORT THE DESIGN. 5.CONSTRUCTION OF ALL OFFSITE IMPROVEMENTS SHALL BE PER THE APPROVED SEWER PLANS. 6.THE DEVELOPER SHALL SUBMIT A WASTEWATER COLLECTION SYSTEM FEASIBILITY STUDY PREPARED BY A QUALIFIED REGISTERED CIVIL ENGINEER FOR REVIEW AND APPROVAL BY THE CITY ENGINEER AND DIRECTOR OF WATER AND WASTEWATER. ADDITIONAL WATER INFRASTRUCTURE OR FURTHER ENGINEERING REVIEW MAY BE REQUIRED BY THE DEVELOPER BASED ON THE INFORMATION PROVIDED IN THE STUDY. 7.DEVELOPER’S CIVIL ENGINEER IS REQUIRED TO PRODUCE RECORD DRAWINGS IN BOTH MYLAR AND A COMPATIBLE ELECTRONIC FILE FOR FUTURE ARCHIVING AND GIS CONVERSION AFTER ALL CHANGES, MODIFICATIONS, AND ADDITIONS REQUESTED BY THE WATER/WASTEWATER DEPARTMENT HAVE BEEN MADE ON THE PLANS. 8.DEVELOPER SHALL VERIFY THE EXISTENCE AND LOCATION OF ANY UTILITY EASEMENTS AND SHOW SAID EASEMENTS ON ALL PLANS. ALL UTILITY EASEMENTS SHALL BE PROTECTED FROM ENCROACHMENT. 9.THE DEVELOPER SHALL CONNECT THE PROPOSED SEWER PIPELINE TO THE EXISTING SEWER MAIN ALONG PICO STREET. IF THE PROJECT REQUIRES A SEWER MAIN LOCATED OR EXTENDS ON THE PRIVATE PROPERTY, A PUBLIC UTILITY EASEMENT SHALL BE PROVIDED TO THE CITY. ANY EASEMENT ISSUES SHALL BE SETTLED EITHER BEFORE APPROVAL OF THE FINAL MAP, OR ISSUANCE OF BUILDING PERMITS, WHICHEVER IS APPLICABLE. FILE NUMBER : Tentative Tract Map 14-01 (TTM No. 16-01)) DATE: May 4, 2016 PROJECT NAME : Sewer improvement and service connections for TRACT 18071. Subdivision of 1.96 Acres into 17 Single Lots. ADDRESS : 22394 & 22404 Van Buren Street (between MT Vernon Ave and Gage Canal) Grand Terrace, CA EXHIBIT 3 8.b Packet Pg. 112 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) Page 2 of 2 10.DEVELOPER IS REQUIRED TO INSTALL NEW SEWER LATERAL CONNECTIONS FROM THE NEAREST CITY GRAVITY MAIN IF ONE DOES NOT CURRENTLY EXIST, PER CITY OF COLTON STANDARD DRAWINGS NO.124, NO.201, NO.308, AND NO.312. LICENSE: CONTRACTORS PERFORMING THIS WORK ARE REQUIRED TO HAVE EITHER AN “A” LICENSE OR A “C-42” LICENSE TO MEET PERMIT REQUIREMENTS. DEVELOPER IS ALSO REQUIRED TO INSTALL NEW SEWER CLEANOUT AT PROPERTY LINE FOR ALL NEW SEWER LATERAL CONNECTIONS TO CITY SEWER PER COLTON STANDARD DRAWING NO.308. 11.ANY SUBDIVISION OF A SINGLE PARCEL INTO MULTIPLE PARCELS REQUIRES SEPARATE SEWER SERVICES FOR EACH PARCEL WHEN DEVELOPMENT OCCURS. 12.DEVELOPER’S CONTRACTOR IS REQUIRED TO VIDEOTAPE NEW GRAVITY SEWER MAIN FOR SAGS AND OFFSETS, AND PROVIDE ONE VIDEOTAPE TO THE UTILITIES INSPECTOR AND ONE TAPE TO THE DEVELOPER PRIOR TO ACCEPTANCE BY CITY. 13.ALL WASTEWATER CAPACITY FEES MUST BE PAID PRIOR TO OBTAINING THE CERTIFICATE OF OCCUPANCY. ADDITIONAL CAPACITY FEES MAY APPLY IF THE ACTUAL DISCHARGE EXCEEDS THE ESTIMATED FLOW ESTABLISHED DURING INITIAL APPROVAL. SERVICE WILL BE TERMINATED IF THE FEES ARE NOT PAID. 14.ALL CONNECTION FEES AND CHARGES SHALL BE LEVIED AT RATE SCHEDULED BY CITY COUNCIL AT THE TIME OF PAYMENT BY DEVELOPER. DEVELOPER SHALL REMIT SEWER CONNECTION FEES TO THE CITY OF COLTON WATER/WASTEWATER DIVISION. 15.BOND AND CONSTRUCT ALL OFFSITE IMPROVEMENTS PER THE APPROVED SEWER IMPROVEMENT PLANS. THE PROJECT DEVELOPER SHALL PROVIDE A BOND TO THE CITY GUARANTEEING THE INSTALLATION OF ALL SEWER INFRASTRUCTURES AND SHOWN ON THE APPROVED DEVELOPMENT PLAN OR OTHERWISE REQUIRED AS PART OF THIS DEVELOPMENT. THE PROJECT DEVELOPER SHALL PROVIDE AN ITEMIZED COST ESTIMATE OF SAID IMPROVEMENTS, TO BE SUBMITTED WITH THE BOND, FOR THE REVIEW AND APPROVAL OF THE DIRECTOR PRIOR TO APPROVAL OF THE FINAL PLAN. 8.b Packet Pg. 113 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) SA BER ARDI 0 COl... c1 TY FIRE DEPART E T -------- OFFICE OF THE FIRE MARSHAL COMMUNITY SAFETY DIVISION 620 South "E" Street San Bemardino, CA. 92415-0179 (909) 388-8400 -Fax (909) 386-8460 DATE: July 27, 2018 DARRYL & CHRISTINE MOORE 22366 BARTON RD, STE 200 GRAND TERRACE, CA 92313 PERMIT NUMBER: F201600759 PROJECT NUMBER: LOCATION: 22394 VAN BUREN -GRAND TERRACE PROJECT TYPE: TTM OCCUPANCY TYPE: APN: 1187-341-02-0000 PROPOSAL: PLANNER: Dear Applicant COUNTY OF SAN BERNARDINO PUBLIC AND SUPPORT SERVICES GROUP MARK A. HARTWIG Fire Chief eXPIRATION: July 2017 With respect to the conditions of approval regarding the above referenced project, the San Bernardino County Fire Department requires the following fire protection measures to be provided in accordance with applicable local ordinances, codes, and/or recognized fire protection standards. The Rre Conditions Attachment of this document sets forth the FIRE CONDITIONS and STANDARDS which are applied to this project. FIRE COND/UONS: All FIRE CONDITIONS FOR THIS PROJECT ARE ATTACHED Page_l_or~ Jeff Stinson, Fire Prevention Specialist San Bernardino County Fire Department Valley Division Community Safety Division Duty, Honor, Community 8.b Packet Pg. 114 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) FIRE CONDITIO S ATTACHME 1 DATE: 07-27-2016 PROJECT: PERMIT NUMBER: F201600759 LOCATION: 22394 VAN BUREN -GRAND TERRACE PARCEL: 1167-341-02-0000 CONDITIONS Cond: EXPNOTE Construction permits, Including Fire Condition Letters, shall automatically expire and become invalid unless the work authorized by such permit is commenced within 180 days after its Issuance, or if the work authorized by such permit is suspended or abandoned for a period of 180 days after the time the work is commenced. Suspension or abandonment shall mean that no Inspection by the Department has occured with 180 days of any previous Inspection. After a construction permit or Fire Condition Letter, becomes invalid and before such previously approved work recommences, a new permit shall be first obtained and the fee to recommence work shall be one-half the fee for the new permit for such work, provided no changes have been made or will be made In the original construction documents for such work, and provided further that such suspension or abandonment has not exceeded one year. A request to extend the Fire Condition Letter or Permit may be made In writing PRIOR TO the expiration date justifying the reason that the Fire Condition Letter should be extended. Cond: F01 Jurisdiction. The above referenced project is under the jurisdiction of the San Bernardino County Fire Department herein ("Fire Departmenf'). Prior to any construction occurring on any parcel, the applicant shall contact the Fire Department for verification of current fire protection requirements. All new construction shall comply with the current Uniform Fire Code requirements and all applicable statutes, codes, ordinances and standards of the Fire Department. [F01 J Cond: CON0035621 Fire Fee. The required fire fees TTM (currently $1, 138.00) shall be paid to the San Bernardino County Fire Department/Community SafeZ DMsion (909) 386-8400. This fee is In addition to fire fees that are paid to the City of • bl (). . [F40] Cond:F41 ~ Access. The development shall have a minimum of points of vehicular access. These are for fire/emergency equipment access and for evacuation rou . Standard 902.2.1 Single Story Road Access Width: All buildings shall have access provided by approved roads, alleys and private drives with a minimum twenty six (26) foot unobstructed width and vertically to fourteen (14) feet six (6) inches In height Other recognized standards may be more restrictive by requiring wider access provisions. Multi-Story Road Access Width: Buildings three (3) stories in height or more shall have a minimum access of thirty (30) feet unobstructed width and vertically to fourteen (14) feet six (6) Inches in height [F41] Page L. of L;i 8.b Packet Pg. 115 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) FIRE CO DATE: PROJECT: PERMIT NUMBER: LOCATION: PARCEL: Cond:F42 SATTACH EN1 07-27-2016 F201600759 22394 VAN BUREN -GRAND TERRACE 1167-341-02-0000 Building Plans. No less than three (3) complete sets of Building Plans shall be submitted to the Fire Department for review and approval. [F42) Cond:F44 Combustible Protection. Prior to combustibles, being placed on the project site an approved paved road with curb and gutter and fire hydrants with an acceptable fire flow shall be Installed. The topcoat of asphalt does not have to be Installed until final inspection and occupancy. [F44] Cond: F54 Water System Commercial. A water system approved and inspected by the Fire Department Is required. The system shall be operational, prior to any combustibles being stored on the site. All fire hydrants shall be spaced no more than three hundred (300) feet apart (as measured along vehicular travel-ways) and no more than three hundred (300) feet from any portion of a structure. [F54] Cond:F61 Fire Sprinkler-NFPA #130. An automatic life safety fire sprinkler system complying with NFPA Pamphlet #130 and the Fire Department standards is required. The appHcant shall hire a Fire Department approved fire sprinkler contractor, or be the approved homeowner/lntaller. The fire sprinkler contractornnstaller shall submit three (3) sets of detailed plans (minimum 1/8" scale) with hydraulic calculations and manufacture's specification sheets to the Fire Department for approval. The required fees shall be paid at the time of plan submittal. Minimum water supply shall be In accordance with current fire department standards. The applicant or contractor shall contact their local water purveyor to obtain specifications on Installing a residential fire sprinkler system within the jurisdiction of the water purveyor. The applicant shall attach a letter from the water purveyor indicating the types of systems allowed in thatjurisdiction. Standard 101.10 [F61] Cond:F72 Street Sign. This project is required to have an approved street sign (temporary or permanent). The street sign shall be installed on the nearest street comer to the project. Installation of the temporary sign shall be prior any combustible material being placed on the construction site. Prior to final Inspection and occupancy of the first structure, the permanent street sign shall be installed. Standard 901.4.4 [F72] Cond: F80 _ _ ___ __ _ Hydrant Marking. Blue reflective pavement markers indicating fire hydrant locations shall be installed as specified by the Fire Department In areas where snow removal occurs or non-paved roads exist, the blue reflective hydrant marker shall be posted on an approved post along the side of the road, no more than three (3) feet from the hydrant and at least six (6) feet high above the adjacent road. Standard 901.4.3. [FBO] Page ~ of ___ 4 __ 8.b Packet Pg. 116 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) DATE: PROJECT: PERMIT NUMBER: LOCATION: PARCEL: Cond: F81 07-27-2016 F201600769 22394 VAN BUREN • GRAND TERRACE 1167-341-02-0000 Residential Addressing. The street address shall be Installed on the building with numbers that are a minimum of four (4) inches in height and with a one half(%) inch stroke. The address shall be visible from the street During the hours of darkness, the numbers shall be internally and electrically Illuminated with a low voltage power source. Numbers shall contrast with their background and be legible from the street Where the building is fifty (50) feet or more from the roadway, additional contrasting four (4) inch numbers shall be displayed at the property access entrances. Standard 901.4.4 [F81] Cond: F82 Commercial Addressing. Commercial and industrial developments of 100,000 sq. ft or less shall have the street address Installed on the building with numbers that are a minimum six (6) inches in height and with a three quarter (3/4) Inch stroke. The street address shall be visible from the street During the hours of darkness, the numbers shall be electrically illuminated (internal or external). Where the building is two hundred (200) feet or more from the roadway, additional non-lllumlnated contrasting six (6) Inch numbers shall be displayed at the property access entrances. Standard 901.4.4 [F82] Cond: F88 Fire Extinguishers. Hand portable fire extinguishers are required. The location, type, and cabinet design shall be approved by the Fire Department [F88] Cond:F93 Fire Lanes. The applicant shall submit a fire lane plan to the Fire Department for review and approval. Fire lane curbs shall be painted red. The "No Parking, Fire Lane" signs shall be installed on public/private roads in accordance with the approved plan. Standard 901 .4 [F93] Page___A_ot4 8.b Packet Pg. 117 At t a c h m e n t : E x h i b i t s o f T e n t a t i v e T r a c t M a p _ V B [ R e v i s i o n 1 ] ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) C:\users\pnares\appdata\local\temp\minutetraq\grandterracecityca@grandterracecityca.iqm2.com\work\attachments\3573.doc 22795 Barton Road, Grand Terrace, California, 92313-5295 909/824-6621 Fax 909/783-2600 CITY OF GRAND TERRACE NOTICE OF EXEMPTION TO: Clerk of the Board of Supervisors FROM: Planning and Development County of San Bernardino Services Department 385 N. Arrowhead Avenue, 2nd Floor City of Grand Terrace San Bernardino, CA 92415-0130 22795 Barton Road Grand Terrace, CA 92313 Project Title: Tentative Tract Map 16-01, Site and Architectural Review 16-01, Variance 16- 01 and Environmental 16-05. Project Location – Specific: The project is located on lots APN: 1167-341-02, 1167-341-78 and 1167-341-79 in the County of San Bernardino. Description of Project: Subdivide 2 acres into a small lot subdivision consisting of 17 lots. A Variance relating to lot area for Lot 11 and setbacks for Lots 11 and 12, and construct 17 single family residences. Name of Public Agency Approving Project: Grand Terrace Planning Commission approved Site and Architectural Review 16-01 and Variance 16-01 to construct 17 single family residences and recommended approval of Tentative Tract Map 16-01 (TTM No. 18604) and Variance 16-01 to the City Council. On September 27, 2016, the City Council approved Tentative Tract Map 16-01 (TTM No. 18604) and Variance 16-01, approving the small lot subdivision. Name of Person or Agency Carrying out Project: Aegis Builders, Inc. Exempt Status: California Code of Regulations, Title 14, Section 15332, Infill Development Projects Reasons Why Project is Exempt: Section 15332, This section exempts infill projects when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses, the property has no value as habitat for any rare, endangered, or threatened species, the site is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. Lead Agency or Contact Person: Area Code/Telephone (909) 824-6621 ______________________________ _________________ Sandra Molina Date Planning and Development Services Director 8.c Packet Pg. 118 At t a c h m e n t : N o t i c e o f E x e m p t i o n _ C o u n c i l A c t i o n ( 1 9 9 5 : T T M 1 8 6 0 4 _ V a n B u r e n T r a c t ) This page left intentionally blank. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Approval of a Disposition and Development Agreement by and Between the City of Grand Terrace and Dr. Terry McDuffee PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: 1) Conduct a public hearing; 2) Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF GRAND TERRACE AND DR. TERRY MCDUFFEE FOR THE PURCHASE OF CITY OWNED PROPERTY LOCATED AT THE SOUTHWEST CORNER OF COMMERCE WAY AND MICHIGAN STREET (1167-141-08) AND FINDING THAT THIS PROJECT IS EXEMPT FROM CEQA REVIEW PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES 3) Authorize the Mayor to sign the Agreement; and 4) Authorize the City Manager to take all necessary actions to implement the Agreement. 2030 VISION STATEMENT: This staff report supports Goal #3, Promote Economic Development. BACKGROUND: On July, 12, 2016, the City of Grand Terrace and Dr. Terry McDuffee entered into an Exclusive Negotiation Agreement (ENA) on 0.90 acres owned by the City located at the southwest corner of Commerce Way and Michigan Street. The purpose of the ENA was to keep Emergency Animal Clinic owned by Dr. McDuffee in town. Animal Emergency Clinic needs to relocate due to the I-215 Interchange Project. The ENA is a method used to facilitate the mutual desire of the City and a private entity to explore the feasibility of developing a project, allows for due diligence and is the precursor to entering into a full development agreement. 9 Packet Pg. 119 DISCUSSION: Attached for the Council’s consideration is a Resolution approving the 2016 Disposition and Development Agreement by and between the City of Grand Terrace and Dr. Terry McDuffee (DDA). The DDA is a rather straight forward document, outlining the terms of the purchase and development of the property with an emergency animal clinic, purchase price, terms of escrow, performance timelines, and an option to buy Dr. McDuffee’s property. The purchase price of the property is $400,000, with a non-refundable $10,000 deposit. The purchase price is based on a combination of an appraisal and negotiation between Dr. McDuffee and the City Manager. Dr. McDuffee has estimated the cost of constructing a new emergency animal clinic at approximately Two Million Dollars. Once the DDA is executed and determined effective, Developer has 7 days to deliver the deposit into escrow. After receipt of the preliminary title report Developer has 30 days to review. There is a 120 day due diligence period for Developer to investigate the property. Other performance timelines include: Performance Complete By Secure entitlements 150 days of effective date Commence construction 30 days of close of escrow Obtain a certificate of occupancy April 1, 2018 Obtain Certificate of Project Completion April 30, 2018 Acquisition of Developer Property As previously indicated, in exchange for removing the Property from the Lewis/City ENA, and to further promote economic development opportunities, the DDA includes a provision to allow the City to have the first right of refusal to purchase, at fair market value, Developer’s property located at the southwest corner of Barton Road and LaCrosse Avenue. The “option to purchase” provisions would give the City up to 12 months after completion of the Interchange Project or August 15, 2019, whichever comes last, to purchase. The DDA would not preclude the Developer from selling his property; however, in the event that Dr. McDuffee offers his property for sale prior to the City’s option to purchase, then the DDA provides that the City would have the right to first refusal. Compensation Agreement The sale of the property is subject to compensation to the taxing entities as identified in the Long Range Property Management Plan. The Compensation Agreements are undergoing minor revisions and are expected to be approved shortly. The Property 9 Packet Pg. 120 cannot be conveyed until the Compensation Agreements are executed. However, this does not preclude the City and Developer from moving forward on the DDA, entering escrow, conducting due diligence and obtaining entitlements. Report and Noticing Pursuant to H&S Code 52201 In accordance with the Health and Safety Code a report, entitled “Report Regarding Economic Development of Real Property Pursuant to the 2016 Disposition And Development Agreement Between City of Grand Terrace and Dr. McDuffee and Health and Safety Code Section 52201” was prepared and made available for public review on August 31, 2016 to September 27, 2016. This report is also attached. Additionally, notice of a public hearing was published in the Grand Terrace City News in accordance with Health and Safety Code 52201. FISCAL IMPACT: The appraisal report was prepared at a cost of $4,000.00, which was covered in the existing budget. The Developer will pay $400,000 for the property, all associated filing and permit costs, and reimburse the City for the attorney fees associated with preparing the DDA. ATTACHMENTS:  City Council Resolution Approving DDA_McDuffee (DOCX)  DDA McDuffe 9.27-16 (DOC)  Report _ 522001sm 8.31.2016 (DOCX) APPROVALS: Sandra Molina Completed 09/20/2016 6:23 PM Finance Completed 09/21/2016 12:30 PM City Attorney Completed 09/22/2016 2:08 PM City Manager Completed 09/22/2016 1:07 PM City Council Pending 09/27/2016 6:00 PM 9 Packet Pg. 121 This page left intentionally blank. Page 1 of 6 RESOLUTION 2016-___ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF GRAND TERRACE AND DR. TERRY MCDUFFEE FOR THE PURCHASE OF CITY OWNED PROPERTY LOCATED AT THE SOUTHWEST CORNER OF COMMERCE WAY AND MICHIGAN STREET (1167-141-08) AND FINDING THAT THIS PROJECT IS EXEMPT FROM CEQA REVIEW PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES WHEREAS, pursuant to Health and Safety Code Section 34191.5 the Grand Terrace Successor Agency (“Successor Agency”) prepared and submitted a Grand Terrace Successor Agency Long-Range Property Management Plan (“LRPMP”) that addresses the disposition and use of the real properties of the former redevelopment agency; WHEREAS, on April 24, 2015, the California Department of Finance approved the LRPMP, which identified disposition of the certain property to be transferred to the City of Grand Terrace (“City”) for future development; WHEREAS, the City is the owner of certain real property and improvements thereon, which is more specifically described in Exhibit A of this Agreement (City Property), which was transferred to the City from the Successor Agency; WHEREAS, City Property is one of seven parcels that comprise Property 4 of the LRPMP; WHEREAS, the California Health & Safety Code requires that for real property transferred from the Successor Agency to the City for future development the City must enter into compensation agreements with certain affected taxing entities. WHEREAS, the City is currently in negotiation regarding and anticipates successful execution of the required compensation agreement by the appropriate taxing entities. WHEREAS, Developer desires to acquire the City Property for development of an animal emergency hospital and other retail, professional or commercial uses. WHEREAS, the City has a vested interest in ensuring the City Property is properly developed. 9.a Packet Pg. 122 At t a c h m e n t : C i t y C o u n c i l R e s o l u t i o n A p p r o v i n g D D A _ M c D u f f e e ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Page 2 of 6 WHEREAS, Developer owns certain real property, and improvements thereon which is more specifically described in Exhibit B of this Agreement (“Developer Property”). WHEREAS, in partial consideration of Developer’s acquisition of the City Property, City desires an option to purchase the Developer’s Property. WHEREAS, City and Developer entered into an Exclusive Negotiation Agreement dated July 12, 2016 (“Negotiation Agreement”); WHEREAS, Developer understands and acknowledges that City’s obligation to convey the City Property is subject to successful execution of the compensation agreement by all appropriate taxing entities. WHEREAS, a Report Regarding Economic Development of Real Property Pursuant to the 2016 Disposition and Development Agreement Between City of Grand Terrace and Dr. McDuffee and Health and Safety Code Section 52201 was prepared pursuant to Health and Safety Code 52201 and made available for public inspection on August 31, 2016 to September 13, 2016; WHEREAS, on September 15, 2016, the Planning Commission adopted a Resolution finding, in accordance with Government Code Section 65402, the disposition of City Parcel to be in conformance with the General Plan; WHEREAS, on September 27, 2016, the City Council conducted a duly noticed public hearing at the City Hall Council Chambers located at 22795 Barton Road Grand Terrace, California, considered the Agreement attached hereto as Exhibit 1, and concluded the hearing on that date. NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1. The City Council finds that all of the above recitals are true and correct and are incorporated herein by reference. Section 2. the Project qualifies for an environmental exemption pursuant to Section 15332 of the California Environmental Quality Act (CEQA) Guidelines, which exempts infill projects when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses, it is devoid of habitat for biological resources and the Project site has no value as habitat for endangered, rare, or threatened species, the site is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. Section 3. The City Council finds that the sale or lease of the property will assist in the creation of economic opportunity. The proposed Agreement is consistent with City 9.a Packet Pg. 123 At t a c h m e n t : C i t y C o u n c i l R e s o l u t i o n A p p r o v i n g D D A _ M c D u f f e e ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Page 3 of 6 economic goals and objectives and is in the best interest of the general public. The loss of redevelopment throughout the state has significantly impacted the city’s major economic development program. The sale of the City Parcel incentives a local business to stay in the City and construct a modern facility in the City commercial district, creating synergy in the furtherance of new development. Economic opportunities to the City include (1) creation of local jobs throughout construction. Those workers will in turn patronize City restaurant and food uses. (2) Generation of approximately $24,000.00 in property taxes by placing a property that has not generated sales tax for over 10 years, back on the County Assessor’s tax rolls. (3) Sales tax for a 3,000 square foot tenant space occupied with commercial retail uses. Section 4. The City Council finds that the consideration is not less than the fair market value at its highest and best use. The site is zoned CM-Commercial Manufacturing and designated as General Commercial on the Grand Terrace General Plan Land Use Map. The purpose of the CM district is to provide for the development of combined commercial and light manufacturing uses. The regulations of this district are intended to allow various light manufacturing uses which operate free of objectionable noise, dust, odor or other nuisances to locate in a mixed use development area along with commercial uses. The list of permitted and conditionally permitted uses allowed in the CM district includes those permitted and conditionally permitted uses allowed within the C2-General Commercial zone district. The purpose of the C2 district is to promote and provide for the orderly development of general commercial uses desirous to the community as a whole as well as freeway generated consumers. Therefore, the highest and best use of the property is commercial uses, including the proposed emergency animal hospital and commercial space. The estimated value of the City Parcel after improvement determined in relation to the purchase and development costs is estimated at Two Million Four Hundred Thousand Dollars ($2,400,000.00). The adopted LRPMP estimated the unimproved value of the City Parcel at Two Hundred Eighty Three Thousand and Five Hundred Dollars ($283,500.00), and based comparable sales in the market area; the unit value of the property is approximately $9.00 per square foot, which is approximately Three Hundred and Twenty Thousand Dollars ($320,000). Therefore, the negotiated purchase price of the City Parcel is Four Hundred Thousand Dollars ($400,000.00); and not less than the estimated fair market value. Section 5. The City Council hereby approves the Disposition and Development Agreement and authorizes the Mayor to sign said Agreement, included in Exhibit “1”. 9.a Packet Pg. 124 At t a c h m e n t : C i t y C o u n c i l R e s o l u t i o n A p p r o v i n g D D A _ M c D u f f e e ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Page 4 of 6 PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 27th day of September, 2016. AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 9.a Packet Pg. 125 At t a c h m e n t : C i t y C o u n c i l R e s o l u t i o n A p p r o v i n g D D A _ M c D u f f e e ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Page 5 of 6 I, PAT JACQUEZ-NARES, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Resolution was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 27th day of September, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Pat Jacques-Nares City Clerk 9.a Packet Pg. 126 At t a c h m e n t : C i t y C o u n c i l R e s o l u t i o n A p p r o v i n g D D A _ M c D u f f e e ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Page 6 of 6 Exhibit 1 Attached on next page 9.a Packet Pg. 127 At t a c h m e n t : C i t y C o u n c i l R e s o l u t i o n A p p r o v i n g D D A _ M c D u f f e e ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) September 27, 2016 2016 DISPOSITION AND DEVELOPMENT AGREEMENT by and between the THE CITY OF GRAND TERRACE, a municipal corporation, and DR. TERRY MCDUFFEE, an individual 9.b Packet Pg. 128 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) This page left intentionally blank. 1 – September 27, 2016 2016 DISPOSITION AND DEVELOPMENT AGREEMENT THIS 2016 DISPOSITION AND DEVELOPMENT AGREEMENT (this “Agreement”) is dated as of September 27, 2016 for reference purposes only, and is entered into by and between the CITY OF GRAND TERRACE, a municipal corporation (“City”), and DR. TERRY MCDUFFEE, an individual (“Developer”). City and Developer enter into this Agreement with reference to the following recited facts (each a “Recital”): RECITALS A. WHEREAS, the City of Grand Terrace ("City") is the owner of certain real property and improvements thereon, which is more specifically described in Exhibit A of this Agreement (the "City Property"), which was transferred to the City from the Successor Agency for the Grand Terrace Community Redevelopment Agency (“Successor Agency”). B. WHEREAS, the California Health & Safety Code requires that for real property transferred from the Successor Agency to the City for future development the City must enter into compensation agreements with certain affected taxing entities. C. WHEREAS, the City is currently in negotiation regarding and anticipates successful execution of the required compensation agreement by the appropriate taxing entities. D. WHEREAS, Developer desires to acquire the City Property for development of an animal emergency hospital and other retail, professional or commercial uses. E. WHEREAS, the City has a vested interest in ensuring the City Property is properly developed. F. WHEREAS, Developer owns certain real property, and improvements thereon which is more specifically described in Exhibit B of this Agreement (“Developer Property”). G. WHEREAS, in partial consideration of Developer’s acquisition of the City Property, City desires an option to purchase the Developer’s Property. H. WHEREAS, City and Developer entered into an Exclusive Negotiation Agreement dated July 12, 2016 (“Negotiation Agreement”) to provide time to work out details of conveyance of the City Property and Developer Property. I. WHEREAS, this Agreement is intended by City and Developer to be the culmination of their negotiations pursuant to the Negotiation Agreement for Developer to acquire the City Property from City and develop the City Property with the Project (as hereafter defined) and for City to have an option to acquire the Developer’s Property. J. WHEREAS, Developer understands and acknowledges that City’s obligation to convey the City Property is subject to successful execution of the compensation agreement by all appropriate taxing entities. 9.b Packet Pg. 129 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 2 – September 27, 2016 K. WHEREAS, Developer understands and acknowledges that conveyance of the City Property is subject to the City’s Power of Termination of Developer’s Fee Title as set forth in Section 8.3 of this Agreement. L. WHEREAS, In the event Developer fails to complete the Project pursuant to the deadlines set forth in the Schedule of Performance, City will exercise its right of termination of Developer’s fee title and Developer shall transfer the City Property back to the City as set forth herein. NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION AND THE PROMISES AND COVENANTS OF CITY AND DEVELOPER SET FORTH IN THIS AGREEMENT, CITY AND DEVELOPER AGREE, AS FOLLOWS: 1. DEFINITIONS 1.1 Defined Terms. The following words, terms and phrases are used in this Agreement with the following meanings, unless the particular context of usage of a word, term or phrase requires another interpretation: 1.1.1 Affiliate. Any other Person, directly or indirectly, Controlling or Controlled by or under common Control with such specified Person. 1.1.2 [Intentionally reserved] 1.1.3 Agreement. This 2016 Disposition and Development Agreement, dated as of September 27, 2016. 1.1.4 Application. Any agreement, application, certificate, document, or submission (or amendment of any of the foregoing): (a) necessary or appropriate for the Project, including any application for any building permit, Certificate of Occupancy, utility service or hookup, easement, covenant, condition, restriction, subdivision, or such other instrument as Developer may reasonably request for the Project; or (b) to enable Developer to seek any Approval or to use and operate the Project in accordance with this Agreement. 1.1.5 Approval. Any license, permit, approval, consent, certificate, ruling, variance, authorization, conditional use permit, or amendment to any of the foregoing, as shall be necessary or appropriate under any Law to commence, perform, or complete the Construction of the Project. 1.1.6 Automobile Liability Insurance. Insurance coverage against claims of personal injury (including bodily injury and death) and property damage at least as broad as Insurance Services Office Form No. CA0001 covering Automobile Liability, Code No. 1 (any auto), covering all owned, leased, hired and non-owned vehicles used by the Developer regarding the Project, with minimum limits for bodily injury and property damage of TWO MILLION DOLLARS ($2,000,000). Such insurance shall be provided by a business or commercial vehicle policy. 9.b Packet Pg. 130 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 3 – September 27, 2016 1.1.7 Bankruptcy Law. Title 11, United States Code, and any other or successor State or Federal statute relating to assignment for the benefit of creditors, appointment of a receiver or trustee, bankruptcy, composition, insolvency, moratorium, reorganization, or similar matters. 1.1.8 Bankruptcy Proceeding. Any proceeding, whether voluntary or involuntary, under any Bankruptcy Law. 1.1.9 Builder. A State licensed general contractor selected by Developer to Construct the Project. 1.1.10 Builder’s Risk Insurance. Builder’s risk or course of construction insurance covering all risks of loss, less policy exclusions, on a completed value (non-reporting) basis, in an amount sufficient to prevent coinsurance, but in any event not less than one hundred percent (100%) of the completed value of the subject Construction, including cost of debris removal (subject to a policy sublimit), but excluding foundation and excavations. Such insurance shall also: (a) grant permission to occupy; and (b) cover, for replacement cost, all materials on or about any offsite storage location intended for use in, or in connection with, the Property (subject to a policy sublimit). 1.1.11 Business Day. Any weekday on which the City is open to conduct regular municipal functions with City personnel. 1.1.12 CEQA. The California Environmental Quality Act, Public Resources Code Sections 21000, et seq., and the associated regulations at Title 14 California Code of Regulations Sections 15000, et seq. 1.1.13 CEQA Document. Any exemption determination, any Negative Declaration (mitigated or otherwise) or any Environmental Impact Report (including any addendum or amendment to, or subsequent or supplemental Environmental Impact Report) required or permitted by any Government, pursuant to CEQA, to issue any discretionary Approval required to approve this Agreement. 1.1.14 Certificate of Completion. The written certification of City in substantially the form of “Exhibit J” attached to this Agreement that the Construction of the Project has been completed in compliance with the terms and conditions of this Agreement. 1.1.15 Certificate of Occupancy. A Certificate of Occupancy as defined in the Uniform Building Code, 2007 Edition, published by the International Conference of Building Officials, as may be amended from time to time. 1.1.16 City. The City of Grand Terrace, California, a municipal corporation 1.1.17 City Manager. The City Manager of City or his or her designee or successor in function. 1.1.18 City Property. That certain real property located within the City of Grand Terrace, County of San Bernardino, State of California, specifically described in the legal 9.b Packet Pg. 131 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 4 – September 27, 2016 description attached as Exhibit “A” attached to this Agreement, which is incorporated into this Agreement by this reference. 1.1.19 Claim. Any claim, loss, cost, damage, expense, liability, lien, action, cause of action (whether in tort, contract, under statute, at law, in equity or otherwise), charge, award, assessment, fine or penalty of any kind (including consultant and expert fees and expenses and investigation costs of whatever kind or nature, and if an Indemnitor improperly fails to provide a defense for an Indemnitee, then Legal Costs of counsel retained by the Indemnitee) and any judgment. 1.1.20 Close of Escrow. Completion of each of the actions set forth in Section 4 by the Escrow Agent for the sale of the Property from City to Developer. 1.1.21 Compensation Agreement. Agreement between the City, Successor Agency to the Grand Terrace Redevelopment Agency, and certain affected taxing entities required by Health & Safety Code 34180(f) before City can convey the City Property for future development. 1.1.22 Construction. Any alteration, construction, excavation, demolition, grading, development, expansion, reconstruction, redevelopment, repair, restoration, or other work affecting the Property, including new construction. 1.1.23 Construction Contract. A current, executory agreement between Developer and Builder for Construction of the entirety of the Project for a fixed or guaranteed maximum price expressly set forth in such contract and in accordance with all of the terms and conditions of this Agreement, conditioned only upon: (a) the Close of Escrow; (b) Developer’s receipt of all Approvals; and (c) other commercially reasonable conditions. 1.1.24 Construction Financing. Any loan obtained by Developer for the purpose of paying for any portion of the expenses of Construction of the Project and secured or to be secured by a Security Instrument recorded against the City Property. 1.1.25 Construction Financing Documents. The various documents and instruments made by and between Developer and one or more lenders that evidence or perfect the Construction Financing and/or the security for repayment of the Construction Financing, including any associated Security Instrument. 1.1.26 Control. Possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether by ownership of Equity Interests, by contract or otherwise. 1.1.27 Controlling and Controlled. Exercising or having Control. 1.1.28 County. The County of San Bernardino, California. 1.1.29 Deed. A deed transferring title to the Property from City to Developer in substantially the form of Exhibit “F” attached to this Agreement. 9.b Packet Pg. 132 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 5 – September 27, 2016 1.1.30 Default. Any Monetary Default, any Non-Monetary Default, any Insurance Maintenance Default or any Escrow Default. 1.1.31 Default Interest. Interest at an annual rate equal to the lesser of: (a) eight percent (8%) per annum; or (b) the Usury Limit. 1.1.32 Deposit. Ten Thousand Dollars ($10,000). 1.1.33 Developer. Dr. Terry McDuffee, an individual, or his assignee provided that assignment can only be made to an Affiliate of Dr. Terry McDuffee. 1.1.34 Developer Entity Documents. The organizational documents of the entity, if any, that is Developer, including all amendments, all of which Developer shall certify as accurate and updated on the date of the Close of Escrow, and, if appropriate, a Certificate of Good Standing from the Secretary of State of the State certifying that Developer is authorized to conduct business in the State. 1.1.35 Developer Official Action. If prior to Close of Escrow, Dr. Terry McDuffee assigns his interest in this Agreement to an Affiliate, then the assignee shall within two (2) business days of such assignment deliver to the Escrow Holder, with a copy to City, the original of such assignment together with a certified document evidencing the consent of the directors, managers or other Persons in Control of such assignee to the transactions provided for in this Agreement and authorizing and instructing the official actions reasonably necessary or convenient to enter into and perform this Agreement. 1.1.36 Developer Parties. Collectively, Developer and the directors, officers, employees, agents, shareholders, members, managers and partners of Developer. 1.1.37 Developer Party. Individually, Developer or the directors, officers, employees or agents, shareholders, members, managers or partners of Developer. 1.1.38 Developer Property. That certain real property located within the City of Grand Terrace, County of San Bernardino, State of California, specifically described in the legal description attached as Exhibit “B” attached to this Agreement, which is incorporated into this Agreement by this reference. 1.1.39 Developer Specific Default. Any Default that: (a) is not reasonably susceptible of cure by the holder of a Permitted Security Instrument, such as (to the extent, if any, that it actually constitutes a Default under this Agreement) any Default resulting from a Bankruptcy Proceeding affecting Developer; any prohibited change of management of Developer; failure to deliver required financial information within Developer’s control; (b) by its nature relates only to, or can reasonably be performed only by, Developer or its Affiliates; or (c) consists of Developer’s failure to satisfy or discharge any lien, charge, or encumbrance that satisfies all of the following: (i) attaches to the Property; (ii) is junior to the specific Permitted Security Instrument; and (iii) this Agreement prohibits. 1.1.40 Due Diligence Completion Notice. A written notice from Developer delivered to both the City and the Escrow Agent, prior to the end of the Due Diligence Period, 9.b Packet Pg. 133 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 6 – September 27, 2016 indicating Developer’s acceptance of the condition of the Property or indicating Developer’s rejection of the condition of the Property and refusal to accept a conveyance of fee title to the Property, describing in reasonable detail the actions that Developer reasonably believes are indicated to allow the Developer to accept the condition of the Property (if any). 1.1.41 Due Diligence Investigations. Developer’s due diligence investigations of the Property to determine the suitability of the Property for development of the Project, including, without limitation, investigations of the environmental and geotechnical suitability of the Property, as deemed appropriate in the reasonable discretion of Developer, all at the sole cost and expense of Developer. 1.1.42 Due Diligence Period. The period of time commencing on the date that Developer receives from City Notice of the Effective Date, and ending at 5:00 p.m. one-hundred and twenty (120) days thereafter. 1.1.43 Effective Date. The first Business Day on which all of the following have occurred: (a) City has received three (3) counterpart originals of this Agreement executed by the authorized representative(s) of Developer; (b) City has received a certified copy of the Developer Official Action executed by the authorized representative(s) of Developer, if Dr. Terry McDuffy has assigned his position under this Agreement to an Affiliate; (c) this Agreement is approved by City governing body; (d) this Agreement is executed by the authorized representative(s) of City; and (e) one (1) original of this Agreement executed by the authorized representative(s) of City has been delivered by City to Developer. City shall send Notice of the Effective Date to Developer within seven (7) days following the Effective Date. Developer shall sign and return a copy of such Notice to City within seven (7) days after receipt of such Notice. 1.1.44 Environmental Claim. Any and all claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements and expenses, including Legal Costs and fees and costs of environmental consultants and other experts, and all foreseeable and unforeseeable damages or costs of any kind or of any nature whatsoever, directly or indirectly, relating to or arising from any actual or alleged violation of any Environmental Law or Hazardous Substance Discharge. 1.1.45 Environmental Law. Any Law regarding any of the following at, in, under, above, or upon the Property: (a) air, environmental, ground water, or soil conditions; or (b) clean-up, remediation, control, disposal, generation, storage, release, discharge, transportation, use of, or liability or standards of conduct concerning, Hazardous Substances. 1.1.46 Equity Interest. All or any part of any direct or indirect equity or ownership interest(s) (whether stock, partnership interest, beneficial interest in a trust, membership interest in a limited liability company, or other interest of an ownership or equity nature) in any entity, at any tier of ownership, that directly or indirectly owns or holds any ownership or equity interest in a Person. 9.b Packet Pg. 134 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 7 – September 27, 2016 1.1.47 Escrow. An escrow, as defined in Civil Code Section 1057 and Financial Code Section 17003(a), that is conducted by the Escrow Agent with respect to the sale of the Property from City to Developer, pursuant to this Agreement. 1.1.48 Escrow Agent. Catherine Von Moos, Orange Coast Title Company of Southern California, 1845 Business Center Drive, Suite 218, San Bernardino, CA 92408, Phone: 909-825-8800 ext. 6123, Fax: 714-864-3106, E-mail: catherinev@octitle.com, or such other Person mutually agreed upon in writing by City and Developer in writing. 1.1.49 Escrow Agent Consent. The Escrow Agent’s consent to acting as Escrow Agent under this Agreement, in substantially the form of Exhibit “C” attached to this Agreement. 1.1.50 Escrow Closing Date. The fifth (5th) Business Day following the Escrow Agent’s receipt of written confirmation from both City and Developer of the satisfaction or waiver of all conditions precedent to the Close of Escrow, subject to extension due to Unavoidable Delay pursuant to Section 9.14. 1.1.51 Escrow Default. The unexcused failure to submit any document or funds to the Escrow Agent as reasonably necessary to close the Escrow, after all other conditions precedent to the Close of Escrow for the benefit of such Party are satisfied or waived by such Party. 1.1.52 Escrow Opening Date. The first date on which a fully executed copy of this Agreement and the Deposit are deposited with the Escrow Agent pursuant to Section 4.1. 1.1.53 Event of Default. The occurrence of any one or more of the following: (a) Monetary Default. A Monetary Default that continues for fifteen (15) calendar days after Notice from the non-defaulting Party, specifying in reasonable detail the amount of money not paid and the nature and calculation of each such payment; (b) Escrow Closing Default. An Escrow Default that continues for seven (7) calendar days after Notice from the non-defaulting Party, specifying in reasonable detail the document or funds not submitted; (c) Insurance Maintenance Default. An Insurance Maintenance Default that continues for ten (10) calendar days after Notice of such Insurance Maintenance Default. (d) Bankruptcy or Insolvency. Developer admits in writing that it is unable to pay its debts as they become due or becomes subject to any Bankruptcy Proceeding (except an involuntary Bankruptcy Proceeding dismissed within one hundred twenty (120) days after commencement), or a custodian or trustee is appointed to take possession of, or an attachment, execution or other judicial seizure is made with respect to, substantially all of Developer’s assets or Developer’s interest in this Agreement (unless such appointment, attachment, execution, or other seizure was involuntary, and is contested with diligence and continuity and vacated and discharged within one hundred twenty (120) days); 9.b Packet Pg. 135 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 8 – September 27, 2016 (e) Transfer. The occurrence of a Transfer, whether voluntarily or involuntarily or by operation of Law, in violation of the terms and conditions of this Agreement; or (f) Non-Monetary Default. Any Non-Monetary Default, other than those specifically addressed in Subsection (d) and in Subsection (e), that is not cured within sixty (60) days after Notice to the Party alleged to be in Default describing the Non-Monetary Default in reasonable detail, or, in the case of a Non-Monetary Default that cannot with reasonable diligence be cured within sixty (60) days after the effective date of such Notice, if the Party alleged to be in Default does not do all of the following: (a) within sixty (60) days after Notice of such Non-Monetary Default, advise the other Party of the intention of the Party alleged to be in Default to take all reasonable steps to cure such Non-Monetary Default; (b) duly commence such cure within such period, and then diligently prosecute such cure to completion; and (c) complete such cure within a reasonable time under the circumstances. 1.1.54 Federal. The government of the United States of America. 1.1.55 Final. Relative to any Approval or any CEQA Document, when all administrative appeal periods regarding such matter have expired, all administrative appeals or challenges regarding such matter (if any) have been resolved to both City’s and Developer’s reasonable satisfaction, all statutory periods for challenging such matter have expired, all litigation or other proceedings (if any) challenging any such matter have been resolved to the reasonable satisfaction of both City and Developer, all appeal periods relating to any such litigation or other proceedings have expired, all referendum periods regarding such matter have expired and all referenda regarding such matter (if any) have been resolved to both City’s and Developer’s reasonable satisfaction. 1.1.56 Foreclosure Event. Any transfer of title to the Property through any: (a) judicial or non-judicial foreclosure; (b) trustee’s sale; (c) deed, transfer, assignment, or other conveyance in lieu of foreclosure; (d) other similar exercise of rights or remedies under any Security Instrument; or (e) transfer by operation of or through any Bankruptcy Proceeding (including an auction or plan of reorganization in any Bankruptcy Proceeding and any Bankruptcy Sale), in each case (“(a)” through “(e)”) whether the transferee is a Lender, a Person claiming through a Lender, or a Third Person. 1.1.57 Form 593. A California Franchise Tax Board Form 593-C. 1.1.58 General Escrow Instructions. The Escrow Agent’s general escrow instructions. 1.1.59 Government. Each and every governmental City, authority, bureau, department, quasi-governmental body, or other entity or instrumentality having or claiming jurisdiction over the Property (or any activity this Agreement allows), including the government of the United States of America, the State and County governments and their subdivisions and municipalities, including the City, the City and all other applicable governmental agencies, authorities, and subdivisions thereof. “Government” shall also include any planning commission, board of standards and appeals, department of buildings, city council, zoning board of appeals, 9.b Packet Pg. 136 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 9 – September 27, 2016 design review board or committee or similar body having or claiming jurisdiction over the Property or any activities on or at the Property. 1.1.60 Hazardous Substance. Any flammable substances, explosives, radioactive materials, asbestos, asbestos-containing materials, polychlorinated biphenyls, chemicals known to cause cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, medical wastes, toxic substances or related materials, explosives, petroleum, petroleum products and any “hazardous” or “toxic” material, substance or waste that is defined by those or similar terms or is regulated as such under any Law, including any material, substance or waste that is: (a) defined as a “hazardous substance” under Section 311 of the Water Pollution Control Act (33 U.S.C. § 1317), as amended; (b) substances designated as “hazardous substances” pursuant to 33 U.S.C. § 1321; (c) defined as a “hazardous waste” under Section 1004 of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901, et seq., as amended; (d) defined as a “hazardous substance” or “hazardous waste” under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601, et seq., or any so-called “superfund” or “superlien” law; (e) defined as a “pollutant” or “contaminant” under 42 U.S.C. § 9601(33); (f) defined as “hazardous waste” under 40 C.F.R. Part 260; (g) defined as a “hazardous chemical” under 29 C.F.R. Part 1910; (h) any matter within the definition of “hazardous substance” set forth in 15 U.S.C. § 1262; (i) any matter, waste or substance regulated under the Toxic Substances Control Act (“TSCA”) [15 U.S.C. Sections 2601, et seq.]; (j) any matter, waste or substance regulated under the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801, et seq.; (k) those substances listed in the United States Department of Transportation (DOT)Table [49 C.F.R. 172.101]; (l) any matter, waste or substances designated by the EPA, or any successor authority, as a hazardous substance [40 C.F.R. Part 302]; (m) any matter, waste or substances defined as “hazardous waste” in Section 25117 of the California Health and Safety Code; (n) any substance defined as a “hazardous substance” in Section 25316 of the California Health and Safety Code; (o) any matter, waste, or substance that is subject to any other Law regulating, relating to or imposing obligations, liability or standards of conduct concerning protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property free from the presence in the environment of any solid, liquid, gas, odor or any form of energy from whatever source; or (p) other substances, materials, and wastes that are, or become, regulated or classified as hazardous or toxic under Law or in the regulations adopted pursuant to said Law, including manure, asbestos, polychlorinated biphenyl, flammable explosives and radioactive material. 1.1.61 Hazardous Substance Discharge. Any deposit, discharge, generation, release, or spill of a Hazardous Substance that occurs at on, under, into or from either Property, or during transportation of any Hazardous Substance to or from either Property, or that arises at any time from the Construction, installation, use or operation of the Project or any activities conducted at on, under or from either Property, whether or not caused by a Party. 1.1.62 Indemnify. Where this Agreement states that any Indemnitor shall “indemnify” any Indemnitee from, against, or for a particular Claim, that the Indemnitor shall indemnify the Indemnitee and defend and hold the Indemnitee harmless from and against such Claim (alleged or otherwise). “Indemnified” shall have the correlative meaning. 9.b Packet Pg. 137 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 10 – September 27, 2016 1.1.63 Indemnitee. Any Person entitled to be Indemnified under the terms of this Agreement. 1.1.64 Indemnitor. A Party that agrees to Indemnify any other Person under the terms of this Agreement. 1.1.65 Insurance Documents. Copies of insurance policies and endorsements evidencing all insurance coverage required to be obtained by Developer pursuant to Section 6. 1.1.66 Insurance Maintenance Default. Any failure to maintain the insurance policies required by this Agreement. 1.1.67 Law. Every law, ordinance, requirement, order, proclamation, directive, rule, and regulation of any Government applicable to the Properties, or the Project, in any way, including any development, use, maintenance, taxation, operation, or occupancy of, or environmental conditions affecting the Properties or the Project, or relating to any taxes, or otherwise relating to this Agreement or any Party’s rights, obligations or remedies under this Agreement, or any Transfer of any of the foregoing, whether in force on the Effective Date or passed, enacted, modified, amended or imposed at some later time, subject in all cases, however, to any applicable waiver, variance, or exemption. 1.1.68 Legal Costs. In reference to any Person, all reasonable costs and expenses such Person incurs in any legal proceeding (or other matter for which such Person is entitled to be reimbursed for its Legal Costs), including reasonable attorneys’ fees, court costs and expenses and consultant and expert witness fees and expenses. 1.1.69 Lender. The holder of any Security Instrument and its successors and assigns. 1.1.70 Liability Insurance. Commercial general liability insurance against claims for bodily injury, personal injury, death, or property damage occurring upon, in, or about the Property, the Project or adjoining streets or passageways, at least as broad as Insurance Services Office Occurrence Form CG0001, with a minimum liability limit of Four Million Dollars ($4,000,000) for any one occurrence. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Property or the general aggregate limit shall be twice the required minimum liability limit for any one occurrence. 1.1.71 Monetary Default. Any failure by either Party to pay or deposit, when and as this Agreement requires, any amount of money, any bond or surety or evidence of any insurance coverage required to be provided under this Agreement, whether to or with a Party or a Third Person. 1.1.72 Negotiation Agreement. Defined in Recital H to this Agreement. 1.1.73 Non-Monetary Default. The occurrence of any of the following, except to the extent constituting a Monetary Default or an Escrow Default: (a) any failure of a Party to perform any of its obligations under this Agreement; (b) any failure of Party to comply 9.b Packet Pg. 138 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 11 – September 27, 2016 with any material restriction or prohibition in this Agreement; or (c) any other event or circumstance that, with passage of time or giving of Notice, or both, or neither, would constitute a breach of this Agreement. 1.1.74 Notice. Any consent, demand, designation, election, notice, or request relating to this Agreement, including any Notice of Default. All Notices must be in writing. A notice in substantially the form of Exhibit “I” attached to this Agreement to be recorded against the Property at the Close of Escrow. 1.1.75 Notice of Agreement. A notice of the applicability of this Agreement to the Property in substantially the form of Exhibit “I” attached to this Agreement. 1.1.76 Notice of Completion. The Notice described in and ascribed the same name in California Civil Code Section 3093. 1.1.77 Notice of Default. Any Notice claiming or giving Notice of a Default or alleged Default. 1.1.78 Notice of Option to Purchase Real Property. A notice of the option to purchase real property granted to City by Developer in substantially the form of Exhibit “E” attached to this Agreement. 1.1.79 Notify. To give a Notice. 1.1.80 Parties. Collectively, City and Developer. 1.1.81 Party. Individually, either City or Developer, as applicable. 1.1.82 Permitted Encumbrance. Any Permitted Security Instrument, the Notice of Agreement, utility easements directly related to the Project, a bona fide Permanent Loan, a bona fide Refinancing and any other document required or expressly allowed to be recorded against the Property by the express terms of this Agreement. 1.1.83 Permitted Exceptions. All of the following: (a) items shown in Schedule B of the Title Commitment as exceptions to coverage under the proposed Title Policy that are expressly approved by Developer or as to which no Supplement Notice has been given by Developer or as to which a Supplement Notice Waiver has been given by Developer; (b) any exceptions from coverage under the proposed Title Policy; (c) any lien for non-delinquent property taxes or assessments; (d) any Laws applicable to the Property; (e) this Agreement; (f) the Notice of Agreement; (g) any Permitted Security Instrument; (h) any encumbrance recorded against the Property with Developer’s consent or as a result of the activities of Developer; and (i) any other document or encumbrance expressly required or allowed to be recorded against the Property or the Project under the terms of this Agreement. 1.1.84 Permitted Lender. The holder of any Permitted Security Instrument. 1.1.85 Permitted Security Instrument. Any Security Interest: (a) that encumbers only the Property or any interest in the Property; (b) a copy of which (recorded or 9.b Packet Pg. 139 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 12 – September 27, 2016 unrecorded) is promptly after execution delivered to City, with a certification by the Lender that the copy is accurate and stating the Lender’s name and notice address; (c) that is held by a Lender subject to the jurisdiction of the courts of the State, not immune from suit and cannot elect to be immune from suit; and (d) only secures: (i) the repayment of money used to pay or reimburse the Total Project Costs; (ii) a bona fide Permanent Loan; or (iii) a delivery assurance fee regarding a Permanent Loan that is refundable to Developer at the close of the Permanent Loan. 1.1.86 Permitted Transfer. Any Transfer to a Lender that is not a Prohibited Transferee: (1) pursuant to a Permitted Security Instrument as collateral for bona fide Construction Financing to pay all or any part of the Total Project Costs; or (2) pursuant to a Permitted Security Instrument as collateral for a bona fide Permanent Loan. 1.1.87 Person. Any association, corporation, governmental entity or City, individual, joint venture, joint-stock company, limited liability company, partnership, trust, unincorporated organization, or other entity of any kind. 1.1.88 Preliminary Report. A preliminary report issued by the Title Company in contemplation of the issuance of the Title Policy, accompanied by legible copies of all documents listed in Schedule B of the report as exceptions to coverage under the proposed Title Policy. 1.1.89 Prevailing Wage Action. Any of the following: (a) any determination by the State Department of Industrial Relations that prevailing wage rates should have been paid, but were not, (b) any determination by the State Department of Industrial Relations that higher prevailing wage rates than those paid should have been paid, (c) any administrative or legal action or proceeding arising from any failure to comply with any of California Labor Code Sections 1720 through 1781, as amended from time to time, regarding prevailing wages, including maintaining certified payroll records pursuant to California Labor Code Section 1776, or (d) any administrative or legal action or proceeding to recover wage amounts at law or in equity, including pursuant to California Labor Code Section 1781. 1.1.90 Prohibited Encumbrance. Any mortgage, lien, deed of trust, security instrument, mechanic’s lien, easement or other encumbrance recorded or asserted against the Property or the Project that is not a Permitted Encumbrance. 1.1.91 Prohibited Transferee. Any Person with whom City is in litigation, any Person that City reasonably determines has any connection with any terrorist organization, any Person entitled to claim diplomatic immunity, any domestic or foreign governmental entity, except as reasonably approved by City, any Person that is immune or may elect to be immune from suit under State or Federal law, or any other Person that City reasonably disapproves. 1.1.92 Project. The development to be constructed on the Property by Developer and specifically described in the Project Scope of Development, the Project Plans and Specifications and the Approvals for the Project. 1.1.93 Project Completion Date. April 1, 2018 9.b Packet Pg. 140 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 13 – September 27, 2016 1.1.94 Project Plans and Specifications. Plans and specifications for the Project, prepared by Developer’s architect, that have received all necessary Approvals regarding Construction of the Project, submitted in both hard copy and such machine-readable format as is then customary in the architectural profession in the State, using naming conventions and other criteria reasonably approved or required by City, consisting of architectural plans; elevations and section indicating principal areas, core design and location; location, number, and capacity of elevators; basic structural system; minimum estimated electrical capacity and distribution system; general type of plumbing system; façade, placement, and orientation; gross and rentable square foot analysis; and principal types of HVAC systems. 1.1.95 Project Schedule of Performance. The Construction schedule described in Exhibit “H” attached to this Agreement. 1.1.96 Project Scope of Development. The development project generally described in Exhibit “G” attached to this Agreement. 1.1.97 Properties. Collectively City Property and Developer Property. 1.1.98 Property. Individually, either the City Property or Developer Property as applicable. 1.1.99 Property Information. Any and all studies and reports prepared by or on behalf of Developer regarding the physical condition of or title to the Property, including, without limitation, soils reports, geotechnical reports and surveys (not to include architectural plans and specifications, proprietary information, internal communications, feasibility studies, financial analyses, proformas, tax returns or any attorney-client privileged communications and documents). 1.1.100 Property Insurance. Insurance providing coverage for the Property and all improvements against loss, damage, or destruction by fire and other hazards encompassed under the broadest form of property insurance coverage then customarily used for like properties in the County, in an amount equal to one hundred percent (100%) of the replacement value (without deduction for depreciation) of all improvements comprising the Project (excluding excavations and foundations) and in any event sufficient to avoid co-insurance and with no co- insurance penalty provision, with “ordinance or law” coverage. To the extent customary for like properties in the County at the time, such insurance shall include coverage for explosion of steam and pressure boilers and similar apparatus located on the Property; an “increased cost of construction” endorsement; and an endorsement covering demolition and cost of debris removal, all subject to policy sublimits. Property Insurance shall also include rental or business interruption insurance in an amount, at least, equal to the average annual Gross Income from the Project for the preceding three (3) calendar years and providing for a 12-month extended period of indemnity. 1.1.101 Punchlist Work. Construction, of an insubstantial nature, that if not completed, will not delay issuance of a final Certificate of Occupancy (or equivalent approval) for the Project by the City or the applicable portion thereof or materially interfere with use of the Project. 9.b Packet Pg. 141 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 14 – September 27, 2016 1.1.102 Purchase Price. Four Hundred Thousand Dollars ($400,000.00). 1.1.103 Record, recorded, recording or recordation. Recordation of the referenced document in the official records of the County. 1.1.104 Refinancing. Any loan secured by a Permitted Security Instrument that the Developer obtains from a Lender subsequent to recordation of the Permanent Loan for any of the following purposes: (1) to pay off all or a portion of an existing loan secured by a Permitted Security Instrument where the Lender providing the new loan will disburse loan proceeds to or on behalf of Developer exceeding the amount of principal and interest under the existing loan being paid plus the amount of any reasonable and customary fees and costs associated with obtaining such new loan that are actually paid by Developer and not rebated or refunded to Developer, the aggregate amount of such fees and costs not to exceed three percent (3%) of the original principal amount of the new loan; (2) disbursing funds to or on behalf of Developer without paying off any existing loan secured by a Permitted Security Instrument; or (3) any loan extension, modification or equivalent regarding an existing loan to Developer secured by a Permitted Security Instrument that results in the Lender of the existing loan disbursing additional loan proceeds to or on behalf of Developer in excess of the original principal amount of the loan. 1.1.105 Security Instrument. Any security instrument, deed of trust, security deed, contract for deed, deed to secure debt, or other voluntary real property (including leasehold) security instrument(s) or agreement(s) intended to grant real property (including leasehold) security for any obligation (including a purchase-money or other promissory note) encumbering the Property, as entered into, renewed, modified, consolidated, increased, decreased, amended, extended, restated, assigned (wholly or partially), collaterally assigned, or supplemented from time to time, unless and until paid, satisfied, and discharged of record. If two or more such security instruments are consolidated or restated as a single lien or held by the same Lender (as applicable), then all such security instruments so consolidated or restated shall constitute a single Security Instrument. A participation interest in a security instrument (or partial assignment of the secured loan) does not itself constitute a Security Instrument. 1.1.106 Senior. Referring to multiple Security Instruments, the Security Instrument that is most senior in lien of the same type. Where Senior is used as a comparative term as against any specified Security Instrument, such term refers to any Security Instrument of the same type that is senior in lien to such specified Security Instrument. If only one Security Instrument of a particular type exists, then it shall be deemed the Senior Security Instrument of such type. 1.1.107 State. The State of California. 1.1.108 Supplement Notice. A Notice from Developer to both City and the Escrow Agent indicating Developer’s objection to any exception to the title of the Property set forth in the supplement, describing in suitable detail the actions that Developer reasonably believes are necessary to obtain Developer’s approval of the state of the title of the Property. 1.1.109 Supplement Notice Response. A Notice from City in response to a Supplement Notice, in which City elects to either: (a) cause the removal from the Title 9.b Packet Pg. 142 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 15 – September 27, 2016 Commitment of any matter disapproved in such Supplement Notice in a manner reasonably satisfactory to Developer; (b) obtain title or other insurance in a form reasonably satisfactory to Developer insuring against the effects of any matters disapproved or conditionally approved in such Supplement Notice (City shall not enter into any indemnity arrangement with the Title Company regarding any matter disapproved or conditionally approved by Developer, without Developer’s prior written consent); (c) otherwise satisfy Developer regarding any matter disapproved or conditionally approved in such Supplement Notice; or (d) not take any action described in either “(a),” “(b)” or “(c)” of this Section. 1.1.110 Supplement Notice Waiver. A Notice from Developer to both City and the Escrow Agent waiving Developer’s previous disapproval or conditional approval of any matter in a Supplement Notice that City has not agreed to address to Developer’s reasonable satisfaction in a Supplement Notice Response. 1.1.111 Third Person. Any Person that is not a Party, an Affiliate of a Party or an elected official, officer, director, manager, shareholder, member, principal, partner, employee or agent of a Party. 1.1.112 Title Commitment. A title commitment issued by the Title Company committing to issue the Title Policy to Developer at the Close of Escrow on receipt of payment of the Title Company’s stated premium for the Title Policy to be obtained, accompanied by the best available copies of all documents listed in Schedule B of the title commitment, as exceptions to coverage under the proposed Title Policy. 1.1.113 Title Company. Orange Coast Title Company of Southern California, 1845 Business Center Drive, Suite 218, San Bernardino, CA 92408, Phone: 909-825-8800, Fax: 714-864-3106, Title Officer Cynthia Kack, E-mail: ckack@octitle.com or such other title insurance company mutually agreed upon in writing between City and Developer. 1.1.114 Title Notice. A Notice from Developer to both City and the Escrow Agent indicating Developer’s objection to any exception to the title of the Property set forth in the Preliminary Report and describing in suitable detail the actions that Developer reasonably believes are necessary to obtain Developer’s approval of the state of the title of the Property. 1.1.115 Title Notice Response. A Notice from City in response to the Title Notice, in which City elects to either: (a) cause the removal from the Preliminary Report of any matter disapproved in such Title Notice in a manner reasonably satisfactory to Developer; (b) obtain title or other insurance in a form reasonably satisfactory to Developer insuring against the effects of any matters disapproved or conditionally approved in such Title Notice (City shall not enter into any indemnity arrangement with the Title Company regarding any matter disapproved or conditionally approved by Developer, without Developer’s prior written consent); (c) otherwise satisfy Developer regarding any matter disapproved or conditionally approved in such Title Notice; or (d) not take any action described in either “(a),” “(b)” or “(c)” of this Section. 1.1.116 Title Notice Waiver. A Notice from Developer to both City and the Escrow Agent waiving Developer’s previous disapproval or conditional approval of any matter 9.b Packet Pg. 143 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 16 – September 27, 2016 in the Title Notice that City has not agreed to address to Developer’s reasonable satisfaction in the Title Notice Response. 1.1.117 Title Policy. A standard owner’s policy of title insurance issued by the Title Company, with coverage in the amount of Four Hundred Thousand Dollars ($400,000.00). or as otherwise agreed between the Parties in writing prior to the Close of Escrow and insuring fee title to the Property vested in Developer, subject to the Permitted Exceptions. 1.1.118 Total Project Costs. All of the costs set forth in Section 4.9 and Exhibit “D” attached to this Agreement. 1.1.119 Transfer. Regarding any property, right or obligation means any of the following, whether by operation of law or otherwise, whether voluntary or involuntary, and whether direct or indirect: (a) any assignment, conveyance, grant, hypothecation, mortgage, pledge, sale, or other transfer, whether direct or indirect, of all or any part of such property, right or obligation, or of any legal, beneficial, or equitable interest or estate in such property, right or obligation or any part of it (including the grant of any easement, lien, or other encumbrance); (b) any conversion, exchange, issuance, modification, reallocation, sale, or other transfer of any direct or indirect Equity Interest(s) in the owner of such property, right or obligation by the holders of such Equity Interest(s); (c) any transaction described in “b” affecting any Equity Interest(s) or any other interest in such property, right or obligation or in any such owner (or in any other direct or indirect owner at any higher tier of ownership) through any manner or means whatsoever; or (d) any transaction that is in substance equivalent to any of the foregoing. A transaction affecting Equity Interests, as referred to in clauses “b” through “d,” shall be deemed a Transfer by the Developer even though the Developer is not technically the transferor. A “Transfer” shall not, however, include any of the foregoing (provided that the other Party has received Notice of such occurrence) relating to the Property and/or any Equity Interest: (i) a mere change in form of ownership with no material change in beneficial ownership and constitutes a tax-free transaction under federal income tax law and the State real estate transfer tax; (ii) to member(s) of the immediate family(ies) of the transferor(s) or trusts for their benefit; (iii) to any Person that, as of the Effective Date, holds an Equity Interest in the entity whose Equity Interest is being transferred; (iv) the original sale of Equity Interests in Developer; or (v) to an Affiliate of Developer. 1.1.120 Unavoidable Delay. A delay in either Party performing any obligation under this Agreement, except payment of money, arising from or on account of any cause whatsoever beyond the Party’s reasonable control, including strikes, labor troubles or other union activities, casualty, war, acts of terrorism, riots, litigation, governmental action or inaction, regional natural disasters, or inability to obtain materials. Unavoidable Delay shall not include delay caused by a Party’s financial condition, illiquidity, or insolvency. 1.1.121 Usury Limit. The highest rate of interest, if any, that Law allows under the circumstances. 1.1.122 Waiver of Subrogation. A provision in, or endorsement to, any insurance policy, by which the carrier agrees to waive rights of recovery by way of subrogation against either Party to this Agreement for any loss such policy covers. 9.b Packet Pg. 144 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 17 – September 27, 2016 1.1.123 Workers Compensation Insurance. Workers compensation insurance complying with the provisions of State law and an employer’s liability insurance policy or endorsement to a liability insurance policy, with a minimum liability limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease, covering all employees of Developer. 2. TERMINATION OF NEGOTIATION AGREEMENT. Upon the occurrence of the Effective Date, the Parties intend and agree that the Negotiation Agreement shall expire, terminate and be of no further force or effect. 3. CONVEYANCE OF PROPERTY INTERESTS 3.1 Escrow. City shall sell the City Property to Developer and Developer shall purchase the City Property from City, pursuant to the terms and conditions of this Agreement. For the purposes of exchanging funds and documents for City to sell the City Property to Developer and Developer to purchase the City Property from City, City and Developer agree to open the Escrow with the Escrow Agent. The provisions of Section 4 of this Agreement are the joint escrow instructions of the Parties to the Escrow Agent for conducting the Escrow. If requested by the Escrow Agent, Developer and City shall execute the General Escrow Instructions. In the event of any conflict between the provisions of this Agreement and the General Escrow Instructions, the provisions of this Agreement shall be controlling. 3.2 Payment of Purchase Price. The Developer shall pay the Purchase Price by depositing it into the Escrow at least one (1) Business Day preceding the Escrow Closing Date. 3.2.1 Deposit. Within seven (7) days following the Effective Date, the Developer shall deliver the Deposit to the Escrow Agent in immediately available funds. The Deposit shall be non-refundable to Developer and shall be applied to the Purchase Price, except that the Deposit shall be refunded in the event that City is unable to complete the transfer of the Property due to not acquiring an executed compensation agreement from all of the taxing entities a signatory thereto or City breaches this Agreement. 3.2.2 At Close of Escrow. At least one (1) Business Day preceding the Escrow Closing Date, the Developer shall deposit the balance of the Purchase Price and any other funds necessary to close escrow into Escrow. 9.b Packet Pg. 145 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 18 – September 27, 2016 3.3 Eminent Domain. If any portion of the Property or any interest in any portion of the Property, becomes the subject of any eminent domain proceeding prior to Close of Escrow, other than such a proceeding by the City, including the filing of any notice of intended condemnation or proceedings in the nature of eminent domain commenced by any Government, the City shall immediately give the Developer Notice of such occurrence, and the Developer shall have the option, exercisable within ten (10) Business Days after receipt of such Notice from the City, to either: (1) cancel the Escrow and terminate this Agreement and the Escrow, in which case the Parties and the Escrow Agent shall proceed in accordance with Section 4.11; or (2) continue with this Agreement in accordance with its terms, in which event the City shall assign to the Developer any right of the City to receive any condemnation award attributable to the Property. 3.4 Developer’s Approval of Title to Property. 3.4.1 Title Notice. Within fifteen (15) days after the Escrow Opening Date, City shall obtain the Preliminary Report from the Title Company, and deliver a copy of the Preliminary Report to the Developer. Within thirty (30) days following the Developer’s receipt of the Preliminary Report, the Developer shall send the Title Notice to both City and the Escrow Agent. 3.4.2 Failure to Deliver Title Notice. If the Developer fails to send the Title Notice to City and the Escrow Agent, within the time period provided in Section 3.4.1 the Developer will be deemed to approve the status of title to the Property and accept conveyance of the Property. 3.4.3 Title Notice Response. Within fifteen (15) days following the City’s receipt of the Title Notice (if any), City shall send the Title Notice Response to both the Developer and the Escrow Agent. If the Title Notice does not disapprove or conditionally approve any matter in the Preliminary Report or the Developer fails to deliver the Title Notice, City shall not be required to send the Title Notice Response. If City does not send the Title Notice Response, if necessary, within the time period provided in this Section, City shall be deemed to elect not to take any action in reference to the Title Notice. If City elects in the Title Notice Response to take any action in reference to the Title Notice, City shall complete such action, prior to the Escrow Closing Date or as otherwise specified in the Title Notice Response. 3.4.4 Title Notice Waiver. If City elects or is deemed to have elected not to address one or more matters set forth in the Title Notice to the Developer’s reasonable satisfaction, then within ten (10) days after the earlier of: (i) the Developer’s receipt of the City’s Title Notice Response or (ii) the last date for the City to deliver its Title Notice Response, the Developer shall either: (a) refuse to accept the title to and conveyance of the Property, or (b) waive its disapproval or conditional approval of all such matters set forth in the Title Notice by sending the Title Notice Waiver to both City and the Escrow Agent. Failure by the Developer to timely send the Title Notice Waiver, where the Title Notice Response or City’s failure to deliver the Title Notice Response results in City’s election not to address one or more matters set forth in the Title Notice to the Developer’s reasonable satisfaction, will be deemed the Developer’s continued refusal to accept the title to and conveyance of the Property, in which case both the 9.b Packet Pg. 146 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 19 – September 27, 2016 Developer and City shall have the right to cancel the Escrow and terminate this Agreement upon seven (7) days’ Notice, in their respective sole and absolute discretion. 3.4.5 Disapproval of Encumbrances Securing City Obligations. Notwithstanding any other provision of this Agreement, the Developer disapproves any and all encumbrances against the Property securing monetary (other than non-delinquent property taxes) or performance obligations of City. All such encumbrances shall be removed from the Property by City, prior to the Close of Escrow, at its sole cost and expense. 3.4.6 No Termination Liability. Any termination of this Agreement and cancellation of the Escrow pursuant to this Section 3.4 shall be without liability to the other Party or any other Person, and shall be accomplished by delivery of a Notice of termination to both the other Party and the Escrow Agent at least seven (7) days prior to the termination date, in which case the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. Once a Notice of termination is given pursuant to this Section 3.4, delivery of a Title Notice or Title Notice Waiver shall have no force or effect and this Agreement shall terminate in accordance with the Notice of termination. 3.5 Due Diligence Investigations. 3.5.1 License to Enter. City grants license to the Developer and its contractors, inspectors, engineers, surveyors, consultants, architects, and other agents to enter the Property for the purpose of undertaking the Due Diligence Investigations as the Developer deems necessary and appropriate. The license given in this Section 3.5 shall be effective until the earlier of: (a) the termination of this Agreement; or (b) the Close of Escrow. The Developer shall conduct all Due Diligence Investigations during the Due Diligence Period and at its sole cost and expense. Any Due Diligence Investigations by the Developer shall not unreasonably disrupt any use or occupancy of the Property then existing. 3.5.2 Limitations. The Developer shall not conduct any intrusive or destructive testing of any portion of the Property, other than low volume soil samples, without City’s prior written consent. The Developer shall pay all of its third-party vendors, inspectors, surveyors, consultants or agents engaged in any inspection or testing of the Property, such that no mechanics liens or similar liens for work performed are imposed upon the Property by any such Persons. Following the conduct of any Due Diligence Investigations on the Property, the Developer shall restore the Property to substantially its condition prior to the conduct of such Due Diligence Investigations. Under no circumstances shall the Developer be required to remediate or otherwise respond to the existence of any Hazardous Substances on the Property. City may condition the Developer’s or its agents entry onto the Property on delivery to City of proof of liability insurance reasonably acceptable to City and naming City as an additional insured under such policy of insurance by endorsement. 3.5.3 Indemnity/Insurance. The activities of the Developer directly or indirectly related to the Due Diligence Investigations shall be subject to the Developer’s indemnity obligations under this Agreement. Developer shall provide evidence of Liability Insurance in compliance with Section 6 prior to the commencement of Due Diligence Investigations. 9.b Packet Pg. 147 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 20 – September 27, 2016 3.5.4 Due Diligence Completion Notice. The Developer shall deliver a Due Diligence Completion Notice to both City and the Escrow Agent, prior to the end of the Due Diligence Period. If the Developer does not unconditionally accept the condition of the Property by delivery of its Due Diligence Completion Notice stating such acceptance, prior to the end of the Due Diligence Period, the Developer shall be deemed to have rejected the condition of the Property and refused to accept conveyance of the Property. If the condition of the Property is rejected or deemed rejected by the Developer, then either the Developer or City shall have the right to cancel the Escrow and terminate this Agreement, in their respective sole and absolute discretion, until such time (if ever) as the Developer delivers the Due Diligence Completion Notice stating the Developer’s unconditional acceptance of the condition of the Property. Any termination of this Agreement and cancellation of the Escrow, pursuant to this Section 3.5, shall be without liability to the other Party or any other Person, and shall be accomplished by delivery of a written Notice of termination to the other Party and the Escrow Agent, in which case the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. Notwithstanding any other provision of this Agreement, the Developer may reject the condition of the Property at any time during the Due Diligence Period for any reason or no reason, in the Developer’s sole and absolute discretion, and terminate this Agreement and cancel the Escrow by Notice to both City and the Escrow Agent, in which case the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. 3.6 Delivery of Property Free of Tenants. At the Close of Escrow, City will deliver possession of the Property to Developer free and clear of any contractual rights created by or with the consent of City for any Person (other than Developer) to use or occupy the Property. 3.7 Acceptance of Property “AS-IS.” Except to the extent of any express representations and warranties of City specifically set forth in this Agreement (if any) the Close of Escrow shall evidence Developer’s unconditional and irrevocable acceptance of the Property in the Property’s AS IS, WHERE IS, SUBJECT TO ALL FAULTS CONDITION, WITHOUT WARRANTY AS TO QUALITY, CHARACTER, PERFORMANCE OR CONDITION, including any warranty as to title, physical condition, soil conditions, the presence or absence of fill, ocean or tidal impacts, shoring or bluff stability or support, subsurface support, zoning, land use restrictions, the availability or location of utilities or services, the location of any public infrastructure on or off of the Property (active, inactive or abandoned), the suitability of the Property for the Project or other use or the existence or absence of Hazardous Substances (excepting any Hazardous Substance Discharge by City) and with full knowledge of the physical condition of the Property, the nature of City’s interest in and use of the Property, all Laws applicable to the Property, the Permitted Exceptions and any and all conditions, covenants, restrictions, encumbrances and all matters of record relating to the Property. Developer represents and warrants to City that: (a) Developer has had ample opportunity to inspect and evaluate the Property and the feasibility of the uses and activities Developer is entitled to conduct on the Property in accordance with this Agreement; (b) Developer is experienced in real estate development; (c) Developer is relying entirely on Developer’s experience, expertise and its own inspection of the Property in their current state in proceeding with acquisition of the Property; (d) that Developer accepts the Property in its present condition; and (e) to the extent that Developer’s own expertise with respect to any matter regarding the Property is insufficient to enable Developer to reach an informed conclusion regarding such matter, Developer has engaged the services of Persons qualified to advise Developer with respect to such matters. The 9.b Packet Pg. 148 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 21 – September 27, 2016 Close of Escrow shall constitute Developer’s representation and warranty to City that Developer has received assurances acceptable to Developer by means independent of City Parties of the truth of all facts material to Developer’s acquisition of the Property pursuant to this Agreement and that the Property is being acquired by Developer as a result of its own knowledge, inspection and investigation of the Property and not as a result of any representation made by any City Party relating to the condition of the Property, unless such statement or representation is expressly and specifically set forth in this Agreement. Except to the extent of any express representations and warranties of City specifically set forth in this Agreement (if any), City hereby expressly and specifically disclaims any express or implied warranties regarding the Property. 3.8 Assignment of Property Information and Approvals. If for any reason this Agreement is terminated, except as a direct result of a City Event of Default, without Developer acquiring the Property, Developer shall deliver or cause to be delivered to City, within twenty (20) days after City’s written request and at no cost to City, all Property Information and documentation of all Approvals, subject to any unwaived restrictions set forth in any agreement between Developer and any Third Person regarding preparation of such Property Information or documentation by such Third Person, notwithstanding Developer’s reasonable efforts to obtain a waiver of such restrictions. On such a request, the Property Information and all Approvals shall be deemed assigned to City, without the execution of any additional documents, upon a termination of this Agreement without Developer acquiring the Property. Developer shall, if requested by City, execute such other documents as City reasonably requests, to further document the assignment of the Property Information and all Approvals to City. Developer represents and warrants to City that it has the right, power and authority to make the assignments set forth in this Section. Developer shall deliver the Property Information to City, pursuant to this Section, without representation or warranty of any kind. Developer shall take such actions and make such payments as may be necessary to preclude any Claim against City or the Property for any amounts owing by Developer regarding the Property Information. Developer shall Indemnify the City Parties against all Claims arising from any actual or alleged failure of Developer to pay any amount regarding any Property Information. 3.9 Developer to Obtain all Approvals for the Project. 3.9.1 Submission of Development Application. Developer shall exercise reasonable efforts to prepare and submit all required Applications, documents, fees, charges or other items (including, without limitation, deposits, funds or sureties in the ordinary course) required for the Construction of the Project, pursuant to all applicable Laws and Approvals, to each necessary Government for review and approval. Further, Developer shall exercise reasonable efforts to obtain all Approvals for the Construction of the Project on the Property from each Government, prior to the Escrow Closing Date. Prior to commencement of any part of the Construction of the Project, Developer shall obtain all Approvals from each Government required for the Construction of the Project. The City’s zoning, building and land use regulations (whether contained in ordinances, the City’s municipal code, conditions of approval or elsewhere), shall be applicable to the Construction of the Project on the Property by Developer. Developer acknowledges that the Project Plans and Specifications and any changes to the Project Plans or Specifications shall be subject to all applicable Laws and Approvals. 9.b Packet Pg. 149 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 22 – September 27, 2016 3.9.2 Reservations. The approval of this Agreement by the City or City shall not be binding on the City Council, City, Design Review Committee, or any other commission, committee, board or body of the City or City regarding any Approvals of the Project required by such bodies. No action by the City or City with reference to this Agreement or any related documents shall be deemed to constitute issuance or waiver of any required City or City Approval regarding the Property, the Project or Developer. The Parties acknowledge and agree that this Agreement is not a statutory development agreement pursuant to Government Code Sections 65864, et seq. 3.10 City Not to Encumber. City agrees not to place any matters of record against the Property (other than Permitted Exceptions and any matters arising from City’s issuance or exercise of any remedy related to any Approval for the Project), prior to the Close of Escrow, without the prior written consent of Developer. 3.11 Title Commitment Supplements. If at any time following the Effective Date, the Title Company issues a supplement to the Title Commitment, then any exceptions to the title to the Property set forth in the supplement and not previously shown as an exception to the coverage under the Title Policy shall be Permitted Exceptions, unless Developer delivers a Supplement Notice to City within twenty (20) calendar days following the date of the supplement. City shall have twenty (20) calendar days following receipt of a Supplement Notice to elect to deliver a Supplement Notice Response. If City elects in a Supplement Notice Response to cause the removal of any matter objected to in a Supplement Notice from the Title Commitment or its effect to be insured against, City shall cause the removal of each such objectionable matter from the Title Commitment or a commitment to issue such insurance to be issued by an appropriate insurance carrier, prior to the Close of Escrow, all to the reasonable satisfaction of Developer. If City is unwilling or unable to cause the removal of any one or more matters objected to in a Supplement Notice from the Title Commitment or its effect to be insured against, all to the reasonable satisfaction of Developer, then, within ten (10) days following the earlier of: (a) Developer’s receipt of the Supplement Notice Response or (b) passage of the time for City to deliver a Supplement Notice Response, Developer may either: (1) refuse to accept the title to and conveyance of the Property, in which case either Developer or City shall have the right to cancel the Escrow and terminate this Agreement, in their respective sole and absolute discretion, without liability to the other Party or any other Person, by delivery of a Notice of termination to both the other Party and the Escrow Agent, or (2) Developer may waive its objection to any items set forth in a Supplement Notice by delivering a Supplement Notice Waiver to both City and the Escrow Agent. Failure by Developer to deliver a Supplement Notice Waiver, where a Supplement Notice Response or City’s failure to deliver a Supplement Notice Response indicates City’s election not to cause the removal of any matter objected to in a Supplement Notice from the Title Commitment or to insure against its effect, within ten (10) days following Developer’s receipt of such Supplement Notice Response or expiration of the time period for City to deliver such Supplement Notice Response under this Agreement, will be deemed Developer’s disapproval of the title to and refusal to accept conveyance of the Property and both the Developer and City shall have the right to cancel Escrow and terminate this Agreement upon seven (7) days Notice, in their respective sole and absolute discretion. 3.12 Option to Purchase and Right of First Refusal for Purchase of Developer Property. In consideration of the City’s execution of this DDA and the sale of the City Property 9.b Packet Pg. 150 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 23 – September 27, 2016 contemplated herein, Developer grants to City an option to purchase certain real property, as more specifically set forth in Section 10 of this Agreement, and a right of first refusal, as more specifically set forth in Section 11 of this Agreement. 4. JOINT ESCROW INSTRUCTIONS 4.1 Opening of Escrow. City and Developer shall cause the Escrow to be opened within thirty (30) days following Notice that City has received fully executed copies of the compensation agreement by delivering a copy of this Agreement signed by both of the Parties to the Escrow Agent. The Escrow Agent shall promptly confirm the Escrow Opening Date in writing to each of the Parties, with a copy of the Escrow Agent Consent signed by the authorized representative(s) of the Escrow Agent. The provisions of this Section 4 are the joint escrow instructions of City and Developer to the Escrow Agent for conducting the Escrow. 4.2 Escrow Agent Authority. City and Developer authorize the Escrow Agent to: 4.2.1 Charges. Pay and charge City and Developer for their respective shares of the applicable fees, taxes, charges and costs payable by either City or Developer regarding the Escrow; 4.2.2 Settlement/Closing Statements. Release each Party’s Escrow settlement/closing statement to the other Party; 4.2.3 Document Recording. File any documents delivered for recording through the Escrow with the office of the Recorder of the County for recordation in the official records of the County, pursuant to the joint instructions of the Parties; and. 4.2.4 Counterpart Documents. Utilize documents that have been signed by City and Developer in counterparts, including attaching separate signature pages to one version of the same document. 4.3 Developer’s Conditions to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by Developer, Developer’s obligation to purchase the Property from City on the Escrow Closing Date shall be subject to the satisfaction or waiver of each of the following conditions precedent, each of which can only be waived in writing by Developer: 4.3.1 Title Policy. The Title Company is, upon payment of the Title Company’s premium for the Title Policy, irrevocably and unconditionally committed to issue the Title Policy to Developer, at the Close of Escrow; 4.3.2 Approvals. Final issuance of all discretionary Approvals required from any Government for the Construction of the Project on the Property, on terms and conditions reasonably acceptable to Developer; 4.3.3 CEQA Documents. Final adoption, approval or certification of the CEQA Documents; 9.b Packet Pg. 151 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 24 – September 27, 2016 4.3.4 City Escrow Deposits. City deposits all of the items into the Escrow required by Section 4.6; 4.3.5 Settlement/Closing Statement. Developer approves the Escrow Agent’s estimated Escrow closing/settlement statement; 4.3.6 City Pre-Closing Obligations. City performs all of its material obligations required to be performed by City under this Agreement prior to the Close of Escrow. 4.4 City’s Conditions to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by City, City’s obligation to sell the Property to Developer on or before the Escrow Closing Date shall be subject to the satisfaction or waiver of each of the following conditions precedent, each of which can only be waived in writing by City: 4.4.1 Document Approval. City has received from Developer and approved all of the following described items in City’s reasonable discretion. Developer shall have all of the following described documents completed and signed by all of the Persons required to make such documents operative and shall have delivered true, accurate and legible copies or originals of all such documents (as specified in this Agreement) to City, prior to the Close of Escrow: (a) Developer Entity Documents; and (b) A copy of the Construction Contract; and (c) All Insurance Documents; and (d) A copy of the Construction Financing Documents, if any; 4.4.2 Title. The Developer accepts the state of the title of the Property, pursuant to Section 3.4; 4.4.3 Due Diligence. The Developer delivers its Due Diligence Completion Notice to both City and the Escrow Agent stating the Developer’s unconditional acceptance of the condition of the Property; 4.4.4 Title Policy. The Title Company is, upon payment of the Title Company’s standard premium for an insurance policy such as the Title Policy, irrevocably and unconditionally committed to issue the Title Policy to Developer, at the Close of Escrow; 4.4.5 Approvals. Final issuance of all discretionary Approvals required from any Government for the Construction of the Project on the Property, on terms and conditions reasonably acceptable to City; 4.4.6 CEQA Documents. Final adoption, approval or certification of the CEQA Documents; 9.b Packet Pg. 152 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 25 – September 27, 2016 4.4.7 Construction Financing. A Permitted Security Instrument securing repayment of any Construction Financing and approved by City has been deposited into the Escrow and is in a condition to be recorded against the Property at the Close of Escrow and the Construction Financing, if any, is in a condition to fund promptly following the Close of Escrow; 4.4.8 Permanent Loan Commitment. If Developer obtains Construction Financing for more than Forty Percent (40%) of the Total Project Costs then Developer shall provide City with evidence reasonably satisfactory to City that Developer has received a commitment from a Lender to provide a Permanent Loan; 4.4.9 Developer Escrow Deposits. Developer deposits all of the items into the Escrow required by Section 4.5; 4.4.10 Settlement/Closing Statement. City approves the Escrow Agent’s estimated Escrow closing/settlement statement; 4.4.11 Developer Pre-Closing Obligations. Developer performs all of its material obligations required to be performed by Developer under this Agreement prior to the Close of Escrow; and 4.4.12 Compensation Agreement. City receives compensation agreements fully executed by all appropriate taxing entities. 4.5 Developer’s Escrow Deposits. At least one (1) Business Day prior to the Escrow Closing Date scheduled by the Escrow Agent in a writing delivered to both of the Parties, Developer shall deposit the following described funds and documents into the Escrow and, concurrently, provide a copy of each such document to City: 4.5.1 Notice of Agreement. The Notice of Agreement signed by the authorized representative(s) of Developer in recordable form. 4.5.2 Insurance Documents. All Insurance Documents, as approved by City; 4.5.3 Construction Financing Security Instrument. A Permitted Security Instrument securing repayment of the Construction Financing, if any, executed by the authorized representative(s) of Developer in recordable form, to be recorded against the Property at the Close of Escrow; 4.5.4 Notice of Option to Purchase Developer’s Property. The Notice of Option to Purchase Real Estate granted to City allowing City’s purchase of the Developer Property in accordance with Section 10 of this Agreement and in recordable form substantially similar to Exhibit “E”. 4.5.5 Other Funds and Documents. Such other funds or documents required from Developer under the terms of this Agreement to close the Escrow or by the Escrow Agent in the performance of the Escrow Agent’s contractual or statutory obligations relating to the Escrow. 9.b Packet Pg. 153 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 26 – September 27, 2016 4.6 City’s Escrow Deposits. At least one (1) Business Day prior to the Escrow Closing Date scheduled by the Escrow Agent in a writing delivered to both of the Parties, City shall deposit the following described funds and documents into the Escrow and, concurrently, provide a copy of each such document to Developer: 4.6.1 Deed. The Deed signed by the authorized representative(s) of City; 4.6.2 Notice of Agreement. The Notice of Agreement signed by the authorized representative(s) of City in recordable form. 4.6.3 Attorney Fees. Itemized invoice of attorney fees incurred by City in negotiating and preparing this Agreement. 4.6.4 Other Funds and Documents. Such other funds or documents required from City under the terms of this Agreement to close the Escrow or by the Escrow Agent in the performance of the Escrow Agent’s contractual or statutory obligations regarding the Escrow. 4.7 Closing Procedure. When each of Developer’s Escrow deposits, as set forth in Section 4.5, and each of City’s Escrow deposits, as set forth in Section 4.6, are deposited into the Escrow, the Escrow Agent shall request Notice from both Developer and City that each of their respective conditions to the Close of Escrow, as set forth in Sections 4.3 and Section 4.4, respectively, are satisfied or waived. Upon the Escrow Agent’s receipt of written confirmation from both City and Developer that each of their respective conditions to the Close of Escrow are either satisfied or waived, the Escrow Agent shall schedule the Escrow Closing Date by Notice to both Parties and, thereafter, shall close the Escrow on or before the Escrow Closing Date by doing all of the following: 4.7.1 Recordation and Distribution of Recorded Documents. The Escrow Agent shall file the following documents with the office of the Recorder of the County for recording in the official records of the County, in the following order, at the Close of Escrow: (a) the Deed; (b) the Notice of Agreement; (c) Permitted Security Instrument securing the Construction Financing, if any; (d) Notice of Option securing City’s right to purchase the Developer Property; and (e) any other documents to be recorded through the Escrow upon the joint instructions of the Parties. The Escrow Agent shall deliver conformed copies of all documents filed for recording in the official records of the County through the Escrow to City, Developer and any other Person designated in the written joint escrow instructions of the Parties to receive an original or conformed copy of each such document. Each copy of a document filed for recording shall show all recording information. The Parties intend and agree that this Section 4.7.1 shall establish the relative priorities of the documents to be recorded in the official records of the County through the Escrow, by providing for recordation of Senior interests prior in time to junior interests, as provided in this Section 4.7.1; 4.7.2 Distribution of Other Documents. The Escrow Agent shall deliver copies of all documents to be delivered through the Escrow that are not to be recorded to City, Developer and any other Person designated in the written joint escrow instructions of the Parties to receive an original or copy of each such document; 9.b Packet Pg. 154 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 27 – September 27, 2016 4.7.3 Title Policy. Obtain and deliver the Title Policy to Developer; 4.7.4 Funds. Deliver all funds held by the Escrow Agent for the account of City to the appropriate taxing entities identified by the City and as set out in the compensation agreement, less any other charges to the account of City pursuant to the terms of this Agreement and as authorized by the compensation agreement, including but not limited to the City’s attorney fees in negotiating and preparing this Agreement, and return all remaining funds held by the Escrow Agent for the account of Developer to Developer, less Developer’s share of the Escrow closing costs, and less any other charges to the account of Developer pursuant to the terms of this Agreement; 4.7.5 Report to IRS. Following the Close of Escrow and prior to the last date on which such report is required to be filed with the United States Internal Revenue Service, if such report is required pursuant to Section 6045(e) of the United States Internal Revenue Code, the Escrow Agent shall report the gross proceeds of the sale of the Property pursuant to this Agreement to the United States Internal Revenue Service on Form 1099-B, Form W-9 or such other form(s) as may be specified by the United States Internal Revenue Service pursuant to Section 6045(e) or its associated Federal regulations. Upon the filing of such reporting form with the United States Internal Revenue Service, the Escrow Agent shall deliver a copy of the filed form to both City and Developer. 4.8 Close of Escrow. The Close of Escrow shall occur on or before the Escrow Closing Date. The Parties may mutually agree to change the Escrow Closing Date by joint written instruction to the Escrow Agent. The City Manager is authorized to agree to one or more extensions of the Escrow Closing Date on behalf of City up to a maximum time period extension of six (6) months in the aggregate, in the City Manager’s sole and absolute discretion. If for any reason (other than a Default or Event of Default by such Party) the Close of Escrow has not occurred on or before the Escrow Closing Date, then any Party not then in Default under this Agreement may cancel the Escrow and terminate this Agreement, without liability to the other Party or any other Person for such cancellation and termination, by delivering written Notice of termination to both the other Party and the Escrow Agent. Following any such Notice of termination of this Agreement and cancellation of the Escrow, the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. Without limiting the right of either Party to cancel the Escrow and terminate this Agreement, pursuant to the first sentence of this Section 4.8, if the Escrow does not close on or before the Escrow Closing Date and neither Party has exercised its contractual right to cancel the Escrow and terminate this Agreement under this Section 4.8 before the first date on which the Escrow Agent Notifies both Parties that the Escrow is in a position to close, then the Escrow shall close as soon as reasonably possible following the first date on which the Escrow Agent Notifies both Parties that the Escrow is in a position to close, pursuant to the terms and conditions of this Agreement. 4.9 Escrow Closing Costs, Taxes and Title Policy Premium. Developer shall pay all Escrow fees and such other costs as the Escrow Agent may charge for conducting the Escrow. City shall pay the premium charged by the Title Company for the Title Policy, exclusive of any endorsements or other supplements to the coverage of the Title Policy that may be requested by Developer. City shall pay any County documentary transfer tax arising from the transfer of the Property from City to Developer at the Close of Escrow. Developer shall pay any and all 9.b Packet Pg. 155 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 28 – September 27, 2016 recording fees, any and all other charges or fees due at the Close of Escrow, taxes (other than County documentary transfer tax) levied by any Government arising from or relating to the sale of the Property pursuant to this Agreement through the Escrow and the cost of any endorsements or supplements to the coverage of the Title Policy requested by Developer. The Escrow Agent shall notify Developer and City of the costs to be borne by each of them at the Close of Escrow by delivering the Escrow Agent’s estimated Escrow closing/settlement statement to both City and Developer, at least two (2) Business Days prior to the Escrow Closing Date. 4.10 Escrow Cancellation Charges. If the Escrow fails to close due to an Event of Default attributable to City, City shall pay all customary and reasonable cancellation charges regarding cancellation of the Escrow and the Title Policy order, if any. If the Escrow fails to close due to an Event of Default attributable to Developer, Developer shall pay all customary and reasonable cancellation charges regarding cancellation of the Escrow and the Title Policy order, if any. If the Escrow fails to close for any reason other than an Event of Default attributable to either Developer or City, Developer and City shall each pay one-half (1/2) of all customary and reasonable cancellation charges regarding cancellation of the Escrow and the Title Policy order, if any. 4.11 Escrow Cancellation. If the Escrow is cancelled and this Agreement is terminated pursuant to a contractual right granted to a Party in this Agreement to cancel the Escrow and terminate this Agreement, the Parties shall pay any associated cancellation charges in accordance with Section 4.10 and do each of the following: 4.11.1 Cancellation Instructions. The Parties shall, within three (3) Business Days following receipt of the Escrow Agent’s written request, execute any reasonable Escrow cancellation instructions requested by the Escrow Agent; and 4.11.2 Return of Funds and Documents. Within seven (7) days following receipt by the Parties of a settlement statement from the Escrow Agent of cancellation charges regarding cancellation of the Escrow and the Title Policy order, if any: (a) Developer or the Escrow Agent, respectively, shall return to City any documents previously delivered by City to Developer or the Escrow Agent regarding this Agreement, the Property or the Escrow; (b) City or the Escrow Agent, respectively, shall return to Developer all documents previously delivered by Developer to City or the Escrow Agent regarding this Agreement, the Property or the Escrow, except any Property Information; (c) the Escrow Agent shall return to Developer any funds deposited into the Escrow by Developer, including the Deposit, except as otherwise provided in Section 3.2.1 or Section 8.2, less Developer’s share of any customary and reasonable cancellation charges regarding cancellation of the Escrow and the Title Policy order, if any, in accordance with Section 4.10; and (d) the Escrow Agent shall return to City any funds deposited into the Escrow by City, less City’s share of any customary and reasonable cancellation charges regarding cancellation of the Escrow and the Title Policy order, if any, in accordance with Section 4.10. 4.12 Escrow Notices. All Notices from the Escrow Agent to the Parties shall be given in the manner provided in Section 9.6 of this Agreement. 9.b Packet Pg. 156 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 29 – September 27, 2016 5. PROJECT DEVELOPMENT. 5.1 Developer’s Covenant to Develop the Project. Developer covenants to and for the express benefit of the City that Developer shall commence, pursue and complete the development of the Project, within the time period for each such action set forth in the Project Schedule of Performance. Developer covenants and agrees for itself, its successors and assigns that the Property shall be improved and developed with the Project, in conformity with the terms and conditions of this Agreement and all applicable Laws and conditions of each Government. The covenants of this Section 5.1 shall run with the Property until the date of issuance of a Certificate of Completion for the Project. 5.2 Changes to Project Plans and Specifications During Course of Construction. Developer shall have the right, during the course of Construction of the Project, to make “minor field changes,” without seeking the approval of the City, if such changes do not affect the type of use to be conducted within all or any portion of a structure. “Minor field changes” shall be defined as those changes from the Approvals for the Project that have no substantial effect on the Project and are made in order to expedite the work of Construction in response to field conditions. Nothing contained in this Section 5.2 shall be deemed to constitute a waiver of or change in any Approvals governing any such “minor field changes” or any Approvals by any Government otherwise required for any such “minor field changes.” 5.3 Construction Start and Completion of Project. 5.3.1 Commencement. Developer shall commence Construction of the Project in accordance with the Project Schedule of Performance. Thereafter, Developer shall diligently proceed to pursue and complete the Construction of the Project, in a good and workmanlike manner, in accordance with the Project Schedule of Performance and all applicable Laws and all Approvals for the Project issued by each Government. 5.3.2 Completion. On or before the Project Completion Date, Developer shall do all of the following: (a) Record a Notice of Completion, in accordance with California Civil Code Section 3093, for the entirety of the Project; (b) Cause the Project to be inspected by each Government, as required by the applicable Approvals or Laws, and correct any defects and deficiencies that may be disclosed by any such inspection; (c) Cause all final Certificates of Occupancy (or equivalent approvals) and other Approvals necessary for the occupancy and operation of the completed Project to be duly issued; 5.3.3 Time Extensions. The City Manager, in his or her sole and absolute discretion, may extend the Project Completion Date for up to an additional one hundred eighty (180) days, in the aggregate. 9.b Packet Pg. 157 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 30 – September 27, 2016 5.4 Compliance with Laws. All work performed in connection with the Construction of the Project shall comply with all applicable Laws and Approvals. 5.5 Project Schedule of Performance. All planning construction, installation and other development obligations and responsibilities of Developer related to the Project shall be initiated and completed within the times specified in the Project Schedule of Performance, or within such reasonable extensions of such times granted by the City manager or as otherwise provided for in this Agreement. 5.6 Reserved. 5.7 City Right to Inspect Project and Property. The City Parties shall have the right of reasonable access to the Property, without the payment of charges or fees, during normal construction hours, during the period of Construction of the Project. Any and all City representatives who enter the Property shall identify themselves at the Construction management office or, if none, to the apparent on-site Construction supervisor on the Property, upon their entrance onto the Property, and shall at all times be accompanied by a representative of Developer, while on the Property. Developer shall make a representative of Developer available for this purpose at all times during normal construction hours, upon reasonable advance Notice from the City. The City shall Indemnify Developer from injury, property damage or liability to the extent arising out of the exercise by the City of the right of access to the Property provided in this Section, except to the extent that any such injury, property damage or liability arises from the negligence or willful misconduct of any of Developer Parties. If in the City’s reasonable judgment it is necessary, the City shall have the further right, from time to time, at its own cost, to retain a consultant or consultants to inspect the Project and verify compliance by Developer with the provisions of this Agreement. Developer acknowledges and agrees that any such City inspections are for the sole purpose of protecting the City’s rights under this Agreement, are made solely for the City’s benefit, that the City’s inspections may be superficial and general in nature, and are for the purposes of informing the City of the progress of the Project and the conformity of the Project with the terms and conditions of this Agreement, and that Developer shall not be entitled to rely on any such inspection(s) as constituting the City’s approval, satisfaction or acceptance of any materials, workmanship, conformity of the Project with this Agreement or otherwise. Developer agrees to make its own regular inspections of the work of Construction of the Project to determine that the progress and quality of the Project and all other requirements of the work of Construction of the Project are being performed in a manner satisfactory to Developer. 5.8 PREVAILING WAGES. 5.8.1 RESPONSIBILITY. DEVELOPER AGREES WITH CITY THAT DEVELOPER SHALL ASSUME ANY AND ALL RESPONSIBILITY AND BE SOLELY RESPONSIBLE FOR DETERMINING WHETHER OR NOT LABORERS EMPLOYED RELATIVE TO THE CONSTRUCTION OF THE PROJECT MUST BE PAID THE PREVAILING PER DIEM WAGE RATE FOR THEIR LABOR CLASSIFICATION, AS DETERMINED BY THE STATE, PURSUANT TO LABOR CODE SECTIONS 1720, ET SEQ. 9.b Packet Pg. 158 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 31 – September 27, 2016 5.8.2 WAIVERS AND RELEASES. DEVELOPER, ON BEHALF OF ITSELF AND ITS’ SUCCESSORS AND ASSIGNS, WAIVES AND RELEASES CITY FROM ANY RIGHT OF ACTION THAT MAY BE AVAILABLE TO ANY OF THEM PURSUANT TO LABOR CODE SECTION 1781. RELATIVE TO THE WAIVER AND RELEASE CONTAINED IN THIS SECTION 5.8, DEVELOPER ACKNOWLEDGES THE PROTECTIONS OF CIVIL CODE SECTION 1542, WHICH READS AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 5.8.3 INITIALS. BY INITIALING BELOW, DEVELOPER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES OF THIS SECTION 5.8: _________________ Initials of Authorized Developer Representative 5.8.4 INDEMNITY. ADDITIONALLY, DEVELOPER SHALL INDEMNIFY CITY, PURSUANT TO SECTION 8.56, AGAINST ANY CLAIMS PURSUANT TO LABOR CODE SECTION 1781 ARISING FROM THIS AGREEMENT OR THE CONSTRUCTION OF ALL OR ANY PORTION OF THE PROJECT. 5.9 Project Certificate of Completion. 5.9.1 Issuance. Following the issuance of a final Certificate of Occupancy for the Project by the City excluding any Punchlist Work to be completed by the Developer, Developer may request that the City inspect the completed Project and issue a Certificate of Completion for the Project. Following the City’s receipt of such a written request from Developer, the City shall promptly inspect the Project to determine whether or not the Project has been completed in compliance with this Agreement. If the City determines that the Project is complete (excluding any outstanding Punchlist Work) and in compliance with this Agreement, the City shall issue a Certificate of Completion for the Project to Developer. If the City determines that the Project is not complete or not in compliance with this Agreement, the City shall send written Notice of each non-conformity to Developer, within fifteen (15) calendar days following the City’s receipt of Developer’s written request for a Certificate of Completion or within three (3) calendar days after the next regular meeting of the City governing body, whichever date occurs later, provide Developer with a written statement setting forth the reasons for the City’s failure or refusal to issue a Certificate of Completion. The statement shall also contain the City’s opinion of the action(s) Developer must take to obtain a Certificate of Completion from the City. If the reason for Developer’s failure to complete the Project is confined to the immediate unavailability of specific items or materials for construction or landscaping at a price reasonably acceptable to Developer or other minor Punchlist Work, the 9.b Packet Pg. 159 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 32 – September 27, 2016 City may, in its sole and absolute discretion, issue a Certificate of Completion upon the posting of a bond or irrevocable standby letter of credit by Developer, in form and substance reasonably acceptable to the City, in an amount representing the fair value of the work on the Project remaining to be completed, as reasonably determined by the City. If the City fails to provide such written statement, within the specified time period, Developer shall be deemed, conclusively and without further action of the City, to have satisfied the requirements of this Agreement with respect to the Construction of the Project, as if a Certificate of Completion had been issued by the City pursuant to this Agreement, and the same shall irrevocably be deemed to have been issued as of such date for all purposes of this Agreement; provided, however, that City shall subsequently issue a Certificate of Completion, if requested to do so by Developer. 5.9.2 Effect. A Certificate of Completion shall only be evidence of the City’s conclusive determination of satisfactory completion of the Construction of the Project in accordance with the terms of this Agreement. A Certificate of Completion shall not constitute a Notice of Completion under California Civil Code Section 3093, nor shall it act to terminate the continuing reservations, covenants, restrictions or conditions contained in the Deed or any other instruments recorded against the Property or set forth in this Agreement or otherwise. A Certificate of Completion is not evidence of the compliance of the Project with any Laws or Approvals. A Certificate of Completion shall not evidence the satisfaction of any obligation of Developer to the City under this Agreement or otherwise, other than Developer’s obligation to construct and install the Project on the Property. After the recordation of a Certificate of Completion for the Project, any Person then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Property or the Project shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement regarding Construction of the Project, but such Person shall be bound by any other reservations, covenants, conditions, restrictions and interests affecting the Property pursuant to this Agreement. 6. INSURANCE 6.1 Developer. Developer shall maintain, to protect the City Parties against all insurable Claims resulting from the actions of Developer in connection with this Agreement, the Property and the Project, at the sole cost and expense of Developer, until issuance of a Certificate of Completion for the Project, the following insurance (or its then reasonably available equivalent): (a) Liability Insurance; (b) Property Insurance; (c) Builder’s Risk Insurance; and (d) Workers Compensation Insurance. 6.2 Nature of Insurance. All Liability Insurance, Property Insurance and Automobile Liability Insurance policies this Agreement requires shall be issued by carriers that: (a) are listed in the then current “Best’s Key Rating Guide—Property/Casualty—United States & Canada” publication (or its equivalent, if such publication ceases to be published) with a minimum financial strength rating of “A-” and a minimum financial size category of “VII” (exception may be made for the State Compensation Insurance Fund when not specifically rated); and (b) are authorized to do business in the State Developer may provide any insurance under a “blanket” or “umbrella” insurance policy, provided that: (i) such policy or a certificate of such policy shall specify the amount(s) of the total insurance allocated to the Property and the Project, which amount(s) shall equal or exceed the amount(s) required by this Agreement and shall not be 9.b Packet Pg. 160 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 33 – September 27, 2016 reduced for claims made for other properties or projects; and (ii) such policy otherwise complies with this Agreement. 6.3 Policy Requirements and Endorsements. All insurance policies as required by this Agreement shall contain (by endorsement or otherwise) the following provisions: 6.3.1 Insured. Liability Insurance and Automobile Liability Insurance policies shall name the City Parties as “additional insured.” Property Insurance and Builder’s Risk Insurance policies shall name the City as a “loss payee.” The coverage afforded to the City Parties shall be at least as broad as that afforded to Developer and may not contain any terms, conditions, exclusions, or limitations applicable to the City Parties that do not apply to Developer. 6.3.2 Primary Coverage. All policies shall be written as primary policies, respecting the City Parties. Any insurance or self-insurance maintained by the City Parties shall be excess of all insurance required under this Agreement and shall not contribute with it. 6.3.3 Contractual Liability. Liability Insurance policies shall contain contractual liability coverage, for the Party’s indemnity obligations under this Agreement. A Party’s obtaining or failure to obtain such contractual liability coverage shall not relieve the Party from nor satisfy any indemnity obligation of the Party under this Agreement. 6.3.4 Deliveries to the City. Developer shall deliver to the City evidence of Liability Insurance prior to the commencement of any Due Diligence Investigations. Evidence of Developer’s maintenance of all insurance policies required by this Agreement shall be delivered to the City prior to the Close of Escrow. No later than three (3) days before any insurance required by this Agreement expires, is cancelled or its liability limits are reduced or exhausted, Developer shall deliver to the City evidence of such Party’s maintenance of all insurance this Agreement requires. Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be cancelled, except after thirty (30) calendar days’ advance written notice of cancellation or non-renewal has been given to City by certified mail, return receipt requested. Phrases such as “endeavor to” and “but failure to mail such Notice shall impose no obligation or liability of any kind upon the company” shall not be included in the cancellation wording of any certificates or policies of insurance applicable to the City Parties pursuant to this Agreement. 6.3.5 Waiver of Certain Claims. Developer shall cause each insurance carrier providing any Liability Insurance, Builder’s Risk Insurance, Worker’s Compensation Insurance, Automobile Liability Insurance or Property Insurance coverage under this Agreement to endorse their applicable policy(ies) with a Waiver of Subrogation with respect to the City Parties, if not already in the policy. To the extent that the Parties obtain insurance with a Waiver of Subrogation, the Parties release each other, and their respective authorized representatives, from any Claims for damage to any Person or property to the extent such Claims are paid by such insurance policies obtained pursuant to and in satisfaction of the provisions of this Agreement. 9.b Packet Pg. 161 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 34 – September 27, 2016 6.3.6 No Representation. No Party makes any representation that the limits, scope, or forms of insurance coverage this Agreement requires are adequate or sufficient. 6.3.7 No Claims Made Coverage. None of the insurance coverage required under this Agreement may be written on a claims-made basis. 6.3.8 Fully Paid and Non-Assessable. All insurance obtained and maintained by Developer in satisfaction of the requirements of this Agreement shall be fully paid for and non-assessable. However, Developer’s policies may be subject to insurer audits. 6.3.9 City Option to Obtain Coverage. During the continuance of an Event of Default arising from the failure of Developer to carry any insurance required by this Agreement, the City may, at its sole option, purchase any such required insurance coverage and the City shall be entitled to immediate payment from the Defaulting Party of any premiums and associated reasonable costs paid by the City for such insurance coverage. Any amount becoming due and payable to the City under this Section that is not paid within fifteen (15) calendar days after written demand from the City for payment of such amount, within an explanation of the amounts demanded, will bear interest from the date of the demand at the rate of eight percent (8%) per annum or the Usury Limit, whichever is less. Any election by the City to purchase or not to purchase insurance otherwise required by the terms of this Agreement to be carried by Developer shall not relieve the Defaulting Party of its obligation to obtain and maintain any insurance coverage required by this Agreement. 6.3.10 Separation of Insureds. All Liability Insurance and Contractor’s Insurance shall provide for separation of insureds for Developer and the City Parties. 6.3.11 Deductibles and Self-Insured Retentions. Any deductibles or self- insured retentions under insurance policies required by this Agreement shall be declared to and approved by City. The insurer under each such insurance policy shall eliminate such deductibles or self-insured retentions as respects the City Parties. 6.3.12 No Separate Insurance. Developer shall not carry separate or additional insurance concurrent in form or contributing in the event of loss with that required under this Agreement, unless the City is made an additional insured thereon, as required by this Agreement. 6.3.13 Insurance Independent of Indemnification. The insurance requirements of this Agreement are independent of the Parties’ indemnification and other obligations under this Agreement and shall not be construed or interpreted in any way to satisfy, restrict, limit, or modify the Parties’ indemnification or other obligations or to limit the Parties’ liability under this Agreement, whether within, outside, or in excess of such coverage, and regardless of solvency or insolvency of the insurer that issues the coverage; nor shall the provision of such insurance preclude the City from taking such other actions as are available to it under any other provision of this Agreement or otherwise at law or in equity. 9.b Packet Pg. 162 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 35 – September 27, 2016 7. FINANCING 7.1 Project Financing. The Developer shall be responsible for the funding of all costs of development. It is anticipated that Developer shall acquire a conditional forward loan commitment for a Permanent Loan if the aggregate of any Construction Financing exceed forty percent (40%) of the Total Project Costs. 7.2 Only Permitted Encumbrances. Developer shall not record and shall not allow to be recorded against the Property any Security Instrument, lien or other encumbrance that is not a Permitted Encumbrance. Developer shall remove or cause to be removed any Prohibited Encumbrance made or recorded against the Property or shall assure the complete satisfaction of any such Prohibited Encumbrance to the satisfaction of the City, in the City’s sole and absolute discretion. The covenants of Developer set forth in this Section 7.2 regarding the placement of encumbrances on the Property shall run with the land of the Property and bind successive owners of the Property, until recordation (or deemed issuance) of the Certificate of Completion for the Project. 7.3 City Right to Discharge Prohibited Encumbrances. After sixty (60) calendar days Notice to Developer of a Prohibited Encumbrance and provided that Developer has not caused such Encumbrance to be removed (including by providing title insurance in form and substance reasonably acceptable to City and issued by a title insurance company reasonably acceptable to City, insuring the priority of this Agreement with such title insurance being in the minimum amount of 125% of the amount of the lien claim or providing a statutory bond resulting in removal of such lien) during such time period, the City shall have the right, but not the obligation, to satisfy or remove any Prohibited Encumbrance against the Property or the Project and receive reimbursement from Developer for any amounts paid or incurred in satisfying or removing any such Prohibited Encumbrance, upon demand. Any amount expended by the City to discharge a Prohibited Encumbrance that is not reimbursed to the City by Developer within thirty (30) calendar days following written demand for payment from the City shall accrue Default Interest, until paid in full. Nothing in this Section, though, shall require Developer to pay or make provisions for the payment of any tax, assessment, lien or charge that Developer is in the process of contesting the validity or amount thereof, in good faith, and so long as such contest shall not subject all or any portion of the Property to forfeiture or sale. 7.4 Rights of Lender and City Regarding Permitted Security Instruments. 7.4.1 Notice of Liens. The Developer shall promptly Notify the City of any Security Instrument or lien asserted against or attached to all or any portion of the Project or the Property, prior to the date of issuance of a Certificate of Completion for the Project, whether by voluntary act of Developer or otherwise; provided, however, that no Notice of filing of preliminary notices or mechanic’s liens need be given by Developer to the City, prior to suit being filed to foreclose any such mechanic’s lien. 7.4.2 Notice of Default to Lenders. Whenever the City delivers any Notice of Default to Developer under this Agreement, the City shall send a copy of such Notice of Default to each Lender holding a Permitted Security Instrument of which the City has received Notice and a contact address for transmittal of such Notices. Each Lender receiving a copy of 9.b Packet Pg. 163 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 36 – September 27, 2016 any such Notice of Default shall have the right, at its option, to commence the cure or remedy of any Default of Developer set forth in such Notice and to diligently and continuously proceed with such cure or remedy such Default, within the cure period allowed to Developer under this Agreement. The City shall accept such performance by a Lender with the same force and effect as if furnished by Developer. If such Default can only be remedied or cured by the Lender upon obtaining possession of the Property, the City shall allow the Lender an opportunity to obtain possession with diligence and continuity through exercise of remedies under such Lender’s Permitted Security Instrument and to remedy or cure such Default within ninety (90) days after obtaining possession of the Property. If the Default reasonably requires more than ninety (90) days to cure, however, then the time available to a Lender to cure pursuant to this Section 7.4 shall be the reasonable time required to complete such cure, as long as the Lender has commenced the cure of the Default within such ninety (90) day period and diligently pursues the cure to completion. During such extension of time, the City shall not terminate this Agreement or exercise other remedies under this Agreement by reason of such Default. All Developer Specific Defaults shall be deemed cured upon transfer of Developer’s interest in the entire Property to the Lender, its assignee or nominee, pursuant to exercise of remedies under a Permitted Security Instrument. In addition, any Lender properly completing the Project with the consent of City shall be entitled, upon written request made to City, to a Certificate of Completion from City. Nothing contained in this Agreement shall be deemed to permit, authorize or require any Lender to undertake or continue the Construction or installation of any portion of the Project (beyond the extent necessary to conserve or protect improvements or Construction already made) prior to or after acquiring title to or possession of the entire Property, without expressly assuming Developer’s obligations under this Agreement by written agreement reasonably satisfactory to the City, in which the Lender agrees to complete, in the manner provided in this Agreement, the Project. Any Lender desiring to complete the Project must provide the City with evidence reasonably satisfactory to the City that the Lender has the qualifications (or will engage one or more licensed contractor(s) or consultant(s) with such qualifications) and financial capability necessary to perform such obligations. 7.4.3 No Termination of Permitted Security Instruments by Default. An Event of Default by Developer under this Agreement shall not defeat or render invalid the lien of any Permitted Security Instrument made in good faith and for value as to all or any part of the Property, whether or not the Lender is subordinated to this Agreement; but unless otherwise provided in this Agreement, this Agreement shall be binding and effective against any owner of the Property, whose title thereto is acquired pursuant to exercise of remedies under a Permitted Security Instrument or from a Person exercising any such remedies. 7.4.4 Lender Rights on Termination or Modification. No termination of this Agreement shall be binding upon a Lender unless the termination occurs after Notice to such Lender and such Lender’s failure to cure all then existing Defaults under this Agreement (except any Defaults), pursuant to this Section 7.4, or with such Lender's prior written consent. No modification of this Agreement that materially affects the rights of a Lender shall be binding upon the Lender without its prior written consent. 7.4.5 City Right to Purchase Obligation. In any case where, after delivery of Notice of Default of Developer under this Agreement, an affected Lender has not exercised the option provided in Section 7.4.2 to construct and install the applicable portions of the Project, 9.b Packet Pg. 164 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 37 – September 27, 2016 or has exercised the option, but has not proceeded diligently with such Construction or installation, the City shall have the option, in the City’s sole and absolute discretion, to purchase the rights of such Lender against or in the reference to Developer regarding the Property or Project secured by any Permitted Security Instrument held by such Lender and by payment to the Lender of the amount of the unpaid obligations secured by such Permitted Security Instrument and, if the ownership of the Property has vested in such Lender, the City, at its option, but not its obligation, shall be entitled to a conveyance from such Lender of any title or interest in the Property vested in such Lender to the City or the City’s designee. (a) After forty-five (45) days following expiration of the time period for an affected Lender to cure a Default of Developer under this Agreement, an affected Lender may demand by Notice, that the City act to exercise or forego the right granted in Section 7.4.5 by Notice to the Lender. If the City fails to exercise the right granted in Section 7.4.5 by Notice to the Lender within forty-five (45) calendar days following the date of the City’s receipt of such written demand from the Lender, the City shall be conclusively deemed to have waived its rights under Section 7.4.5. If the City timely exercises its rights under Section 7.4.5, the purchase transaction shall close within sixty (60) days after the date of such Lender’s receipt of the City’s Notice exercising such rights. 7.4.6 No Construction Obligation of Lender. A Lender shall in no way be obligated by the provisions of this Agreement to construct or complete the development of the Project or to guarantee such construction or completion, but may do so pursuant to and in accordance with this Section 7.4. Nothing in this Agreement shall be deemed to construe, permit, or authorize any Lender to devote all or any portion of the Property to any uses, or to construct any improvements thereon, other than those uses or the Project provided for or authorized by this Agreement. 7.4.7 City Right to Cure Obligations. In the event of a Default by Developer under any Permitted Security Instrument, prior to the date of issuance of a Certificate of Completion for the Project, where the Lender has not exercised its option to complete the Project under Section 7.4.2, the City may cure the Default of Developer under the applicable Permitted Security Instrument, but is under no obligation to do so, prior to completion of any sale or foreclosure of all or any portion of the Property under the applicable Permitted Security Instrument. The City shall be entitled to reimbursement from Developer of all costs and reasonable expenses incurred by the City in curing any Default of Developer under any Permitted Security Instrument, under demand. Any amount expended by the City to cure a Default of Developer under any Permitted Security Instrument that is not reimbursed to the City by Developer within thirty (30) calendar days after Notice of such amount to Developer, shall accrue Default Interest, until paid in full. 7.4.8 Foreclosure of Permitted Security Instrument. Foreclosure of any Permitted Security Instrument, whether by judicial proceedings or by power of sale, or any conveyance by deed in lieu of foreclosure, shall not require the consent of the City or constitute a Default under this Agreement. Following any Foreclosure Event, the City shall recognize as “Developer” under this Agreement any purchaser or other transferee of the entire Property that assumes each and all the obligations of Developer under this Agreement pursuant to an assumption agreement reasonably satisfactory to the City. If any Lender or its nominee or 9.b Packet Pg. 165 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 38 – September 27, 2016 assignee acquires Developer's title to the entire Property as a result of a Foreclosure Event, such Lender shall thereafter have the right to assign or transfer Developer's interest under this Agreement to an assignee upon obtaining the City's consent with respect to such assignee, which consent shall not be unreasonably withheld or delayed. Upon such acquisition of title by a Lender, or the assignee or nominee of a Lender, or the purchaser from a Lender or such assignee or nominee, the City shall execute and deliver an amendment to this Agreement with such Person, upon the written request of such Person given not later than one hundred twenty (120) days after such Person’s acquisition of title to the entire Property. Such amended Agreement shall be substantially the same in form and content as the provisions of this Agreement, except as to the parties thereto, and the acknowledgment or elimination of any requirements that have been fulfilled prior to the date of such amendment and shall have priority equal to the priority of this Agreement. 8. REMEDIES AND INDEMNITY 8.1 DEVELOPER’S RIGHT TO SPECIFIC PERFORMANCE AND LIMITATION ON RECOVERY OF DAMAGES PRIOR TO CLOSE OF ESCROW. 8.1.1 ELECTION OF REMEDIES. DURING THE CONTINUANCE OF AN EVENT OF DEFAULT BY CITY UNDER THIS AGREEMENT, DEVELOPER SHALL BE LIMITED TO EITHER OF THE FOLLOWING REMEDIES: (1) AN ACTION AGAINST CITY FOR SPECIFIC PERFORMANCE OF THIS AGREEMENT; OR (2) REFUND OF THE DEPOSIT AND TERMINATION OF THIS AGREEMENT. UNDER NO CIRCUMSTANCES SHALL CITY BE LIABLE TO DEVELOPER UNDER THIS AGREEMENT FOR ANY SPECULATIVE, CONSEQUENTIAL, COLLATERAL, SPECIAL, PUNITIVE OR INDIRECT DAMAGES OR FOR ANY LOSS OF PROFITS SUFFERED OR CLAIMED TO HAVE BEEN SUFFERED BY DEVELOPER. 8.1.2 WAIVER OF RIGHTS. CITY AND DEVELOPER EACH ACKNOWLEDGE AND AGREE THAT CITY WOULD NOT HAVE ENTERED INTO THIS AGREEMENT, IF IT WERE TO BE LIABLE TO DEVELOPER FOR ANY MONETARY DAMAGES, MONETARY RECOVERY OR ANY REMEDY DURING THE CONTINUANCE OF AN EVENT OF DEFAULT UNDER THIS AGREEMENT BY CITY PRIOR TO THE CLOSE OF ESCROW, OTHER THAN SPECIFIC PERFORMANCE OF THIS AGREEMENT OR REFUND OF THE DEPOSIT AND TERMINATION OF THIS AGREEMENT AND PAYMENT OF THE AMOUNTS SPECIFIED IN SECTION 8.1.1. ACCORDINGLY, CITY AND DEVELOPER AGREE THAT THE REMEDIES SPECIFICALLY PROVIDED FOR IN SECTION 8.1.1 ARE REASONABLE UNDER THE CIRCUMSTANCES AND SHALL BE DEVELOPER’S SOLE AND EXCLUSIVE RIGHTS AND REMEDIES DURING THE CONTINUANCE OF AN EVENT OF DEFAULT UNDER THIS AGREEMENT BY CITY. DEVELOPER WAIVES ANY RIGHT TO PURSUE ANY REMEDY OR DAMAGES OTHER THAN THOSE SPECIFICALLY PROVIDED IN SECTION 8.1.1. 8.1.3 CIVIL CODE SECTION 1542 WAIVER. DEVELOPER ACKNOWLEDGES THE PROTECTIONS OF CIVIL CODE SECTION 1542 9.b Packet Pg. 166 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 39 – September 27, 2016 RELATIVE TO THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 8.1, WHICH CIVIL CODE SECTION READS AS FOLLOWS: A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR. 8.1.4 ACKNOWLEDGMENT. BY INITIALING BELOW, DEVELOPER KNOWINGLY AND VOLUNTARILY WAIVES THE PROVISIONS OF SECTION 1542 AND ALL OTHER STATUTES AND JUDICIAL DECISIONS (WHETHER STATE OR FEDERAL) OF SIMILAR EFFECT SOLELY IN CONNECTION WITH THE WAIVERS AND RELEASES CONTAINED IN THIS SECTION 8.1. ___________________________ INITIALS OF AUTHORIZED DEVELOPER REPRESENTATIVE 8.1.5 STATEMENT OF INTENT. CALIFORNIA CIVIL CODE SECTION 1542 NOTWITHSTANDING, IT IS THE INTENTION OF DEVELOPER TO BE BOUND BY THE LIMITATION ON DAMAGES AND REMEDIES SET FORTH IN THIS SECTION 8.1, AND DEVELOPER HEREBY RELEASES ANY AND ALL CLAIMS AGAINST CITY FOR MONETARY DAMAGES, MONETARY RECOVERY OR OTHER LEGAL OR EQUITABLE RELIEF RELATED TO ANY EVENT OF DEFAULT UNDER THIS AGREEMENT PRIOR TO THE CLOSE OF ESCROW, EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION 8.1, WHETHER OR NOT ANY SUCH RELEASED CLAIMS WERE KNOWN OR UNKNOWN TO DEVELOPER AS OF THE EFFECTIVE DATE OF THIS AGREEMENT. 8.2 City Liquidated Damages. DURING THE CONTINUANCE OF AN EVENT OF DEFAULT BY THE DEVELOPER UNDER THIS AGREEMENT AFTER THE END OF THE DUE DILIGENCE PERIOD AND PRIOR TO CLOSE OF ESCROW, CITY MAY CANCEL THE ESCROW AND TERMINATE THIS AGREEMENT. UPON CANCELLATION OF THE ESCROW AND TERMINATION OF THIS AGREEMENT, CITY SHALL BE RELIEVED OF ANY OBLIGATION UNDER THIS AGREEMENT TO SELL AND CONVEY THE PROPERTY TO THE DEVELOPER. ANY SUCH ESCROW CANCELLATION AND TERMINATION OF THIS AGREEMENT SHALL BE WITHOUT ANY LIABILITY OF CITY TO THE DEVELOPER OR ANY OTHER PERSON. CITY AND THE DEVELOPER ACKNOWLEDGE THAT IT IS EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN THE AMOUNT OF DAMAGES THAT WOULD BE SUFFERED BY CITY, IN THE EVENT OF A CANCELLATION OF THE ESCROW AND TERMINATION OF THIS AGREEMENT DUE TO THE OCCURRENCE OF AN EVENT OF DEFAULT BY THE DEVELOPER UNDER THIS AGREEMENT. HAVING MADE DILIGENT BUT 9.b Packet Pg. 167 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 40 – September 27, 2016 UNSUCCESSFUL ATTEMPTS TO ASCERTAIN THE ACTUAL DAMAGES THAT CITY WOULD SUFFER, IN THE EVENT OF A CANCELLATION OF THE ESCROW AND TERMINATION OF THIS AGREEMENT DUE TO THE OCCURRENCE OF AN EVENT OF DEFAULT BY THE DEVELOPER UNDER THIS AGREEMENT, CITY AND THE DEVELOPER AGREE THAT A REASONABLE ESTIMATE OF CITY'S DAMAGES IN SUCH EVENT IS THE DEPOSIT. THEREFORE, UPON THE CANCELLATION OF THE ESCROW AND TERMINATION OF THIS AGREEMENT BY CITY DUE TO THE OCCURRENCE OF AN EVENT OF DEFAULT BY THE DEVELOPER UNDER THIS AGREEMENT, AFTER THE END OF THE DUE DILIGENCE PERIOD AND PRIOR TO THE CLOSE OF ESCROW, THE PARTIES AND THE ESCROW AGENT SHALL PROCEED PURSUANT TO SECTION 4.11 TO CANCEL THE ESCROW. THE ESCROW HOLDER SHALL IMMEDIATELY CANCEL THE ESCROW AND PAY THE DEPOSIT TO CITY (IF NOT ALREADY PAID TO CITY), UPON CANCELLATION OF THE ESCROW. RECEIPT OF THE DEPOSIT SHALL BE CITY'S SOLE AND EXCLUSIVE REMEDY ARISING FROM THE CANCELLATION OF THE ESCROW AND TERMINATION OF THIS AGREEMENT DUE TO THE OCCURRENCE OF AN EVENT OF DEFAULT BY THE DEVELOPER UNDER THIS AGREEMENT. Initials of Authorized Initials of Authorized Developer Representative City Representative. 8.3 City Power of Termination Regarding Property. 8.3.1 Reservation. The City hereby reserves a power of termination pursuant to Civil Code Sections 885.010, et seq., exercisable by the City, in its sole and absolute discretion, upon thirty (30) calendar days written notice to Developer referencing this Section 8.3, to terminate the fee interest of Developer in the Property and/or any improvements to the Property and revest such fee title in the City and take possession of all or any portion of such real property and improvements, without compensation to Developer, upon the occurrence of an Event of Default by Developer following the Close of Escrow and prior to the issuance of a Certificate of Completion for the Project. The City shall not exercise such power of termination if Developer cures the Event of Default within the thirty (30) day period set forth in this Section 8.3.1. 8.3.2 Process. The rights of the City under this Section 8.3 shall not defeat, render invalid or limit: (a) Any Permitted Security Instrument; or (b) Any leases, declarations of covenants, conditions and restrictions, easement agreements or other recorded documents or interests applicable to the Property and specifically authorized by this Agreement or consented to in writing by the City; or (c) Upon the City’s exercise of its power of termination pursuant to this Section 8.3, Developer shall convey fee title to the Property and all improvements on or to the Property to the City by grant deed, in accordance with Civil Code Section 1109, as such code 9.b Packet Pg. 168 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 41 – September 27, 2016 section may hereafter be amended, renumbered, replaced or substituted. Such conveyance shall be duly acknowledged by Developer and a notary public in a manner suitable for recordation. The City may enforce its rights pursuant to this Section 8.3 by means of an injunctive relief or forfeiture of title action filed in any court of competent jurisdiction. (d) Upon the revesting in the City of title to the Property, whether by grant deed or court decree, the City shall exercise its reasonable good faith efforts to resell the Property at the Property’s then fair reuse value, as soon and in such manner as the City shall, in its sole discretion, find feasible and consistent with the objectives of the compensation agreements, to a qualified and responsible Person or Persons (as reasonably determined by the City) who will assume Developer’s obligations to begin and/or complete and/or operate the Project, or such other replacement development acceptable to the City, in its sole and absolute discretion, consistent with the Redevelopment Plan. Upon any such resale of all or a portion of the Property, the proceeds received by the City from such sale shall be applied, as follows: (i) First, to pay any and all amounts required to release/reconvey any Permitted Security Instrument recorded against the Property; and (ii) Second, to reimburse the City on its own behalf or on behalf of the City for all actual internal and Third Person costs and expenses incurred by the City or the City related to the Property, the Project or this Agreement, including customary and reasonable fees or salaries to Third Person consultants (including Legal Costs) in connection with the recapture, management or resale of all or any portion of the Property; all taxes, assessments and utility charges paid by the City and/or the City with respect to all or any portion of the Property; any payment made or necessary to be made to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations incurred by Developer with respect to the Property Acquisition Costs or the construction or installation of the Project; and amounts otherwise owing to the City by Developer pursuant to the terms of this Agreement; and (iii) Third, to the extent that any proceeds from such resale are, thereafter, available, to reimburse Developer, the amount of: (1) the pro-rata portion of the Purchase Price paid to the City; and (2) the pro-rata portion of the Third Person costs actually incurred and paid by Developer regarding the development of the Project, including costs of carry, taxes, and other items as set forth in a cost certification to be made by Developer to the City, prior to any such reimbursement and, which certification shall be subject to the City’s reasonable approval; provided, however, that Developer shall not be entitled to reimbursement for any expenses to the extent that such expenses relate to any loans, liens or other encumbrances that are paid by the City pursuant to the provisions of sub-sections (1) or (2), above; and (iv) Fourth, any portion of the proceeds from the resale of the Property remaining after the foregoing applications shall be retained by the City, as its sole and exclusive property and distributed immediately thereafter in compliance with the compensation agreements. 9.b Packet Pg. 169 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 42 – September 27, 2016 8.4 Legal Actions. Either Party may institute legal action, at law or in equity, to enforce or interpret the rights or obligations of the Parties under this Agreement or recover damages, subject to the provisions of Section 8.1. 8.5 Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the Parties set forth in this Agreement are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same Default or the same rights or remedies for any other Default by the other Party. 8.6 Indemnification. 8.6.1 City Indemnity Obligations. City shall Indemnify the Developer Parties against any Claim to the extent such Claim arises from any wrongful intentional act or negligence of the City Parties, but only to the extent that City may be held liable under applicable law for such wrongful intentional act or negligence and exclusive of any violation of law (including the State Constitution) relating to City’s approval, entry into or performance of this Agreement. Nothing in this Agreement is intended nor shall be interpreted to waive any limitation on City’s liability, any exemption from liability in favor of City, any claim presentment requirement for bringing an action regarding any liability of City or any limitations period applicable to liability of City, as set forth in Government Code Sections 800, et seq., Sections 900, et seq., or in any other law or require City to Indemnify any Person beyond such limitations on City’s liability. 8.6.2 Developer Indemnity Obligations. Developer shall Indemnify the City Parties against any Claim to the extent such Claim arises from any wrongful intentional act or negligence of the Developer Parties. Developer shall also Indemnify the City Parties against any and all of the following: (a) any Application made by or at Developer’s request; (b) any agreements that Developer (or anyone claiming by or through Developer) makes with a Third Person regarding the Property or the Project; (c) any workers compensation claim or determination relating to any employee of the Developer Parties or their contractors; (d) any Prevailing Wage Action relating to this Agreement or the Project; and (e) any Environmental Claim attributable to any action or failure to act by the Developer Parties. 8.6.3 Independent of Insurance Obligations. Developer’s indemnification obligations under this Agreement shall not be construed or interpreted as in any way restricting, limiting, or modifying Developer’s insurance or other obligations under this Agreement. Developer’s obligation to Indemnify City Parties under this Agreement is independent of Developer’s insurance and other obligations under this Agreement. Developer’s compliance with its insurance obligations and other obligations under this Agreement shall not in any way restrict, limit, or modify Developer’s indemnification obligations under this Agreement and are independent of Developer’s indemnification and other obligations under this Agreement. 8.6.4 Survival of Indemnification and Defense Obligations. The indemnity and defense obligations of the Parties under this Agreement shall survive the expiration or earlier termination of this Agreement, until any and all actual or prospective claims regarding any 9.b Packet Pg. 170 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 43 – September 27, 2016 matter subject to an indemnity obligation under this Agreement are fully, finally, absolutely and completely barred by applicable statutes of limitations. 8.7 Indemnification Procedures. Wherever this Agreement requires any Indemnitor to Indemnify any Indemnitee: 8.7.1 Prompt Notice. The Indemnitee shall promptly Notify the Indemnitor of any Claim. 8.7.2 Selection of Counsel. The Indemnitor shall select counsel reasonably acceptable to the Indemnitee. Counsel to Indemnitor’s insurance carrier that is providing coverage for a Claim shall be deemed reasonably satisfactory, except in the event of a potential or actual conflict of interest for such counsel regarding such representation or such counsel proves to be incompetent regarding such representation. Even though the Indemnitor shall defend the Claim, Indemnitee may, at its option and its own expense, engage separate counsel to advise it regarding the Claim and its defense. The Indemnitee’s separate counsel may attend all proceedings and meetings. The Indemnitor’s counsel shall actively consult with the Indemnitee’s separate counsel. The Indemnitor and its counsel shall, however, control the defense, except to the extent that the Indemnitee waives its rights to indemnity and defense for such Claim. 8.7.3 Cooperation. The Indemnitee shall reasonably cooperate with the Indemnitor’s defense of the Indemnitee. 8.7.4 Settlement. The Indemnitor may only settle a Claim with the Indemnitee’s consent, not to be unreasonably withheld. 9. GENERAL PROVISIONS 9.1 Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement are true and correct and are incorporated into this Agreement in their entirety by this reference. 9.2 Successor Agency Not a Party. The Successor Agency is not a Party to this Agreement. 9.3 Restrictions on Change in Management or Control of Developer, Assignment and Transfer. 9.3.1 Restrictions. Developer acknowledges and agrees that the qualifications and identity of Developer are of particular importance and concern to City. Developer further acknowledges and agrees that City has relied and is relying on the specific qualifications and identity of Developer in entering into this Agreement with Developer and that City would not have entered into this Agreement, but for the specific qualifications and identity of Developer. As a consequence, Transfers are permitted only as expressly provided in this Agreement. Developer represents to City that it has not made and agrees that it will not create or permit to be made or created, any Transfer, other than a Permitted Transfer, either voluntarily, involuntarily or by operation of Law, without the prior written approval of City, which may be given, withheld or conditioned in the sole and absolute discretion of City. Any Transfer made in contravention of this Section 9.3 shall be voidable at the election of City. Developer hereby 9.b Packet Pg. 171 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 44 – September 27, 2016 acknowledges and agrees that the restrictions on Transfers set forth in this Section 9.3 are reasonable. 9.3.2 Delivery of Transfer Documents. All instruments and other legal documents proposed to effect any proposed Transfer shall be submitted to City for review, at least thirty-five (35) calendar days prior to the proposed date of the Transfer, and the written approval, disapproval or conditions of City regarding the proposed Transfer shall be provided to Developer, within thirty (30) calendar days following City’s receipt of all proposed Transfer documents. Developer agrees to reimburse City for all costs and expenses incurred by City in connection with its review of each proposed Transfer, including all Legal Costs and other Third Person consultant fees and expenses. 9.4 Developer Assumption of Risks of Legal Challenges. Developer assumes the risk of delays and damages that may result to Developer from any Third Person legal actions related to City’s approval of this Agreement or any associated Approvals, even in the event that an error, omission or abuse of discretion by City is determined to have occurred. If a Third Person files a legal action regarding City’s approval of this Agreement or any associated Approval (exclusive of legal actions alleging violation of Government Code Section 1090 by elected officials of City), Developer shall have the option to either: (1) cancel Escrow and terminate this Agreement, in which case the Parties and the Escrow Agent shall proceed in accordance with Section 4.11; or (2) Indemnify City against such Third Person legal action, including all Legal Costs, monetary awards, sanctions, attorney fee awards, expert witness and consulting fees, and the expenses of any and all financial or performance obligations resulting from the disposition of the legal action. Should Developer fail to Notify City of Developer’s election pursuant to this Section 9.4 at least fifteen (15) days before response to the legal action is required by City, Developer shall be deemed to have elected to terminate this Agreement pursuant to this Section 9.4. City shall reasonably cooperate in its defense in any legal action subject to this Section 9.4, subject to Developer’s indemnity obligations for such legal action. Nothing contained in this Section 9.4 is intended to be nor shall be deemed or construed to be an express or implied admission that City may be liable to Developer or any other Person for damages or other relief regarding any alleged or established failure of City to comply with any Law. Any legal action that is subject to this Section 9.4 (including any appeal periods and the pendency of any appeals) shall constitute an Unavoidable Delay and the time periods for performance by either Party under this Agreement may be extended pursuant to the provisions of this Agreement regarding Unavoidable Delay. 9.5 City Manager Implementation. City shall implement this Agreement through its City Manager. The City Manager is hereby authorized by City to issue approvals, interpretations or waivers and enter into certain amendments to this Agreement on behalf of City, to the extent that any such action(s) does/do not materially or substantially change the Project or increase the monetary obligations of City by more than Five Thousand Dollars ($5,000) in the aggregate. All other actions shall require the consideration and approval of City governing body, unless expressly provided otherwise by action of the City governing body. Nothing in this Section 9.5 shall restrict the submission to the City governing body of any matter within the City manager’s authority under this Section 9.5, in the City Manager’s sole and absolute discretion, to obtain the City governing body’s express and specific authorization on such matter. The specific intent of this Section 9.5 is to authorize certain actions on behalf of City by the City Manager, but not to 9.b Packet Pg. 172 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 45 – September 27, 2016 require that such actions be taken by the City Manager, without consideration by the City governing body. 9.6 Notices, Demands and Communications Between the Parties. 9.6.1 Notices. Any and all Notices submitted by either Party to the other Party or the Escrow Agent pursuant to or as required by this Agreement shall be proper, if in writing and transmitted to the address of City or Developer, as applicable, set forth in Section 9.6.2, or to the Escrow Agent at the address set forth on the Escrow Agent’s Consent, by one or more of the following methods: (a) messenger for immediate personal delivery; (b) a nationally recognized overnight (one-night) delivery service (i.e., Federal Express, United Parcel Service, etc.); or (c) registered or certified United States mail, postage prepaid, return receipt requested. Such Notices may be sent in the same manner to such other addresses as either Party may designate, from time to time, by Notice. Any Notice shall be deemed to be received by the addressee, regardless of whether or when any return receipt is received by the sender or the date set forth on such return receipt, on the day that it is delivered by personal delivery, on the date of delivery by a nationally recognized overnight courier service (or when delivery has been attempted twice, as evidenced by the written report of the courier service) or four (4) calendar days after it is deposited with the United States Postal Service for delivery, as provided in this Section 9.6. Rejection, other refusal to accept or the inability to deliver a Notice because of a changed address of which no Notice was given or other action by a Person to whom Notice is sent, shall be deemed receipt of the Notice. 9.6.2 Addresses. The following are the authorized addresses for the submission of Notices to the Parties, as of the Effective Date: To Developer: Dr. Terry McDuffee 925 Carob Street Redlands, CA 92373 With a courtesy copy to: Julie Peccorini Peccorini & Peccorini 1845 Business Center Drive, Suite 103 San Bernardino, California 92408-3447 To City: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City manager With a courtesy copy to: Baron J. Bettenhausen, Esq. Jones & Mayer 3777 N. Harbor Blvd. Fullerton, CA 92835 9.7 Warranty Against Payment of Consideration for Agreement. Developer represents and warrants to the City that: (a) it has not employed or retained any Person to solicit or secure 9.b Packet Pg. 173 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 46 – September 27, 2016 this Agreement upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees of Developer and Third Persons to whom fees are paid for professional services related to planning, design or Construction of the Project or documentation of this Agreement; and (b) no gratuities, in the form of entertainment, gifts or otherwise have been or will be given by Developer or any of its agents, employees or representatives to any elected or appointed official or employee of either the City or the City in an attempt to secure this Agreement or favorable terms or conditions for this Agreement. Breach of the representations or warranties of this Section shall entitle the City to terminate this Agreement upon seven (7) days’ Notice to the other Parties and Escrow Agent. Upon any such termination of this Agreement, Developer shall immediately refund any payments made to or on behalf of Developer by the City or the City pursuant to this Agreement or otherwise related to the Property, any Approval, any CEQA Document, or the Project, prior to the date of any such termination. 9.8 Relationship of Parties. The Parties each intend and agree that City and Developer are independent contracting entities and do not intend by this Agreement to create any partnership, joint venture, or similar business arrangement, relationship or association between them. 9.9 Survival of Agreement. All of the provisions of this Agreement shall be applicable to any dispute between the Parties arising from this Agreement, whether prior to or following expiration or termination of this Agreement, until any such dispute is finally and completely resolved between the Parties, either by written settlement, entry of a non-appealable judgment or expiration of all applicable statutory limitations periods and all terms and conditions of this Agreement relating to dispute resolution and limitations on damages or remedies shall survive any expiration or termination of this Agreement. 9.10 Non-liability of Officials, Employees and Agents. No City Party (other than City itself) shall be personally liable to Developer, or any successor in interest of Developer, in the event of any Default or breach by City under this Agreement or for any amount that may be or become due to Developer or any successor in interest of Developer, on any obligations under the terms or conditions of this Agreement. No Developer Party (other than Developer itself) shall be personally liable to City, or any successor-in-interest of City, in the event of any Default or breach by Developer under this Agreement or for any amount that may be or may become due to City or any successor-in-interest of City on any obligations under the terms or conditions of this Agreement, except pursuant to a separate guaranty agreement. 9.11 Calculation of Time Periods. Unless otherwise specified, all references to time periods in this Agreement measured in days shall be to consecutive calendar days, all references to time periods in this Agreement measured in months shall be to consecutive calendar months and all references to time periods in this Agreement measured in years shall be to consecutive calendar years. Any reference to Business Days in this Agreement shall mean consecutive Business Days. 9.12 Principles of Interpretation. No inference in favor of or against any Party shall be drawn from the fact that such Party has drafted any part of this Agreement. The Parties have both participated substantially in the negotiation, drafting, and revision of this Agreement, with advice 9.b Packet Pg. 174 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 47 – September 27, 2016 from legal and other counsel and advisers of their own selection. A word, term or phrase defined in the singular in this Agreement may be used in the plural, and vice versa, all in accordance with ordinary principles of English grammar, which shall govern all language in this Agreement. The words “include” and “including” in this Agreement shall be construed to be followed by the words: “without limitation.” Each collective noun in this Agreement shall be interpreted as if followed by the words “(or any part of it),” except where the context clearly requires otherwise. Every reference to any document, including this Agreement, refers to such document, as modified from time to time (excepting any modification that violates this Agreement), and includes all exhibits, schedules, addenda and riders to such document. The word “or” in this Agreement includes the word “and.” Every reference to a law, statute, regulation, order, form or similar governmental requirement refers to each such requirement as amended, modified, renumbered, superseded or succeeded, from time to time. 9.13 Governing Law. The procedural and substantive laws of the State shall govern the interpretation and enforcement of this Agreement, without application of conflicts of laws principles. The Parties acknowledge and agree that this Agreement is entered into, is to be fully performed in and relates to real property located in the City of Grand Terrace, County of San Bernardino, State of California. All legal actions arising from this Agreement shall be filed in the Superior Court of the State in and for the County or in the United States District Court with jurisdiction in the County. 9.14 Unavoidable Delay; Extension of Time of Performance. 9.14.1 Notice. Subject to any specific provisions of this Agreement stating that they are not subject to Unavoidable Delay or otherwise limiting or restricting the effects of an Unavoidable Delay, performance by either Party under this Agreement shall not be deemed or considered to be in Default, where any such Default is due to the occurrence of an Unavoidable Delay. Any Party claiming an Unavoidable Delay shall Notify the other Party: (a) within ten (10) days after such Party knows of any such Unavoidable Delay; and (b) within five (5) days after such Unavoidable Delay ceases to exist. To be effective, any Notice of an Unavoidable Delay must describe the Unavoidable Delay in reasonable detail. The Party claiming an extension of time to perform due to an Unavoidable Delay shall exercise its commercially reasonable best efforts to cure the condition causing the Unavoidable Delay, within a reasonable time. 9.14.2 Assumption of Economic Risks. EACH PARTY EXPRESSLY AGREES THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, OF EITHER PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR DEMAND OR CHANGES IN THE ECONOMIC ASSUMPTIONS OF EITHER PARTY THAT MAY HAVE PROVIDED A BASIS FOR ENTERING INTO THIS AGREEMENT SHALL NOT OPERATE TO EXCUSE OR DELAY THE PERFORMANCE OF EACH AND EVERY ONE OF EACH PARTY’S OBLIGATIONS AND COVENANTS ARISING UNDER THIS AGREEMENT. ANYTHING IN THIS AGREEMENT TO THE CONTRARY NOTWITHSTANDING, THE PARTIES EXPRESSLY ASSUME THE RISK OF UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES AND/OR MARKET DEMAND/CONDITIONS AND WAIVE, TO THE GREATEST EXTENT ALLOWED BY LAW, ANY DEFENSE, CLAIM, OR CAUSE OF ACTION BASED IN WHOLE OR IN PART ON ECONOMIC NECESSITY, IMPRACTICABILITY, CHANGED ECONOMIC 9.b Packet Pg. 175 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 48 – September 27, 2016 CIRCUMSTANCES, FRUSTRATION OF PURPOSE, OR SIMILAR THEORIES. THE PARTIES AGREE THAT ADVERSE CHANGES IN ECONOMIC CONDITIONS, EITHER OF THE PARTY SPECIFICALLY OR THE ECONOMY GENERALLY, OR CHANGES IN MARKET CONDITIONS OR DEMANDS, SHALL NOT OPERATE TO EXCUSE OR DELAY THE STRICT OBSERVANCE OF EACH AND EVERY ONE OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF THIS AGREEMENT. THE PARTIES EXPRESSLY ASSUME THE RISK OF SUCH ADVERSE ECONOMIC OR MARKET CHANGES, WHETHER OR NOT FORESEEABLE AS OF THE EFFECTIVE DATE. _______________________ _______________________ Initials of Authorized Initials of Authorized Representative(s) of City Representative(s) of Developer 9.15 Inspection of Books and Records. City shall have the right at all reasonable times and upon three (3) days written notice, at City’s sole cost and expense, to inspect the books and records of Developer relating to this Agreement, the Property, any Approvals or the Project, to the extent relevant to City’s rights or obligations under this Agreement. Developer shall also have the right at all reasonable times and upon three (3) days written notice, at Developer’s sole cost and expense, to inspect the books and records of City relating to this Agreement, the Property, any Approvals or the Project, to the extent relevant to Developer’s rights or obligations under this Agreement. Each Party’s inspection rights under this Section 9.15 shall not apply to any proprietary information or attorney-client privileged communications. 9.16 Real Estate Commissions. Each Party: (a) represents and warrants that it did not engage or deal with any broker or finder in connection with this Agreement and no Person is entitled to any commission or finder’s fee regarding this Agreement on account of any agreement or arrangement made by such Party; and (b) shall Indemnify the other Party against any breach of such representation and warranty. 9.17 Binding on Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and assigns. 9.18 No Discrimination or Segregation. Developer covenants by and for itself and all Persons claiming under or through it that this Agreement is made and accepted upon and subject to the following conditions: 9.18.1 Standards. That there shall be no discrimination against or segregation of any Person or group of Persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Property nor shall Developer or any Person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Property. 9.b Packet Pg. 176 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 49 – September 27, 2016 9.18.2 Interpretation. Notwithstanding Section 9.18.1, with respect to familial status, Section 9.18.1 shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in Section 9.18.1 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to Section 9.18.1. 9.19 No Other Representations or Warranties. Except as expressly set forth in this Agreement, no Party makes any representation or warranty material to this Agreement to any other Party. 9.20 Tax Consequences. Developer acknowledges and agrees that it shall bear any and all responsibility, liability, costs, and expenses connected in any way with any tax consequences experienced by Developer related to this Agreement. 9.21 No Third-Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any Person other than the Parties and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any Third Person to any Party or give any Third Person any right of subrogation or action over or against any Party. 9.22 Execution in Counterparts. This Agreement may be executed in multiple counterpart originals, each of which shall be deemed to be an original, but all of which together shall constitute one and the same document. 9.23 Entire Agreement. 9.23.1 Integrated Agreement. This Agreement includes 56 pages, 11 exhibits, that constitute the entire understanding and Agreement of the Parties regarding the Property and the other subjects addressed in this Agreement. This Agreement integrates all of the terms and conditions mentioned in this Agreement or incidental to this Agreement, and supersedes all negotiations or previous agreements between the Parties with respect to the Property and the other subjects addressed in this Agreement. 9.23.2 Waivers Must be in Writing. All waivers of the provisions of this Agreement (except conditions precedent to Close of Escrow expressly for the benefit of only one Party, which may be waived unilaterally by such Party) and all amendments to this Agreement must be in writing and signed by the authorized representative(s) of both City and Developer. 9.24 Exhibits. All of the Exhibits attached to this Agreement are described as follows: 9.24.1 Exhibit “A.” City Property Legal Description (Exhibit “A”); and 9.24.2 Exhibit “B.” Developer Property Legal Description (Exhibit “B”); and 9.24.3 Exhibit “C.” Form of Escrow Agent Consent (Exhibit “C”); and 9.b Packet Pg. 177 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 50 – September 27, 2016 9.24.4 Exhibit “D.” Total Project Costs (Exhibit “D”); and 9.24.5 Exhibit “E.” Notice of Option to Purchase Real Estate (Exhibit “E”); 9.24.6 Exhibit “F.” Form of Deed (Exhibit “G”); and 9.24.7 Exhibit “G.” Project Scope of Development (Exhibit “G); and 9.24.8 Exhibit “H.” Project Schedule of Performance (Exhibit “H”); and 9.24.9 Exhibit “I.” Notice of Agreement (Exhibit “I”); and 9.24.10 Exhibit “J.” Certificate of Completion (Exhibit “J”); and 9.25 Execution of this Agreement. Following execution of three (3) counterpart originals of this Agreement and, if Dr. Terry McDuffee has assigned his position under this Agreement to an Affiliate the Developer Official Action, by the authorized representative(s) of Developer and prompt delivery of all such executed documents to City, this Agreement shall be subject to review and approval by City governing body, in its sole and absolute discretion, within forty-five (45) calendar days after the date of such delivery to City. If City governing body has not approved this Agreement within such forty-five (45) calendar day period, then no provision of this Agreement shall be of any force or effect for any purpose and any prior execution or approval of this Agreement by Developer shall be null and void, unless otherwise agreed in writing by Developer. 9.26 Time Declared to be of the Essence. As to the performance of any obligation under this Agreement of which time is a component, the performance of such obligation within the time specified is of the essence. 9.27 No Waiver. Failure to insist on any one occasion upon strict compliance with any term, covenant, condition, restriction or agreement contained in this Agreement shall not be deemed a waiver of such term, covenant, condition, restriction or agreement, nor shall any waiver or relinquishment of any rights or powers under this Agreement, at any one time or more times, be deemed a waiver or relinquishment of such right or power at any other time or times. 9.28 Facsimile Signatures. Signatures delivered by facsimile shall be binding as originals upon the Parties so signing and delivering; provided, however, that original signature(s) of each Party shall be required for each document to be recorded. 10. OPTION TO PURCHASE DEVELOPER PROPERTY 10.1 Grant of Option. In consideration of City’s execution of the DDA and the conveyance of the City Property and as a condition precedent to the transfer of the City Property, Developer hereby grants to City, and City hereby accepts, an exclusive option to purchase the Developer Property (“Option”) commencing on either (i) August 15, 2019, or (ii) completion of the I-215 Interchange Project, whichever occurs last, and continuing on thereafter for a period of twelve (12) months (“Option Termination Date”). The purchase price for the Developer’s Property shall be the actual fair market value as defined below. If (i) the 9.b Packet Pg. 178 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 51 – September 27, 2016 Option is not exercised within the time set forth in this section, (ii) this Agreement is terminated, (iii) the parties fail to execute a DDA or other similar agreement, (iv) the Developer does not acquire permits necessary for the Project, or (v) the City does not exercise its right of first refusal or exercises such right but then does not purchase the Developer Property and such property is sold to a third party, then the Option shall terminate and be null and void. The parties agree that the bargained for consideration for this Option Agreement is the mutual execution of the DDA and no further consideration for this Option Agreement is expected. The option granted herein shall be a covenant running with the land. 10.2 Following the City’s exercise of its Option, City and Developer shall select a mutually acceptable appraiser to perform the appraisal. If City and Developer cannot agree upon an appraiser, then City and Developer shall each select an appraiser, the two of whom shall mutually agree upon a third appraiser to perform the appraisal. The appraiser shall establish the valuation for the Developer’s Property by considering the highest and best use of the Developer’s Property based upon its condition at the time of exercise of the Option and subject to any and all encumbrances including Developer’s right to access and existing or likely future environmental conditions. 10.3 During the term of the Option, prior to City’s exercise of said Option and continuing through City’s actual acquisition of the Developer Property, Developer shall remain responsible to keep and maintain the Developer’s Property in good repair, except Developer shall have no obligations as to the condition of Developer Property during the temporary construction easement granted relative to the construction of the freeway project. 10.4 In the event of close of escrow on the Developer’s Property, each side will bear its own costs for any attorney, staff, or consultant time involved in the transaction, except that Developer shall be responsible to pay for any commercial broker. The City shall owe no commission on the sale of the Developer’s Property. All other closing costs shall be shared equally between City and Developer. 10.5 In the event City exercises its option, then within 30 business days after such exercise, the parties shall negotiate, execute and deliver a purchase and sale agreement for the purchase and sale of the Developer Property. To the extent terms and conditions included in such purchase and sale agreement appear in this DDA, such terms and conditions shall be substantially similar to those set forth in this DDA, to the extent the terms and conditions of the DDA are appropriate and applicable for the sale of the Developer Property. The DDA terms and obligations related to the City’s interest in the development of the City Property are not relevant to the purchase and sale of the Developer Property and such provisions shall not be included in the purchase and sale agreement for the Developer Property. The parties shall negotiate in good faith to resolve any dispute as to which terms and conditions of the DDA are applicable to the purchase and sale of the Developer Property. 10.6 Conditions for Exercise of Option. If City is not in default under this Option Agreement and all conditions to the exercise of the option are satisfied or are waived in writing 9.b Packet Pg. 179 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 52 – September 27, 2016 by Developer, City may exercise the option in accordance with this section and in no other manner. The option shall be exercised by delivering written notice from City to Developer before the expiration of this option and in accordance with the notice provisions of this Option Agreement (“Exercise Notice”). The Exercise Notice shall affirmatively state that the City exercises the option without condition or qualification. Within 30 business days after exercise of the option, the parties shall negotiate and execute and deliver a purchase agreement, in substantially similar form as the DDA, to the extent the terms and obligations of the DDA are appropriate and applicable for the sale of the Developer Property. 10.7 Option may be assigned. City may assign this option and the rights under it. An assignment shall only be effective if the assignee assumes all the duties and obligations of City under this Option Agreement in a writing duly executed and delivered to Developer. 11. RIGHT OF FIRST REFUSAL 11.1 Right of First Refusal. Developer, on behalf of itself and all its successors in interest (together, referred to herein collective, as “Developer”), hereby grants to City a right of first refusal (“Right of First Refusal”) to purchase the Developer Property from Developer pursuant to the terms and conditions set forth in this Section 11. This Right of First Refusal shall survive termination of this Agreement and shall be a covenant running with the land. 11.2 Right of First Refusal Period. City’s Right of First Refusal shall begin upon execution of this Agreement and thereafter expire on the Option Termination Date (“Right of First Refusal Period”). 11.3 Exercise of Right of First Refusal. Throughout the entire Right of First Refusal Period, City shall have the right, but not the obligation, to purchase the Developer Property on terms consistent with the terms under which the Developer Property (or any portion thereof) are offered for sale. The Right of First Refusal shall be exercisable as follows: (i) Developer shall not, at any time during the Right of First Refusal Period, make any transfer of the Developer Property without first giving written notice thereof to City, which notice is hereinafter referred to as “Notice of Transfer”; (ii) the Notice of Transfer shall include the exact and complete terms of the proposed transfer and shall have attached thereto a photocopy of bona fide offer and counteroffer, if any, duly executed by both Developer and the prospective transferee; (iii) for a period of forty-five (45) days after receipt by City of the Notice of Transfer, City shall have the right to give written notice of City’s exercise of City’s right to purchase the interest proposed to be sold or otherwise transferred on the same terms, price and conditions as set forth in the Notice of Transfer. In the event Developer does not receive written notice of City’s exercise of the Right of First Refusal herein granted within said forty-five (45) day period, there shall be a conclusive presumption that City has elected not to exercise the Right of First Refusal hereunder, and Developer may transfer the interest proposed to be transferred on the same terms set forth in the Notice of Transfer (subject to Minor Modifications, as defined below); (iv) in the event City declines to exercise its Right of First Refusal after receipt of the Notice of Transfer and thereafter, (A) Developer and the prospective transferee purchaser (1) modify by more than five percent (5%): (a) the sales price, (b) the amount of down payment, (c) the interest charged, or (2) 9.b Packet Pg. 180 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 53 – September 27, 2016 otherwise materially modify the terms of the prospective transfer; or (B) in the event the sale is not consummated within sixty (60) days after the time period set forth in the Notice of Transfer, then City’s Right of First Refusal shall reapply to said transaction as of the occurrence of any of the aforementioned events (any modifications that do not satisfy the criteria of the events described in this subdivision (iv) may be referred to herein as “Minor Modifications”); and (v) the failure by City to exercise its Right of First Refusal as to one transfer shall not eliminate, modify, or reduce City’s Right of First Refusal in the event of future transfers that may be proposed during the Right of First Refusal Period. If City exercises its Right of First Refusal but then fails to purchase the Developer Property in accordance with the terms set forth in the Notice of Transfer, Developer may enter into an agreement to transfer the interest on substantially the same terms set forth in the original Notice of Transfer (subject to Minor Modifications), and City shall not have a Right of First Refusal with respect to such agreement. If the Right of First Refusal has not been exercised during the Right of First Refusal Period, it shall automatically expire at the end of said term. 11.4 Title Report. Within five (5) Business Days after delivery of the Notice of Transfer to City, Developer shall provide City with a current preliminary title report covering the property that is subject to the proposed transfer. 11.5 Escrow and Completion of Sale. Within five (5) days after City has exercised the Right of First Refusal, or as soon thereafter as reasonably practicable, Developer and City shall enter into a purchase agreement upon the terms and conditions set forth in the Notice of Transfer and an escrow shall be opened with an escrow company mutually acceptable to City and Developer for the conveyance of the Developer Property to City. City shall deliver funds sufficient for payment of the purchase price into such escrow not later than one (1) Business Day prior to the anticipated close of escrow date. The obligation of City to close escrow shall be subject to City’s approval during the applicable due diligence period of a then-current preliminary title report and, at the option of City, inspections, studies, tests, and investigations of the physical and environmental condition of the Property and other site testing. Any exceptions shown on such preliminary title report created on or after Developer’s acquisition of the Property and timely objected to by City and approved by Developer to be removed shall be removed by Developer at its sole expense prior to the close of escrow unless such exception(s) is (are) accepted by City in its reasonable discretion; provided, however, that City shall accept the following exceptions to title: (i) current taxes not yet delinquent, (ii) matters affecting title existing on the date of Developer’s acquisition of the Property, and (iii) liens and encumbrances in favor of City or previously approved by City. City shall pay all of the escrow fees, documentary transfer taxes, recording fees, the cost of any owner’s policy of title insurance desired by City, and any other costs and expenses of the escrow. City shall have the amount of time set forth in the Notice of Transfer after exercise of the Right of First Refusal to enter upon the Property to conduct any tests, inspections, investigations, or studies of the condition of the Property. Developer shall permit City to access the Property for such purposes. Escrow shall close promptly after the earlier of the expiration of such due diligence period or acceptance by City of the condition of title and the physical and environmental condition of the Property. 9.b Packet Pg. 181 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 54 – September 27, 2016 [Signatures on following page] 9.b Packet Pg. 182 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 55 – September 27, 2016 SIGNATURE PAGE TO 2016 disposition and development agreement City and Developer have signed this 2016 disposition and development agreement by and through the signatures of their authorized representative(s) set forth below: CITY: CITY OF GRAND TERRACE, a municipal corporation By: Darcy McNaboe Mayor Attest: By: City Secretary DEVELOPER: DR. TERRY MCDUFFEE, an individual APPROVED AS TO FORM: JONES & MAYER By: Richard L. Adams, II City Attorney APPROVED AS TO FORM: PECCORINI & PECCORINI By: Julie Peccorini 9.b Packet Pg. 183 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “A” City Property Legal Description EXHIBIT “A” TO 2016 disposition and development agreement CITY PROPERTY LEGAL DESCRIPTION ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS FOLLOWS: PARCEL NO. 7 OF PARCEL MAP NO. 3803, AS PER PLAT RECORDED 1N BOOK 49 OF PARCEL MAPS, PAGE(S) 16 AND 17, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY APN: 1167-141-08-0000 9.b Packet Pg. 184 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “B” Developer Property Legal Description EXHIBIT “B” TO 2016 disposition and development agreement DEVELOPER PROPERTY LEGAL DESCRIPTION All that certain real property situated in the County of San Bernardino, State of California, described as follows: The East ½ of the following described property described as a whole as follows: East ½ of Lot 7 in Section 5, Township 2 South, Range 4 West, San Bernardino Base and Meridian; also that portion of Lot 6 in Section 5, more particularly described as follows: Commencing at a point 384.78 feet West of the Northeast corner of said Lot 6: thence running West 256.52 feet to the Northwest corner of said Lot 6; thence at right angles South to the Southwest corner of said Lot; thence at right angles East 256.52 feet; thence at right angles North to the place of beginning. All as delineated upon a certain map of the lands of East Riverside Land Company and recorded in the office of the County Recorder of the County of San Bernardino, State of California, in Book 6 of Maps, Page 44, thereof, the said portion of Lot 6 is also described as the Westerly rectangular 256.52 feet of said lot. Excepting therefrom that portion conveyed to the State of California by Deed recorded December 18, 1956, in Book 4112, page 186, Official Records. Assessor Parcel Number: 1167-121-01. 9.b Packet Pg. 185 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “B” Developer Property Legal Description 9.b Packet Pg. 186 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “C” Form Of Escrow Agent Consent EXHIBIT “C” TO 2016 disposition and development agreement FORM OF ESCROW AGENT CONSENT ORANGE COAST TITLE COMPANY OF SOUTHERN CALIFORNIA accepts that certain 2016 disposition and development agreement, dated as of September 13, 2016, by and between the City of Grand Terrace, a municipal corporation, and Dr. Terry McDuffee, an individual, agrees to act as “Escrow Agent” pursuant to such agreement and agrees to be bound by all provisions of such agreement applicable to it as the Escrow Agent. ESCROW AGENT: ORANGE COAST TITLE COMPANY OF SOUTHERN CALIFORNIA By: Name: Its: Dated: Notice Address: 9.b Packet Pg. 187 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “D” Total Project Costs EXHIBIT “D” TO 2016 disposition and development agreement TOTAL PROJECT COSTS Estimated at Two Million Dollars ($2,000,000) based on intended construction of a Ten Thousand (10,000) square foot building at Two Hundred Dollars ($200) per square foot 9.b Packet Pg. 188 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “E” Notice of Option to Purchase Real Property EXHIBIT “E” TO 2016 DISPOSITION AND DEVELOPMENT AGREEMENT NOTICE OF OPTION TO PURCHASE REAL PROPERTY 9.b Packet Pg. 189 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “E” Notice of Option to Purchase Real Property RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager THIS SPACE FOR RECORDER’S USE ONLY APN 1167-121-01 EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT CODE SECTION 27383 CITY OF GRAND TERRACE Notice of Option to Purchase Real Property TO ALL INTERESTED PERSONS PLEASE TAKE NOTICE that as of September 27, 2016, the CITY OF GRAND TERRACE, a municipal corporation (“City”), and DR. TERRY MCDUFFEE, an individual (“Developer”), entered into an agreement entitled “Disposition and Development Agreement” (the “Agreement”). A copy of the Agreement is on file with the City Clerk of the City and is available for inspection and copying by interested persons as a public record of the City at the City’s offices located at 22795 Barton Road, Grand Terrace, California 92313, during the regular business hours of the City. The Agreement affects the real property described in Attachment “A” attached to this Notice of Option to Purchase Real Property (the “Property”). The meaning of defined terms, indicated by initial capitalization, used in this Notice of Option to Purchase Real Property and not defined in this Notice of Option to Purchase Real Property shall be the same as the meaning ascribed to such terms in the Agreement. PLEASE TAKE FURTHER NOTICE that the Agreement contains certain covenants running with the land of the Property and other agreements between Developer and the City affecting the Property, including, without limitation (all section references are to the Agreement): 10.1 Grant of Option. In consideration of City’s execution of the DDA and the conveyance of the City Property and as a condition precedent to the transfer of the City Property, Developer hereby grants to City, and City hereby accepts, an exclusive option to purchase the Developer Property (“Option”) commencing on either (i) August 15, 2019, or (ii) completion of the I-215 Interchange Project, whichever occurs last, and continuing on thereafter for a period of twelve (12) months (“Option Termination Date”). The purchase price for the Developer’s Property shall be the actual fair market value as defined below. If (i) the Option is not exercised within the time set forth in this section, (ii) this Agreement is 9.b Packet Pg. 190 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “E” Notice of Option to Purchase Real Property terminated, (iii) the parties fail to execute a DDA or other similar agreement, (iv) the Developer does not acquire permits necessary for the Project , or (v) the City does not exercise its right of first refusal or exercises such right but then does not purchase the Developer Property and such property is sold to a third party, then the Option shall terminate and be null and void. The parties agree that the bargained for consideration for this Option Agreement is the mutual execution of the DDA and no further consideration for this Option Agreement is expected. The option granted herein shall be a covenant running with the land. 11.1 Right of First Refusal. Developer, on behalf of itself and all its successors in interest (together, referred to herein collective, as “Developer”), hereby grants to City a right of first refusal (“Right of First Refusal”) to purchase the Developer Property from Developer pursuant to the terms and conditions set forth in this Section 11. This Right of First Refusal shall survive termination of this Agreement and shall be a covenant running with the land. 11.2 Right of First Refusal Period. City’s Right of First Refusal shall begin upon execution of this Agreement and thereafter expire on the Option Termination Date (“Right of First Refusal Period”). 11.3 Exercise of Right of First Refusal. Throughout the entire Right of First Refusal Period, City shall have the right, but not the obligation, to purchase the Developer Property on terms consistent with the terms under which the Developer Property (or any portion thereof) are offered for sale. The Right of First Refusal shall be exercisable as follows: (i) Developer shall not, at any time during the Right of First Refusal Period, make any transfer of the Developer Property without first giving written notice thereof to City, which notice is hereinafter referred to as “Notice of Transfer”; (ii) the Notice of Transfer shall include the exact and complete terms of the proposed transfer and shall have attached thereto a photocopy of bona fide offer and counteroffer, if any, duly executed by both Developer and the prospective transferee; (iii) for a period of forty-five (45) days after receipt by City of the Notice of Transfer, City shall have the right to give written notice of City’s exercise of City’s right to purchase the interest proposed to be sold or otherwise transferred on the same terms, price and conditions as set forth in the Notice of Transfer. In the event Developer does not receive written notice of City’s exercise of the Right of First Refusal herein granted within said forty-five (45) day period, there shall be a conclusive presumption that City has elected not to exercise the Right of First Refusal hereunder, and Developer may transfer the interest proposed to be transferred on the same terms set forth in the Notice of Transfer (subject to Minor Modifications, as defined below); (iv) in the event City declines to exercise its Right of First Refusal after receipt of the Notice of Transfer and thereafter, (A) Developer and the prospective transferee purchaser (1) modify by more than five percent (5%): (a) the sales price, (b) the amount of down payment, (c) the interest charged, or (2) otherwise materially modify the terms of the prospective transfer; or (B) in the event the sale is not consummated within sixty (60) days after the time period set forth in the Notice of Transfer, then City’s Right of First Refusal shall reapply to said transaction as of the occurrence of any of the aforementioned events (any modifications that do not satisfy the criteria of the events described in this subdivision (iv) may be referred to herein as “Minor Modifications”); and (v) the failure by City to exercise its Right of First Refusal as to one transfer shall not eliminate, modify, or reduce City’s Right of First Refusal in the event of future transfers that may be proposed during the Right of First Refusal Period. If City exercises its Right of First Refusal but 9.b Packet Pg. 191 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “E” Notice of Option to Purchase Real Property then fails to purchase the Developer Property in accordance with the terms set forth in the Notice of Transfer, Developer may enter into an agreement to transfer the interest on substantially the same terms set forth in the original Notice of Transfer (subject to Minor Modifications), and City shall not have a Right of First Refusal with respect to such agreement. If the Right of First Refusal has not been exercised during the Right of First Refusal Period, it shall automatically expire at the end of said term. THIS NOTICE OF AGREEMENT is dated as of September 27, 2016, and has been signed on behalf of Developer and the City by and through the signatures of their authorized representative(s) set forth below. This Notice of Agreement may be executed in counterparts and when fully executed each counterpart shall be deemed to be one original instrument. [Signatures on following page] 9.b Packet Pg. 192 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “E” Notice of Option to Purchase Real Property SIGNATURE PAGE TO NOTICE OF AGREEMENT DISPOSITION AND DEVELOPMENT AGREEMENT CITY: CITY OF GRAND TERRACE, a municipal corporation By: Mayor Attest: By: City Clerk APPROVED AS TO FORM: JONES & MAYER By: City Attorney DEVELOPER: DR. TERRY MCDUFFEE, an individual ________________________________ By: DR. TERRY MCDUFFEE, an individual APPROVED AS TO FORM: PECCORINI & PECCORINI By: Julie Peccorini [SIGNATURES OF PRINCIPALS MUST BE NOTARY ACKNOWLEDGED] 9.b Packet Pg. 193 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “E” Notice of Option to Purchase Real Estate ATTACHMENT “A” TO NOTICE OF OPTION TO PURCHASE REAL PROPERTY Developer Property Legal Description All that certain real property situated in the County of San Bernardino, State of California, described as follows: The East ½ of the following described property described as a whole as follows: East ½ of Lot 7 in Section 5, Township 2 South, Range 4 West, San Bernardino Base and Meridian; also that portion of Lot 6 in Section 5, more particularly described as follows: Commencing at a point 384.78 feet West of the Northeast corner of said Lot 6: thence running West 256.52 feet to the Northwest corner of said Lot 6; thence at right angles South to the Southwest corner of said Lot; thence at right angles East 256.52 feet; thence at right angles North to the place of beginning. All as delineated upon a certain map of the lands of East Riverside Land Company and recorded in the office of the County Recorder of the County of San Bernardino, State of California, in Book 6 of Maps, Page 44, thereof, the said portion of Lot 6 is also described as the Westerly rectangular 256.52 feet of said lot. Excepting therefrom that portion conveyed to the State of California by Deed recorded December 18, 1956, in Book 4112, page 186, Official Records. Assessor Parcel Number: 1167-121-01. 9.b Packet Pg. 194 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form Of Deed EXHIBIT “F” TO 2016 disposition and development agreement FORM OF DEED [To be attached behind this cover page] 9.b Packet Pg. 195 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form Of Deed RECORDING REQUESTED BY: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager Escrow and Order No. WHEN RECORDED MAIL TO AND MAIL TAX STATEMENTS TO: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager ______________________________________________________________________________ APN SPACE ABOVE FOR RECORDER’S USE ONLY CITY OF GRAND TERRACE GRANT DEED FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, the CITY OF GRAND TERRACE, a municipal corporation (the “City”), hereby grants and conveys to DR TERRY MCDUFFEE, an individual (the “Grantee”), all of that certain real property legally described in ATTACHMENT A attached to and by this reference incorporated into this Grant Deed (the “Property”), subject to the following terms, conditions, covenants and restrictions running with the land of the Property for the benefit of the City: 1. Conveyance Subject to Terms of a Disposition and Development Agreement. The Property is conveyed subject to that certain Disposition and Development Agreement dated as of September 27, 2016, by and between the City and the Grantee (the “Agreement”). Any terms indicated to be defined terms in this Grant Deed by initial capitalization and not defined in this Grant Deed shall have the meaning ascribed to the same term in the Agreement. 2. Condition of Property. The Grantee acknowledges and agrees that the Property is conveyed by the City to the Grantee in its “AS IS,” “WHERE IS” and “SUBJECT TO ALL FAULTS CONDITION,” as of the date of recordation of this Grant Deed, with no warranties, expressed or implied, as to the environmental or other physical condition of the Property, the presence or absence of any patent or latent environmental or other physical condition on or in the Property, or any other matters affecting the Property. 9.b Packet Pg. 196 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form Of Deed 3. Grantee’s Covenant to Develop the Project. Grantee covenants and agrees for itself, its successors and assigns that the Property shall be improved and developed with the Project, in conformity with the terms and conditions of the Agreement and all applicable laws. The covenants of this Section 3 shall run with the Property, until the date of issuance of a Certificate of Completion for the Project. 4. City Power of Termination Regarding Property. 4.1 Reservation. The City hereby reserves a power of termination pursuant to Civil Code Sections 885.010, et seq., exercisable by the City, in its sole and absolute discretion, upon thirty (30) calendar days written notice to Grantee referencing this Section 4.1, to terminate the fee interest of Grantee in the Property and/or any improvements to the Property and revest such fee title in the City and take possession of all or any portion of such real property and improvements, without compensation to Grantee, upon the occurrence of an Event of Default, as set forth in the Agreement, by Grantee following the Close of Escrow and prior to the issuance of a Certificate of Completion for the Project. The City shall not exercise such power of termination, if Grantee cures the Event of Default within the thirty (30) calendar day period set forth in this Section 4.1. 4.2 Process. The rights of the City under this Section 4 shall not defeat, render invalid or limit: (a) Any Permitted Security Instrument; or (b) Any leases, declarations of covenants, conditions and restrictions, easement agreements or other recorded documents or interests applicable to the Property and specifically authorized by the Agreement, or consented to in writing by the City. (c) Upon the City’s exercise of its power of termination pursuant to this Section 4, Grantee shall convey fee title to the Property and all improvements on or to the Property to the City by grant deed, in accordance with Civil Code Section 1109, as such code section may hereafter be amended, renumbered, replaced or substituted. Such conveyance shall be duly acknowledged by Grantee and a notary public in a manner suitable for recordation. The City may enforce its rights pursuant to this Section 4 by means of an injunctive relief or forfeiture of title action filed in any court of competent jurisdiction. (d) Upon the revesting in the City of title to the Property, whether by grant deed or court decree, the City shall exercise its reasonable good faith efforts to resell the Property at the Property’s then fair reuse value, as soon and in such manner as the City shall, in its sole discretion, find feasible and consistent with its objectives, to a qualified and responsible Person or Persons (as reasonably determined by the City) who will assume Grantee’s obligations to begin and/or complete and/or operate the Project, or such other replacement development acceptable to the City, in its sole and absolute discretion, consistent with the City’s objectives. Upon any such resale of all or a portion of the Property, the proceeds received by the City from such sale shall be applied, as follows: (i) First, to pay any and all amounts required to release/reconvey any Permitted Security Instrument recorded against the Property; and 9.b Packet Pg. 197 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form Of Deed (ii) Second, to reimburse the City on its own behalf or on behalf of the City for all actual internal and Third Person costs and expenses incurred by the City or the City related to the Property, the Project, the Agreement, including customary and reasonable fees or salaries to Third Person consultants (including Legal Costs) in connection with the recapture, management or resale of all or any portion of the Property; all taxes, assessments and utility charges paid by the City and/or the City with respect to all or any portion of the Property; any payment made or necessary to be made to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations incurred by Grantee with respect to costs associated with the acquisition of the Property or the construction or installation of the Project; and amounts otherwise owing to the City by Grantee pursuant to the terms of the Agreement; and (iii) Third, to the extent that any proceeds from such resale are, thereafter, available, to reimburse Grantee, the amount of: (1) the pro-rata portion of the Purchase Price paid to the City; and (2) the pro-rata portion of the Third Person costs actually incurred and paid by Grantee regarding the development of the Project, including costs of carry, taxes, and other items as set forth in a cost certification to be made by Grantee to the City, prior to any such reimbursement and, which certification shall be subject to the City’s reasonable approval; provided, however, that Grantee shall not be entitled to reimbursement for any expenses to the extent that such expenses relate to any loans, liens or other encumbrances that are paid by the City pursuant to the provisions of sub-sections (1) or (2), above; and (iv) Fourth, any portion of the proceeds from the resale of the Property remaining after the foregoing applications shall be retained by the City, as its sole and exclusive property. 5. No Discrimination or Segregation. Grantee covenants by and for itself and all Persons claiming under or through it that this Grant Deed is made and accepted upon and subject to the following conditions: 5.1 Standards. That there shall be no discrimination against or segregation of any Person or group of Persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Property nor shall Grantee or any Person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Property. 5.2 Interpretation. Notwithstanding Section 5.1, with respect to familial status, Section 5.1 shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in Section 5.1 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to Section 5.1. 9.b Packet Pg. 198 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form Of Deed 6. Covenants, Conditions and Restrictions Run with the Land of the Property. Regardless of classification or characterization, each of the covenants, conditions, restrictions and agreements contained in this Grant Deed touch and concern the Property and each of them is expressly declared to be for the benefit and in favor of the City for the entire period that such covenants, conditions, restrictions and/or agreements are in full force and effect, regardless of whether the City is or remains an owner of any land or interest in land to which such covenants relate. The City, in the event of any breach of any such covenants, conditions, restrictions and agreements, has the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings, to enforce the curing of such breach, as provided in the Agreement, or by law. All such covenants, conditions, restrictions and agreements shall survive the issuance and recordation of each and every certificate of occupancy by the City, for the time period set forth in each covenant. 7. No Impairment of Liens. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument permitted by the Agreement; provided, however, that any successor of Grantee to all or any portion of the Property shall be bound by such continuing covenants, conditions, restrictions, limitations and provisions, whether such successor’s title was acquired by foreclosure, deed in lieu of foreclosure, trustee’s sale or otherwise. 8. Interpretation. It is the intent of the City in giving this Grant Deed that all of the covenants, conditions, restrictions and agreements set forth in this Grant Deed be given full force and effect in favor of the City, as the City would not have given this Grant Deed without such covenants, conditions, restrictions and agreements, and that each such covenant, condition, restriction and agreement should be classified or characterized in the manner necessary to its enforcement in favor of the City, regardless of any specific classification or characterization in this Grant Deed. 9. No Affect on Agreement. Nothing contained in this Grant Deed is intended to nor shall be deemed or construed to modify or terminate any condition, covenant, restriction or agreement set forth in the Agreement; provided, however, that certain provisions of the Agreement cease to be effective on the recordation of a Certificate of Completion for the Project pursuant to the Agreement. 10. Costs and Attorneys’ Fees for Enforcement Proceeding. If legal proceedings are initiated to enforce the rights, duties or obligations of any of the covenants set forth in this Grant Deed, then the prevailing party in such proceeding shall be entitled to collect its reasonable attorney fees and costs from the other party in addition to any other damages or relief obtained in such proceedings. [Signatures on following page] 9.b Packet Pg. 199 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form Of Deed IN WITNESS WHEREOF, the City has caused this Grant Deed to be executed by its authorized representative(s) on this ____ day of _____________. CITY: CITY OF GRAND TERRACE, a public body, corporate and politic By: Mayor ATTEST: By: City Clerk 9.b Packet Pg. 200 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “F” Form of Deed ATTACHMENT A TO GRANT DEED City Property Legal Description The land referred to in this report is situated in the County of SAN BERNARDINO, State of California, and is described as follows: Parcel No. 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as per Plat recorded in Book 49, of Parcel Maps, Page(s) 16 and 17, in the Office of the County Recorder of said County. Excepting therefrom, that portion of Parcel 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as shown on Plat filed in Book 49, Pages 16 and 17 of Parcel Maps, records of said County lying Northeasterly of the following described line: Commencing at the Northwest corner of said Parcel; thence along the North line of said Parcel also being the South right of way line of Commerce Way (36.00 feet - half width), as shown on said plat, North 46º 04' 36" East, 54.82 feet to West right of way line of Michigan Street (44.00 feet - half width) as shown on said plat, and the Terminus of this description. APN: 1167-141-08-0000 9.b Packet Pg. 201 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “G” Project Scope Development EXHIBIT “G” TO 2016 disposition and development agreement PROJECT SCOPE OF DEVELOPMENT Construction of a commercial building of approximately Ten Thousand (10,000) square feet with an estimated Seven Thousand (7,000) square feet to be used as an animal emergency hospital and the remaining Three Thousand (3,000) square feet to be used as rental space for professional, retail or other commercial tenants; construction of related improvements necessary for use and occupancy of such building including parking lot, driveways, curbs, etc. 9.b Packet Pg. 202 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “H” Project Schedule EXHIBIT “H” TO 2016 disposition and development agreement PROJECT SCHEDULE OF PERFORMANCE Secure Entitlements within one hundred fifty (150) days of Effective Date Commence Construction within thirty (30) days of close of escrow Obtain a Certificate of Occupancy by April 1, 2018 Obtain Certificate of Project Completion by April 30, 2018 9.b Packet Pg. 203 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “I” Notice of Agreement EXHIBIT “I” TO 2016 disposition and development agreement NOTICE OF AGREEMENT [To be attached behind this cover page] 9.b Packet Pg. 204 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “I” Notice of Agreement RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager THIS SPACE FOR RECORDER’S USE ONLY APN 1167-141-08-0000 EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT CODE SECTION 27383 CITY OF GRAND TERRACE Notice of Agreement Disposition and Development Agreement TO ALL INTERESTED PERSONS PLEASE TAKE NOTICE that as of September 27, 2016, the CITY OF GRAND TERRACE, a municipal corporation (“City”), and DR. TERRY MCDUFFEE, an individual (“Developer”), entered into an agreement entitled “Disposition and Development Agreement” (the “Agreement”). A copy of the Agreement is on file with the City Clerk of the City and is available for inspection and copying by interested persons as a public record of the City at the City’s offices located at 22795 Barton Road, Grand Terrace, California 92313, during the regular business hours of the City. The Agreement affects the real property described in Attachment “A” attached to this Notice of Agreement (the “Property”). The meaning of defined terms, indicated by initial capitalization, used in this Notice of Agreement and not defined in this Notice of Agreement shall be the same as the meaning ascribed to such terms in the Agreement. PLEASE TAKE FURTHER NOTICE that the Agreement contains certain covenants running with the land of the Property and other agreements between Developer and the City affecting the Property, including, without limitation (all section references are to the Agreement): 5.1. Developer’s Covenant to Develop the Project. Developer covenants to and for the express benefit of the City that Developer shall commence, pursue and complete the development of the Project, within the time period for each such action set forth in the Project Schedule of Performance. Developer covenants and agrees for itself, its successors and assigns that the Property shall be improved and developed with the Project, in conformity with the terms and conditions of this Agreement and all 9.b Packet Pg. 205 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “I” Notice of Agreement applicable Laws and conditions of each Government. The covenants of this Section 5.1 shall run with the Property until the date of issuance of a Certificate of Completion for the Project. 9.3 Restrictions on Change in Management or Control of Developer, Assignment and Transfer. 9.3.1 Restrictions. Developer acknowledges and agrees that the qualifications and identity of Developer are of particular importance and concern to City. Developer further acknowledges and agrees that City has relied and is relying on the specific qualifications and identity of Developer in entering into this Agreement with Developer and that City would not have entered into this Agreement, but for the specific qualifications and identity of Developer. As a consequence, Transfers are permitted only as expressly provided in this Agreement. Developer represents to City that it has not made and agrees that it will not create or permit to be made or created, any Transfer, other than a Permitted Transfer, either voluntarily, involuntarily or by operation of Law, without the prior written approval of City, which may be given, withheld or conditioned in the sole and absolute discretion of City. Any Transfer made in contravention of this Section 9.3 shall be voidable at the election of City. Developer hereby acknowledges and agrees that the restrictions on Transfers set forth in this Section 9.3 are reasonable. 9.3.2 Delivery of Transfer Documents. All instruments and other legal documents proposed to effect any proposed Transfer shall be submitted to City for review, at least thirty-five (35) calendar days prior to the proposed date of the Transfer, and the written approval, disapproval or conditions of City regarding the proposed Transfer shall be provided to Developer, within thirty (30) calendar days following City’s receipt of all proposed Transfer documents. Developer agrees to reimburse City for all costs and expenses incurred by City in connection with its review of each proposed Transfer, including all Legal Costs and other Third Person consultant fees and expenses. 9.18 No Discrimination or Segregation. Developer covenants by and for itself and all Persons claiming under or through it that this Agreement is made and accepted upon and subject to the following conditions: 9.18.1 Standards. That there shall be no discrimination against or segregation of any Person or group of Persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Property nor shall Developer or any Person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Property. 9.18.2 Interpretation. Notwithstanding Section 9.18.1, with respect to familial status, Section 9.18.1 shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in Section 9.18.1 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of 9.b Packet Pg. 206 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “I” Notice of Agreement the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to Section 9.18.1. THIS NOTICE OF AGREEMENT is dated as of September 27, 2016, and has been signed on behalf of Developer and the City by and through the signatures of their authorized representative(s) set forth below. This Notice of Agreement may be executed in counterparts and when fully executed each counterpart shall be deemed to be one original instrument. [Signatures on following page] 9.b Packet Pg. 207 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “I” Notice of Agreement SIGNATURE PAGE TO NOTICE OF AGREEMENT DISPOSITION AND DEVELOPMENT AGREEMENT CITY: CITY OF GRAND TERRACE, a municipal corporation By: Darcy McNaboe, Mayor Attest: By: City Clerk APPROVED AS TO FORM: JONES & MAYER By: City Attorney DEVELOPER: DR. TERRY MCDUFFEE, an individual ___________________________________ By: DR. TERRY MCDUFFEE, an individual APPROVED AS TO FORM: PECCORINI & PECCORINI By: Julie Peccorini [SIGNATURES OF PRINCIPALS MUST BE NOTARY ACKNOWLEDGED] 9.b Packet Pg. 208 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “N” Notice of Agreement ATTACHMENT “A” TO NOTICE OF AGREEMENT DISPOSITION AND DEVELOPMENT AGREEMENT City Property Legal Description The land referred to in this report is situated in the County of SAN BERNARDINO, State of California, and is described as follows: Parcel No. 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as per Plat recorded in Book 49, of Parcel Maps, Page(s) 16 and 17, in the Office of the County Recorder of said County. Excepting therefrom, that portion of Parcel 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as shown on Plat filed in Book 49, Pages 16 and 17 of Parcel Maps, records of said County lying Northeasterly of the following described line: Commencing at the Northwest corner of said Parcel; thence along the North line of said Parcel also being the South right of way line of Commerce Way (36.00 feet - half width), as shown on said plat, North 46º 04' 36" East, 54.82 feet to West right of way line of Michigan Street (44.00 feet - half width) as shown on said plat, and the Terminus of this description. APN: 1167-141-08-0000 9.b Packet Pg. 209 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) Exhibit “J” Certificate of Completion EXHIBIT “J” TO 2016 disposition and development agreement CERTIFICATE OF COMPLETION [To be attached behind this cover page] 9.b Packet Pg. 210 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) TABLE OF CONTENTS Page Exhibit “K” Developer Official Action 1. DEFINITIONS ................................................................................................................... 1 1.1 Defined Terms ....................................................................................................... 1 2. TERMINATION OF NEGOTIATION AGREEMENT .................................................. 17 3. CONVEYANCE OF PROPERTY .................................................................................. 17 3.1 Escrow.................................................................................................................. 17 3.2 Payment of Purchase Price................................................................................... 18 3.3 Eminent Domain .................................................................................................. 18 3.4 Developer’s Approval of Title to Property .......................................................... 18 3.5 Due Diligence Investigations ............................................................................... 20 3.6 Delivery of Property Free of Tenants .................................................................. 21 3.7 Acceptance of Property “AS-IS.” ........................................................................ 21 3.8 Assignment of Property Information and Approvals ........................................... 21 3.9 Developer to Obtain all Approvals for the Project .............................................. 22 3.10 City Not to Encumber .......................................................................................... 22 3.11 Title Commitment Supplements .......................................................................... 23 4. JOINT ESCROW INSTRUCTIONS ............................................................................... 23 4.1 Opening of Escrow .............................................................................................. 23 4.2 Escrow Agent Authority ...................................................................................... 23 4.3 Developer’s Conditions to Close of Escrow ........................................................ 24 4.4 City’s Conditions to Close of Escrow .................................................................. 24 4.5 Developer’s Escrow Deposits .............................................................................. 26 4.6 City’s Escrow Deposits ........................................................................................ 27 4.7 Closing Procedure ................................................................................................ 27 4.8 Close of Escrow ................................................................................................... 28 4.9 Escrow Closing Costs, Taxes and Title Policy Premium .................................... 29 4.10 Escrow Cancellation Charges .............................................................................. 29 4.11 Escrow Cancellation ............................................................................................ 29 4.12 Escrow Notices .................................................................................................... 30 9.b Packet Pg. 211 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) TABLE OF CONTENTS (continued) Page -iii- 5. PROJECT DEVELOPMENT .......................................................................................... 30 5.1 Developer’s Covenant to Develop the Project ..................................................... 30 5.2 Changes to Project Plans and Specifications During Course of Construction ......................................................................................................... 30 5.3 Construction Start and Completion of Project ..................................................... 30 5.4 Compliance with Laws ........................................................................................ 31 5.5 Project Schedule of Performance ......................................................................... 31 5.6 Developer Attendance at City Meetings .............................................................. 31 5.7 City Right to Inspect Project and Property .......................................................... 31 5.8 PREVAILING WAGES ...................................................................................... 32 5.9 Project Certificate of Completion ........................................................................ 33 6. INSURANCE ................................................................................................................... 34 6.1 Developer ............................................................................................................. 34 6.2 Nature of Insurance .............................................................................................. 34 6.3 Policy Requirements and Endorsements .............................................................. 34 7. FINANCING.................................................................................................................... 36 7.1 Project Financing ................................................................................................. 36 7.2 Only Permitted Encumbrances ............................................................................ 37 7.3 City Right to Discharge Prohibited Encumbrances ............................................. 37 7.4 Rights of Lender and City Regarding Permitted Security Instruments ............... 38 8. REMEDIES AND INDEMNITY .................................................................................... 40 8.1 DEVELOPER’S RIGHT TO SPECIFIC PERFORMANCE AND LIMITATION ON RECOVERY OF DAMAGES PRIOR TO CLOSE OF ESCROW ............................................................................................................. 40 8.2 City Liquidated Damages .................................................................................... 42 8.3 City Power of Termination Regarding Property .................................................. 43 8.4 Legal Actions ....................................................................................................... 44 8.5 Rights and Remedies are Cumulative .................................................................. 44 8.6 Indemnification .................................................................................................... 44 8.7 Indemnification Procedures ................................................................................. 45 9.b Packet Pg. 212 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) TABLE OF CONTENTS (continued) Page -iii- 9. GENERAL PROVISIONS .............................................................................................. 46 9.1 Incorporation of Recitals...................................................................................... 46 9.2 City Not a Party ................................................................................................... 46 9.3 Restrictions on Change in Management or Control of Developer, Assignment and Transfer ..................................................................................... 46 9.4 Developer Assumption of Risks of Legal Challenges ......................................... 46 9.5 City manager Implementation.............................................................................. 47 9.6 Notices, Demands and Communications Between the Parties ............................ 47 9.7 Warranty Against Payment of Consideration for Agreement .............................. 48 9.8 Relationship of Parties ......................................................................................... 49 9.9 Survival of Agreement ......................................................................................... 49 9.10 Non-liability of Officials, Employees and Agents ............................................... 49 9.11 Calculation of Time Periods ................................................................................ 49 9.12 Principles of Interpretation .................................................................................. 49 9.13 Governing Law .................................................................................................... 50 9.14 Unavoidable Delay; Extension of Time of Performance ..................................... 50 9.15 Inspection of Books and Records ........................................................................ 51 9.16 Real Estate Commissions ..................................................................................... 51 9.17 Binding on Successors and Assigns ..................................................................... 51 9.18 No Discrimination or Segregation ....................................................................... 51 9.19 No Other Representations or Warranties ............................................................. 52 9.20 Tax Consequences ............................................................................................... 52 9.21 No Third-Party Beneficiaries ............................................................................... 52 9.22 Execution in Counterparts.................................................................................... 52 9.23 Entire Agreement ................................................................................................. 52 9.24 Exhibits ................................................................................................................ 52 9.25 Execution of this Agreement ............................................................................... 53 9.26 Time Declared to be of the Essence ..................................................................... 53 9.27 No Waiver ............................................................................................................ 53 9.b Packet Pg. 213 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) TABLE OF CONTENTS (continued) Page -iii- 9.28 Facsimile Signatures ............................................................................................ 53 EXHIBIT “A” – CITY PROPERTY LEGAL DESCRIPTION .................................................... 1 EXHIBIT “B” – DEVELOPER PROPERTY LEGAL DESCRIPTION ...................................... 1 EXHIBIT “C” – FORM OF ESCROW AGENT CONSENT ....................................................... 1 EXHIBIT “D” – TOTAL PROJECT CONSTRUCTION COSTS ................................................ 1 EXHIBIT “E” –NOTICE OF OPTION TO PURCHASE REAL ESTATE .................................. 1 EXHIBIT “F” – FORM OF DEED ................................................................................................ 1 EXHIBIT “G” – PROJECT OF SCOPE OF DEVELOPMENT ................................................... 1 EXHIBIT “H” – PROJECT SCHEDULE OF PERFORMANCE ................................................. 1 EXHIBIT “I” – NOTICE OF AGREEMENT ............................................................................... 1 EXHIBIT “J” – CERTIFICATION OF COMPLETION .............................................................. 1 EXHIBIT “K” – DEVELOPER OFFICIAL ACTION .................................................................. 1 9.b Packet Pg. 214 At t a c h m e n t : D D A M c D u f f e 9 . 2 7 - 1 6 [ R e v i s i o n 1 ] ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 1 REPORT REGARDING ECONOMIC DEVELOPMENT OF REAL PROPERTY PURSUANT TO THE 2016 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN CITY OF GRAND TERRACE AND DR. MCDUFFEE AND HEALTH AND SAFETY CODE SECTION 52201 August 31, 2016 Updated September 21, 2016 (Attached DDA) 9.c Packet Pg. 215 At t a c h m e n t : R e p o r t _ 5 2 2 0 0 1 s m 8 . 3 1 . 2 0 1 6 ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 2 Background Health and Safety Code Section 34191.5, added by AB 1484 (signed into law on June 27, 2012), requires each Successor Agency (“SA”) to prepare and approve a Long-Range Property Management Plan (“LRPMP”) that addresses the disposition and use of the real properties of the former redevelopment agency. Properties held by a successor agency cannot be conveyed until the State Department of Finance (“DOF”) approved the LRPMP. The LRPMP was approved by the DOF on April 23, 2015 and the property identified in the LRPMP as Property #4 was thereafter conveyed to the City. Property #4 consists of seven separate parcels separately acquired by the former redevelopment agency between November 22, 2000 and July 29, 2011, and is identified in the LRPMP for the purpose of economic development. Property #4 collectively comprises approximately 54 acres. In accordance with the economic development intended, the majority of Property #4 is the subject of a Disposition and Development Agreement between the City of Grand Terrace and the Lewis Group. However, a small portion of Property #4, the portion which is the subject of this report (the “City Parcel”), is governed by a separate Disposition and Development Agreement with Dr. Terry McDuffee. The sale of Property #4, and portions thereof, for private development is consistent with the adopted LRPMP. The City and Dr. Terry McDuffee entered into a Disposition and Development Agreement in order to keep a local business that has operated in the City of Grand Terrace for over 30 years within the City limits and to encourage economic development of the City Parcel. Animal Emergency Clinic is currently located at 12022 LaCrosse Avenue and the subject property is being acquired by the San Bernardino Associated Governments (SANBAG) to make way for the I-215/Barton Road Interchange Project, and the animal clinic must relocate. Animal Emergency Clinic serves the Inland Empire region and its location in Grand Terrace is well known. It is important to Dr. McDuffee and the City to ensure the business remains in Grand Terrace and in a location that provides similar visibility to its current location. Development of City Parcel will result in a 10,000 square foot commercial building, consisting of a 7,000 square foot emergency animal clinic and a 3,000 square foot retail/commercial space with ancillary parking, lighting and landscaping. Health and Safety Code Section 52201 Reporting Requirements When a city proposes to sell a city property that was returned to it per the city’s long range property management plan, Health and Safety Code Section 52201(a)(2) requires that the city must make available a report containing information regarding the proposed sale. 9.c Packet Pg. 216 At t a c h m e n t : R e p o r t _ 5 2 2 0 0 1 s m 8 . 3 1 . 2 0 1 6 ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 3 52201(a)(2) The city, county, or city and county shall make available, for public inspection and copying at a cost not to exceed the cost of duplication, a report no later than the time of publication of the first notice of the hearing mandated by this section. This report shall contain both of the following: (A) A copy of the proposed sale or lease. Attached to this report is the draft 2016 Disposition and Development Agreement by and between the City of Grand Terrace and the Dr. Terrence McDuffee, which identifies the proposed sale of City Parcel. (B) A summary that describes and specifies all of the following: (i) The cost of the agreement to the city, county, or city and county, including land acquisition costs, clearance costs, relocation costs, the costs of any improvements to be provided by the city, county, or city and county, plus the expected interest on any loans or bonds to finance the agreements. As stated in the adopted LRPMP, the City Parcel was purchased on October 25, 2005 for Two Hundred and Forty Five Thousand and Two Hundred and Eight Dollars ($245,280.00). The land is vacant. There are no costs to the City related to clearance costs, relocation costs of costs of any improvements. The Developer will purchase the City Parcel and bear all related development costs. As contained in the 2016 DDA, the Developer estimates the costs of constructing improvements at Two Million Dollars ($2,000,000) based on intended construction of a Ten Thousand (10,000) square foot building at Two Hundred Dollars ($200) per square foot. The purchase price of the City Parcel is Four Hundred Thousand Dollars; therefore, total Developer investment is estimated at Two Million Four Hundred Thousand Dollars ($2,400,000.00). (ii) The estimated value of the interest to be conveyed or leased, determined at the highest and best uses permitted under the general plan or zoning. The site is zoned CM-Commercial Manufacturing and designated as General Commercial on the Grand Terrace General Plan Land Use Map. The purpose of the CM district is to provide for the development of combined commercial and light manufacturing uses. The regulations of this district are intended to allow various light manufacturing uses which operate free of objectionable noise, dust, odor or other nuisances to locate in a mixed use development area along with commercial uses. The list of permitted and conditionally permitted uses allowed in the CM district includes those permitted and conditionally permitted uses allowed within the C2-General Commercial zone district. The purpose of the C2 district is to promote and provide for the orderly development of general commercial uses desirous to the community as a whole as well as freeway generated consumers. Therefore, the highest and best use of the property is commercial uses, including the 9.c Packet Pg. 217 At t a c h m e n t : R e p o r t _ 5 2 2 0 0 1 s m 8 . 3 1 . 2 0 1 6 ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) 4 proposed emergency animal hospital and commercial space. The adopted LRPMP estimated the value of the City Parcel and Two Hundred Eighty Three Thousand and Five Hundred Dollars ($283,500.00), and based on comparable sales in the market area; the unit value of the property is approximately $9.00 per square foot, which is approximately Three Hundred and Twenty Thousand Dollars ($320,000) based on highest and best use as a commercial property. (iii) The estimated value of the interest to be conveyed or leased, determined at the use and with the conditions, covenants, and development costs required by the sale or lease. The purchase price or present value of the lease payments which the lessor will be required to make during the term of the lease. If the sale price or total rental amount is less than the fair market value of the interest to be conveyed or leased, determined at the highest and best use, then the city, county, or city and county shall provide as part of the summary an explanation of the reasons for the difference. The estimated value of the City Parcel after improvement determined in relation to the purchase and development costs is estimated at Two Million Four Hundred Thousand Dollars ($2,400,000.00). The adopted LRPMP estimated the unimproved value of the City Parcel at Two Hundred Eighty Three Thousand and Five Hundred Dollars ($283,500.00), and based comparable sales in the market area; the unit value of the property is approximately $9.00 per square foot, which is approximately Three Hundred and Twenty Thousand Dollars ($320,000). Therefore, the negotiated purchase price of the City Parcel is Four Hundred Thousand Dollars ($400,000.00); and not less than the estimated fair market value. (iv) An explanation of why the sale or lease of the property will assist in the creation of economic opportunity, with reference to all supporting facts and materials relied upon in making this explanation. The proposed Agreement is consistent with City economic goals and objectives and is in the best interest of the general public. The loss of redevelopment throughout the state has significantly impacted the city’s major economic development program. The sale of the City Parcel incentives a local business to stay in the City and construct a modern facility in the City commercial district, creating synergy in the furtherance of new development. Economic opportunities to the City include (1) creation of local jobs throughout construction. Those workers will in turn patronize City restaurant and food uses. (2) Generation of approximately $24,000.00 in property taxes by placing a property that has not generated sales tax for over 10 years, back on the County Assessor’s tax rolls. (3) Sales tax for a 3,000 square foot tenant space occupied with commercial retail uses. 9.c Packet Pg. 218 At t a c h m e n t : R e p o r t _ 5 2 2 0 0 1 s m 8 . 3 1 . 2 0 1 6 ( 1 9 8 8 : D r . M c D u f f e e / C i t y D D A ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: 2013-2021 Housing Element and Related General Plan and Zoning Amendments PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: 1) Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING GENERAL PLAN AMENDMENT 16-01 AMENDING THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16- 01a) 2) Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND AMENDING THE LAND USE ELEMENT AND LAND USE MAP IN CONFORMANCE WITH PROGRAM 2 OF THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16-01b); and 3) Read by title only, waive further reading and Introduce an ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING ZONING CODE AMENDMENT 16-01 REVISING TITLE 18 OF THE MUNICIPAL CODE AND ZONE CHANGE 16-01 REVISING THE ZONING MAP IN CONFORMANCE WITH THE GENERAL PLAN HOUSING ELEMENT AND LAND USE ELEMENT 2030 VISION STATEMENT: A compliant Housing Element supports Goal #1, Ensuring Fiscal Viability and Goal #3, Promote Economic Development by providing an internally consistent General Plan. BACKGROUND: On June 28, 2016, the City Council conducted public hearing on proposed amendments 10 Packet Pg. 219 to the General Plan and Zoning Code, relating to the update of the 2013-2021 Housing Element. The proposed revisions would have addressed comments received from the California Housing and Community Development Department (HCD), and would have resulted in a certified Housing Element. For reference purposes, the June 28th Agenda Report and the HCD letter (excluding all other attachments) are attached. The Council was in agreement with the textual changes to the General Plan and Zoning Code, but was not in agreement with the proposed amendments to the General Plan Land Use Map and Zoning Map. Staff was proposing the following changes at the June 28th meeting: Site 1: Amend the General Plan Land Use Map to re-designate Site 1 (12201 Michigan Street) from Low Density Residential to Medium High Density Residential, and change the Zoning Map to re-zone the property from R1-7.2 To R3-24. Site 1 totals 1.07 acres. Site 2: Amend the General Plan Land Use Map to apply the R3-24 Overlay designation over three parcels located at 21850, 21860 and 21882 Grand Terrace Road, and change the Zoning Map to apply a R3-24 Overlay to the properties. Site 2 totals 4.1 acres. The property owners of the above four parcels were in agreement with the redesignations. However, at the June 28th meeting, the City Council was not in agreement with the proposed redesignation of Site 1 (Michigan Property), indicating that the re-zoning would be more appropriate along Grand Terrace Road. DISCUSSION Grand Terrace Avenue Properties On August 11, 2016, Staff invited the property owners along Grand Terrace Road to meet with Staff on August 22, 2016, to discuss a possible re-zoning of their properties to R3-24. None of the property owners responded to the invitation, nor attended the meeting. However, they were previously in agreement with Staff’s earlier recommendation to apply the R3-24 Overlay District. Mr. Darryl Moore is the property owner of the two acre parcel located at 21882 Grand Terrace Road. Staff has had several discussions with Mr. Moore about re-zoning his property to the higher density of R3-24. Mr. Moore is in agreement with re-zoning his property to R3-24. Staff is recommending a general plan amendment and zone change of this subject parcel to the higher density. Staff is proposing that the City Council still consider applying the R3-24 Overlay District 10 Packet Pg. 220 on the other two properties along Grand Terrace Road. The R3-24 Overlay is a designation that would be added on top of the existing R-2 zoning. The R-2 zoning would remain in place, and the property can continue to be used as it has been, and can be developed to R-2 standards. A hearing notice was mailed to the subject property owners, and owners within a 300 foot radius. To date, no objections have been received. Michigan Street Property On June 28, 2016, Staff proposed re-zoning this property from R1-7.2 To R3-24. The City Council did not agree with this proposal. The property owner would still like the City Council to consider amending the general plan and zoning designation to the higher density, and it is presented again for the Council’s reconsideration. A hearing notice was mailed to the subject property owners, and owners within a 300 foot radius. To date, no objections have been received. PUBLIC NOTICE: Notice of the public hearing was published in the Grand Terrace City News and posted in three locations 10 days prior to the hearing. Notice was also mailed to the property owners of the candidate sites and to property owners with a 300 foot radius of the candidate sites. ENVIRONMENTAL REVIEW: A Final EIR was certified by the City Council on April 27, 2010 for the Grand Terrace General Plan. The revisions proposed to the draft Housing Element would not result in new significant environmental impacts or a substantial increase in the severity of impacts analyzed in the General Plan EIR, therefore an Addendum has been prepared pursuant to CEQA Guidelines Sections 15162 and 15164. FISCAL IMPACT: No impact to the General Fund. ATTACHMENTS:  Aerial Exhibit of Subject Properties.pdf (PDF)  6.28.2016 Agenda Report.pdf (PDF)  CC Reso-Housing Element_9.27.2016 (DOCX)  C8 Housing _2016-09-27_revised draft-CC (DOCX)  CC Resolution_Land Use Amendments_9.27.2016 jd (DOCX) 10 Packet Pg. 221  Ordinance_Implementing Housing Element revisions_9.27.2016(DOC)  Addendum_2013-2021 Grand Terrace Housing Element_2016-09-27(DOCX) APPROVALS: Sandra Molina Completed 09/21/2016 4:13 PM City Attorney Completed 09/22/2016 11:24 AM Finance Completed 09/22/2016 10:40 AM Sandra Molina Completed 09/22/2016 11:45 AM City Manager Completed 09/22/2016 1:12 PM City Council Pending 09/27/2016 6:00 PM 10 Packet Pg. 222 1 Aerial Exhibit of Subject Properties Site 1 (Michigan Property) Change the Land Use and Zoning designations for 12201 Michigan Street, as follows: Existing General Plan designation: Low Density Residential (LDR) Proposed General Plan designation: Medium/High Density Residential (MHDR) Existing Zoning designation: R1-7.2 (Single Family Residential) Proposed Zoning designation: R3-24 (High Density Residential) 10.a Packet Pg. 223 At t a c h m e n t : A e r i a l E x h i b i t o f S u b j e c t P r o p e r t i e s . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 2 Site 2 (Grand Terrace Road Properties Change the Land Use and Zoning designations for 21850, 21860, 21882 Grand Terrace Road, as follows: 2(a) Existing General Plan designation: Medium Density Residential (MDR) Proposed General Plan designation: Medium/High Density Residential (MHDR) Existing Zoning designation: R2 (Low Medium Density Residential) Proposed Zoning designation: R3-24 (High Density Residential) 2(a) Existing General Plan designation: Medium Density Residential (MDR) Proposed General Plan designation: Remain the same, apply the R3-24 Overlay Existing Zoning designation: R2 (Low Medium Density Residential) Proposed Zoning designation: Remain the same, apply the R3-24 Overlay District Site 2(b) Site 2(a) 10.a Packet Pg. 224 At t a c h m e n t : A e r i a l E x h i b i t o f S u b j e c t P r o p e r t i e s . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) AGENDA REPORT MEETING DATE:June 28, 2016 Council Item TITLE:2013-2021 Housing Element and Related General Plan and Zoning Amendments PRESENTED BY:Sandra Molina, Planning & Development Services Director RECOMMENDATION:1)Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING GENERAL PLAN AMENDMENT 16-01 AMENDING THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16- 01a); 2)Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND AMENDING THE LAND USE ELEMENT AND LAND USE MAP IN CONFORMANCE WITH PROGRAM 2 OF THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16-01b); and 3)Read by title only, waive further reading and Introduce an ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING ZONING CODE AMENDMENT 16-01 REVISING TITLE 18 OF THE MUNICIPAL CODE AND ZONE CHANGE 16-01 REVISING THE ZONING MAP IN CONFORMANCE WITH THE GENERAL PLAN HOUSING ELEMENT AND LAND USE ELEMENT 2030 VISION STATEMENT: A compliant Housing Element supports Goal #1,Ensuring Fiscal Viability and Goal #3, Promote Economic Development by providing an internally consistent General Plan. BACKGROUND: lement, which provides an overarching statement of City policies and programs for maintaining and 7 Packet Pg. 112 10.b Packet Pg. 225 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) improving existing housing, and accommodating development of new housing to meet Housing Elements are reviewed the California Department of Housing and Community In January 2014 the City Council adopted the 2013-2021 Housing Element, and HCD found that additional revisions are required in order to fully comply with state requirements. The most significant issue raised by HCD was the availability of sites with ing assigned in the On October 13, 2015 the City Council received a staff report regarding the status of the Housing Element and directed staff to prepare an amended Housing Element that addresses the comments of consulted with HCD several times, identified revisions to the Housing Element, and provided a draft Element for HCD review HCD informed the City that the adopted Housing Element must include a program for rezoning sites to accommodate the RHNA allocation, and the rezoning must be complete prior to the Housing Element being found in full compliance with state law Staff has identified changes to the Housing Element, the General Plan Land Use Element and Map; and to the Zoning Code and Zoning Map, which Staff believes would result in certified Housing Element. Staff presented these changes to the Planning Commission at a properly noticed public hearing on April 21, 2016, and the Commission voted to recommend City Council approval. DISCUSSION: Adequate Sites to Accommodate the RHNA (Program 2) A key provision of state housing law is that every city must zone sufficient land for multi- family housing to accommodate its RHNA. When sufficient sites are not identified, land must be rezoned to create additional capacity for multi-family housing. It is important to note that state law does not require cities to achieve their RHNA allocations, but adequate sites with appropriate zoning must be available to accommodate development commensurate with the RHNA. -2021 RHNA allocation in the low and lower income categories ,a total of 58 units needs to be accommodated. However, there is one existing site zoned R3-20 that can support 16 units, reducing the unmet need to 42 units. To address the current shortfall, Program 2 in the Housing Plan calls for land use and zoning amendments for the candidate sites listed in Table 8.30b of the Housing Element, shown below. 7 Packet Pg. 113 10.b Packet Pg. 226 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Table 8.30b Candidate Sites for Rezoning Site/APN Current General Plan/Zoning Site Acreage Existing Use Realistic Unit Capacity @ 20 du/ac Site 1 1167-241-01 Low Residential/ R1-7.2 1.07 Underutilized -1 SFR (built 1936) 21 Site 2 0275-223-12 Medium Residential/ R2 1.99 Underutilized -1 SFR (built 1924) 39 0275-223-59 Medium Residential/ R2 0.50 Underutilized -1 SFR (built 1980) 10 0275-223-60 Medium Residential/ R2 1.50 Underutilized -1 SFR (built 1940) 30 Total 5.06 100 higher-density residential use, compatibility of the proposed zoning designations with adjacent properties, and proximity to commercial services and transportation routes. Other changes to the Housing Element are shown in the attached Housing Element and shown in redline. Upon adoption, the final resolution will contain an unmarked copy of the Housing Element. Amendment to the Land Use Element/Map and Zoning Code/Map To effectuate the re-designations identified in Housing Program 2, the General Plan Element and Map; and the Zoning Code and Zoning Map would need to be amended. The the following proposed actions are reflected in the City Council resolution (Attachment 3) and ordinance (Attachment 4). Amend Land Use Element Table 2.3 (General Plan Land Use Designations) to change the maximum density in the Medium High Density Residential (MHDR) designation from 20 to 24 units/acre. Amend the General Plan Land Use Map to re-designate Site 1 (12201 Michigan St.) from LDR to MHDR. Amend the General Plan Land Use Map to apply the R3-24 Overlay designation to the parcels in Site 2. Amend the Zoning Map to re-designate Site 1 from R1-7.2 to R3-24. Amend the Zoning Map to apply the R3-24 Overlay designation to the parcels in Site 2. 7 Packet Pg. 114 10.b Packet Pg. 227 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Amend the Zoning Code to create a new R3-24 district allowing multi-family development with a density range of 20 to 24 units/acre. Amend the Zoning Code to create a new R3-24 Overlay designation allowing multi-family development at a density of 20 to 24 units/acre when at least 5% very-low-income or 10% low-income units are provided as an optional alternative to the base zoning designation. Regarding the re-zoning,Staff contacted the property owners of the candidate sites listed above. Staff spoke with three of the four properties and they have provided their consent. Staff was unable to make contact with the fourth property owner; however, staff sent a letter directly the owner informing of the proposed Overlay District, and public hearing notices were also mailed. No objections have been received. The R3-24 Overlay is a designation that would be added on top of the existing R-2 zoning. The R-2 zoning would remain in place, and the property can continue to be used as it has been, and can be developed to R-2 standards. The Overlay provides the flexibility and opportunity for the property to be develop with residential units at a density between 20-24 units per acre, in accordance with the Overlay designation. Multi-family parking requirements (Program 12) City zoning regulations currently require one of the required parking spaces for multi- family units to be provided in a garage. HCD has indicated that this garage requirement is a constraint that adversely affects the cost and supply of housing. Alternatives to the garage requirement would include the use of carports, which is proposed. The Highlands and the Senior Villas are examples of uses with carport parking. At the Planning Commission hearing, concerns were raised regarding the potential effects on security if garage parking is reduced or eliminated. However, current regulations only require that one of the parking spaces be enclosed in a garage, therefore carports or open parking is already permitted for most multi-family units. In addition, security concerns can be addressed through thoughtful site planning and CPTED (Crime Prevention Through Environmental Design) principles in consultation partment. Transitional and supportive housing (Program 13) Transitional and supportive housing are intended for persons with disabilities or other special needs and are typically operated by non-profit organizations. State law requires cities to allow transitional and supportive housing subject to the same restrictions as apply to other residential dwellings of the same type in the same zone. The Zoning Code currently allows these types of housing only in the R2 and R3 zones by conditional use permit. The proposed amendment would revise the Zoning Code in conformance with state requirements. Definition of family (Program 13) The Zoning Code defines family 7 Packet Pg. 115 10.b Packet Pg. 228 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) blood, marriage or adoption, or a group of not more than six persons, excluding servants, who are not related by blood, marriage or adoption, living together in a relating to families. The proposed amendment would revise this definition consistent with current fair housing law. Other revisions In addition to the four issues described above, other administrative or clerical revisions were made that do not require a change in City policies or regulations. PUBLIC NOTICE: Notice of the public hearing was published in the Grand Terrace City News and posted in three locations 10 days prior to the hearing. Notice of the hearing was also sent to organizations that may have an interest in housing issues as noted in Section 8.1 of the Housing Element, and to property owners within 300 feet of Sites 1 and 2. At the Planning Commission public hearing, verbal comments were offered by three other residents who expressed general concerns regarding higher densities within Site 2. In response to those comments as well as questions from the Commission, staff and the City Attorney noted that state law establishes specific requirements on local governments regarding minimum densities that must be allowed. ENVIRONMENTAL REVIEW: A Final EIR was certified by the City Council on April 27, 2010 for the Grand Terrace General Plan. The revisions proposed to the draft Housing Element would not result in new significant environmental impacts or a substantial increase in the severity of impacts analyzed in the General Plan EIR, therefore an Addendum has been prepared pursuant to CEQA Guidelines Sections 15162 and 15164 (Attachment 5). FISCAL IMPACT: No impact to the General Fund. ATTACHMENTS: HCD Letter_01.15.2016.pdf (PDF) CC Reso-Housing Element_6.28.2016 (DOCX) Exhibit C8 Housing _Tracked Changes.pdf (PDF) CC Resolution_Land Use Amendments (DOCX) Ordinance_Implementing Housing Element revisions_6.28.2016(DOC) Addendum_2013-2021 Grand Terrace Housing Element (DOCX) APPROVALS: Sandra Molina Completed 06/20/2016 10:53 AM 7 Packet Pg. 116 10.b Packet Pg. 229 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) City Attorney Completed 06/20/2016 2:11 PM Finance Completed 06/20/2016 3:36 PM Sandra Molina Completed 06/20/2016 4:37 PM City Manager Completed 06/23/2016 2:21 PM City Council Pending 06/28/2016 6:00 PM 7 Packet Pg. 117 10.b Packet Pg. 230 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 7.a Packet Pg. 118 Attachment: HCD Letter_01.15.2016.pdf (1930 : Housing Element_Amendments/Zone Changes) 10.b Packet Pg. 231 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 7.a Packet Pg. 119 Attachment: HCD Letter_01.15.2016.pdf (1930 : Housing Element_Amendments/Zone Changes) 10.b Packet Pg. 232 At t a c h m e n t : 6 . 2 8 . 2 0 1 6 A g e n d a R e p o r t . p d f ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) RESOLUTION NO. 2016-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING GENERAL PLAN AMENDMENT 16-01 AMENDING THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16-01a) WHEREAS, pursuant to Section 65300 of the State Planning and Zoning Law (Division 1 Title 7 of the California Government Code) on April 27, 2010, the City of Grand Terrace adopted Resolution 2010-10 adopting a General Plan to provide comprehensive, long-range planning guidelines for future growth and development which incorporates the following nine elements: Land Use, Circulation, Open Space and Conservation, Public Health and Safety, Noise, Public Services, Housing, and Sustainable Development. Each element of the General Plan provides Goals, Programs, and Policies as required by State Law; and WHEREAS, General Plan Amendment 16-01a proposes to amend the Housing Element for the 2013-2021 planning period; and WHEREAS, on October 13, 2015, and October 15, 2015, the City Council and Planning Commission, respectively, conducted public meetings to discuss the 2013- 2021 Housing Element; and WHEREAS, on November 23, 2015 a draft Housing Element was submitted to the California Department of Housing and Community Development (“HCD”) for review; and WHEREAS, the draft 2013-2021 Housing Element has been revised to address the comments in HCD’s letter of January 15, 2016; and WHEREAS, on April 21, 2016, the Planning Commission conducted a duly noticed public hearing on the Housing Element Amendment at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313, and concluded the hearing by voting to recommend City Council approval; and WHEREAS, on June 28, 2016, and September 27, 2016, the City Council conducted duly noticed public hearings on the Housing Element Amendment at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313, at which time all interested parties were provided an opportunity to offer testimony; and 10.c Packet Pg. 233 At t a c h m e n t : C C R e s o - H o u s i n g E l e m e n t _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) WHEREAS, a Final Environmental Impact Report (“FEIR”) was certified by the City Council on April 27, 2010, for the General Plan Update, and pursuant to Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an Addendum to the FEIR has been prepared for the 2013-2021 Housing Element; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace: 1. The City Council hereby finds that the Addendum to the General Plan Final Environmental Impact Report prepared for the 2013-2021 Housing Element satisfies the requirements of CEQA because: a. No substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and ; or c. No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified that would show that any of the following exists: (i) The project will have one or more significant effects not discussed in the previous EIR; (ii) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (iii) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (iv) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. 10.c Packet Pg. 234 At t a c h m e n t : C C R e s o - H o u s i n g E l e m e n t _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) The Addendum reflects the independent judgment of the City Council. 2. The City Council finds as follows with respect to the 2013-2021 Housing Element Amendment: a. The General Plan Amendment will allow the Housing Element to be amended consistent with State law. The Housing Element is part of the City's General Plan, which sets forth guiding policies for future development. The requirement for each city to adopt a General Plan is contained in California Government Code Section 65300 et seq., which also lays out specific requirements for each element. The Housing Element provides an overarching statement of City policies and programs to maintain and improve existing housing, and also accommodate the City's fair share of population growth needs. Among the requirements in California Government Code Section 65580 et seq. for Housing Elements are: (i) Ensure adequate sites for new housing for persons of all income levels; (ii) Encourage and facilitate the development of affordable housing; (iii) Conserve and improve the existing affordable housing stock; (iv) Analyze and remove governmental constraints on new housing development; (v) Promote equal housing opportunities; and (vi) Preserve assisted housing b. The Housing Element Amendment promotes the Grand Terrace General Plan and each element thereof, and leaves the General Plan a compatible, integrated and internally consistent statement of goals and policies. The amendment promotes Land Use Goal 2.1 to provide for balanced growth which seeks to provide a wide range of employment and housing opportunities and maintenance of a healthy, diversified community. c. Adoption of this General Plan Amendment will not be in conflict with Section 65358(b) of the Government Code relating to the number of amendments permitted per year, because this amendment is the first amendment of calendar year 2016. d. In conformance with Government Code Sec. 65585, the City Council finds 10.c Packet Pg. 235 At t a c h m e n t : C C R e s o - H o u s i n g E l e m e n t _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) that the 2013-2021 Housing Element has been revised to fully address the comments in HCD’s letter of January 15, 2016 in that Table 8.30b identifies adequate sites to accommodate the City’s assigned share of regional housing need. 3. Based on the findings and conclusions set forth above, as well as the written staff reports, staff presentation and public testimony, the City Council hereby adopts the 2013-2021 Housing Element (General Plan Amendment 16-01a) attached hereto as Exhibit 1. The City Manager is directed to transmit the adopted Housing Element to HCD for final review, and is further directed to make any technical or clerical revisions to the Housing Element as may be necessary to obtain HCD’s finding of substantial compliance. PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 27th day of September, 2016. ATTEST: ____________________________ ______________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor Approved as to form: ___________________________________ Richard L. Adams, II City Attorney 10.c Packet Pg. 236 At t a c h m e n t : C C R e s o - H o u s i n g E l e m e n t _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) I, Pat Jacquez-Nares, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 27th day of September, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ City Clerk 10.c Packet Pg. 237 At t a c h m e n t : C C R e s o - H o u s i n g E l e m e n t _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Exhibit 1 2013-2021 Housing Element 10.c Packet Pg. 238 At t a c h m e n t : C C R e s o - H o u s i n g E l e m e n t _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 Housing Element 2013-2021 10.d Packet Pg. 239 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 This page intentionally left blank 10.d Packet Pg. 240 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-1 8.0 HOUSING ELEMENT 8.1 INTRODUCTION 8.1.1 Purpose The purpose of the City of Grand Terrace Housing Element is to provide the residents, development community and elected and appointed officials with a clear understanding of the City’s housing needs. In order to achieve the ultimate goal of ensuring that every Grand Terrace resident secures a safe and decent place to live within a satisfactory environment, the Housing Element promotes a close coordination of housing policies and programs at local, state and federal levels. 8.1.2 Background 8.1.2.1 Function of the Element The Housing Element functions as an integral part of the City’s efforts to manage the development of incorporated lands. The City balances the need to ensure adequate housing for all current and future residents against the need to provide infrastructure and services. The Housing Element includes a description of existing housing types, the condition of existing units, an analysis of overcrowding, overpayment, special housing needs, and the demand for affordable housing in the City. The Element also includes a discussion of the progress made over the previous planning period, and projections of needs for the next eight years. 8.1.2.2 Public Participation California law requires that local governments include public participation as part of the housing element. Specifically, Government Code section 65583(c)(7) states “that the local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” State law does not specify the means and methods for participation; however, it is generally recognized that the participation must be inclusive. The Planning Commission conducted a public workshop on September 5, 2013. The workshop provided an overview of the purpose and statutory requirements governing Housing Elements, and its contents. Notices were posted and placed in the Blue Mountain Outlook, which is 10.d Packet Pg. 241 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-2 delivered to all property owners in the City. Notices were also sent to several organizations that have an interest in housing within the City. Comments raised during the Planning Commission September 5th workshop included the need to consider higher densities, and acknowledgment of the financial difficulty of developing smaller affordable projects. It was noted that the City has established a new R3-20 zone district which allows a density of 20 units per acre. It is a fiscal challenge to develop smaller affordable projects, which has become more challenging with the dissolution of redevelopment agencies. A public meeting was conducted by the City Council on September 24, 2013. Notice of this meeting was also posted and placed in the Blue Mountain Outlook, sent to several organizations that have an interest in housing within the City. Duly noticed public hearings were held before the Planning Commission on January 16, 2014, and City Council on January 28, 2014. All meetings and hearings were fully noticed per State planning law. After receiving comments from HCD on the adopted element a revised draft Housing Element was prepared and circulated for public review, and public meetings were held on October 13 and October 15, 2015. The revised element was submitted to HCD for review, and on January 15, 2016 HCD issued a letter finding the revised draft Housing Element must identify specific sites to be rezoned and the rezoning must be complete in order for the element to fully comply with state law. Following HCD review, a public hearing was held by the Planning Commission on April 21, 2016 and the revised element was adopted by the City Council at a public hearing on __________. Notices soliciting public input at these public meetings were published in the newspaper, posted at City Hall, and sent by email and/or direct mail to the interested parties and organizations listed below: Organization Invited to Participate Grand Terrace Child Care Center Grand Terrace Senior Center Chamber of Commerce Lion’s Club Azure Hills Seventh Day Adventist Calvary Deaf Church Grand Terrace Foursquare Church Loma Linda Korean Church Grand Terrace Community Church Christ the Redeemer Church Grand Terrace Community Church Colton Unified School District Hope Homes Inland Temporary Homes Inland Fair Housing and Mediation Board The Salvation Army Catholic Charities Community Action Partnership of San Bernardino Frazee Community Center Jamboree Housing San Bernardino County Housing Authority Southern California Association of NonProfit Housing Inland Regional Center Eagle Real Estate Group 10.d Packet Pg. 242 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-3 8.2 RELATIONSHIP TO OTHER PLANS AND PROGRAMS 8.2.1 California Law The California Government Code requires every City and County to prepare a Housing Element as part of its General Plan. In addition, State law contains specific requirements for the preparation and content of Housing Elements. According to Section 65580, the Legislature has declared that: (1) The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. (2) The early attainment of this goal requires that cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels. (3) The provision of housing affordable to low and moderate income households requires the cooperation of all levels of government. (4) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. (5) The legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the General Plan and to cooperate with other local governments, and the state, in addressing regional housing needs. Section 65581 of the Government Code states that the intent of the Legislature in enacting these requirements is: (1) To ensure that local governments recognize their responsibilities in contributing to the attainment of the State housing goal. (2) To ensure that cities and counties prepare and implement housing elements which, along with federal and State programs, will move toward attainment of the State housing goal. (3) To recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the State housing goal as well as regional housing needs. (4) To ensure that each local government cooperates with other local governments to address regional housing needs. 10.d Packet Pg. 243 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-4 Government Code Section 65583 outlines the required content of all housing elements including identification and analysis of existing and projected housing needs, and a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement, and development of housing. Specific requirements include the following: (1) An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The analysis should include population and employment trends; documentation of household characteristics; inventory of land suitable for residential development; governmental and other constraints to housing development; analysis of any special housing needs and an assessment of existing affordable housing developments. (2) A program which sets forth a schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the objectives of the housing element in order to meet the housing needs of all economic segments of the community. 8.2.2 Relationship to Other Plans The Housing Element is an integral part of the General Plan and holds strong relationships with other elements. Since residential development is a primary land use in the City, it is directly tied to the Land Use Element and must be compatible with surrounding existing and proposed land uses. The siting of housing is also dependent upon the location of streets and transportation systems to move people from their homes to jobs, shopping, schools, and recreation facilities and to provide goods and services to the residences (Circulation Element). Homes must also be located in areas free of hazards (Public Safety Element), and away from major noise generators (Noise Element). In addition, residents are dependent upon utilities, police, fire and other public services (Public Services & Facilities Element) and require recreation facilities (Open Space & Conservation Element). On April 10, 2010, the City adopted a comprehensive update of the General Plan. The Public Health and Safety Element was prepared in accordance with Government Code Section 65302 (g)(2), and included updated information relating to flood hazards and flood hazard mapping. Goals, policies and implementation measures were adopted to protect Grand Terrace residents from unreasonable risks of flooding, as shown below. Goal 5.3 Reduce the risk to life and property in areas designated as flood hazard areas. Policy 5.3.1 All development proposed within a designated 100-year floodplain shall be reviewed to assure that all structures designated for human habitation are adequately protected from flood hazards. a. As part of the development review process, all projects located within a designated 100-year floodplain are required to provide a flood hazard mitigation program. 10.d Packet Pg. 244 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-5 Policy 5.3.2 The City shall work with the San Bernardino County Flood Control District and Army Corps of Engineers to provide adequate flood protection along the Santa Ana River. a. Cooperate with the County Flood Control District and Corps of Engineers regarding future improvements along the Santa Ana River. Policy 5.3.3 The City shall evaluate the flood control system of the City and improve it as required and as funds become available. a. Review the current City storm drain plan master plan and update as necessary. Identify priorities and provide improvements as funding becomes available. b. Review all proposed development projects for their impact to the City storm drain system. Require hydrology studies for new development projects that have a potential to impact the drainage system and condition projects to construct onsite and offsite drainage facilities to mitigate project-specific impacts. Policy 5.3.4 The City shall require all development projects to comply with the National Pollutant Discharge Elimination System (NPDES) and implement appropriate Best Management Practices. a. All development projects that fall under the provisions of the NPDES program shall be conditioned to prepare and implement a Stormwater Pollution Prevention Plan (SWPPP) for construction and a Water Quality Management Plan for long-term operation. Furthermore, because of the requirement for consistency between the various General Plan Elements, any proposed amendment to an Element will be evaluated against the other Elements of the General Plan to ensure that no conflicts occur, including the Safety and Conservation Elements pursuant to AB 162, SB 1241 and SB 379. 8.3 EVALUATION OF 2006-2013 HOUSING ELEMENT State Housing Element guidelines require all jurisdictions to include an evaluation of their previous Housing Element’s action plans to determine their success. Appendix 1 of the Housing Element contains a review of the housing programs of the previous planning period. 10.d Packet Pg. 245 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-6 8.4 COMMUNITY PROFILE To effectively determine the present and future housing needs for the City of Grand Terrace, population variables, such as demographic and socio-economic characteristics and trends must first be analyzed. The following description of the community of the City of Grand Terrace is a capsulation of available data from the U. S. Census Report, data from the California Department of Finance, projections from Southern California Association of Governments (SCAG), and various other informational sources. 8.4.1. Population Trends and Projections 8.4.1.1 Population Population trends over the last three decades are shown in Table 8.1. Grand Terrace grew half as much in the last decade as the one prior, at a modest 3.4%; while San Bernardino County’s growth has remained consistent at about 20%. Table 8.1 Population Trends 1990 2000 2010 Growth 1990-2010 Growth 2000-2010 Grand Terrace 10,946 11,626 12,025 6.2% 3.4% San Bernardino County 1,418,380 1,709,434 2,035,210 20.5% 19.1% Source: U.S. Census, 1990, 2000, 2010 8.4.1.2 Household Composition, Size and Tenure The City’s population of 12,025 persons is estimated to reside in 4,399 households with an average of 2.71 persons per household. Within these households, the Census reports that 70% were family households. Non family households in the City total 1,336 (30.4%). Of those households, almost 40% of the householders are over 65 years of age. Table 8.2 depicts the household composition of the City in comparison to the County of San Bernardino. 10.d Packet Pg. 246 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-7 Table 8.2 Household Composition City of Grand Terrace and County of San Bernardino City San Bernardino County Household Type Number % Number % Family Households 3,063 69.6% 470,440 76.9% With children < 18 years 1,348 -- 242,985 -- Non-Family Households 1,336 30.4% 141,634 23.1% Householder living alone 1,026 -- 141,178 -- Householder > 65 years 395 -- 38,924 -- Total Households 4,399 100% 611,618 100% Average Household Size 2.71 3.26 Source: U.S. Census, 2010 Of the occupied units in the City of Grand Terrace, 63.4% are owner-occupied and 36.6% are renter-occupied. Housing tenure is an indicator of the housing market. Communities need an adequate supply of both to be able to provide a range of housing alternatives for households with varying incomes, household sizes and compositions, and lifestyles. As shown in Table 8.3 below, the tenure of housing in the City of Grand Terrace is nearly identical to that in the County of San Bernardino. Table 8.3 Housing Tenure for Grand Terrace and County of San Bernardino City of Grand Terrace County of San Bernardino Tenure Units % Units % Owner Occupied 2,788 63.4% 383,573 62.7% Renter Occupied 1,611 36.6% 228,045 37.3% Total Occupied Units 4,399 100% 611,618 100% Source: U.S. Census, 2010 8.4.1.3 Ethnicity Table 8.4 shows the ethnic composition in Grand Terrace in comparison to San Bernardino County. Overall the City has a larger percentage of the White population and a lesser percentage of the Hispanic or Latino population than San Bernardino County. Even though the City is still a predominately White community the demographics have changed significantly. The White population has decreased from 61% of the population in 20001 to 46% in 2010, whereas, the 1 U. S. Census, 2000 10.d Packet Pg. 247 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-8 Hispanic/Latino population has increased from 25% of the population to almost 40% in this same time period. Table 8. Ethnic Composition of Grand Terrace and San Bernardino County Grand Terrace San Bernardino County Residents Percent Residents Percent Not Hispanic or Latino 7,317 60.8% 1,034,065 50.8% White 5,575 46.4% 677,598 33.3% Black or African American 637 5.3% 170,700 8.4% American Indian/Alaska Native 42 0.4% 8,523 0.4% Asian 735 6.1% 123,978 6.1% Native Hawaiian/Pacific Islander 21 0.2% 5,845 0.3% Other races or 2+ races 307 2.5% 47,421 2.3% Hispanic or Latino (any race) 4,708 39.2% 1,001,145 49.2% Total 12,025 100% 2,035,210 100% Source: U. S. Census, 2010 8.4.1.4 Age Characteristics The distribution of population by age groups is an important factor in determining the general population make up and possible future housing needs. A breakdown of the City of Grand Terrace’s and San Bernardino County’s population by age for 2000 and 2010 is presented in Table 8.5. As seen in this Table, the City experienced a decrease in the number of residents between the ages of 35-49, and an increase in the percentage of residents at the age of 65 and older. Population by age of the County of San Bernardino is similar to that of the City, except that the County did not experience the same growth as the City did in the 65 and older population. The median age of County residents remains younger than that of the City, by four years. 10.d Packet Pg. 248 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-9 Table 8.6 Age of Population for Grand Terrace and County of San Bernardino City of Grand Terrace County of San Bernardino 2000 Census 2010 Census 2000 Census 2010 Census Total Population 11,626 12,025 1,418,380 2,035,210 Population Under 5 Years Number of Residents 756 751 143,076 158,790 Percent of Total 6.5% 6.2% 8% 7.8% Population 5-19 Years Number of Residents 2,627 2,346 463,192 505,787 Percent of Total 22.6% 19.5% 27% 24.8% Population 20-34 Years Number of Residents 2,368 2,764 364,607 441,999 Percent of Total 20.4% 22.9% 21% 21.8% Population 35-49 Years Number of Residents 2,873 2,305 385,308 415,460 Percent of Total 24.7% 19.2% 23% 20.4% Population 50-64 Years Number of Residents 1,748 2,361 206,792 331,646 Percent of Total 15% 19.6% 12% 16.2% Population 65 and Over Number of Residents 1,245 1,498 146,549 181,348 Percent of Total 10.7% 12.4% 9% 9% Population Median Age 35.3 36.1 30.3 31.7 Source: U.S. Census, 2000 & 2010 8.4.1.5 Household Income Characteristics Household income is a primary factor addressing housing needs in a community because the ability of a household to afford housing is related to the household’s income. The State of California Department of Housing and Community Development (HCD) surveys households in each county on an annual basis to determine the median income. The median income is also adjusted for households of different sizes. Households are then grouped into four income groups for purposes of determining the need for assistance. The 2010 San Bernardino County median income for a household of four persons is $65,000. Based on 2010 categories, these income groups and thresholds are: 10.d Packet Pg. 249 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-10 Table 8.6 Household Income Categories (4 Person Household) Category Percent of Median Income Income Limits Extremely Low 30% or Less of Median ≤$19,500 Very Low 31% to 50% of Median $32,500 Lower 51% - 80% of Median $52,000 Moderate 81% - 120% of Median $78,000 Above Moderate Over 120% of Median $78,000+ Source: California HCD, 2010 According to the California Department of Finance, the 2010 median household income in Grand Terrace was $67,926, 127% higher than the San Bernardino County household median income of $53,260, but comparable to nearby cities of Redlands, and Riverside (Table 8.7) Source: California Department of Finance, Form M645, * U.S. Census, 2010 Table 8.7 Median Household Income San Bernardino County and Selected Cities Municipality Median Household Income % of County Median Colton $45,298 85% Fontana $57,965 102% Grand Terrace $67,926 127% Highgrove* $41,545 78% Highland $52,202 98% Loma Linda $48,371 91% San Bernardino $39,427 74% San Bernardino County $53,260 100% Redlands $60,970 114% Riverside* $64,618 121% Riverside County* $59,419 112% 10.d Packet Pg. 250 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-11 Table 8.8 Income Distribution by Category Income Category* Total Households Percent of Households Extremely Low 385 10% Very Low 500 13% Lower 660 17% Moderate 554 14.3% Above Moderate 1,769 45.7% Total 3,868 100% Source: SCAG, based on the 2005-2009 American Community Survey Note: The total households by income level are from a special run of the 2005-2009 ACS used for federal housing planning purposes. This total will differ from subsequent updates and the 2010 Census. The household income distribution groups listed in Table 8.8 are shown as categorized by the Regional Housing Needs Assessment for purposes of the Housing Element and identifying the City’s housing needs. However, as demonstrated in Table 8.9 below, household income levels within the City are quite varied. Table 8.9 Household Income in Grand Terrace Income 2000 CENSUS 2010 CENSUS No. of Households Percent of Households No. of Households Percent of Households $ 0 - $ 9,999 146 3.5% 224 5% $ 10,000 - $14,999 187 4.5% 152 3.4% $ 15,000 - $24,999 449 10.7% 356 8% $ 25,000 - $34,999 354 8.4% 440 9.9% $ 35,000 - $49,999 730 17.4% 526 11.8% $ 50,000 - $74,999 1,169 27.9% 792 17.8% $ 75,000 - $99,999 676 16.1% 916 20.6% $100,000 - $149,999 357 8.5% 603 13.6% $150,000 or more 128 3.1% 440 9.9% 4,196 100% 4,449 100% Source: U.S. Census, 2000 and 2010 10.d Packet Pg. 251 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-12 8.4.2 Employment Trends and Projections Economic characteristics, such as the employment rate, also affect housing needs of residents. The jobs available in each employment sector and the wages for these jobs affect the type and size of housing residents can afford. In 2010, approximately 6,031 residents 16 years of age or older were in the work force. The majority of City residents are employed in the management, business and science and art industries (36.9%) and in the sales and office industries (28.8%). According to the 2010 U.S. Census, these two categories were also the highest employment sectors for San Bernardino County residents, 28% and 26%, respectively. Table 8.10 Employment by Occupation Grand Terrace Occupation Jobs Percentage Management, business, science and art 2,225 36.9% Service 914 15.1% Sales and office 1,736 28.8% Natural resources, construction, and maintenance 535 8.9% Production, transportation, and material moving 621 10.3% Total 6,031 100% Source: U.S. Census, 2010 Future housing needs are affected by the number and type of new jobs created during the planning period. Overall growth in the Riverside – San Bernardino Metropolitan Statistical Area is expected to add 206,700 new jobs into San Bernardino and Riverside Counties, bringing the employment numbers to 1,464,600 by 2020. This is a growth of 16.5% between 2010 and 2020.2 Generally, residents that are employed in well-paying occupations have less difficulty obtaining adequate housing than residents in low paying occupations. Table 8.11 lists the top ten fastest growing occupations and occupations with the most job openings between 2010 and 2020 for the Riverside – San Bernardino MSA, along with median hourly wages and the educational level needed to secure such occupations. The fastest growing occupations are those requiring less than a high school education and are also low wage service jobs. Many of the new jobs created will be in the retail and service sectors. These jobs ordinarily do not provide the income needed to buy a new home in the City. 2 California Employment Development Dept., Labor Market Information Division, Sept. 2012 10.d Packet Pg. 252 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-13 Table 8.11 Riverside-San Bernardino Counties 2010-2010 Top 10 Fastest Growing Occupations and Top 10 Occupations with the Most Job Openings Fastest Growing Occupations Employment Change Median Hourly Median Annual Education Level Home Health Aides 54% $9.71 $20,204 Less than high school Veterinary Technologists and Technicians 52% $14.72 $30,611 Associate’s degree Emergency Medical Technicians and Paramedics 43% $14.02 $29,155 Post-secondary, non-degree Market Research Analyst and Marketing Specialists 43% $27.24 $56,642 Bachelor’s Meeting, Convention, and Event Planners 40% $20.88 $43,447 Bachelor’s First-Line Supervisors of Helpers, Laborers, And Material Movers, Hand 40% $22.95 $47,728 HS diploma or equivalent Personal Care Aides 38% $9.32 $19,379 Less than high school Medical Scientists (Except Epidemiologists) 37% $36.89 $76,741 Doctor/professional Degree Medical Equipment Repairers 37% $22.50 $46,796 Associate’s Degree Logisticians 37% $33.46 $69,583 Bachelor’s Occupations with Most Openings Total Jobs (Sum) Median Hourly Median Annual Education Level Retail 23,420 $10.09 $21,003 Less than high school Cashiers 21,160 $9.68 $20,134 Less than high school Laborers And Freight, Stock And Material Movers, Hand 18,380 $11.89 $24,727 Less than high school Combined Food Preparations And Serving Workers 14,670 $9.06 $18,863 Less than high school Waiters And Waitresses 13,180 $8.95 $18,623 Less than high school Heavy And Tractor-Trailer Drivers 10,910 $19.35 $40,243 High school diploma, equivalent Personal Care Aides 10,570 $9.32 $19,379 Less than high school Stock Clerks And Order Fillers 9,120 $11.00 $22,892 Less than high school Registered Nurses 8,950 $39.06 $81,242 Associate’s degree Office Clerks, General 7,880 $14.60 $30,368 High school diploma, equivalent Source: California Employment Development Department, Labor Market Information Division, September 2012 10.d Packet Pg. 253 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-14 8.4.3 Housing Trends And Projections 8.4.3.1 Historical Residential Construction Trends As shown in Table 8.12, the City’s housing stock grew by a modest 4% between 2000 and 2010. Multi-family development experienced a 14.5% growth during this ten year period. Construction of the Blue Mountain Senior Villas, Mountain Gate and Grand Canal developments account for most of this growth. Table 8.12 Housing Growth by Type Structure Type 2000 2010 Growth Units % Units % Units % Change Grand Terrace Single-Family 3,038 68% 3,017 65% -21 -1% Multi-family 1,170 26% 1,340 29% 170 14.5% Mobile homes 250 6% 292 6% 42 17% Total Units 4,458 100% 4,649 100% 191 4% San Bernardino County Single-Family 442,652 74% 523,605 75% 80,653 18% Multi-family 116,577 19% 132,528 19% 15,951 14% Mobile homes 41,840 7% 43,504 6% 1,664 4% Total Units 601,369 100% 699,637 100% 98,268 16% Source: Department of Finance, E-8 2010 As illustrated in Table 8.13, almost 65% of Grand Terrace’s housing units are single-family (62% detached and 2.7% attached). About 29% of all units are multi-family and 6% are mobile homes. The overall percentage of single-family homes in the County is higher than Grand Terrace at 75%, while the County percentage of multiple-family is only 19% (Table 8.12). 10.d Packet Pg. 254 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-15 Table 8.13 Household Composition Housing Product Housing Composition Number of Units Percent of Units Single-Family Single-Family Detached 2,893 62% Single-Family Attached 124 2.7% Multiple-Family Multiple-Family (2-4 units) 471 10% Multiple-Family (5 or more) 869 19% Mobile Homes Mobile Home Units 292 6.3% Total 4,649 100% Source: California, Department of Finance, 2010 8.4.3.2 Age and Condition of Residential Structures The age of a structure has a significant effect on its physical condition. Homes generally begin to show age after 30 years and require some level of maintenance. This typically includes roof repair, painting, landscaping, and exterior finishes. Homes between 30 and 50 years typically require more significant maintenance and even renovation. Generally, homes built 50 or more years ago (unless well maintained) are more likely to require substantial repairs or need renovation to meet current building codes. However, by itself, age is not a valid indicator of housing condition, since proper care and continued maintenance will extend the physical and economic life of a unit. One the other hand, a lack of normal maintenance coupled with an aging housing stock can lead to the serious deterioration of individual units and entire neighborhoods. Table 8.14 shows the year when housing was built in Grand Terrace. According to the 2010 Census, 54% of the City’s housing stock is between 30-50 years old. Proper and continued maintenance of older housing is important in extending the life of a home. It also is important in maintaining the general well-being of the surrounding neighborhoods. 10.d Packet Pg. 255 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-16 Table 8.14 Age of Housing Decade Built Number of Units Percent of Units 2000 or later 320 7% 1990’s 402 9% 1980’s 1,211 26% 1970’s 1,318 28% 1960’s 936 20% 1950’s 283 6% 1949 or earlier 181 4% Total 4,651 100% Source: U.S. Census, 2010 An exterior windshield housing survey was conducted in March of 2008. This sample survey was limited to those areas in the City where the housing stock is known to be older, and included approximately 22% of the City’s housing stock. The windshield survey categorized the condition of the housing stock into three levels: those needing no rehabilitation; those needing moderate rehabilitation such as exterior repainting or missing roof shingles; and those needing substantial rehabilitation, such as sagging roofs or walls. The sample survey found that approximately 79 units may need moderate rehabilitation and only two units may need substantial rehabilitation. This suggests that overall, for its age, the City’s housing stock is in good condition. This estimate seems reasonable given that the housing market was strong during 2000-2008, and rising property values encouraged homeowners to make necessary repairs. Also, the City is proactive in ensuring that properties are well maintained. The results of the survey are valid and adequate for the purposes of this planning period. The U.S. Census reports that a small percentage of housing units in the community lack complete kitchens or bathrooms. The vast majority of housing (99%) has complete plumbing and kitchen facilities. The quality of housing distinguishes Grand Terrace from many older communities in the region. Nevertheless, given that the majority of the City’s housing stock was constructed in the 1970’s and 1980’s it is likely that some level of rehabilitation will be required during the planning period. 8.4.3.3 Overcrowding The size of residential structures (number of rooms including bathrooms, halls, closets, and kitchens.) is an important factor in assessing whether the housing stock is adequately accommodating the community’s population. An average size residential unit has five rooms (kitchen, dining/family room, living room and two bedrooms) and can accommodate a family of up to five without being considered overcrowded. Overcrowding is said to occur when there is 10.d Packet Pg. 256 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-17 more than one resident per room, excluding bathrooms, and severe overcrowding exists when there are more than 1.5 residents per room. According to the 2005-2009 American Community Survey, 1% of homeowners and 4% of renters are experiencing overcrowding, substantially lower than that of the San Bernardino County region. Although not a significant number, Table 8.15 also suggest that large family rental housing may be needed to alleviate overcrowding. Table 8.15 Overcrowding by Housing Tenure City of Grand Terrace and San Bernardino County Overcrowding Condition City of Grand Terrace San Bernardino County Owners Renters Owners Renters No overcrowding 2,761 1,345 364,808 176,500 Overcrowded 40 53 15,169 20,894 Severely Overcrowded 0 41 4,451 6,974 Total Households 2,801 1,439 384,428 204,368 No overcrowding 99% 93% 95% 87% Overcrowded 1% 4% 4% 10% Severely Overcrowded 0% 3% 1% 3% Source: Southern California Association of Governments, based on 2005-2009 American Community Survey 8.4.3.4 Vacancy Rates The residential vacancy rate, a translation of the number of unoccupied housing units on the market, is a good indicator of the balance between housing supply and demand in a community. When the demand for housing exceeds the available supply, the vacancy rate will be low; driving the cost of housing upward to the disadvantage of prospective buyers or renters. In a healthy housing market, the vacancy rate would be between 5.0 and 8.0 per cent. These vacant units should be distributed across a variety of housing types, sizes, price ranges and locations within the City. This allows adequate selection opportunities for households seeking new residences. The California Department of Finance (2010) reports a City-wide vacancy rate of 5.29%, suggesting a healthy balance between housing supply and demand. This rate compares favorably to the overall County vacancy rate of 12.6%. 10.d Packet Pg. 257 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-18 8.4.3.5 Housing Affordability The State of California Department of Housing and Community Development (HCD) publishes household income limits for all counties in the State. These household limits are used for determining eligibility of household incomes for housing programs. The 2010 income limits for San Bernardino County are summarized in Table 8.16. The annual 2010 median income for a four-person household in San Bernardino County is $65,000. Table 8.16 Affordable Income Ranges (4 Person Household) Category Percent of Median Income Income Range Extremely Low 30% or Less of Median ≤$19,500 Very Low 31% to 50% of Median $32,500 Low 51% - 80% of Median $52,000 Moderate 81% - 120% of Median $78,000 Above Moderate Over 120% of Median $78,000+ Median Income $65,000 Source: California HCD, 2010 According to State standards a household should pay no more than 30 percent of its gross income on housing. Table 8.17 shows affordable rent and home purchase limits by income category based on the County median income. These are maximum limits for a 4-person household and used for discussion purposes, although it should be noted that the limits are adjusted based upon household size. The affordability levels assume 30 percent of gross income for rent or mortgage (principal, interest, taxes and insurance), utilities, and for home purchase a 10 percent down payment, 1.25 percent in taxes and a 4 percent interest rate reflecting current conditions. Table 8.17 Affordable Housing Prices and Rents by Income Group Income Category Median Income (4-PersonHousehold)1 Maximum Home Purchase Price Maximum Monthly Rental Rate Extremely Low Less Than $19,500 $88,000 $487/month Very Low $19,501 - $32,500 $149,000 $812/month Low $32,501 - $52,000 $241,100 $1,299/month Moderate $52,001 - $78,000 $355,000 $1,950/month Above Moderate $78,000+ $355,000+ $1,950/month+ Source: HCD 2010 Income Limits, California HCD HUD User Portal 10.d Packet Pg. 258 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-19 According to MDA Data Quick3 the median resale price for homes in Grand Terrace was $185,000, this includes single-family and multiple-family units. Based on this median price homeownership is affordable to low income households. According to Zillow.com4 25 townhomes or condominiums sold between May 2012 and April 2013 for an average price of $131,000, this would mean that attached housing is affordable to very low income households. Zillow.com also list four mobilehomes for sale ranging in price between $19,000 and $45,000, which would be affordable to extremely low income households. This household income group is priced out of homeownership, except for mobilehomes. A random sampling of apartment complexes in the City showed that the market rate for one- bedroom apartments in the City rent from $750 to $950 a month, two-bedroom units rent between $950 and $1,266 a month, and three bedrooms at approximately $1,250.5 Zillow.com listed an average monthly rate of $1,750 for three-bedroom homes, and $1,950 for four-bedroom homes. Based on the range of rents for apartment housing, there are apartments available at rents affordable to very low income households and above; whereas, lower income households are priced out of detached single-family detached housing. The Blue Mountain Senior Villas, was subsidized by the City’s former redevelopment agency and most of the units are income restricted to very low and low income households. 8.4.3.6 Overpayment A household is considered to be overpaying for housing (or cost burdened) if it spends more than 30 percent of its gross income on housing. Severe housing cost burden occurs when a household pays more than 50 percent of its income on housing. The prevalence of overpayment varies significantly by income, tenure, household type, and household size. Although overpayment data by household income is not available, the impact of high housing costs typically falls disproportionately on lower income and renter households. Table 8.18 shows that while a greater percentage of Grand Terrace homeowners are overpaying in relation to renters, while, as a percentage, twice as many renters are paying more than 50% of their income to pay for housing. Moreover, of those overpaying, 120 homeowners and 150 renters fall within the extremely low income housing group. In the low income housing group, 72% of homeowners and 58% of renters are overpaying. 3 Southern California Association of Governments, Profile of the City of Grand Terrace, 2012 4 http://www.zillow.com/homes/recently_sold/Grand-Terrace-CA-92313/ accessed May 8, 2013 5 The Crest, The Highlands, Azure Hills Apartment and Blue Mountain Senior Villas complexes 10.d Packet Pg. 259 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-20 Table 8.18 Overpayment by Housing Tenure Overpayment Condition City of Grand Terrace San Bernardino County Owners Renters* Owners Renters None 1,724 686 364,808 176,500 Overpaying 660 248 15,169 20,894 Severely Overpaying 417 451 4,451 6,974 Total Households 2,801 1,439 384,428 204,368 None 61.5% 47.7% 94.9% 86.4% Overpaying 23.6% 17.2% 3.9% 10.2% Severely Overpaying 14.9% 31.3% 1.2% 3.4% *54 households were not computed Source: Southern California Association of Governments, based on 2005-2009 American Community Survey 10.d Packet Pg. 260 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-21 8.5 HOUSING NEEDS 8.5.1 Existing Needs California law requires all local governments to plan to facilitate and encourage the production of housing to accommodate population and employment growth. To assist in that effort, SCAG prepares a Regional Housing Needs Assessment, often referred to as the RHNA. The RHNA is a key tool for local governments to plan for anticipated growth. The RHNA quantifies the anticipated need for housing within each jurisdiction for an 8-year period. Communities then determine how they will address this need through the process of updating the Housing Elements of their General Plans The RHNA identifies the City’s existing and future housing need broken down into four household income categories:  “Very Low” - less than 50 percent of the median income  “Low” - 50 to 80 percent of the median income;  “Moderate” - 80 to 120 percent of the median income; and  “Above Moderate” - more than 120 percent of the median. The previous planning period (2006-2013), shown in Table 8.19 below, included the following RHNA target numbers: Table 8.19 Regional Housing Need Assessment 2006 – 2013 Target Income Level RHNA Target Very Low 80 Low 55 Moderate 63 Above-Moderate 131 Total 329 Source: SCAG, 2008 Through the adequate sites analysis the City demonstrated that 329 dwelling units could be accommodated through the planning period. However, in order to ensure availability of land for lower income households, the City was required to re-zone at least 1.35 acres of land to a minimum density of 20 dwelling units per acre to accommodate 27 low income dwelling units. A general plan amendment and zone change to re-zone 2.52 acres to a new R3-20 (High Density Residential) zone district was considered. However, during the public hearing process the City only approved a zone change for 0.81 acres, which would accommodate 16 of the 27 dwelling 10.d Packet Pg. 261 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-22 units. Therefore, from the last planning period, 11 additional units will need to be accommodated during this planning period. 8.5.2 2013 – 2021 RHNA In 2012, SCAG issued new RHNA allocations for the January 1, 2014 to October 31, 2021 planning period, as shown in Table 8.20. Table 8.20 Regional Housing Need Assessment 2013 – 2021 Target Income Level RHNA Target Very Low 28 Low 19 Moderate 22 Above Moderate 49 Total 118 Source: SCAG, 2012 8.5.3 Resource Inventory 8.5.3.1 Land Inventory State planning law requires that all Housing Elements provide an inventory of available land that will accommodate the RHNA allocation. The available properties must include the following:  Vacant residentially zoned sites  Vacant non-residentially zoned sites that allow residential uses  Underutilized residentially zoned sites, which are capable of being developed at a higher density or with greater intensity.  Non-residentially zoned sites that can be redeveloped for and/or rezoned for residential uses. An inventory of all currently vacant or underutilized parcels currently zoned for residential development or that permits residential development was prepared. Tables 8.21 through Table 10.d Packet Pg. 262 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-23 8.28 lists all parcels by Assessor’s Parcel Number, current zoning and General Plan designation, acreage, and realistic development density. Single Family Residential Hillside (RH) Zoned Properties Parcels zoned RH are found along the west side of Blue Mountain. The permitted density within the RH zone is one dwelling unit per acre. These parcels are characterized as large rural residential lots on steep hilly terrain and numerous development constraints including steep slopes, landslide potential, high fire hazards, sensitive habitat, excessive grading requirements, limited access, and utility constraints. In consideration of the existing topography and other physical constraints the City requires that development be subject to a specific plan or master plan to establish site development standards such as setbacks, height limits and density, on a project by project basis. Although the specific plan would allow flexibility in design and development standards, these parcels are typically considered too expensive for affordable housing due to the development constraints. Based on an analysis of the properties, the realistic capacity within the RH zone is 72 additional single-family lots suitable for above-moderate- income housing. Table 8.21 RH Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 0276-491-03 Hillside-Low Density Residential Vacant 28.94 1 du/ac 19 @ 0.65 du/ac 0276-491-01 Hillside-Low Density Residential Vacant 5.48 1 du/ac 5 @ 1 du/ac 0276-491-02 Hillside-Low Density Residential Vacant 1.02 1 du/ac 1 @ 1 du/ac 0282-192-16 Hillside-Low Density Residential Vacant 2.16 1 du/ac 2 @ 1 du/ac 1178-061-01 Hillside-Low Density Residential Vacant 44.81 1 du/ac 23 @ 0.5 du/ac 1178-251-01 Hillside-Low Density Residential Vacant 42.91 1 du/ac 22 @ 0.5 du/ac Total - - 125.32 - 72 Source: Grand Terrace Community Development Department, 2013 10.d Packet Pg. 263 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-24 Single Family Residential - 20,000 sq. ft. min. (R1-20) Parcels R1-20 parcels are typically characterized as larger rural residential parcels at the foot of Blue Mountain. Minimum lot size is 20,000 square feet (1/2 acre). These parcels are typically constrained by steeper slopes, limited access and utilities, and high fire hazards, although not as much as Residential Hillside (RH) lots. Non-vacant parcels within this zone consist of older homes on large lots that may be classified as underutilized, and that could be subdivided. Residential development standards for the R1-20 zone district are contained in Table 8.38, and most single-family development can meet these standards. Permissible density within this zone district is 1-2 dwelling units per acre, and approximately 57 additional above-moderate-income single-family residential units could be accommodated in this zone district. Table 8.22 R1-20 Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 0275-083-03 Low Density Residential Underutilized 3.39 1-2 du/ac 4 @ 1.25 du/ac 0275-083-34 Low Density Residential Underutilized 3.09 1-2 du/ac 4 @ 1.25 du/ac 0276-421-06 Low Density Residential Underutilized 2.65 1-2 du/ac 2 @ 1 du/ac 0276-431-08 Low Density Residential Underutilized 3.15 1-2 du/ac 4 @ 1.25 du/ac 0276-431-09 Low Density Residential Underutilized 2.72 1-2 du/ac 2 @ 1 du/ac 1178-241-03 Hillside-Open Space Vacant 10.00 1-2 du/ac 10 @ 1.5 du/ac 1178-161-76 Low Density Residential Vacant 2.59 1-2 du/ac 3 @ 1 du/ac 1178-191-02 Low Density Residential Underutilized 18.00 1-2 du/ac 18 @ 1 du/ac 1178-231-02 Low Density Residential Vacant 1.77 1-2 du/ac 2 @ 1 du/ac 1178-241-01 Low Density Residential Underutilized 8.00 1-2 du/ac 8 @ 1.5 du/ac Total - - 55.36 - 57 Source: Grand Terrace Community Development Department, 2013 10.d Packet Pg. 264 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-25 Single Family Residential - 10,000 sq. ft. min. (R1-10) Parcels R1-10 parcels are characterized as a transition zone between the more rural R1-20 lots and standard 7,200 square foot single-family lots. The minimum lot size is 10,000 square feet and they are generally located along the foot of Blue Mountain in areas of milder slopes and fewer constraints than R1-20 and RH lots. Underutilized lots in this zone district consist of large lots with only one residential unit that could be subdivided. Permissible density within this zone district is 1-4 dwelling units per acre. Residential development standards for this zone district are contained in Table 8.38. For single-family development, the development standards are typically not a constraint, and can be met. Realistic density is 3 dwelling units per acres, and the identified parcels could support a total of 20 additional above-moderate-income housing units. Table 8.23 R1-10 Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 0276-401-12 Low Density Residential Underutilized 1.02 1-4 du/ac 2 @ 2 du/ac 0276-401-16 Low Density Residential Vacant 0.87 1-4 du/ac 2 @ 2 du/ac 0276-401-22 Low Density Residential Vacant 0.23 1-4 du/ac 2 @ 1 du/ac 0276-411-02 Low Density Residential Vacant 3.10 1-4 du/ac 9 @ 3 du/ac 0276-411-27 Low Density Residential Vacant 1.67 1-4 du/ac 4 @ 2.5 du/ac 0267-411-28 Low Density Residential Vacant 0.65 1-4 du/ac 2 @ 3 du/ac Total - - 7.54 - 20 Source: Grand Terrace Community Development Department, 2013 Single Family Residential – 7,200 sq. ft. min. (R1-7.2) Parcels The R1-7.2 residential zone is the standard zone for typical single-family development in the City. Lots are typically 7,200 square in size and were created in larger subdivisions. Permitted density in this zone district is 1-5 dwelling units per acre. Residential development standards for this zone district are contained in Table 8.38. The development standards are typical for single- family development and similar to surrounding jurisdictions, are not a constraint to single-family development. Remaining R1-7.2 available lots are generally older infill lots or residences on larger lots that could be subdivided to create additional housing opportunities. Lots created under this zone designation can be developed in accordance with the development standards, and it is anticipated that approximately 29 above-moderate-income units could be accommodated in the R1-7.2 zone district. 10.d Packet Pg. 265 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-26 Table 8.24 R1-7.2 Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 1167-161-31 Low Density Residential Vacant 0.88 1-5 du/ac 3 @ 4 du/ac 1167-201-03 Low Density Residential Vacant 2.61 1-5 du/ac 9 @ 4 du/ac 1167-271-11 Low Density Residential Vacant 0.50 1-5 du/ac 2 @ 4 du/ac 1167-271-12 Low Density Residential Underutilized 1.00 1-5 du/ac 2 @ 4 du/ac 1167-281-03 Low Density Residential Underutilized 0.93 1-5 du/ac 3 @ 3 du/ac 1167-291-02 Low Density Residential Underutilized 2.68 1-5 du/ac 10 @ 4 du/ac Total - - 8.60 - 29 Source: Grand Terrace Community Development Department, 2013 Multi-Family Residential (R2) Parcels R-2 zoned parcels allow for standard single-family residential units and lower density multi-family residential units including duplexes, triplexes, and fourplexes. These residential units are permitted by right. Permitted density in this zone district is 1-9 dwelling units per acre. Many of these lots are located on the west side of the City and are currently occupied by older rural residential units. Residential development standards for this zone district are contained in Table 8.38. The underutilized sites identified below each contain an existing residence. Given the sizes of these lots there is adequate underutilized area to be able to accommodate additional units. Additionally, because of the existing residence it is likely that at most two or three residential units would be accommodated. With this small level of development, the existing residential uses are not a constraint to development on these lots because they can usually be incorporated into the design of development. It is anticipated that a minimum of 65 moderate-income multiple-family units could be constructed under the permitted base density. There is the ability for developers to apply for density bonuses that would allow 10.d Packet Pg. 266 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-27 densities greater than that permitted, and development incentives which would include a relaxing of development regulations, such as setbacks, parking and height standards; or apply to use the City’s newly adopted PRD standards which allow density bonuses where energy efficiency methods are utilized in project design. Table 8.25 R2 Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 0275-211-05 Medium Density Residential Underutilized 1.18 1-9 du/ac 4 @ 3.3 du/ac 0275-211-09 Medium Density Residential Underutilized 3.93 1-9 du/ac 8 @ 2 du/ac 0275-211-17 Medium -Density Residential Underutilized 1.06 1-9 du/ac 3 @ 3 du/ac 0275-211-58 Medium Density Residential Underutilized 1.52 1-9 du/ac 3 @ 2 du/ac 0275-223-12 Medium Density Residential Underutilized 2.0 1-9 du/ac 15 @ 8 du/ac 0275-223-40 Medium Density Residential Underutilized 1.09 1-9 du/ac 6 @ 4 du/ac 0275-223-41 Medium Density Residential Underutilized 0.90 1-9 du/ac 4 @ x 4 du/ac 0275-223-60 Medium Density Residential Underutilized 1.50 1-9 du/ac 8 @ 4 du/ac 0275-231-11 Medium Density Residential Underutilized 1.10 1-9 du/ac 4 @ 3.5 du/ac 0275-231-25 Medium Density Residential Underutilized 1.47 1-9 du/ac 10 @ 7 du/ac Total - - 22.02 - 65 Source: Grand Terrace Community Development Department, 2013 10.d Packet Pg. 267 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-28 Multi-Family Residential (R3) Parcels The R3 zone is a zone intended for medium density multi-family residential uses. Development in this zone may include apartments, condominium, town homes, duplexes, triplexes, and fourplexes at densities of up to 12 units per acre. These residential units are permitted by right. The remaining R3 parcels are all infill lots already provided with all public utilities and services, and are either vacant or contain existing residential uses. Residential development standards for this zone district are contained in Table 8.38. Almost all of the underutilized sites identified above contain an existing residence, and most measure at least one half acre in size. . Table 8.26 includes the existing mobile home park, over the long term, should it redevelop it could generate up to 233 multiple-family units. However, for purposes of adequate sites, this parcel is not included in the final calculations. Therefore, exclusive of the mobile home park, a total of 74 additional moderate-income multiple-family units could develop within the R-3 zone district. Developers could also apply for a density bonus that would allow densities greater than that permitted, and development incentives which would include a relaxing of development regulations, such as setbacks, parking and height standards; or apply to use the City’s newly adopted PRD standards which allow density bonuses where energy efficiency methods are utilized in project design 10.d Packet Pg. 268 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-29 Table 8.26 R3 Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity #0275-211-53 Medium Density Residential Underutilized 21.23 1-12 du/ac 233 @ 11 du/ac 0275-251-77 Medium Density Residential Underutilized 0.64 1-12 du/ac 7 @ 11 du/ac 0275-331-01 Medium Density Residential Vacant 3.65 1-12 du/ac 35 @ 11 du/ac 1167-341-02 Medium Density Residential Underutilized 0.38 1-12 du/ac 2 @ 10.5 du/ac 1167-341-04 Medium Density Residential Underutilized 0.50 1-12 du/ac 4 @ 8 du/ac 1167-341-05 Medium Density Residential Underutilized 1.04 1-12 du/ac 11 @ ll du/ac 1167-341-78 Medium Density Residential Vacant 1.33 1-12 du/ac 15 @ 11 du/ac Total - - 28.77 - 307 Source: Grand Terrace Community Development Department, 2013 #This is an existing mobilehome park, and is not included in the final calculations. It is included for demonstrative purposes only. High Density Residential (R3-20) Parcels The R3-20 is a new zone district created in 2012 in accordance with Housing Program 8.8.1.s of the 2010 Housing Element. The City was successful in creating the new zone district, which allows a density of 20 dwelling units per acre and permits exclusively multiple-family uses. Concurrently with the Zoning Code amendment creating the new zone district, the City adopted a Zone Change and General Plan Amendment, re-designating 0.81 acres to the new designation, which can accommodate 16 lower-income multi-family dwelling units. Program 2 includes a commitment to re-designate additional sites to accommodate the City’s remaining lower-income RHNA allocation of 42 units in the 2013-2021 period. Table 8.27 R3-20 Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 0275-251-04 Medium Density Residential Vacant 0.81 20 du/ac 16 @ 20 du/ac Total - - 0.81 - 16 Source: Grand Terrace Community Development Department, 2013 10.d Packet Pg. 269 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-30 Barton Road Specific Plan (BRSP-OP) Parcels The Barton Road Specific Plan allows infill multiple-family uses on parcels zoned BRSP-OP. An analysis of the parcels with this zoning and the prevailing development pattern identified three parcels that would support multiple-family development. As shown on Table 8.28, 19 additional moderate-income dwelling units could be accommodated within this zone district. Table 8.28 BRSP-OP Zoned Available Parcels APN General Plan Condition Acreage Allowable Density Realistic Unit Capacity 0276-202-45 Office Commercial Underutilized 0.65 1-12 du/ac 5 @ 12/du/ac 0276-202-46 Office Commercial Underutilized 0.32 1-12 du/ac 2 @ 8 du/ac 0276-202-70 Office Commercial Vacant 0.40 1-12 du/ac 12 @ 15 du/ac Total - - 1.37 - 19 Source: Grand Terrace Community Development Department, 2013 Land Inventory Summary Exhibit 8-1 depicts the locations of available parcels that permit multiple-family development as identified Tables 8.25 through 8.28. In addition to the parcels identified in the tables above, the mixed-use land use designation adjacent to I-215 and south of Barton Road could generate an additional 175 multi-family residential units. As illustrated in Table 8.29, approximately 527 new units could be constructed at buildout. Table 8.29 Available Land for Residential Development Zone Acres Capacity Income Category RH 125.32 72 units Above Moderate R1-20 55.36 57 units Above Moderate R1-10 7.54 20 units Above Moderate R1-7.2 8.60 29 units Above Moderate R2 22.02 65 units Moderate R3 28.77 74 units Moderate R3-20 0.81 16 units Lower BRSP-OP 1.37 19 units Moderate Mixed Use 15.00 175 units Moderate Total 264.79 527 Source: Grand Terrace Community Development Department, 2013 10.d Packet Pg. 270 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-31 Potential to Accommodate the RHNA Allocation for the 2013-2021 Planning Period Unaccommodated Need from the 4th Planning Cycle. The previous Housing Element identified a shortfall of development capacity for 27 lower-income units (see Appendix 1, Program 8.8.1.s). In 2012, the Zoning Code was amended to create the R3-20 zone allowing multi-family development by-right at a density of 20 units/acre and a 0.81-acre site was rezoned to R3-20. That rezoning created additional capacity for 16 of the 27 units, therefore an unaccommodated need of 11 lower-income units is carried over to the 5th planning cycle. Site Capacity to Accommodate the RHNA. Generally speaking, the single-family residential designations will typically house moderate- and above-moderate-income households. Except that, as discussed in Section 8.4.3.5 Housing Affordability section of this Element, the current median housing price of $185,000 means housing is affordable to low-income householders, as well. The multiple-family residential and mixed-use designations are generally expected to house lower- and moderate-income households because of their density and economies of scale. Based on the available sites inventory there is sufficient land to accommodate 178 single-family units and 349 multiple-family units. Therefore, as shown in Table 8.30a, there is sufficient land available to accommodate the RHNA allocation in the moderate and above-moderate categories but a shortfall of potential sites for 42 lower-income units, which includes the carryover of 11 units from the previous planning period. Program 2 is included in the Housing Plan to address this issue, and candidate sites for rezoning are listed in Table 8.30b. Table 8.30a Comparison of RHNA and Site Availability Zoning District Very Low/ Low Moderate Above Moderate Unaccommodated Need 11 0 0 2014-2021 RHNA 47 22 49 Total RHNA 58 22 49 RH, R1-20 0 29 100 R1-10 0 20 0 R1-7.2 0 29 0 R2 0 65 0 R3 0 74 0 R3-20 16 0 0 BRSP & MU 0 194 0 Total Site Capacity 16 411 100 Surplus (shortfall) (42) 389 51 Source: Grand Terrace Community Development Department, 2015 10.d Packet Pg. 271 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-32 Table 8.30b Candidate Sites for Rezoning Site / APN Current General Plan/Zoning Site Acreage Existing Use Realistic Unit Capacity @ 20 du/ac Site 1 1167-241-01 Low Residential/ R1-7.2 1.07 Underutilized – 1 SFR (built 1936) 21 Site 2 0275-223-12 Medium Residential/ R2 1.99 Underutilized – 1 SFR (built 1924) 39 0275-223-59 0.50 Underutilized – 1 SFR (built 1980) 10 0275-223-60 1.50 Underutilized – 1 SFR (built 1940) 30 Total 5.06 100 Site 1. This 1.07-acre parcel is located at 12201 Michigan Street and is currently zoned R1-7.2 (Single Family Residential, 7.2 units per acre maximum). The site is underutilized and occupied by one single-family house. The large parcel size, age and condition of the structure and location near the Barton Road commercial corridor make it a good candidate for multi-family housing. This site is proposed for rezoning to the R3-24 district (High Density Residential) with an allowable density of 20 to 24 units per acre. Site 2. This site is comprised of three contiguous parcels totaling approximately four acres on the west side of Grand Terrace Road just north of Barton Road. Each parcel contains one single- family house and is currently zoned R2 (Low Medium Density Residential). The large parcel sizes, age and condition of the structures and location near the Barton Road commercial corridor make it a good candidate for multi-family housing. The largest parcel in this site (APN 0275- 223-12) is proposed for rezoning to R3-24 while the two smaller parcels are proposed for rezoning to R2/Affordable Housing Overlay (AHO) allowing multi-family residential development at a density of 20 to 24 units per acre if 10% lower-income units or 5% very-low- income units are provided. It should also be noted that developers of R2, R3 and R3-20 designated land may apply to use the City’s recently-adopted PRD standards. These standards allow density bonuses where energy efficient practices are incorporated into the project design. In addition, on a case-by-case basis the City will consider application of the R3-20 zone district upon additional properties. 10.d Packet Pg. 272 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII-33 Exhibit 8-1 –Available Sites 10.d Packet Pg. 273 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 34 8.5.3.2 Suitability of Non-Vacant Sites Development Trends: As discussed above the City expects that the multiple-family zones, BRSP-OP zone and anticipated mixed-use projects will facilitate development of lower- and moderate-income housing. Over the last planning period one multiple-family project was completed in the City, the completion of a market-rate townhome development that was left partially completed. Additionally, a 23-unit low-income family rental housing development was proposed on City-owned property; however, the project did not move forward due to difficulty in obtaining financing. Because of the economies of scale, it is likely that multiple-family development will continue to provide affordable housing in the City. Additionally, incentives will likely be necessary to encourage higher-density affordable units. An 80-acre specific plan project is proposed adjacent to I-215 and south of Barton Road. The project area is comprised of vacant and non-vacant land, some currently owned by the Successor Agency to the City of Grand Terrace, and includes the assimilation of multiple parcels and redevelopment of lands. This project is expected to include a mixed-use component with opportunities for multiple-family residential units. Because a specific plan is being proposed for the project it has the added benefit of creating customized development standards that would apply to the residential component. Multiple-family infill development in the BRSP-OP zone is allowed at a density of up to 12 units per acre and is subject to the residential standards contained in Chapter 18.10 (RH, R1, R2 and R3 Zones) as shown in Table 8.38, including state density bonus provisions. Under the provisions of the Barton Road Specific Plan for mixed-use development, the residential component is not tied to the development standards shown in Table 8.38; it is, however, restricted to second floor levels of buildings. Mixed-use development is subject to the standards of the underlying zone district, including lot coverage, height, parking and setbacks. Densities may not exceed those of the residential, commercial and industrial designations of the General Plan and zoning; and it is anticipated that densities will be established through the Mixed-Use process. Market conditions: Grand Terrace is a small bedroom community located amidst the employment areas of surrounding jurisdictions, and adjacent to the I-215 Freeway, a major commuting corridor to jobs in Los Angeles and Orange Counties. One of the major obstacles to providing housing to meet the needs of all economic segments of the community is the nature of the housing market itself. The rate at which housing costs accelerated during the 1990s and 2000s created a serious national problem. This problem was magnified in California as a whole, and particularly in Inland Empire communities such as Grand Terrace, where housing costs rapidly inflated. As a result of the housing boom of the early 2000s, housing in Grand Terrace has become less affordable with the cost of a typical single-family residence increasing an average of 260 percent from 2000 to 2007. 10.d Packet Pg. 274 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 35 However, the recent downturn of the market significantly reduced housing prices throughout Grand Terrace. Typically the gap between market-rate and what lower- and moderate-income households can afford is large for single-family detached development. However, sales prices in 2012 have shown that single-family detached housing in Grand Terrace is affordable to low- and moderate-income households. 8.5.3.3 Realistic Capacity The City evaluated the implementation of its multiple-family residential development standards, including building height, building setbacks, building coverage and parking requirements by reviewing recent multiple-family development projects. These projects evaluated are R-3 zone and most of the projects were designed at a density of about 11 units per acre which is comparable with the realistic capacity identified in Table 8.27 (R3 Zoned Available Parcels). Two other multiple-family projects were built/approved prior to the City’s incorporation. The 556-unit Highlands Apartments is a 34.76-acre development yielded a density of 16 units per acre. One hundred and eleven of the units have affordability covenants governing them. The Preston Condo project, already recorded, has a permitted density of 15 units per acre, and will require design review of the housing product. Twenty-five percent of the units within this project are proposed to be restricted to moderate-income households. 8.5.3.4 Zoning for Lower Income Households Typically, it is difficult to accommodate affordable housing within single-family development without substantial subsidies, such as silent seconds, down-payment assistance, etc. In the past, the City’s Housing Office (now Community Development) purchased and rehabbed single- family units and sold to affordable households. This program was suspended in the early 2000s due to rising housing prices. With the dissolution of redevelopment agencies the City does not anticipate reactivating this program. Usually, because of the economies of scale, affordable housing projects are developed in zone districts that allow multiple-family developments, such as the City’s Multiple-Family zone districts and Barton Road Specific Plan properties zoned for Infill Residential development. Therefore, the City anticipates that housing for lower-income households will be built on these zone districts. Grand Terrace is a small bedroom community working towards creating a greater commercial tax and industrial base to improve the city’s jobs housing balance which is currently housing-rich and jobs-poor. In previous planning cycles, multiple-family units have been approved and/or developed indicating that the market is accommodating multiple-family projects. However, only the Blue Mountain Senior Villas project contains affordable rental housing units, which received substantial subsidies from the City’s low-mod housing fund. Even with the opportunities for financial subsidies, bonuses and development incentives, there is reluctance by developers to accommodate affordable housing due to the recordation of long-term affordability covenants. 10.d Packet Pg. 275 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 36 Table 8.31 Approved/Constructed Multiple-Family Projects Project Zoning Acreage Number of Units Allowable Density # of Units/Density Greenbriar R3 3.7 35 1-12 du/ac 10.35 Karger Homes R3 2 16 1-12 du/ac 8 Canal Street R3 3.6 42 1-12 du/ac 11.6 Hidden Gate R3 4.84 55 1-12 du/ac 11 *Blue Mountain Senior Villas R3-S 6 6 1-12 du/ac 20 * It should be noted that this project includes a 2.6 acre public park with the residential component built on 3.4 acres. If only the 3.4 acres were considered, project density would be 35 dwelling units per acre. The multiple-family projects built or approved over the last few planning cycles (Table 8.31) demonstrate that development is being constructed in accordance with the realistic capacity for the R3 zone district. The developments are able to meet the provisions of the development standards for the R3 zone. The one affordable project is the Blue Mountain Senior Villas, which is built at a density of 20 units per acre. A specific plan was also developed as part of this project, which allows the developers to establish their own development standards in relation to the site and project characteristics. This in turn provides a tremendous amount of flexibility in development. It should be noted that the Blue Mountain Senior Villas project at a density of 20 units per acre was built with stricter provisions in lot coverage and building height than that permitted in the Zoning Code, but at a lesser standard for parking (0.75 parking spaces per unit as opposed to 2 spaces per unit). Density does influence the financial feasibility of projects; however the constraint to affordable housing in Grand Terrace has not necessarily been density but rather an interest by developers to construct affordable units. In conformance with the “default density” provisions of state law (Government Code Sec. 65583.2(c)(3)(B), in 2012 the City established the R3-20 zoning district allowing multi-family development at a density of 20 units/acre. As noted in Program 2 of the Housing Plan, a zoning amendment will be processed to designate additional land with appropriate development standards to accommodate the City’s remaining lower-income housing need for the planning period. 10.d Packet Pg. 276 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 37 8.5.4 Special Housing Needs There are households with identifiable special needs, as defined by California law, for which the City must plan. Such groups have a greater difficulty in finding affordable housing due to special circumstances, which may be related to employment, income, family characteristics, disability or other conditions. As a result, some residents may experience a higher prevalence of overpayment, overcrowding, or other housing problems. These groups include persons with disabilities, the elderly, large households, female-headed households, farm workers, and the homeless. Each special needs category is discussed in greater detail below. 8.5.4.1 Persons with Disabilities Table 8.32 Persons with Disabilities by Age Disability by Age Persons Percent Age 5 to 15 – total persons 2,095 With a disability 105 5.0% Sensory 20 Physical 40 Mental 57 Self-care 25 Age 16 to 64 – total persons 7,668 With a disability 1,363 17.8% Sensory 189 Physical 396 Mental 251 Self-care 161 Going outside the home 251 Employment disability 161 Age 65 and older – total persons 1,197 With a disability 514 42.9% Sensory 135 Physical 360 Disability by Age Persons Percent Mental 174 Self-care 156 Going outside the home 236 U.S. Census, 2000 Persons with disabilities have special housing needs. Depending on the disability their needs may be proximity to public transit, services, and the workplace. Housing needs may include ramps, 10.d Packet Pg. 277 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 38 lowered countertops, and widened doorways. The American Community Survey and 2010 Census did not track disabilities. However, because the City’s population has not grown very much between 2000 and 2010, information from 2000 is still considered relevant. As shown in Table 8.32, 17.8% of the City’s working population (ages between 16-64 years) has a disability, with 12% of those disabled persons having an employment disability. For those aged 65 years and older, 42.9% have a disability. Included within these disabilities are persons with disabilities that limit their ability to leave the home (18.4% of the working population and 46% of the senior population, respectively). According to Section 4512 of the Welfare and Institutions Code a "developmental disability" means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual which includes mental retardation, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but shall not include other handicapping conditions that are solely physical in nature. Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult. The Inland Regional Center (IRC) provides services to more than 25,000 people with developmental disabilities and their families in San Bernardino and Riverside counties. IRC serves 75 Grand Terrace residents. The City of Grand Terrace adopted Chapter 18.66 Reasonable Accommodations, which provides a simple and inexpensive ($50.00) process for disabled persons, including those with developmental disabilities, to request to deviate from City codes and regulations, such as ramps or accessible room additions within building setbacks. In addition, state-licensed facilities that house persons with disabilities is permitted within the residential zones of the City. 8.5.4.2 The Elderly As reported in the 2010 Census 1,498 persons (12.4%) of Grand Terrace residents were over 65 years of age. This represents an increase of 255 elderly residents since the 2000 Census. It is likely that the elderly population will continue to increase due to two factors: 1) The U.S. population nationwide is aging as the baby boom population (born between 1946 and 1964) approaches their senior years; and 10.d Packet Pg. 278 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 39 2) Many long-time residents chose to stay in the City. As people age, they often find themselves facing additional housing problems they may not have had to cope with previously. Senior households have special housing needs primarily due to three major concerns: physical disabilities/limitations, income and health care cost. Affordability can be an issue of special concern to the elderly, who are often on fixed retirement incomes. Many elderly owner-households reside in mobile homes, which are among the lowest- cost housing options in the City. In addition, the elderly may require assistance with housekeeping, maintenance, and repairs to remain in their own homes as long as possible. Special design features that may be needed include elimination of barriers such as steps and the provision of recreational and social amenities for the elderly. Table 8.33 Elderly Households in Grand Terrace Householder Age Renter household Percent Owner Households Percent 64 years of age or younger 1,335 92.8% 2,217 79.2% 65 years of age or older 104 7.2% 584 20.8% Total 1,439 100% 2,801 100% Source: U.S. Census, 2010 8.5.4.3 Large Family Households Large households are an indicator of need for large units. Large households are generally defined as households with 5 or more persons. Grand Terrace has 499 (11.8%) total households consisting of five or more persons. Table 8.34 shows that the City is made up predominately of 1 to 4-person households. This suggests that the need for large units with four or more bedrooms is expected to be significantly less than the need for smaller units. Table 8.34 Household Size by Tenure 1-4 Persons 5+ Persons Total Occupied Number Percent Number Percent Number Percent Owner 2,435 65.1% 366 73.3% 2,801 66.1% Renter 1,306 34.9% 133 26.7% 1,439 33.9% Total 3,741 100% 499 100 4,240 100% Source: Southern California Association of Governments, based on 2005-2009 American Community Survey 8.5.4.4 Single Parent Households 10.d Packet Pg. 279 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 40 Single-parent households also have greater housing needs than other households due to their limited income and higher expenses. The City of Grand Terrace currently has 791 single-parent families with children, of which 348 are male-headed households and 443 are female-headed households. The Census Bureau has not published data on the percentage of Grand Terrace single parent families that are low income or have housing problems. However, as is common, lower income single parents, particularly renters, experience the highest prevalence and severity of overpayment and overcrowding. Single-family detached rentals and multifamily housing with child-oriented amenities, such as playgrounds and onsite childcare, would help meet the housing needs of Grand Terrace’s single parent households. Affordable attached housing, such as condominiums, can also help meet the needs of female-headed and single-parent households Table 8.35 Household Type by Tenure Household Type Owner Renter Households Percent Households Percent Married family 1,773 63.3% 572 39.8% Male householder, no wife present 159 5.7% 189 13.1% Female householder, no husband present 230 8.2% 213 14.8% Non-family households 639 22.8% 465 32.3% Total 2,801 100% 1,439 100% Source: Southern California Association of Governments, based on 2005-2009 American Community Survey 8.5.4.5 Farmworker Housing Based on the 2010 Census, there are 6,132 employed residents over the age of 16 years. Of those workers, only 21 (0.23%) persons are employed as farm workers. Because the number of existing employees in Grand Terrace are identified as being farm workers is so small, it is anticipated that that their housing needs will be met through programs designed for lower income households. 8.5.4.6 Homeless The homeless are the community’s most vulnerable residents. The homeless often face chemical dependency, mental health problems, domestic violence, and other life-threatening conditions. Individuals and families experience homelessness for a variety of reasons, and therefore a homeless population may have a variety of needs. A homeless person may need medical care, childcare assistance, credit counseling, substance abuse treatment, job training, and/or English language education, among other services. On January 24, 2013, a Point in Time homeless survey was conducted County-wide. The homeless count was a joint effort between the San Bernardino County Homeless Partnership, the 10.d Packet Pg. 280 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 41 San Bernardino County Office of Homeless Services, and the Institute for Urban Initiatives who recruited over 400 community volunteers to implement the count and a subpopulation survey. Preliminary findings found that there are 2,321 adults and children who are homeless on a given day in San Bernardino County. Of the 2,321 persons, 1,247 (1,182 adults and 65 children) are unsheltered and 1,074 (640 adults and 434 children) were sheltered (i.e. living in shelters, transitional housing or received motel vouchers). The Point in Time count did not find any homeless persons residing in Grand Terrace.6 The Point in Time count is a single snapshot count on one particular day. During the last housing cycle, six homeless persons were identified in Grand Terrace. Conservatively, this number is likely still valid. There is a variety of housing service providers in proximity to Grand Terrace that address a range of needs. Providers are shown on Table 8.36, and this list is not intended to be all- inclusive. These providers provide emergency shelter housing, transitional and permanent housing, utility assistance, rental assistance, food assistance, and support services, such as counseling, such as Inland Temporary Homes, located in Loma Linda, which provides a 90-day shelter program and 21-24-month transitional housing program for homeless families with children under 18 years of age. Currently, Inland Temporary Homes also teaches 24 classes covering a complete range of subjects focused on developing personal skills to facilitate personal growth, career employment services identify individual interests and skills to develop a career path, and counseling by a licensed psychologist facilitates mental health. Also, there are currently six residential care facilities located within the City of Grand Terrace. The City has permitted these facilities to be established within its corporate boundaries in accordance with Section 1566.3 of the Health and Safety Code. According to HCD, these facilities meet the requirement for the provision of transitional housing as set forth in Section 65583 of the Government Code. Five of the facilities have occupancy of six persons per facility for a total of 30 persons, and one facility is Emeritus, which provides assisted living and memory care services. Emeritus is state-licensed for 150 beds. These facilities are providing important transitional housing for 180 persons. In 2012 the City amended its Zoning Code, in accordance with Program 8.8.1.m, allowing for emergency shelters to be permitted in the Industrial zone without a conditional use permit, and subject to the same development and management standards that apply to the residential or commercial uses within the same zone district. 6 San Bernardino County 2013 Homeless Count and Subpopulation Survey: Preliminary Findings and Recommendations 10.d Packet Pg. 281 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 42 Table 8.36 Homeless Providers Name Services Provided Location Cedar House Life Change Center Transitional housing, support services Bloomington House of Hope Ministry Transitional housing, support services Bloomington Calvary Chapel Food bank Fontana Clear Water Residential Care for the Elderly & Homeless Transitional housing, permanent housing, case management, support services Fontana Water of Life Church, City Link Transitional housing, case management, rental assistance, utility assistance, support services Fontana Hope Homes Transitional housing, Permanent housing, support services Highland Inland Temporary Homes Transitional housing, case management, support services Loma Linda VA Loma Linda-Healthcare System Health Care for Homeless Veterans Transitional housing, permanent housing, case management, support services Loma Linda Catholic Charities Case management, rental assistance, utility assistance, support services Ontario, San Bernardino Fresh Start Ministries and Community Services, Inc. Support services Ontario House of Ruth Emergency shelter, domestic violence shelter, transitional housing, case management, support services Ontario Inland Valley Hope Partners Food bank, support services Ontario Mercy House Transitional housing, case management, rental assistance, utility assistance, support services Ontario The Salvation Army Emergency shelter, support services Ontario, Redlands Building a Generation Case management, utility assistance, support services Redlands Family Services Association of Redlands Transitional housing, case management, rental assistance, utility assistance, food bank, support services Redlands The Blessing Center Emergency shelter, food bank, support services Redlands Our House Transitional housing, case management, food bank, support services Redlands 10.d Packet Pg. 282 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 43 Name Services Provided Location Cathedral of Praise Transitional housing, case management, rental assistance, utility assistance, support services Rialto House of Prayer Permanent housing, case management, food bank, support services Rialto Catholic Charities Case management, rental assistance, utility assistance, support services San Bernardino CDCR CSUSB Day Reporting Center Transitional housing, case management, support services San Bernardino Central City Lutheran Mission Emergency services (cold weather), transitional housing, permanent housing, case management, support services San Bernardino Community Action Partnership of San Bernardino County Transitional housing, permanent housing, Case management, rental assistance, utility assistance, support services, food bank San Bernardino County of San Bernardino Department of Public Health Permanent housing, case management, support services San Bernardino Foothill AIDS Project Emergency services, transitional housing, permanent housing, case management, utility assistance, food bank, support services San Bernardino Frazee Community Center Emergency services, transitional housing, case management, support services San Bernardino House of Angeles Transitional housing, food bank, support services San Bernardino Mary’s Mercy Center Veronica’s Home of Mercy Transitional housing, case management, food bank, support services San Bernardino Option House, Inc. Transitional housing, case management, rental assistance, utility assistance, support services San Bernardino San Bernardino One Stop TAY Center Transitional housing, case management, support services San Bernardino San Bernardino One Stop TAY Center Transitional housing, case management, support services San Bernardino Time For Change Foundation Transitional housing, case management, support services San Bernardino Turrill Transitional Assistance Program Inc. Transitional housing, case management, support services San Bernardino Source: San Bernardino County Homeless Partnership, 2012 8.5.4.7 At Risk Housing 10.d Packet Pg. 283 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 44 As required by Government Code Section 65583, the City must analyze the extent to which low- income, multi-family rental units are at risk of becoming market rate housing and, if necessary, develop programs to preserve or replace these assisted housing units. The multiple assistance programs include state or local mortgage revenue bonds, redevelopment tax increments, in lieu fees or an inclusionary housing ordinance, or density bonuses. Low income multi-family housing is considered to be at risk if it is eligible to convert to non-low income housing due to: 1) the termination of a rental subsidy contract; 2) mortgage prepayment or 3) the expiration of affordability restrictions. The time period that is to be considered in making this determination is the ten year period following the last mandated updating of the Housing Element (2006-2013). Based on the information contained in the “Inventory of Federally Subsidized Low Income, Rental Units at Risk of Conversion,” compiled by the California Housing Partnership Corporation, there are no federally assisted (HCD or FmHA), low income rental units within the City. Likewise, there are no low income rental units within the City that have been developed with the use of CDBG funds or as a result of an inclusionary housing ordinance. However, there are 111 low income rental units that were constructed using a combination of density bonuses and local multi-family revenue bond financing. These units are located in the Highlands Apartments, constructed by Forest City Development at 11750 Mount Vernon Avenue. In 1999 these units were at risk to convert to market rate housing; however, the City used its housing set-aside funds to secure these units until 2030. 8.5.4.8 Zoning for a Variety of Housing Types  Second Dwelling Units: In 2002, the City adopted Chapter 18.69 Second Family Units of Zoning Code to ensure that second units could be constructed on any single-family residentially zoned property. In 2012, Chapter 18.69 was amended to allow for administrative approval of attached and detached second dwelling units and to allow them in the RH, R1, R2 and R-3 Zones.  Manufactured Homes: The Zoning Code was amended in 2012 to allow manufactured homes in all residential zone districts, subject to the same development standards and review process as conventional stick construction. The scope of the Board’s review of single-family residences is generally limited to the architecture of the residences, including design, materials, and landscaping. The process from submittal to issuance of building permits is approximately 6 weeks.  Residential care facilities: Residential care facilities refer to a residence consisting of supervision of persons, such as a group home, or rehabilitation facility that provide non- medical care to persons in need of personal services, assistance, guidance, protection or training for daily living. Residential care facilities serving 6 or fewer persons are permitted by right in all residential zones. Facilities serving 7 or more persons are conditionally permitted in all residential zone districts. Residential care facilities include homes for persons with disabilities. 10.d Packet Pg. 284 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 45  Transitional and supportive housing: Transitional and supportive housing facilities fall under the definition of residential care facilities and are principally permitted in all residential zones if serving 6 or less persons, and conditionally permitted in all residential zones if serving 7 or more persons. As noted in Program 13 in the Housing Plan, a Code amendment is being processed to clarify that transitional and supportive housing are regulated as residential uses subject only to the same standards as apply to other residential dwellings of the same type in the same zone.  Single-room-occupancy (SRO) units provide another form of affordable housing for low- income persons. The City’s Zoning Code was amended in 2012 to allow SROs in the R3 zone districts.  Emergency shelters: Senate Bill 2 adopted in 2007 amended housing element law regarding the planning for emergency shelters to require at least one zone district where emergency shelters are permitted without discretionary action, and subject to the same development and management standards that apply to the residential or commercial uses within the same zone district. The City’s Zoning Code was amended in 2012 to allow emergency shelters in the M2 zone. 10.d Packet Pg. 285 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 46 8.6 CONSTRAINTS The ability of the private and public sectors to provide adequate housing to meet the needs of all economic segments of the community is constrained by various interrelated factors. For ease of discussion, these factors have been divided into three categories: 1) physical constraints; 2) market constraints; and 3) governmental constraints. The extent to which these constraints are affecting the supply and affordability of housing in the City of Grand Terrace is discussed below. 8.6.1 Physical Constraints Physical constraints to the development of affordable housing within the City of Grand Terrace focus upon the physical characteristics of the majority of the remaining undeveloped land within the City limits. The identified sites within the Hillside Residential (RH) and R1-20 zone districts are primarily located on the steep slopes of Blue Mountain. Physical constraints include the potential for land and rock slides, high fire hazards and flooding. Although it is possible to mitigate the physical constraints, the development constraints associated with developing on steep slopes and the provision of streets and utilities to hillside areas along with the environmental issues of landslides, high fire hazards and drainage issues substantially increases development costs and therefore make these areas unsuitable for affordable housing. The sites identified in the R1-10 are generally located along the foot of Blue Mountain and have milder slopes and fewer constraints than in the RH and R1-20 zone districts. The identified sites locates in the R1-7.2 zone district are located in areas with gradual slopes, if any. There are no known environmental constraints in these areas that could impede development. Identified sites within the multiple-family zone districts are located on the relatively flatter portions of the City. The identified sites located at the northwest portion of the City are located in proximity to Interstate 215 and an industrial line of the Union Pacific Railroad. The Interstate and railroad line are potential environmental areas of concern relating to noise. Noise impacts can generally be mitigated through enhanced construction measures such as sound attenuation walls and would not be considered a significant environmental impact. There are no other known environmental constraints that could impede development on identified sites located in the multiple-family zone districts. Approximately three additional vacant and non-vacant sites have been identified within the Administrative Professional designation of the Barton Road Specific Plan area, which conditionally permits multiple-family uses. These parcels are relatively free of significant topographical constraints; utilities are readily available; and are free of any known environmental 10.d Packet Pg. 286 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 47 constraints. The proposed mixed-use project is located just east of the I-215 project, and is part of a larger 80-acre project. Within the 80 acres there is an area identified as jurisdictional to the Department of Fish and Game and Army Corps of Engineers. However, these jurisdictional areas can typically be mitigated, so as not to preclude development. No other significant constraints exist within this project area. 8.6.2 Market Constraints Market constraints to the development of residential housing include the cost of land, the cost of construction, and financing. Unlike past years when the housing market was experiencing a bubble effect, market factors now pose fewer constraints to the development of new housing. Changes in the financial markets, changes in construction material costs, and other factors have all affected the feasibility of developing new housing in Grand Terrace. 8.6.2.1 Construction Cost Construction costs are influenced by the cost of materials. As the softening of the housing market decreases the amount of homes being constructed throughout southern California, the cost of many construction materials have decreased, reflecting the lack of demand. Construction costs will also vary based on the type of material used, structural features present, and project characteristics such as the type and quality of the unit. The single largest cost associated with building a new house is the cost of building materials, comprising between 40 to 50 percent of the sales price of a home. Typical residential construction costs for a 2,000 square foot home with garage is approximately $108 per square foot, whereas as custom homes can be as twice the cost.7 Lower housing costs can be achieved with the following factors: a) reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance); b) availability of skilled construction crews who will work for less than union wages; and c) use of manufactured housing (including both mobile home and modular housing). An additional factor related to construction costs is the number of units built at the same time. Apartments of three stories or less achieve an economy of scale, provided that the building has typical amenities and no structured parking. As the number of units developed increases, 7 Building-Cost.net, 2013 10.d Packet Pg. 287 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 48 construction costs over the entire development are generally reduced based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. 8.6.2.2 Land Costs Grand Terrace is fortunate in that the cost of vacant land for residential development is relatively affordable, especially when compared to the adjacent counties of Orange, Los Angeles, and San Diego. Land prices are highly variable and depend on the density of development allowed, whether the site has environmental constraints, and whether an existing use must be removed. Land costs are also influenced by location and views, for instance, land costs are higher along the hillside were valley floor views are afforded. Fluctuations in market conditions will also influence land costs. For example, from 2000 through 2006 real estate values rose significantly, however the recent downturn has resulted in a dampening effect on prices. 8.6.2.3 Financing 8.6.2.3.1 Developer Financing Construction financing costs also affect the feasibility of building new housing. In the past it was not uncommon for developers to receive construction loans for 100% or more of a project's estimated future value. However, recently, following the housing market downturn of the early 1990s, financial institutions tightened regulations for construction loans, which was repeated again in the boom period of the early to mid-2000s. The tightened regulations often result in developers having to put up at least 25% of the project value. Although there is no hard threshold for how much required upfront equity is too much before a residential project would be infeasible, the higher the proportion of equity required, the more unlikely that a developer would proceed with the project. Not only would it require more up- front cash, but higher equity contribution means a project must be able to achieve an even higher value at completion in order to generate the cash flow needed to meet acceptable cash-on-cash returns. These trends are anticipated to continue during the planning period. 8.6.2.3.2 Homebuyer Financing Housing affordability is also largely determined by interest rates. First-time homebuyers are most impacted by financing requirements. Current mortgage interest rates for new home purchases are at historically low levels of around 4% for a 30-year fixed-rate mortgage, which increases housing affordability. Although rates are currently low, they can change significantly and impact the affordability of the housing stock. The recent economic crisis has also resulted in a tightening of lending standards, as compared to the “easy credit” practices in recent years. Thus, a critical factor in homeownership involves credit worthiness. Lenders consider a person’s debt-to-income ratio, cash available for down payment, and credit history when determining a loan amount. Many financial institutions are willing to significantly decrease down payment 10.d Packet Pg. 288 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 49 requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings may be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. In addition, the San Bernardino County Department of Economic and Community Development also offers a Homeownership Assistance Program that provides financial assistance to eligible households that may be used for down payment assistance or closing costs. 8.6.3 Government Constraints 8.6.3.1 Land Use Controls 8.6.3.1.1 Density The Grand Terrace General Plan sets forth the City’s policies for guiding local development. These policies, together with existing zoning regulations, establish the amount and distribution of land to be allocated for various uses throughout the City. Residential development in the City of Grand Terrace is permitted under the land use categories shown in Table 8.37 and in accordance with the Land Use Element of the General Plan: Table 8.37 General Plan Residential Designations Land Use Category Allowable Zones Gross Allowable Density Hillside Residential R-1 (20) 0 – 1 Du/Net Ac Low Density Residential R-1 (7.2), R-1 (10), R-1 (20) 1 – 5 Du/Net Ac Medium Density Residential R-2, R-3 1 – 12 Du/Net Ac Medium High Density Residential R3S, R3-20 12 – 20 Du/Net Ac Source: Grand Terrace Community Development Department, 2013 Pursuant to City Zoning Code Section 18.10.040, a density bonus of up to 35% may be approved in accordance with California Density Bonus Law, when a developer provides housing for low- to moderate-income households, and seniors. While the amount of vacant land remaining within the City is minimal, land with potential for redevelopment and infill housing is primarily found in the relatively flat areas of the City, where increased densities are feasible, thus providing adequate sites for the construction of affordable housing. In fact, the City adopted a new Code section which allows density bonuses on infill lots. These provisions will allow for either a density bonus in accordance with state law, a 20 percent density bonus can be approved where a project can be certified in LEED, or a 10% density bonus for construction of the project to meet or exceed more than a 20 percent increase in energy efficiency above Title 24 requirements. 10.d Packet Pg. 289 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 50 8.6.3.1.2 Development Standards The City’s development standards are consistent with the parameters and policies established in the General Plan and reflect an attempt to balance housing needs with infrastructure capacities and environmental considerations. Table 8.38 presents the development standards of each residential zone. Standards regulating development within the City are similar to those being used by other surrounding communities. Taken together with the size of the lot, development standards are not considered especially constraining. The previous Zoning Code limited the definition of multiple-family residential developments to one- and two-bedroom units and placed minimum size requirements on them. These limitations were removed in 2012 with a zoning code amendment, in accordance with Program 8.8.1.q of the previous planning period. Table 8.38 illustrates that the development standards in the City do not represent an overly restrictive condition, and are not a constraint to development of affordable housing. Projects including new residential construction are normally required to install all necessary on- and off-site improvements, including a half-width of the paved width of the street, concrete curbs, sidewalks, water connections and sewer connections. Roadway standards for local or neighborhood streets that allow parking on both sides of the street have paved widths between 36 to 44 feet. Infrastructure improvements are in place in most locations within the City limits. 10.d Packet Pg. 290 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 51 Table 8.38 Minimum Development Standards for Residential Zones Standard R1-7.2 R1-10 R1-20 RH a R2 R3 R3-S R3-20 Units per Acre (Max.) 5 4 2 1 9 12 c g 20 Lot Area (sq. ft.) 7,200 10,000 20,000 - 10,000 12,000 g 12,000 Lot Width (ft.) 60 60 100 - 60 60 g 60 Lot Depth (ft.) 100 100 150 - 100 100 g 100 Street Frontage (Minimum linear feet) 40 40 50 - 40 40 g 40 Setbacks Front Yard (Minimum linear feet) 25 b 25 b 25 b - 25 b 25 b g 25 b Setbacks Rear Yard (Minimum linear feet) 20 b 35 b 35 b - 20 b 20 b g 20 b Interior Lot (With Garage) 10 b 10 b 10 b - 10 b 10 b g 10 b Interior Lot (Without Garage) 5 b 5 b 5 b - 5 b 10 b g 10 b Corner Lot (Street side) 15 b 15 b 15 b - 15 b 15 b g 15 b Corner Lot (No Street side) 5 5 5 - 5 10 g 10 Living Area Single-Family (Minimum) 1,350d 1,350d 1,350d - 1,350d 1,350d g - Living Area Multi-Family (One-bedroom) 800d 800d g g Living Area Multi-Family (Two-bedroom) 1,000d 1,000d g g Building Lot Coverage (%) 50 50 40 - 60 f 60 f g 60 Building Height (ft.) 35 e 35 e 35 e - 35 e 35 e g 35 e Source: Grand Terrace Zoning Code Footnotes: Refer to Zoning Code for footnote definitions. 10.d Packet Pg. 291 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 52 Table 8.39 has been updated to reflect a recent zoning code amendment consistent with housing statutes relating to emergency shelters, transitional and supportive housing and second dwelling units. Table 8.39 Housing Types Permitted by Zoning District Residential Use RH R1-20 R1-10 R-7.2 R-2 R-3 R-3-S R-3-20 SF-Detached P P P P P P -- -- SF-Attached 2- 4 DU -- - -- -- P P -- P Multiple- Family Units -- -- -- -- P P -- P Residential Care <6 P P P P P P P P Residential Care >6 -- -- -- -- C C -- -- *Emergency Shelter -- -- -- -- -- -- -- -- Single Room Occupancy -- -- -- -- C C -- -- Manufactured /Mobile Home P P P P P P -- -- 2nd Units P P P P P P -- -- P=Permitted; C=Conditional Use; --=Not a listed use Source: Grand Terrace Zoning Code *Permitted in M2 zone 8.6.3.1.3 Parking Standards Parking standards are currently similar to those used in other cities: a two-car garage required for each single-family dwelling and 2 spaces required per unit for multiple-family dwellings where one space shall be in a garage. Guest spaces are required in a ratio of one guest parking space per four multi-family dwelling units. However, in order to provide greater incentives for the construction of affordable housing, the Zoning Code was amended more flexible parking standards for smaller multiple-family units. When a studio or efficiency unit is proposed, only one parking space will be required, instead of two spaces. In addition, Program 12 includes a commitment to review parking standards for multi-family units to ensure that they do not pose an unreasonable constraint to development. 8.6.3.1.4 Open Space Requirements Open space and setback requirements in Grand Terrace are also very similar to those used in other cities where the maximum lot coverage allowed varies from 40 to 60 percent of the lot, thereby providing: 1) sufficient usable open space, especially in backyards; 2) enough space for a 10.d Packet Pg. 292 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 53 car to park in the front driveway approach to the garage; and 3) enough separation between residences to ensure protection of privacy. In the case of multiple-family housing, 40 percent open space is required to provide common recreational amenities/facilities for residents. Our experience indicates that this standard has not been a deterrent to past affordable housing projects. 8.6.3.1.5 Design Review Standards The City does not have design standards or guidelines that constrain development in its residential districts. Single- and multi-family units are reviewed on a case-by-case basis for high quality construction and compatibility with existing surrounding architecture. The basic philosophy of the City’s design review process is to arrive at a product that meets the City’s goals and is financially feasible for the developer. The responsibility of the Site and Architectural Review Board is to provide comprehensive site plan and architectural review of projects. The scope of the Site and Architectural Review Board’s review is to consider the site plan in relation to the property and development standards (i.e. setbacks, lot coverage, building height, parking, etc.), placement of structures, vehicle and pedestrian access, landscaping, police and fire services, grading and drainage, traffic, relationship to existing and planned uses of adjoining and surrounding properties, and relationship to nearby properties and structures and surrounding natural topography. It is also to consider the proposed architecture of buildings in terms of style and design, materials and colors, and size and bulk in relation to the surrounding properties. Chapter 18.63 of the Zoning Code specifies the review authority of the Board with regard to site and building design. Given the smaller scale of development of a single-family residence in comparison to a multiple- family development project, the scope of the Board’s review of single-family residences is generally more focused on architecture of the residences and site layout. Review of multiple-family development projects typically involves a greater level of review in regard to site development. In addition to ensuring adherence to setbacks, height requirements, lot coverage, parking and other applicable development standards, the Board will also consider the compatibility of the project’s site design with surrounding land uses, such as screening and security. Unlike larger cities, the City of Grand Terrace has only one board (i.e., its Planning Commission) that performs various review functions. Therefore, the design review process is shorter than in other cities in the area. However, smaller projects such as individual single- family units require Planning Commission approval, through Site and Architectural Review. The City has eliminated the public hearing requirement for very small projects, such as room additions, accessory structures, etc. City staff processes these projects administratively requiring only the Director’s review and approval. Other improvements that have been or are currently being made to streamline the design review/permit process are:  Implementation of one-step review process whereby the applicant comes to one counter to 10.d Packet Pg. 293 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 54 receive information about the entire process. The Community Development Department routes the plans to other reviewing agencies and the case planner reports to the applicant within 30 days.  Implementation of an applicant-friendly approach whereby staff provides significant attention to applicants, up front, to explain and inform them to the process and basically serve as an expediter instead of a regulator, while City standards are being enforced. These include preliminary design review meetings with City staff to work through design issues prior to formal application submittal.  Implementation of a project management approach, whereby a case planner follows/monitors a project from initial sketches to issuance of a certificate of occupancy through all departments and agencies. This allows applicants to have more certainty about the status of their projects and to plan and acquire financing while a project is under review. The case planner is responsible for knowing the status of a project within the process at any point in time. This also assists the City in ensuring implementation of conditions of approval  Implementation of easy to read “How to Do” lists for all requirements for planning and building plan check, thereby facilitating submission of complete applications and minimizing additional trips to the City. 8.6.3.2 Building Codes In addition to land use controls, local building codes also affect the cost of housing. Grand Terrace has adopted the 2010 California Building Code that establishes minimum construction standards. These minimum standards cannot be revised to be less stringent without sacrificing basic safety considerations and amenities. No major reductions in construction costs are anticipated through revisions to local building codes. 8.6.3.3 Code Compliance Code compliance activities within the City are intended to promote the safety and character of the City. The City includes approximately three square miles. There is currently only one code compliance officer responsible for code enforcement activities in the City. Therefore, code enforcement activities are primarily reactive. In the residentially designated properties, code enforcement housing efforts generally focus on property maintenance, including the rental inspection program. 8.6.3.4 Development Filing Fees The City’s development filing fees are still low when compared with surrounding areas. A summary of development filing fees for the City is provided in Table 8.40. The fees that are charged by the City are a reflection of the time and effort that must be expended by City staff in order to properly review development plans. The City will continue to conduct periodic surveys (both formal and informal) of other cities in the Grand Terrace area to ensure that local 10.d Packet Pg. 294 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 55 processing costs do not become a constraint on housing production. Source: City of Grand Terrace Community Development Department 8.6.3.5 Development Impact and Building Permit Fees Table 8.40 City Residential (Single and Multifamily) Development Filing Fees Fee Name Fee Rate Planning Department Fees Tentative Tract Map $2,150 Per development project General Plan Amendment $2,100 Per development project Zoning Code Amendment $2,200 Per development project Conditional Use Permit $400 - $2,400 based on size of development Per development project Variance $300 - $1500 based on size of development Per development project Site and Architectural Review $2,200 Per development project Administrative Site and Architectural Review $650 Per development project Land Use Review $50 Per development project Specific Plan $3,000 plus staff time Per development project Environmental Review Negative Declaration $750, unless prepared by consultant Per development project Building Department Fees Final Review Map – Tract Map  Parcel Map $2,000 $1,250 Tract or Parcel Map Building Permit Fees A sliding scale from $33  $4,955, based on valuation of construction from $500  $1,000,000 Per $ value of construction costs Electrical Permit Fees A sliding scale from $30  $100 per service switch depending on number of amperes Per service switch Plumbing Permit Fees $10 per fixture or trap, $33 per sewer connection, $15 per water heater Per fixture 10.d Packet Pg. 295 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 56 Development impact fees are charged on a per-unit basis to provide funds to offset the anticipated impacts of population growth. New housing, and therefore more Grand Terrace residents, may result in an increase in vehicle trips, park usage, school enrollment, and emergency service calls. Development impact fees are carefully created to ensure that quality services and facilities are provided to residents without unduly burdening development. As shown in Table 8.41 the total fees, including building permit and development impact fees for a 2,000 square foot residential unit are approximately $36,000, and approximately $27,000 for a 1,200 square foot multiple-residential home. While the majority of the costs is attributable to development impact fees, the City assess a lesser impact fee for multiple-family development. It should also be noted that a significant portion of the impact fees, water connection and school impact fees are assessed by entities separate from the City, over which the City has little control. 10.d Packet Pg. 296 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 57 Table 8.41 Residential Building Permit and Development Impact Fees 2,000 Square Foot Detached Residential Unit 1,200 Square Foot Attached Residential Unit Building Construction Permit Fees (per unit) (per unit) Building Permit fee $1,872.95 $1,223.35 Plan Check fee $1,217.42 $795.18 Energy fee $75.00 $75.00 Sewer connection $300.00 $300.00 NPDES compliance verification $75.00 $75.00 Electrical fee $373.92 $144.96 Ventilation fee ($10/each) $60.00 $20.00 Lawn sprinkle system $15.00 $15.00 Water heater or vent $15.00 $15.00 Private water distribution system ($4/each) $8.00 $6.00 Air handling unit $15.00 $15.00 Forced air/gravity type burner $20.00 $20.00 Gas piping system $4.00 $4.00 Drainage/vent pipe repair ($15/each) $210.00 $120.00 Fixture Trap fee ($10/each) $140.00 $80.00 Approximate Total Building Fee $4,386.00 $2,908.00 Development Impact Fees Arterial Improvement Fees $4,243.00 $2,599.00 Storm Drainage Fees $2,234.00 $429.00 General Facilities Fund $1,102.00 $1,102.00 Public Use Facilities Fund $373.00 $229.00 Parkland/Open Space Fund $7,241.00 $4,534.00 Traffic Signal Improvement Fee $666.36 $408.00 Sewer Connection Fee $2,700.00 $2,700.00 Riverside Highland Water Connection Fee $7,765.00 $7,765.00 School Fees $6,900.00 $4,140.00 Approximate Total Development Impact Fees $33,232.00 $23,920.00 Total Building and Development Impact Fees $37,618.00 $26,828.00 Source: Grand Terrace Community Development Department Numbers are rounded Riverside Highland Water Company Colton Joint Unified School District The per-unit cost of housing, including construction and land cost is approximately $108 per square foot. Using Table 8.41 above, that would equate to a per-unit cost of $253,618 for a 10.d Packet Pg. 297 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 58 single-family unit and $156,428 for a multiple-family housing unit. The total building and development impact fees are about 15% and 17%, respectively, of the total per-unit cost. 8.6.3.6 Permit Processing The processing time needed to obtain development permits and required approvals is often cited as a prime contributor to the high cost of housing. Additional time may be necessary for environmental review, depending on the location and nature of a project. Unnecessary delays will add to the cost of construction by increasing land holding costs, interest payments and inflation. Although these review processes may take a substantial amount of time, they are necessary to integrate a new development into the local urban environment. In Grand Terrace, the average processing time for most development applications is two to three months with very small projects taking less than 30 days. The City of Grand Terrace has fully implemented the provisions of AB 884, as well as more recent legislation requiring the establishment of “one-stop” permit coordination. In fact, all of development services have been consolidated into one department: Community Development. The divisions within the Community Development Department include Planning, Building and Safety, Code Enforcement, Engineering and Public Works. Moreover, the City has established a Site and Architectural Review Board that also serves as the Planning Commission. This Board is scheduled to meet twice per month to review all new construction proposals. Based on periodic surveys conducted by the City, local processing times are shorter than those experienced in surrounding communities. The following summarizes applications that are utilized by the City for various residential projects and average processing times: Land Use Application: This application is used for small ground floor room additions that are less than 500 square feet in size. The average processing time is 2 to 4 weeks from filing to issuance of building permit. Administrative Site and Architectural Review: The Administrative Site and Architectural Review application is used for two-story additions, larger room additions that are 500 square feet in size or larger but less than 65% of the floor area of the existing house. This application does not require a public hearing and can be approved by the Community Development Director. The average processing time is typically 6 weeks from filing to issuance of building permit. The Administrative Site and Architectural Review process is also used for the review and approval of second dwelling units, which greatly expedites the processing of these second units and is in conformance with State law. Site and Architectural Review: This application requires a fully noticed public hearing before the Planning Commission. This involves the additional requirement to submit a radius map and ownership list of property owners within 300 feet of the subject site. The 10.d Packet Pg. 298 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 59 Site and Architectural review process is required for new single-family residences and for multiple-family developments. The average processing time for a single-family residence is 6-8 weeks from filing to issuance of a building permit, and about 12 to 16 weeks from filing to issuance of building permit for multiple-family developments. If an environmental initial study is required to be prepared then the processing time would be extended by at least three months. To expedite the review process the City offers concurrent review of the construction drawings prior to the Planning Commission’s public hearing, subject to a hold harmless agreement should the Commission impose major changes in the project at the public hearing. This procedure highlights the City’s efforts to expedite the review process to facilitate new housing development. Conditional Use Permit: This application is heard concurrently with the Site and Architectural Review application. As these applications are heard concurrently with the Site and Architectural Review application in order to speed up the process, the processing time is the same as that for the Site and Architectural Review application. Tentative Parcel Map: This application is used to divide a site into four or fewer new parcels. This would allow for the infilling of larger parcels or an intensification of existing sites. The application is heard by both the Planning Commission and the City Council, as required by the City’s Subdivision Ordinance. The processing time from tentative parcel map filing to City Council approval is approximately 3 to 4 months. Tentative Tract Map: This application is used to divide or subdivide a site into more than four lots. This allows for the infilling of large parcels or an intensification of larger existing sites in the City. Tentative Tract Maps are heard by both the Planning Commission and the City Council. The processing time from the tentative map filing to the recording of the final map is 4 to 6 months. If an environmental initial study is required to be prepared than the processing time would be extended by at least three months. The City’s fees, shown on Tables 8.40 and 8.41, are some of the lowest in the San Bernardino and Riverside regions. Generally, the City has no backlog of residential projects that are waiting for processing by staff or for a public hearing by the Planning Commission or City Council. The average processing times for residential projects are much less than those for other jurisdictions in the area. 8.6.3.7 Service and Facility Infrastructure Before a development permit is granted, it must be determined that public services and facility systems are adequate to accommodate any increased demand generated by a proposed project. At present, all vacant residentially designated land within the City is in close proximity to the infrastructure systems (i.e., utilities and streets necessary to provide service). While construction of local interior street and minor utility extensions would be required in some cases, the overall extent would not be great; the location of streets and utility lines as illustrated in the General 10.d Packet Pg. 299 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 60 Plan Circulation Element. No street extensions or major service system improvements would be necessary for development of multi-family designated areas directly adjacent to Mount Vernon Avenue or single-family designated areas in the western portion of the City, west of the railroad tracks. Service systems are adequate to provide for the higher densities expected to be associated with low- and moderate-income developments. Water service is provided by the Riverside Highland Water Company (RHWCO). RHWCO is a private water company owned by its shareholders. It maintains water main transmission lines, wells, reservoirs, and service laterals throughout the City and is directly responsible for maintenance. The water supply for the Company is from five separate groundwater basins. The 2010 Urban Water Management Plan prepared for the Company indicates that there is sufficient water supply to accommodate development within the City. Sanitary sewer service is provided by the City of Grand Terrace, and the City maintains all collections lines within its city limits. The City contracts with the City of Colton for wastewater treatment. 8.6.3.8 Jobs/Housing Balance As defined by SCAG, a balanced subregion or community is one having an employment to housing ratio of 1.2 jobs per dwelling unit. Recent SCAG data estimated that there are approximately 3,000 combined public and private sector jobs within the City of Grand Terrace. By comparison, there are currently 4,315 households within the City. This translates into an employment to housing ratio of 0.70 jobs per dwelling unit, and indicates that the City is “jobs- poor” and “housing-rich.” Therefore, adherence to the jobs/housing balance ratio of 1.2 jobs per dwelling unit represents an actual constraint on the expansion of housing opportunities within the City, since the City is “jobs-poor” and needs to stress the development of jobs, rather than housing. 8.6.3.9 Constraints on Persons with Disabilities Zoning and Permitting Requirements: The City’s definition of family includes individuals related by blood, marriage or adoption, groups of not more than six persons who are not related by blood, marriage or adoption, and one or more persons living as a single household. Program 13 includes a commitment to process a Code amendment to revise this definition consistent with current law. The City ensures adherence to Title 24 of the California Building Code and federal regulations on accessibility in both multiple-family housing developments and commercial developments. The City’s parking standards requires that at least one disabled parking space be provided for each new project or two (2%) percent whichever is greater. The design standards of the parking ordinance require that the disabled parking spaces be striped and individually identified in accordance with the Uniform Building Code and the California Vehicle Code. Group homes are permitted by right in the City’s residential zones as permitted uses if the 10.d Packet Pg. 300 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 61 number of residents is 6 or less. The only permits that would be required would be the normal building permits to construct the structure. Group homes with more than 6 residents are permitted with a conditional use permit. There is nothing in the City’s General Plan or Zoning Code that regulates the siting of special needs housing in relationship to one another. There is no minimum distance required between two (or more) special needs housing facilities. The City has no standard conditions or requirements for group homes of more than 6 persons, other than the requirement for a conditional use permit. This includes no particular conditions for group homes that will be providing services on-site. The requirement for a conditional use permit has had no demonstrated negative impact on the development of group homes in the City. There has been no record of such a request being denied by the City’s Planning Commission. The public hearing for a conditional use permit for a group home is exactly the same for any other conditional use permit with the same noticing requirements and agency notification. Building Codes to Assist Disabled Access: The 2013 California Building Codes, Codes of Regulations will be adopted by the end of the year. There have been no amendments that might have diminished the ability to accommodate persons with disabilities. The City has not adopted any universal design elements in the City’s building code with respect to persons with disabilities; however, any property owner wishing to install such elements would not be precluded from doing so. The Building and Safety Department strictly follows the guidelines set by CALDAG for their ADA regulations on new and rehab commercial construction. There have been several new developments in the City that have been required by law to be disabled accessible. In accordance with state law, multiple-family developments are required to incorporate adaptable units into the project design, in addition to ensuring an accessible path of travel from the street. The City has also retrofitted several intersections in the City with disabled curb access, disabled drinking fountains and/or disabled buttons at the signalized intersections. In addition reasonable accommodations have been provided at City Hall including disabled access to the City Hall including disabled parking spaces, ramp and an emergency access bell for access to the main City Hall building. Reasonable Accommodations: The City adopted a Reasonable Accommodations Ordinance, which allows residents to request a reasonable accommodation from City zoning or building codes. The process to do so is subject to a Land Use application, which is the City’s lowest filing fee. To date, only one resident has requested and received a reasonable accommodation to expand a residence. 10.d Packet Pg. 301 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 62 8.7 HOUSING PLAN The Housing Program provides direction for City decision makers to achieve the long-term housing goals set forth in the Grand Terrace Housing Element. The Program is established to guide the development, revitalization and preservation of a balanced inventory of housing to meet the needs of present and future residents of the City. It is the overall goal of the City to ensure that all residents have decent, safe, sanitary and affordable housing regardless of income. In preparing the Housing Program, the City re-examined the goals, policies and programs, in light of the dissolution of redevelopment agencies, shrinking County programs, and limited funding resources. The Housing Program is responsive to the State housing goals and reflects the desires and aspirations of the community. The Housing Program addresses the following areas: 1) providing adequate housing sites; 2) assisting the development and/or availability of affordable housing; 3) removing governmental constraints; 4)conserving and improving existing affordable housing; and 5) promoting equal housing opportunity. 8.7.1 Goals and Policies Goal 8.1 Provide adequate sites, with appropriate zoning and development standards and services to accommodate the City’s RHNA allocation. Policy 8.1.1: Promote and encourage development of housing, which varies by type, design, form of ownership and size. Policy 8.1.2: Maximize use of remaining residentially zoned vacant land suitable for residential development. Policy 8.1.3: Provide for a zoning category to permit a density of at least 20 units/acre, and allow for density bonuses pursuant to State housing law, which would qualify for very-low-income housing. Policy 8.1.4: Promote and encourage second dwelling units in accordance with City codes. Goal 8.2: Assist in the availability and/or development of adequate housing to meet the needs of affordable housing. Policy 8.2.1: Promote and encourage infill housing development and use of underutilized land for residential construction. Policy 8.2.2: Promote mixed use and infill residential development in the Barton Road Specific Plan areas. Policy 8.2.3: Provide for housing set-aside funds to be committed to the “Habitat for 10.d Packet Pg. 302 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 63 Humanity” for the development of low-income housing. Policy 8.2.4: Facilitate access to housing assistance programs. Policy 8.2.5: Emphasize and promote the role of the private sector in the construction and financing of affordable income housing. Policy 8.2.6: Continue to encourage the development of attached or detached second dwelling units, in accordance with the Zoning Code. Goal 8.3: Address and, where appropriate, remove governmental constraints to the maintenance, improvement and development of housing. Policy 8.3.1: Provide for streamlined, timely, and coordinated processing of residential projects to minimize holding costs and encourage housing production. Policy 8.3.2: Periodically review residential development standards and regulations, ordinances, processing procedures, and fees to identify and mitigate constraints that may impede the development, improvement, and conservation of housing. Policy 8.3.3: Offer regulatory incentives and concessions for affordable housing, such as relief from development standards, density bonuses, or fee waivers where deemed to be appropriate. Goal 8.4 Conserve and improve the condition of existing affordable housing stock. Policy 8.4.1: Encourage the rehabilitation of deteriorating housing. Policy 8.4.2: Encourage the use of assistance programs to make residences more energy efficient. Policy 8.4.3: Continue to enforce building, land use, and property maintenance codes. Policy 8.4.4: Encourage the maintenance of sound owner-occupied and rental housing. Policy 8.4.5: Encourage the incorporation of energy conservation features in the design of all new housing developments and the addition of energy conservation devices/practices in existing residential developments. Goal 8.5: Promote fair housing opportunities for the residents of Grand Terrace. Policy 8.5.1: Provide reasonable accommodation for housing for persons with disabilities. Policy 8.5.2: Promote fair housing opportunities for residents of Grand Terrace. 10.d Packet Pg. 303 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 64 8.7.2 Housing Programs This section describes the City’s housing programs for the 2013-2021 planning period, including the responsible agency, timeframe, funding source and objectives. It should be noted that where funding sources list “General Fund”, these may consist of in-kind staff services, expedited permit processing, and/or reduced permitting fees. 8.7.2.1 Programs to Provide Adequate Sites Program 1: Continue maintain an inventory of vacant and underutilized sites suitable for housing development, and make this information available to developers at City Hall and on the City website. Responsible Agency: Community Development/Planning Objective: Support housing production Timing: 2014 and annually Funding sources: General Fund Program 2: A new R3-20 zone district was created to allow multiple-family development at a density of 20 units per acre, and which exclusively allows multiple-family and senior residential uses and permits owner-occupied and rental multi-family residential uses by-right. To ensure the availability of adequate sites to accommodate the City’s share of lower-income regional housing need, amendments to the Land Use Element of the General Plan and the Zoning Code will be processed to provide capacity for at least 42 additional lower-income units pursuant to Government Code Sections 65583.2(h) and (i). Rezoned parcels will be selected from the list of potential candidate sites identified in Table 8.30b and will meet the following requirements:  Zoning shall permit owner-occupied and rental multifamily residential use by right. “Use by right” shall mean that the City’s review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of CEQA. “Use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” under CEQA.  Sites shall accommodate at least 16 units  Allowable density shall be 20 to 24 units per acre  At least 50 percent of the very-low- and low-income housing need shall be accommodated on sites designated for residential use and for which nonresidential uses or mixed-uses are not permitted, except that all of the very-low- and low-income housing need may be accommodated on sites designated for mixed uses if those sites allow 100 percent residential use and require that residential use occupy 50 percent of the total floor area of a mixed-use project 10.d Packet Pg. 304 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 65 The City will continue to facilitate affordable housing development with priority for projects that provide extremely-low-income units. Responsible Agency: Community Development Objective: Land Use Element and Zoning Code amendments; Support low- income affordable housing production Timing: Amendments in 2016; Ongoing implementation through the planning period Funding sources: General Fund, Filing fees Program 3: The City’s CEDD will consider, on a case-by-case basis, to allow developers to use Planned Residential Development standards, where, in addition to density bonuses in accordance with state law, allows for density bonuses where energy efficient construction is incorporated into projects. Responsible Agency: Community Development Objective: Support housing production Timing: Ongoing through planning period Funding sources: Filing fees, General Fund Program 4: A City-owned parcel was acquired by Habitat for Humanity to develop two lower non-senior income affordable housing units. Collaborate with Habitat for Humanity to construct the two units during the planning period. Responsible Agency: Housing Authority, Community Development Objective: Support housing production Timing: 2017 Funding sources: Possible Housing Authority funds, state and federal sources, private funding 8.7.2.2 Programs to Assist the Development and/or Availability of Affordable Housing Program 5: Facilitate development of the 0.63-acre parcel owned by the Housing Authority for low-income housing units, with priority for ELI units through expedited processing, modified development standards, and reduced development fees when feasible. Responsible Agency: Housing Authority, Community Development Objective: Support lower-income housing production Timing: 2019 Funding sources: Possible Housing Authority funds, state and federal sources, private funding Program 6: Ensure access to the Section 8 Rental Assistance program operated by the San 10.d Packet Pg. 305 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 66 Bernardino County Housing Authority by assisting the County with publicity whenever the waiting list is opened, by posting the phone number and website of the Housing Authority on the City’s website. Responsible Agency: Community Development/Planning Objective: Support housing availability Timing: 2014, and Ongoing as notified by the San Bernardino County Housing Authority Funding sources: General Fund Program 7: The San Bernardino County CDH Department participates in the CRHMFA Homebuyers Fund (CHF) program that provides down payment, payment, and closing costs assistance to County residents. The Mortgage Credit Certificate Program provides a federal income tax credit for first-time homebuyers, which may be claimed as long as the homebuyer occupies the home and pays interest on the mortgage. Information on this Program will be provided on the City’s website, including links to the respective Programs and posted biennially in the local newspaper. Responsible Agency: Community Development/Planning Objective: Production of affordable housing Timing: 2014, and biennially thereafter Funding sources: Federal and state grants Program 8: The San Bernardino County CDH Department operates a Multifamily Residential Rental Housing Revenue Bond program. This Program can be used for new construction, acquisition, and/or rehabilitation of multifamily housing developments. A specified number of units are required to remain affordable to eligible, low-income households for a specified number of years after the initial financing is provided. Information on this Program will be provided on the City’s website, including links to the respective Programs and posted biennially in the local newspaper. Responsible Agency: Community Development Objective: Production of affordable multi-family housing Timing: 2014, and biennially thereafter Funding sources: Federal and state grants Program 9: San Bernardino County residents meeting certain income eligibility requirements may be eligible to participate in the CalHOME funding program that provides down payment assistance for first-time homebuyers. The CalHOME is administered by various organizations; locally Neighborhood Housing Services of the Inland Empire (NHSIE) and Neighborhood Partnership Housing Services, Inc. (NPHS) administer CalHOME programs. Generally, prospective homeowners could qualify for up $28,000 in down payment assistance to be paid back through a silent second with simple interest rates up to 3%. 10.d Packet Pg. 306 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 67 Information on this Program will be provided on the City’s website, including links to the NHSIE and NPHA websites, and posted biennially in the local newspaper. Responsible Agency: Community Development Objective: Production of affordable housing Timing: 2014, and biennially thereafter Funding sources: State funding 8.7.2.3 Programs to Mitigate Governmental Constraints Program 10: The City adopted Chapter 18.68 (Reasonable Accommodations) providing for a streamlined process for disabled persons to request deviations from the City’s code requirements. Over the planning period the City will continue to implement this program. Responsible Agency: Community and Economic Development Department Objective: Support fair housing Timing: Mitigate governmental constraints Funding sources: Filing fees Program 11: Continue to expedite the processing of plans for proposed housing projects that are affordable to low- and moderate-income households, with priority processing, modified development standards, and reduced fees, where feasible, for projects that include extremely- low-income units. Responsible Agency: Community Development/Planning/Building and Safety Objective: Streamline production of affordable housing Timing: Ongoing Funding sources: General Fund, Filing fees Program 12: Periodically review residential development standards and regulations, ordinances, processing procedures, and fees to identify and mitigate constraints that may impede the development, improvement, and conservation of housing. Process a Zoning Code amendment to allow required covered parking for multi-family developments to be provided with either carports or garages. Responsible Agency: Community Development/Planning Objective: Mitigate governmental constraints Timing: Code amendment in 2016 Funding sources: General Fund, Filing fees Program 13: Amend the Zoning Code as it relates to transitional and supportive housing in accordance with state law, so that such housing is subject only to those restrictions that apply to other residential uses of the same type in the same zone. Amend the definition of family in 10.d Packet Pg. 307 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 68 conformance with state law. Responsible Agency: Community Development/Planning Objective: Mitigate governmental constraints Timing: Code amendment in 2016 Funding sources: General Fund 8.7.2.4 Programs to Conserve and Improve Existing Housing Stock Program 14: The San Bernardino County PACE loan program provides loans for weatherization and energy efficiency rehabilitation improvements, such as air sealing, weather stripping, attic insulation, re-roofing, attic and house fans, and weatherized doors and windows. The Community Action Partnership of San Bernardino County (CAPSBC) provides weatherization and energy conservation assistance to low income residents. Information on the PACE and CAPSBC Programs will be provided on the City’s website, including links to the respective programs and posted biennially in the local newspaper. Responsible Agency: Community Development/Planning Objective: Maintenance and improvement Timing: 2014 and throughout the planning period Funding sources: PACE Loan Program CAPSBC Program Program 15: Continue code enforcement efforts to enforce municipal codes intended to maintain the value and safety of structures. The program addresses substandard structures, accumulation of trash and debris, inoperable vehicles, graffiti, and land use violations. Programs include, but are not limited to non-owner occupied inspection program, and exploring new methods for eliminating deteriorated or unsightly property conditions in residential areas. Responsible Agency: Community Development/Code Enforcement Objective: Maintenance and conservation Timing: Ongoing throughout the planning period Funding sources: Self-funding inspection fees CDBG for enhanced services in CDBG census tracts Program 16: Neighborhood Housing Services of the Inland Empire (NHSIE) is a non-profit organization that operates a low-cost Homes N’ Hammer program designed to educate residents on minor home improvements and repairs. The four-hour workshop includes: functioning of the home’s major plumbing and electric systems, repair methods, replacing and maintaining drywall, replacing window screens, fixing garbage disposals, toilet mechanisms, health and safety issues and tips for hiring a professional contractor for home repairs, etc. Information on this Program will be provided on the City’s website, including links to the NHSIE website, and posted biennially in the local newspaper. 10.d Packet Pg. 308 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 69 Responsible Agency: Community Development/Planning Objective: Maintenance and conservation Timing: 2014, biennially thereafter Funding sources: Private funding Program 17: Neighborhood Partnership Housing Services, Inc. (NPHS) is a non-profit organization that operates a Healthy Homes Grant program. This program provides home safety repair grants to low-income senior homeowners and homeowners with permanent mobility disabilities. Information on this Program will be provided on the City’s website, including a link to the NPHS website, and posted biennially in the local newspaper. Responsible Agency: Community Development/Planning Objective: Conservation and improvement Timing: 2014, biennially thereafter Funding sources: Private funding Program 18: California’s Keep Your Home California Program is a federally funded foreclosure prevention and loan modification program. Keep Your Home California provides the following: Unemployment Assistance to assist homeowners who have experienced involuntary job loss. Eligible homeowners may receive benefits up to $3,000 per household per month towards their mortgage payment for up to 6 months. Mortgage Reinstatement Assistance to assist homeowners who have defaulted on their mortgage payment. Eligible homeowners may receive benefits up to $15,000 per household towards their mortgage payment. Principal Reduction Program is intended to assist homeowners attain an affordable monthly payment. If eligible, homeowners may receive benefit assistance up to $50,000 per household, less monies previously received from other Keep Your Home California programs. Transition Assistance Program is intended to provide transition assistance benefits to homeowners who can no longer afford their home and want to avoid foreclosure. This program helps homeowners make a smooth transition to alternative housing by providing up to $5,000 per eligible household. Information on Keep Your Home California will be posted on the City website and published biennially in the local newspaper. Responsible Agency: Community Development 10.d Packet Pg. 309 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 70 Objective: Provide mortgage assistance to low-income first-time homebuyers Timing: 2014, and biennially thereafter Funding sources: Federal and state grants Program 19: Continue to provide technical drawing for simple improvements such as patio covers, retaining and block walls, and similar small projects; a home construction pamphlet, and information on hiring contractors. Responsible Agency: Community Development/Building and Safety Objective: Maintain and improve housing stock Timing: Ongoing throughout the planning period Funding sources: General Fund 8.7.2.5 Programs to Promote Equal Housing Opportunities Program 20: Provide information on fair housing on the City’s website. Provide a link to the Inland Fair Housing and Mediation Board website. Advertise the information quarterly in the Blue Mountain Outlook. Responsible Agency: Community Development/Planning Objective: Support fair housing Timing: 2014 and every year thereafter Funding sources: General Fund Program 21: Continue to participate in and provide staff support for the various homeless programs operated by the San Bernardino County Homeless Partnership, including participation in the Point-in-Time Homeless Survey. Responsible Agency: Community Development/Planning Objective: Support fair housing Timing: 2014 and ongoing throughout the planning period Funding sources: General Fund, Filing fees 8.7.3 Quantified Objectives The City’s quantified objectives for the development, rehabilitation and conservation of housing during the 2014-2021 planning period are summarized in Table 8.42. . During the past few years, the City has experienced significant revenue shortfalls, causing each City department to cut costs and staff; City staff has been reduced by over 50%. During the last planning period many housing programs were suspended due to high housing and construction cost. Now unfortunately, due to the dissolution of redevelopment agencies throughout California, the City has lost a major local funding source. In addition, many County- implemented programs, such as housing rehabilitation, weatherization and senior repair 10.d Packet Pg. 310 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 71 programs, have also been cut, again, resulting in a loss of a major resource for local jurisdictions. Table 8.38 Summary of 2014-2021 Quantified Objectives Income Category New Construction Rehab Conservation Extremely Low* 14 0 0 Very Low-Income 14 2 5 Low-Income 30 3 5 Moderate-Income 22 0 5 Above Moderate 49 0 5 Totals 129 5 25 *Local jurisdictions are required to project the housing needs of extremely low income households. In estimating the number of extremely low income households, a jurisdiction can use 50% of the very low income. 10.d Packet Pg. 311 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 72 8.8 OPPORTUNITIES FOR ENERGY EFFICIENCY As non-renewable energy resources have been progressively depleted and energy costs continue to rise, homeowners have become increasingly aware of energy conserving measures primarily as a means to offset and control the rising costs of fuel. While on the State level, the State Legislature adopted the Global Warming Solutions Act of 2006, which created the first comprehensive, state regulatory program to reduce GHG emissions to 80% below 1990 levels by 2050. 8.8.1 Building and Site Design California Subdivision Map Act: State law requires that a tentative tract map provide for future passive or natural heating or cooling opportunities in the subdivision, including designing the lot sizes and configurations to permit orienting structures to take advantage of a southern exposure, shade or prevailing breezes. These standards have been incorporated by reference into the City’s Subdivision Ordinance. Building Code: The City enforces the State Energy Conservation Standards (California Code of Regulations Title 24). These standards incorporated into the City’s Building Code provide a great deal of flexibility for individual builders to achieve a minimum “energy budget” with various performance standards. These requirements apply to all new residential and commercial construction and to remodeling and rehabilitation construction only where square footage is added. In January 2010, the California Building Standards adopted a final version of the new building code, CALGreen, parts of which became mandatory on January 1, 2011. CALGreen includes provisions to ensure the reduction of water use by 20%, improve indoor air quality, divert 50% of new construction waste from landfills, and inspect energy systems (i.e., heat furnace, air conditioner, mechanical equipment) for nonresidential buildings over 10,000 square feet to make sure that they're working according to design. The City is requiring 100% waste recycling on construction projects, and a commissioning plan certified by a mechanical engineer on energy systems. Additionally, by January 1, 2014, the City anticipates adoption of the new 2013 CALGreen Code Standards. Zoning Code: Section 18.10.090 of the Zoning Code allows a multiple-family developer to apply for a density bonus when energy efficiency is incorporated into the project design. 10.d Packet Pg. 312 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 73 8.8.2 Energy Efficiency Property Assessed Clean Energy (PACE) Program: The San Bernardino County Associated Governments (SANBAG) has initiated the PACE Program. This Program assists home and business owners pay for the upfront costs of energy efficient improvements, such as solar panels, cool roof systems, attic/house fans, high efficiency heating and air conditioning, and similar energy improvements. The loans are repaid over an assigned term and paid through the annual tax bill. Community Action Partnership of San Bernardino County (CAPSBC):  Weatherization Program: Assists eligible low income customers by installing energy conservation measures that will reduce utility costs and conserve energy. Residents eligible for the Weatherization Program include single-family homes, condominiums, and multi-family homes, such as apartment complexes. This program is available to homeowners and renters. Examples of energy conservation measures include low flow shower heads, attic insulation, caulking, set back thermostat, and minor repairs, such as replacement of door (s), broken glass, patching of holes, door stops, frames, etc.  Home Energy Assistance Program (HEAP): The HEAP program provides, to eligible households, emergency and non-emergency utility assistance in the form of a credit on gas, electric, wood or propane bills. Emergency assistance is when the utility has already been turned off, whereas, non-emergency is when a disconnection notice is received. California Alternative Rates for Energy (CARE): Southern California Edison and The Gas Company participate in the CARE program providing lower energy rates to eligible households. To inform residents about this program, the utility companies mails all customers brochures regarding the program. Conservation Garden at Grand Terrace Fitness Park: The landscaping at Grand Terrace Fitness Park was designed to be a water conservation demonstration garden. Most of the plant material within the Park uses less water than a traditional landscape or park and much of it would survive on just the limited rainfall that falls in Grand Terrace. The local water purveyor, Riverside Highland Water Company, partnered with the City to provide plant identification signs so that Park visitors can identify water conserving plants that they would like to use in their gardens and yards, and educational signs that speak to water efficiency through the use of water conserving plants and smart irrigation Energy Efficiency Audits: The Southern California Edison Company provides energy audits to local residents on request. The Southern California Gas Company also provides self-guided surveys for its customers on its website. Energy audits are extremely valuable in pinpointing specific areas in residences, which are responsible for energy losses. The inspections also result in specific recommendations to remedy energy inefficiency. In addition, these utility companies 10.d Packet Pg. 313 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 74 provide rebate programs for energy efficient improvements or purchase of energy efficient appliances. 10.d Packet Pg. 314 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 75 8.9 FINANCING RESOURCES In 2012 the state abolished all redevelopment agencies in California; therefore this tool for community revitalization and affordable housing assistance is no longer available. Nevertheless, there are a variety of potential funding sources available to support affordable housing in the City of Grand Terrace. They include the following: 8.9.1 Federal and State Resources Home Investment Partnership (HOME) Program: The HOME is a federal program, created as a result of the National Housing Affordability Act of 1990. Under HOME, HUD awards funds to localities on the basis of a formula, which takes into account tightness of the local housing market, inadequate housing, poverty and housing production costs. Localities must match HOME funds with 25% of funds from non-federal sources. HOME funding is provided to jurisdictions to assist either rental housing or home ownership through acquisition, construction, reconstruction, and/or rehabilitation of affordable housing. Also possible is tenant-based rental assistance, property acquisition, site improvements, and other expenses related to the provision of affordable housing and for projects that serve a group identified as having a special need related to housing. Community Development Block Grant Program (CDBG): Through the federal CDBG program, HUD provides funds to local governments for funding a range of community development activities. CDBG grants are awarded to the City on a formula basis for housing activities, including acquisition, rehabilitation, homebuyer assistance, economic development, homeless services and public services. CDBG funds are subject to certain restrictions and cannot be used for new construction of housing. CDBG grants benefit primarily persons/households with incomes not exceeding 80 percent of the County Median Family Income. Low Income Housing Tax Credit (LIHTC) Program: This program was created by the Tax Reform Act of 1986 to provide an alternate method of funding low-and moderate-income housing. Each state receives a tax credit, based upon population, toward funding housing that meets program guidelines. The tax credits are then used to leverage private capital into new construction or acquisition and rehabilitation of affordable housing. Limitations on projects funded under the Tax Credit programs include minimum requirements that a certain percentage of units remain rent-restricted, based upon median income, for a term of 15 years. Multifamily Mortgage Revenue Bonds: This funding source provides below-market interest rate loans for development, acquisition, or rehabilitation of existing multifamily rental units within San Bernardino County and its cooperating cities. Although the economy is not conducive to issuing bonds, the County currently administers contracts for more than 1,000 units of bond- funded affordable housing in incorporated cities. 10.d Packet Pg. 315 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Housing Element Grand Terrace General Plan Draft | September 2016 VIII - 76 California Housing Finance Agency (CHFA): Operated by the California Housing Finance Authority it is designed to provide up to 100% of home loan financing to prospective eligible first-time homebuyers. Generally, the loan consists of a standard 97% FHA - CHFA fixed-rate 30-year mortgage and a 3% CHFA down payment assistance second mortgage, which is also called a "sleeping" or "silent" second. The second mortgage is offered for 30 years at 3% simple interest. All payments are deferred on this second mortgage until one of the following happens: the CHAFA first mortgage becomes due and payable; the first mortgage is paid in full or refinanced; or, the property is sold. Section 8 Rental Assistance Payments/Housing Certificates: The Federal Section 8 voucher program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to rent decent, safe, and sanitary housing in the private market. Since the rental assistance is provided on behalf of the family or individual, participants are able to find and lease privately owned housing, including single-family homes, townhouses and apartments from landlords who accept vouchers. Eligible households pay 30% of their income toward rent with the balance paid by HUD. The San Bernardino County Housing Development Department, in cooperation with the Housing Authority, administers the Tenant Based (Rental) Assistance Program that includes Section 8 rental assistance. 8.9.2 Local Resources Redevelopment Housing Set-Aside Fund: With the abolishment of redevelopment agencies, Low-Mod Housing Funds are no longer available to assist in the development and/or preservation of affordable housing. CDBG-funded Enhanced Code Enforcement Services: During the fiscal years of 2011-2012, 2012-2013, the City was awarded CDBG funds towards enhanced Code Enforcement Services that targeted income-qualifying areas. The boundaries of these primarily residential areas are based on HUD census tracts and services are limited to the neighborhoods identified low- and moderate-income (LMI) areas. The scope of the program is to enhance blighted properties in low-income neighborhoods. The City will continue to apply for funding this program. San Bernardino County Affordable Housing Programs: The San Bernardino County Economic Development Agency, Community Development Division administers the HOME Program locally for County residents. The HOME Program serves individuals and households earning 80% or less of the area median income established by HUD, who reside within the County of San Bernardino HOME Consortium area. City residents are eligible to participate in this program. 10.d Packet Pg. 316 At t a c h m e n t : C 8 H o u s i n g _ 2 0 1 6 - 0 9 - 2 7 _ r e v i s e d d r a f t - C C ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 1 RESOLUTION NO. 16-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND AMENDING THE LAND USE ELEMENT AND LAND USE MAP IN CONFORMANCE WITH PROGRAM 2 OF THE 2013-2021 HOUSING ELEMENT (GENERAL PLAN AMENDMENT 16-01b) WHEREAS, pursuant to Section 65300 of the State Planning and Zoning Law (Division 1 Title 7 of the California Government Code) on April 27, 2010, the City of Grand Terrace adopted Resolution 2010-10 adopting a General Plan to provide comprehensive, long-range planning guidelines for future growth and development which incorporates the following nine elements: Land Use, Circulation, Open Space and Conservation, Public Health and Safety, Noise, Public Services, Housing, and Sustainable Development. Each element of the General Plan provides Goals, Programs, and Policies as required by State Law; and WHEREAS, General Plan Amendment 16-01b proposes to amend the Land Use Element in conformance with Program 2 of the Housing Element; and WHEREAS, on April 21, 2016, the Planning Commission conducted a duly noticed public hearing on General Plan Amendment 16-01b at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313, and concluded the hearing by voting to recommend City Council approval; and WHEREAS, on June 28, 2016 and September 27, 2016, the City Council conducted duly noticed public hearings on General Plan Amendment 16-01b at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313, at which time all interested parties were provided an opportunity to offer testimony; and WHEREAS, a Final Environmental Impact Report (“FEIR”) was certified by the City Council on April 27, 2010, for the General Plan Update, and pursuant to Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an Addendum to the FEIR has been prepared for the proposed amendment; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace: 1. The City Council hereby finds that the Addendum to the General Plan Final Environmental Impact Report prepared for General Plan Amendment 16-01b satisfies the requirements of CEQA because: 10.e Packet Pg. 317 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 2 a. No substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and ; or c. No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified that would show that any of the following exists: (i) The project will have one or more significant effects not discussed in the previous EIR; (ii) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (iii) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (iv) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. The Addendum reflects the independent judgment of the City Council. 2. The City Council finds as follows with respect to General Plan Amendment 16- 01b: a. The General Plan Amendment promotes the Grand Terrace General Plan and each element thereof, and leaves the General Plan a compatible, integrated and internally consistent statement of goals and policies. The amendment implements Housing Element Program 2 and fulfills Housing Policies to promote and encourage development of housing, which varies by type, design, form of ownership and size and to encourage infill housing development and more intensive use of underutilized land for residential construction. 10.e Packet Pg. 318 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 3 b. The amendment promotes Land Use Goal 2.1 to provide for balanced growth which seeks to provide a wide range of employment and housing opportunities and maintenance of a healthy, diversified community. c. Adoption of this General Plan Amendment will not be in conflict with Section 65358(b) of the Government Code relating to the number of amendments permitted per year, because Amendment 16-01 is the first amendment of calendar year 2016. 3. Based on the findings and conclusions set forth above, as well as the written staff reports, staff presentation and public testimony, the City Council hereby adopts General Plan Amendment 16-01b as set forth in Exhibit 1, attached hereto. PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 27th day of September, 2016. ATTEST: ____________________________ ______________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor Approved as to form: ___________________________________ Richard L. Adams, II City Attorney 10.e Packet Pg. 319 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 4 I, Pat Jacquez-Nares, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 27th day of September, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ City Clerk 10.e Packet Pg. 320 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 5 Exhibit 1 General Plan Amendment 16-01b TABLE 2.2 OF THE GENERAL PLAN LAND USE ELEMENT IS REVISED TO READ AS FOLLOWS: Table 2.2 General Plan Acreage By Land Use Category Land Use Category Acres % of Total Hillside Low Density Residential 125 5.5% Low Density Residential 884.1 39.2% Medium Density Residential 181.2 8.0% Medium High Density Residential 11.6 0.5% General Commercial 88.4 3.9% Office Commercial 32.9 1.5% Light Industrial 107 4.7% Floodplain Industrial 40.1 1.7% Hillside Open Space 189.1 8.0% Mixed Use 93.5 4.2% Public 158.9 7.0% Streets 353.0 15.5% Total 2,255.1 100% TABLE 2.3 OF THE GENERAL PLAN LAND USE ELEMENT IS REVISED TO MODIFY THE MHDR LAND USE DESIGNATION AS FOLLOWS: Table 2.3 City of Grand Terrace General Plan Land Use Designations Land Use Designation Purpose of Land Use RESIDENTIAL Medium High Density Residential (MHDR) Maximum Density - 24 dwelling units per gross acre The Medium High Density Residential designation is reserved for multiple family development, with an emphasis on affordable housing projects. This designation may also be applied as an overlay to another land use designation to allow multi-family development at a density of 20 to 24 units/acre as an optional alternative to the base land use designation. A density bonus may be applied to a project pursuant to the density bonus provisions of Chapter 4.3 of the California Government Code, or pursuant to an approved Planned Residential Development application for up to a 20% density bonus. 10.e Packet Pg. 321 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 6 TABLE 2.4 OF THE GENERAL PLAN LAND USE ELEMENT IS REVISED TO READ AS FOLLOWS: Table 2.4 Residential Buildout Calculations Land Use Designation Probable Avg. Density Acres Dwelling Units Persons / Household Estimated Population Low Density/Hillside 0.7 du/ac 155.3 109 2.83 308 Low Density 3.6 du/ac 885.2 3,183 2.83 9,008 Medium Density 11 du/ac 181.2 1,993 2.83 5,640 Medium High Density 20 du/ac 11.6 230 1.20/2.83+ 455+ Mixed Use 12 du/ac 14.6* 175 2.83 495 Total 1,246.8 5,690 15,906 *Assumes that 15% of the mixed use area is residential. +Includes existing senior housing in persons per household and estimated population calculations. EXHIBIT 2.2 OF THE GENERAL PLAN LAND USE ELEMENT IS REVISED AS FOLLOWS: Change the Land Use Designation for APN 1167-241-01 (outlined below) from Low Density Residential (LDR) to Medium/High Density Residential (MHDR) 10.e Packet Pg. 322 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) 7 Change the Land Use Designation for the property located at 21882 Grand Terrace Road (APN 0275-223-12) from MDR to MHDR; and Apply the R3-24 Overlay to properties located at 21850 and 21860 Grand Terrace Road (APNs 0275-223-59 and 60) Apply R3-24 Overlay Re-designate from MDR to MHDR 10.e Packet Pg. 323 At t a c h m e n t : C C R e s o l u t i o n _ L a n d U s e A m e n d m e n t s _ 9 . 2 7 . 2 0 1 6 j d ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) This page left intentionally blank. Page 1 of 16 ORDINANCE NO. ______ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE GENERAL PLAN AND ADOPTING ZONING CODE AMENDMENT 16-01 REVISING TITLE 18 OF THE MUNICIPAL CODE AND ZONE CHANGE 16-01 REVISING THE ZONING MAP IN CONFORMANCE WITH THE GENERAL PLAN HOUSING ELEMENT AND LAND USE ELEMENT WHEREAS, pursuant to Section 65300 of the State Planning and Zoning Law (Division 1 Title 7 of the California Government Code) on April 27, 2010, the City of Grand Terrace adopted Resolution 2010-10 adopting a General Plan to provide comprehensive, long-range planning guidelines for future growth and development which incorporates the following nine elements: Land Use, Circulation, Open Space and Conservation, Public Health and Safety, Noise, Public Services, Housing and Sustainable Development. Each element of the General Plan provides Goals, Programs, and Policies as required by State Law; WHEREAS, the Housing Element establishes programs that call out certain amendments to be made to City’s General Plan and Zoning regulations, including Programs 2, 12 and 13 calling for zoning amendments to facilitate development of housing for all economic segments of the community and housing for persons with special needs; WHEREAS, pursuant to Sections 65800 and 65850 of the California Government Code, the City may adopt ordinances to regulate the use of buildings, structures, and land as between industry, business, residences, and open space, and other purposes; to regulate the location, height, bulk, number of stories and size of buildings and structures, the size and use of lots, yards, courts and other open spaces, the percentage of a lot which may be occupied by a building or structure, and the intensity of land use; and to establish requirements for off-street parking, in compliance with the California Government Code; WHEREAS, Zone Change 16-01 and Zoning Code Amendment 16-01 propose to amend the Zoning Ordinance and Zoning Map to expand housing opportunities for all economic segments of the community and reduce constraints on the provision of housing for persons with special needs in conformance with Programs 2, 12 and 13 of the Housing Element; WHEREAS, a Final Environmental Impact Report (“FEIR”) was certified by the City Council on April 27, 2010, for the General Plan Update, and pursuant to Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an Addendum to the FEIR has been prepared for General Plan Amendment 16-01, Zone Change 16-01 and Zoning Code Amendment 16-01. The Addendum has determined that none of the conditions requiring a subsequent EIR or Negative Declaration exist; 10.f Packet Pg. 324 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 2 of 16 WHEREAS, on April 21, 2016, the Planning Commission conducted a duly noticed public hearing on Zone Change 16-01 and Zoning Code Amendment 16-01 at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313 and voted 4-0 to recommend that the City Council adopt Zoning Code Amendment 16-01 and Zone Change 16-01; WHEREAS, on June 28, 2016, and September 27, 2016, the City Council conducted duly noticed public hearings on Zone Change 16-01 and Zoning Code Amendment 16-01 at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313 and at the conclusion of that hearing introduced this Ordinance; WHEREAS, the City Council conducted second reading of this Ordinance at a regularly scheduled public meeting on ___________, 2016 at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313; WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, it is hereby found, determined, and resolved by the City Council of the City of Grand Terrace, as follows SECTION 1. The City Council hereby finds that the Addendum to the General Plan FEIR prepared for Zoning Code Amendment 16-01 and Zone Change 16-01 satisfies the requirements of CEQA because: a. No substantial changes are proposed in the project which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; b. No substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and c. No new information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified that would show that any of the following exists: (i) The project will have one or more significant effects not discussed in the previous EIR; (ii) Significant effects previously examined will be substantially more severe than shown in the previous EIR; (iii) Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce 10.f Packet Pg. 325 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 3 of 16 one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or (iv) Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative. The Addendum reflects the independent judgment of the City Council. SECTION 2. The proposed zoning amendments will not be detrimental to the health, safety, morals, comfort or general welfare of the persons residing or working within the neighborhood of the proposed amendments or injurious to property or improvements in the neighborhood or within the city because the proposed zoning amendments will promote variety in housing types available to different economic segments of the community and reduce constraints on the provision of housing for persons with special needs. SECTION 3. The proposed zoning amendments are consistent with the General Plan. Zoning Code Amendment 16-01 implements Housing Element Programs 2, 12 and 13, which are intended to facilitate development of housing consistent with the City’s share of regional housing needs and reduce potential constraints on the provision of housing for persons with special needs. SECTION 4. The Zoning Map is revised to rezone the property referred to as Assessor’s Parcel Number 1167-241-01 shown on Exhibit 1, attached hereto, from R1- 7.2 Single Family Residential to R3-24 High Density Residential. SECTION 5. The Official Zoning Map is revised to re-zone the property located at 21882 Grand Terrace Road, referred to as Assessor’s Parcel Number 0275-223-12, and shown on Exhibit 2, attached hereto, from R2-Low-Medium Density Residential to R3-24 High Density Residential. SECTION 6. The Official Zoning Map is revised to place the R3-24 Overlay District on the properties located at 21850 and 21860 Grand Terrace Road, referred to as Assessor’s Parcel Numbers 0275-223-59 and 0275-223-60, and shown on Exhibit 2, attached hereto. The base zoning designation for these properties shall remain R2 Low- Medium Density Residential. SECTION 7. Sections 18.06.295, 18.06.908 and 18.06.927 of Chapter 18.06 (Definitions) of Title 18 are amended to read as follows: “18.06.295 - Family “Family" means an individual or two or more persons living together as a single housekeeping unit.” 10.f Packet Pg. 326 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 4 of 16 “18.06.908 –Supportive Housing “Supportive Housing” means housing with no limit on the length of stay, that is occupied by the target population, and that is linked to onsite or offsite services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible work in the community. “Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people. Supportive housing is a residential use of property subject only to those restrictions that apply to other residential dwellings of the same type in the same zone.” “18.06.927 – Transitional Housing “Transitional Housing” means buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time that shall be no less than six months from the beginning of the assistance. Transitional housing is a residential use of property subject only to those restrictions that apply to other residential dwellings of the same type in the same zone.” SECTION 8. Section 18.09.020 of Chapter 18.09 (Districts and Map) of Title 18 is amended to read as follows: “Section 18.09.020 Districts Established: The following zoning districts are established: RH Hillside Residential District R1-20 Very Low Density Single Family Residential District R1-10 Low Density Single Family Residential District R1-7.2 Single Family Residential District R2 Low Medium Density Residential District R3 Medium Density Residential District R3-S Multiple Family Senior Citizen R3-20 Medium High Density Residential District R3-24 High Density Residential District BRSP Barton Road Specific Plan District AP Administrative Professional Office District C2 General Business District CM Commercial Manufacturing District MR Restricted Manufacturing District M2 Industrial District 10.f Packet Pg. 327 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 5 of 16 PUB Public Facilities District FP Floodplain Overlay District AG Agricultural Overlay District R3-24 High Density Residential Overlay District” SECTION 9. Subsections H and I of Section 18.10.020 of Chapter 18.10 (Residential Districts) of Title 18 are amended to read as follows: “H. R3-20, Medium High Density Residential District. This district is intended for higher density multiple family development, which may include affordable housing. The minimum lot size is 12,000 square feet with a maximum density of 20 units per acre. I. R3-24, High Density Residential District: This district is intended for high density multiple family development, which may include affordable housing. The minimum lot size is 12,000 square feet with a minimum density of 20 units per acre and a maximum density of 24 units per acre.” 10.f Packet Pg. 328 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 6 of 16 SECTION 10. Section 18.10.030 of Chapter 18.10 (Residential Districts) of Title 18 is revised by amending Table 18.10.030 to read as follows: “TABLE 18.10.030 Land Use Regulations Permitted Uses RH R1-20 R1-10 R1-7.2 R2 R3 R3-S R3-20/ R3-24 A. Residential Uses Single Family (Detached), Full Sized P P P P Pa Pb - - Single Family (Attached) (Duplexes, Triplexes, and Fourplexes - - - - P P - P Multiple Family Units - - - - P P - P Manufactured Housing (As Permitted Per Chapter 18.66) P P P P P P - - Mobile Home Park - - - - C C - - Senior Citizen Housing Pd P B. Residential Accessory Structures Accessory Structure P P P P P P Pd P Second Family Unite (As Permitted Per Chapter 18.63) P P P P P P - - Guest House C C C C C C - - Private Garage P P P P P P - P Private Swimming Pool P P P P P P Pd P Home occupation (As Permitted Per Chapter 5.06) P P P P P P Pd P Keeping of Cats and Dogs (Maximum of Two (2) Each) P P P P P P Pd P Other Accessory Uses (As Approved by the Planning Director) P P P P P P Pd P 10.f Packet Pg. 329 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g Page 7 of 16 C. Other Uses Churches (Minimum Three-Acre Parcel) C C C C C C - - Schools (Private and Parochial) C C C C C C - - Public Park and Playground P P P P P P - - Public Facilities (And Quasi- Public) C C C C C C - - Family Day Care (Eight (8) or Less Children) P P P P P P - - Family Day Care Center (Nine (9) or More Children) C C C C C C - - Residential Care Facility (Six (6) or Less Persons) P P P P P P P P Residential Care Facility (Seven (7) or More Persons)f C C - - Single Room Occupancy C C - - Utility or Service Facility C C C C C C - - Outdoor Recreation Facility C C C C C C - - D. Temporary uses Temporary Uses (As approved by Planning Director) P P P P P P Pd P Temporary Trailers (As Approved by Planning Director) P P P P P P Pd P (no change to footnotes)” 10.f Packet Pg. 330 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g Page 8 of 16 SECTION 11. Section 18.10.040 of Chapter 18.10 (Residential Districts) of Title 18 is revised by amending Table 18.10.040 to read as follows: “TABLE 18.10.040 Site Development Standards DEVELOPMENT ISSUE RH R1-20 R1-10 R1-7.2 R2 R3 R3-S R3-20 R3-24 Area (Minimum square feet) _ a 20,000 10,000 7,200 10,000 12,000 g 12,000 12,000 Width (Minimum linear feet) * Interior Lot * Corner Lot _ a _ a 100 100 60 70 60 70 60 70 60 70 g 60 70 60 70 Lot Depth (Minimum linear feet) _ a 150 100 100 100 100 g 100 100 Street Frontage (Minimum linear feet) _ a 50 40 40 40 40 g 40 40 Setbacks (Minimum linear feet)  Front Yard  Rear Yard  Side Yard - Interior Lot With Garage Without Garage - Corner Lot Street side No Street side _ a _ a _ a _ a _ a _ a 25 b 35 b l0 b 5 b 15 b 5 25 b 35 b l0 b 5 b 15 b 5 25 b 20 b l0 b 5 b 15 b 5 25 b 20 b 10 b 5 b 15 b 5 25 b 20 b 10 b 10 b 15 b 10 g 25 b 20 b 10 b 10 b 15 b 10 25 b 20 b 10 b 10 b 15 b 10 Density (Allowable dwelling units per acre) _ a 1-2 1-4 1-5 1-9 1-12 c Max. 20 13-20c 20-24c Living Area (Minimum square feet) * Single Family * Duplex, Triplex, Four-plex and Multiple Family - One (1) Bedroom - Two (2) Bedroom _ a - - 1,350d - - 1,350d - - 1,350d - - 1,350d 800 d 1,000d 1,350d 800 d 1,000d g _ g _ g Height (Maximum linear feet) _ a 35 e 35 e 35 e 35 e 35 e g 35 e 35 e Lot Coverage (Maximum percent) _ a 40 50 50 60 f 60 g 60 60 Distance Between Buildings (Minimum linear feet) _ a 5 5 5 20 20 g 20 20 (no change to footnotes)” 10.f Packet Pg. 331 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g Page 9 of 16 SECTION 12. Chapter 18.48 (R3-24 Overlay District) is added to Title 18 to read as follows: “Chapter 18.48 – R3-24 OVERLAY DISTRICT 18.48.010 – Purpose The purpose of the R3-24 overlay district is to permit multi-family housing at a density of 20 to 24 units per acre as an optional alternative to the base zoning district to facilitate the production of affordable housing. At the option of the property owner, the regulations contained in this chapter may supersede the regulations of the base district. 18.48.020 – Applicability a. The provisions of this chapter shall be applied only at the request of the property owner for any site with the R3-24 Overlay designation on the Official Zoning Map when the development includes a legally binding commitment to provide at least five percent of units that are affordable to very-low-income households as defined in Section 50105 of the Health and Safety Code, or at least ten percent of units that are affordable to lower-income households as defined in Section 50079.5 of the Health and Safety Code. b. All affordable housing units must be dispersed within the development whenever feasible. Affordable housing units must be comparable with market-rate units in design, appearance, materials, and finish quality. c. All affordable housing units must be constructed concurrently with, and made available for qualified occupants at the same time as, the market-rate housing units within the development, unless the Affordable Housing Agreement provides an alternative schedule for development. 18.48.030 –Development Regulations Development applications in the R3-24 Overlay district shall comply with the same regulations as apply for the R3-24 district as established in Chapter 18.10. 18.48.040 – Review Procedures Development applications in the R3-24 Overlay district shall be processed as an Administrative Site and Architectural Review Application pursuant to Section 18.63.020.C. 18.48.050 – Affordable Housing Agreement and Covenant Prior to issuance of any building permit for a development exercising the R3-24 Overlay option, the applicant shall enter into an Affordable Housing Agreement establishing a minimum duration of affordability for the housing units as provided by Government Code § 65915(c)(1) and record a covenant on the title, all in a manner acceptable to the City Attorney. 18.48.060 – Processing Fee 10.f Packet Pg. 332 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 10 of 16 The applicant shall reimburse the City for its reasonable costs of processing an Affordable Housing Agreement.” SECTION 13. Section 18.60.030.A.2 of Chapter 18.09 (Districts and Map) of Title 18 is amended to read as follows: “2. Multiple-family dwellings: a. One parking space for each studio or efficiency unit. b. Two parking spaces for each one, two or three bedroom unit. c. Three parking spaces for each four bedroom unit or more. d. At least one space shall be located within a garage or carport, and all required spaces shall be located within 150 feet of the unit being served. e. Guest parking shall be provided at a ratio of 0.25 spaces for each residential unit, and shall be rounded up to the next whole number. f. Guest parking: (i) Shall be identified as "Guest Parking"; (ii) Shall not be used for the storage of recreational vehicles, boats, trailers or other similar items; (iii) Shall be located on the same parcel of land as the residential units and shall be within reasonable walking distance of said units; (iv) May be uncovered spaces; and (v) May be located on a private street within the site or in a common parking area.” SECTION 14. Subsection C of Section 18.63.020 of Chapter 18.63 (Site and Architectural Review) of Title 18 is amended to read as follows: “C. Administrative Site and Architectural Review Application. The purpose of this application is to allow staff level review of projects of medium scale and impact without the need for a public hearing, related costs and noticing procedures. The following item may be approved by the planning director without going to the site and architectural review board. However, the plans must be routed to all reviewing agencies and notices shall be mailed to adjacent property owners requesting comments within two weeks. The planning director's decisions shall be final unless appealed to the planning commission within ten calendar days. Appeals shall be filed with the planning department and follow similar rules as the appeals to the city council (Section 18.63.070). 1. All accessory structures, except: 10.f Packet Pg. 333 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 11 of 16 a. Structures with sixty-five percent or more of the square footage of the main residence living area. Living area does not include porches, patios, carports, garages, storage areas, or auxiliary rooms, b. Structures one thousand two hundred square feet or more in size, c. Structures with lot coverage higher than twenty-five percent; 2. All room additions, except room additions with sixty-five percent or more of the square footage of the main residence living area. Living area does not include porches, patios, carports, garages, storage areas, or auxiliary rooms; 3. Large scale temporary uses of insignificant adverse impact on the environment, i.e., parking lot sales which require review by fire, health and other agencies; 4. In case of damaged structures due to fire, earthquakes or other natural disasters where the structure will be reconstructed with alterations but not sufficient to trigger a public hearing. 5. Developments within the R3-24 and R3-24 Overlay districts. Such developments shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code.” SECTION 15. Section 18.82.020 of Chapter 18.82 (Standards for Specified Land Uses and Activities) of Title 18 is amended to read as follows: “Section 18.82.020 –Single Room Occupancy Facilities A. In addition to the requirements for a Conditional Use Permit and Section 18.82.010 (Residential Care Facilities) single room occupancy uses shall comply with the following: 1. Occupancy. No more than one (1) federal, state or youth authority parolees shall be allowed to live in the single room occupancy facility. 2. Number of Occupants. The California Building Code shall determine the number of occupants in single room occupancy facility. 3. Application. The Conditional Use Permit application submitted for the use shall identify whether any tenants are currently federal, state or youth authority parolees. Owners and or operators of approved single room occupancy facilities shall update the information required by this section anytime a person that is a federal, state or youth authority parolee is provided accommodations at a single room occupancy facility. 4. Crime prevention program. The operator of a single room occupancy facility shall require tenants to sign a crime free lease addendum as part of 10.f Packet Pg. 334 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 12 of 16 their lease or rental agreement. A sample crime free lease addendum shall be provided by the City. The crime free lease addendum shall provide that any criminal violations perpetrated by tenants shall be grounds for termination of the written or oral lease sublease or agreement under which they reside at the transitional facility. 5. Crime free multi-housing program. The facility's management shall participate in any formal residential crime prevention program (i.e., Crime Free Multi- Housing Program) provided by the City or the County of San Bernardino and as required under the conditional use permit. If the program offers certification then that certification shall be obtained and maintained in current status. 6. Compliance. Single room occupancy facilities shall be in compliance with all requirements of the Grand Terrace Zoning Code and their approved Conditional Use Permit at all times. Violation of any local, state or federal laws by individual tenants while on the premises shall be grounds for revocation of the permit, including but not limited to, violations of California Penal Code § 3003.5. 7. Nuisance. No single room occupancy facility shall be maintained as a nuisance. 8. Revocation. Violations of any of the provisions in this section or the approved Conditional Use Permit authorizing the single room occupancy facility shall be grounds for revocation. The procedures for revocation contained in Chapter 18.83 of this Title shall be followed.” SECTION 16. The City Council declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion of it irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions of it be declared invalid or unconstitutional. If for any reason any portion of this ordinance is declared invalid, or unconstitutional, then all other provisions shall remain valid and enforceable. SECTION 17. This ordinance shall take effect thirty days from the date of adoption. 10.f Packet Pg. 335 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 13 of 16 SECTION 17. First read at a regular meeting of the City Council held on the 27th day of September, 2016 and finally adopted and ordered posted at a regular meeting of said City Council on the ___ day of ______, 2016. ATTEST: ____________________________ ______________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor 10.f Packet Pg. 336 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 14 of 16 I, Pat Jacquez-Nares, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 28th day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ Pat Jacquez-Nares City Clerk Approved as to form: ___________________________________ Richard L. Adams, II City Attorney 10.f Packet Pg. 337 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 15 of 16 Exhibit 1 Amend the official Zoning Map by changing the zone district from R1-7.2 Single Family Residential to R3-24 High Density Residential on the following parcel (APN 1167-241- 01): 10.f Packet Pg. 338 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Page 16 of 16 Exhibit 2 Amend the Official Zoning Map to re-zone the property located at 21882 Grand Terrace Road (APN 0275-223-12) from R2-Low-Medium Density Residential to R3- 24 High Density Residential; and Amend the official Zoning Map by placing the R3-24 Overlay District on the properties located at 21850 and 21860 Grand Terrace Road (APNs 0275-223-59 and 0275-223-60): Apply R3-24 Overlay District Re-zone from R2 to R3-24 10.f Packet Pg. 339 At t a c h m e n t : O r d i n a n c e _ I m p l e m e n t i n g H o u s i n g E l e m e n t r e v i s i o n s _ 9 . 2 7 . 2 0 1 6 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) Addendum to the City of Grand Terrace General Plan FEIR for the 2013-2021 Housing Element and Related Amendments September 27, 2016 Overview In 2010, the Grand Terrace City Council certified the Final Program Environmental Impact Report for the General Plan Update (the “FEIR”). The City is required to adopt an updated Housing Element for the 2013-2021 planning period. The purpose of this Addendum is to demonstrate that the 2013-2021 Housing Element update and related amendments to the Land Use Element and zoning regulations would not result in any of the conditions under which a subsequent Environmental Impact Report (“EIR”) or Negative Declaration would be required pursuant to Public Resources Code Section 21166 or CEQA Guidelines Sections 15162 and 15164. Purpose of an Addendum CEQA and the CEQA Guidelines establish the type of environmental documentation that is required when changes to a project occur or new information arises after an EIR is certified or a Negative Declaration adopted for a project. CEQA Guidelines Section 15162 establishes criteria for determining whether more detailed information, such as the preparation of a Subsequent or Supplemental EIR, is needed, and Section 15164 defines the appropriate use of Addendums to previous EIRs and Negative Declarations. CEQA Guidelines Section 15162(a) states: When an EIR has been certified or a negative declaration adopted for a project, no subsequent EIR shall be prepared for that project unless the lead agency determines on the basis of substantial evidence in the light of the whole record, one or more of the following: (1) Substantial changes are proposed in the project, which will require major revisions in the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. (2) Substantial changes occur with respect to the circumstances under which the project is to be undertaken, which will require major revisions of the previous EIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. (3) New information of substantial importance which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified as complete shows any of the following: a. The project will have one or more significant effects not discussed in the EIR. b. Significant effects previously examined will be substantially more severe than shown in the previous EIR c. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure; or d. Mitigation measures or alternatives that are considerably different from those analyzed in the previous EIR would substantially reduce one or more effects on the environment but the project proponents decline to adopt the mitigation measure. 10.g Packet Pg. 340 At t a c h m e n t : A d d e n d u m _ 2 0 1 3 - 2 0 2 1 G r a n d T e r r a c e H o u s i n g E l e m e n t _ 2 0 1 6 - 0 9 - 2 7 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) FEIR Addendum for the 2013-2021 Housing Element and Related Amendments City of Grand Terrace September 27, 2015 Page 2 CEQA Guidelines Section 15164(b) states: “The Lead Agency or Responsible Agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in Section 15162 calling for the preparation of a subsequent EIR have occurred.” The following analysis demonstrates that the 2013-2021 Housing Element and related amendments do not raise any new environmental issues and require only minor technical changes or additions to the previous FEIR to satisfy the requirements of CEQA. Project Description The City is required to adopt an update to the General Plan Housing Element for the 2013-2021 planning period. A draft 2013-2021 Housing Element was prepared and submitted to the California Department of Housing and Community Development (“HCD”) for review pursuant to state law. In its letter of January 15, 2016, HCD found that the draft Housing Element complies with most requirements of state law, however the element must also identify sites the City proposes to rezone in order to accommodate the RHNA allocation. The project evaluated in this Addendum includes adoption of the 2013-2021 Housing Element and implementation actions as described below. 2013-2021 Housing Element Update The following discussion summarizes the changes contained in each section of the 2013-2021 Housing Element. Section 8.1: Introduction This section provides an overview of the Housing Element and a summary of the public participation process. No policy or regulatory changes are proposed in this section, and none of the changes reflected in this section would result in the potential for significant environmental impacts not previously considered in the General Plan FEIR. Section 8.2: Relationship to Other Plans This section describes the relationship between the Housing Element and other elements of the General Plan. No policy or regulatory changes are proposed in this section, and none of the changes reflected in this section would result in the potential for significant environmental impacts not previously considered in the General Plan FEIR. Section 8.3: Evaluation of the 2006-2013 Housing Element This section together with Appendix 1 contain a review of the programs from the previous element and identifies the City’s accomplishments as well as changes that are appropriate for the new planning period based on changed circumstances. None of the revisions reflected in this evaluation would change development regulations or result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. Section 8.4: Community Profile This section has been revised to reflect more recent demographic data, trends and special housing needs. Most of the demographic information is based on the 2010 Census or the American Community Survey. None of the revisions reflected in this section would change development regulations or result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. 10.g Packet Pg. 341 At t a c h m e n t : A d d e n d u m _ 2 0 1 3 - 2 0 2 1 G r a n d T e r r a c e H o u s i n g E l e m e n t _ 2 0 1 6 - 0 9 - 2 7 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) FEIR Addendum for the 2013-2021 Housing Element and Related Amendments City of Grand Terrace September 27, 2015 Page 3 Section 8.5: Housing Needs This section also describes the City’s housing needs for the planning period, including growth needs, special needs and housing at risk of conversion to market rate. The Regional Housing Needs Assessment (RHNA), which identifies housing growth needs for the new planning period, is summarized below. Regional Housing Needs Assessment (RHNA) The City’s assigned share of regional housing need is an important component of the Housing Element. The Southern California Association of Governments (“SCAG”) is responsible for allocating a portion of the region’s new housing need to each jurisdiction. Grand Terrace’s share of the regional housing need for the new Housing Element cycle is 118 units. The table below shows the distribution of new housing need by income category that has been allocated to the City in the RHNA. One of the key requirements of the Housing Element is to identify adequate sites with appropriate zoning that could accommodate new housing development commensurate with the assigned need in each income category. It should be emphasized that the RHNA is a planning target, not a development mandate or quota. State law does not require cities to achieve their RHNA targets or build housing. Grand Terrace Regional Housing Need 2013-2021 Very-Low Low Moderate Above-Moderate Total 28 19 22 49 118 Source: SCAG, 2012 Notes: 50% of the Very-Low-Income need is assigned to the Extremely-Low-Income category pursuant to Government Code §65583(a)(1) This section also presents an inventory and analysis of available sites that could accommodate the level of development assigned to Grand Terrace through the RHNA process. Although the General Plan identifies sufficient capacity for new housing growth to accommodate the total RHNA allocation, insufficient capacity exists to accommodate the very-low- and low-income needs, and Program 2 in Section 8.7 (Housing Plan) includes actions to address this shortfall. This section of the Housing Element also discusses various categories of special needs, including the elderly, persons with disabilities, large families, female-headed households, farmworkers and the homeless. No substantial changes in development regulations are proposed with respect to these special needs that require major revisions to the General Plan FEIR. Section 8.6: Constraints This section analyzes the City’s plans and regulations that guide housing development. The most noteworthy changes reflect the completion of several state-mandated Code amendments related to housing for persons with special needs. This chapter also discusses non- governmental constraints such as infrastructure availability and development costs. This section identifies minor changes to multi-family parking standards to allow carport rather than garage spaces and the Zoning Code definition of family in order to reduce potential constraints to lower-income housing and persons with special needs. These proposed changes would not result in the potential for new significant environmental impacts that were not previously considered in the General Plan FEIR. 10.g Packet Pg. 342 At t a c h m e n t : A d d e n d u m _ 2 0 1 3 - 2 0 2 1 G r a n d T e r r a c e H o u s i n g E l e m e n t _ 2 0 1 6 - 0 9 - 2 7 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) FEIR Addendum for the 2013-2021 Housing Element and Related Amendments City of Grand Terrace September 27, 2015 Page 4 Section 8.7: Housing Plan This section presents the City’s goals, objectives, policies and programs for the 2013-2021 planning period. Most of the changes in this chapter reflect the completion of programs in the prior Housing Element and the statewide elimination of redevelopment agencies, and would not result in new potentially significant impacts not previously considered in the General Plan FEIR. Programs 2 and 12 and 13 call for the following amendments to the Land Use Element and zoning regulations in order to ensure conformance with state housing law. Program 2  Amendment to the Land Use Element and zoning regulations to provide capacity for at least 42 additional units at a density of 20-24 units/acre commensurate with the RHNA. Potential environmental impacts of this proposed amendment are discussed in the Environmental Analysis and Conclusions section below. Program 12  Process a Zoning Code amendment to allow required covered parking for multi-family developments to be provided with either carports or garages. This minor amendment would not result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. Program 13  Amend the Zoning Code as it relates to transitional and supportive housing in accordance with state law, so that such housing is subject only to those restrictions that apply to other residential uses of the same type in the same zone. Amend the definition of family in conformance with state law. These minor amendments are required by state law and would not result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. Section 8.8: Opportunities for Energy Efficiency This section discusses actions the City can take to encourage more efficient use of energy in compliance with state policies. None of the revisions reflected in this section would change development regulations or result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. Section 8.9: Financing Resources This section discusses federal, state and local financing resources to facilitate production of housing for all income levels. None of the revisions reflected in this section would change development regulations or result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. Housing Element Implementation Actions The following General Plan and zoning amendments are proposed to implement Housing Element Programs 2, 12 and 13: 10.g Packet Pg. 343 At t a c h m e n t : A d d e n d u m _ 2 0 1 3 - 2 0 2 1 G r a n d T e r r a c e H o u s i n g E l e m e n t _ 2 0 1 6 - 0 9 - 2 7 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) FEIR Addendum for the 2013-2021 Housing Element and Related Amendments City of Grand Terrace September 27, 2015 Page 5  Amend Land Use Element Table 2.3 (General Plan Land Use Designations) to change the maximum density in the Medium High Density Residential (MHDR) designation from 20 to 24 units/acre.  Amend the Zoning Code to create a new R3-24 district allowing multi-family development with a density range of 20 to 24 units/acre.  Amend the Zoning Code to create a new R3-24 Overlay designation allowing multi- family development at a density of 20 to 24 units/acre when at least 5% very-low-income or 10% low-income units are provided as an optional alternative to the base zoning designation.  Amend the General Plan Land Use Map to redesignate APN 1167-241-01 (12201 Michigan St.) from LDR to MHDR and redesignate APN 0275-223-12 (21882 Grand Terrace Rd.) from MDR to MHDR.  Amend the Zoning Map to redesignate APN 1167-241-01 from R1-7.2 to R3-24 and redesignate APN 0275-223-12 from R2 to R3-24.  Amend the General Plan Land Use Map and Zoning Map to apply the R3-24 Overlay designation to APNs 0275-223-59 and 0275-223-60.  Amend the Zoning Code to allow required covered parking for multi-family developments to be provided with either carports or garages.  Amend the Zoning Code to allow transitional and supportive housing subject only to those restrictions that apply to other residential uses of the same type in the same zone.  Amend the Zoning Code definition of family in conformance with state law. Environmental Analysis and Conclusions Program 2 calls for changes in the Land Use Element and zoning regulations to create additional capacity for at least 42 potential housing units at a density of 20-24 units/acre. These amendments would make minor revisions to the distribution of land uses in the city by increasing the amount of land designated in the General Plan for Medium High Density Residential by 3.06 acres with a corresponding 1.07-acre reduction in the amount of land designated for Low Density Residential and a 1.99-acre reduction in the amount of land designated for Medium Density Residential, and applying an R3-24 overlay designation to approximately 2 acres of property currently designated Medium Density Residential in the General Plan. This overlay designation would provide the option for multi-family development at a density of 20-24 units/acre when at least 5% affordable housing units are provided. As compared to the General Plan analyzed in the FEIR, these proposed changes to land use designations would result in a net potential increase of approximately 48 additional housing units in the City if the optional overlay were utilized on both affected parcels. These changes would affect approximately 0.2% of the City’s land area, and the additional 48 potential units represents an increase of approximately 0.8% in the total housing units projected in the General Plan. These changes would require only minor revisions to FEIR Sections 4H (Land Use and Planning and 4J (Population and Housing) to reflect revised statistics and would not result in new significant impacts not previously evaluated in the FEIR. The proposed land use changes would also be expected to result in an increase in traffic of approximately 300 daily trips generated by the potential 48 additional housing units that could be developed if the overlay designation were exercised on both of the redesignated sites. This potential traffic increase is not substantial in the context of the City’s circulation system and 10.g Packet Pg. 344 At t a c h m e n t : A d d e n d u m _ 2 0 1 3 - 2 0 2 1 G r a n d T e r r a c e H o u s i n g E l e m e n t _ 2 0 1 6 - 0 9 - 2 7 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) FEIR Addendum for the 2013-2021 Housing Element and Related Amendments City of Grand Terrace September 27, 2015 Page 6 would not result in new significant impacts not previously evaluated in the FEIR because all new developments must be analyzed for conformance with the SANBAG Congestion Management Program Traffic Impact Analysis Guidelines (Circulation Element Policy 3.1.5), which requires appropriate mitigation for impacts to the circulation network. No major revisions are required to other section of the FEIR due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects. As discussed above, the proposed zoning changes noted in Programs 12 and 13 related to parking standards, transitional and supportive housing, and the definition of family would not result in the potential for significant environmental impacts that were not previously considered in the General Plan FEIR. Therefore, pursuant to CEQA Guidelines Sections 15162 and 15164, a subsequent or supplemental EIR or IS/ND is not required. 10.g Packet Pg. 345 At t a c h m e n t : A d d e n d u m _ 2 0 1 3 - 2 0 2 1 G r a n d T e r r a c e H o u s i n g E l e m e n t _ 2 0 1 6 - 0 9 - 2 7 ( 1 9 9 7 : H o u s i n g E l e m e n t _ A m e n d m e n t s / Z o n e C h a n g e s ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Adoption of 2016 Building Codes PRESENTED BY: Sandra Molina, Planning & Development Services Director RECOMMENDATION: Read by title only, waiver further reading and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTION 15.08.010 OF CHAPTER 15.08 (BUILDING CODE), SECTION 15.10.010 OF CHAPTER 15.10 (RESIDENTIAL CODE), SECTION 15.12.010 OF CHAPTER 15.12 (ELECTRICAL CODE), SECTION 15.16.010 OF CHAPTER 15.16 (PLUMBING CODE), SECTION 15.17.010 OF CHAPTER 15.17 (GREEN BUILDING STANDARDS), AND SECTION 15.20.010 OF CHAPTER 15.20 (MECHANICAL CODE) OF TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE GRAND TERRACE MUNICIPAL CODE, ADOPTING THE 2016 CALIFORNIA BUILDING CODE, INCLUDING THE 2016 CALIFORNIA REFERENCED STANDARD CODE, 2016 CALIFORNIA RESIDENTIAL CODE, 2016 CALIFORNIA ELECTRICAL CODE, 2016 CALIFORNIA PLUMBING CODE, 2016 CALIFORNIA GREEN BUILDING STANDARDS CODE, AND 2016 CALIFORNIA MECHANICAL CODE 2030 VISION STATEMENT: This staff report supports Goal #3, Promote Economic Development by ensuring the building codes are current. BACKGROUND/DISCUSSION: The State’s Health and Safety Code Section 17950 mandates the California Building Standards Commission (CBSC) adopt and publish the 2016 California Codes, Title 24, known as the California Code of Regulations. As a result, January 1, 2017 is the statewide effective date, established by the CBSC, for the 2016 California Building Standards Code; and all applications for a building permit that occur on or after January 1, 2017 are subject to compliance with the 2016 Code. The 2013 California Building Standards Code remains in effect and is applicable to all plans and specifications, for, and to the construction performed where the application for a building permit is received on or before December 31, 2106. 11 Packet Pg. 346 At the September 13, 2016, City Council meeting, the City Council introduced an Ordinance to amend the City’s building codes in accordance with the proposed 2016 California Code of Regulations. FISCAL IMPACT: With the adoption of the new Codes, a new set of code books at an estimated cost of $1,200.00 will be purchased using approved 2016-17 budgeted funds. ATTACHMENTS:  Ordinance_2016 Building Code_second reading (DOCX)  BSC-Bulletin-16-01 (PDF) APPROVALS: Sandra Molina Completed 09/14/2016 8:43 AM Finance Completed 09/14/2016 9:58 AM City Attorney Completed 09/16/2016 8:34 AM City Manager Completed 09/21/2016 6:51 PM City Council Pending 09/27/2016 6:00 PM 11 Packet Pg. 347 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTION 15.08.010 OF CHAPTER 15.08 (BUILDING CODE), SECTION 15.10.010 OF CHAPTER 15.10 (RESIDENTIAL CODE), SECTION 15.12.010 OF CHAPTER 15.12 (ELECTRICAL CODE), SECTION 15.16.010 OF CHAPTER 15.16 (PLUMBING CODE), SECTION 15.17.010 OF CHAPTER 15.17 (GREEN BUILDING STANDARDS), AND SECTION 15.20.010 OF CHAPTER 15.20 (MECHANICAL CODE) OF TITLE 15 (BUILDINGS AND CONSTRUCTION) OF THE GRAND TERRACE MUNICIPAL CODE, ADOPTING THE 2016 CALIFORNIA BUILDING CODE, INCLUDING THE 2016 CALIFORNIA REFERENCED STANDARDS CODE, 2016 CALIFORNIA RESIDENTIAL CODE, 2016 CALIFORNIA ELECTRICAL CODE, 2016 CALIFORNIA PLUMBING CODE, 2016 CALIFORNIA GREEN BUILDING STANDARDS CODE, AND 2016 CALIFORNIA MECHANICAL CODE THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1: Section 15.08.010 (Adoption) of Chapter 15.08 (Building Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Section 15.08.010 – Adoption Except as provided in this chapter, those certain building codes known and designed as the California Code of Regulations, Title 24, Part 2, Volume 1 and 2, based on the 2015 International Building Code, including Appendix Chapter “C” "F", "G", "I", "J", Part 12, 2016 California Referenced Standards and the California Existing Building Code shall become the Building Code of the City of Grand Terrace for regulating the construction, occupancy, equipment, use, height, area and maintenance of all buildings and/or structures in the City. The Ca l if o rn i a Code of Regulations and its appendix chapters will be on file for public examination in the office of the Building Official. SECTION 2: Section 15.10.010 (Adoption) of Chapter 15.10 (Residential Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: 11.a Packet Pg. 348 At t a c h m e n t : O r d i n a n c e _ 2 0 1 6 B u i l d i n g C o d e _ s e c o n d r e a d i n g ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) Section 15.10.010 – Adoption Except as provided in this chapter those certain building codes known and designed as the 2016 California Residential Code, California Code of Regulations , Title 24, Part 2.5, based on the 2015 International Residential shall become the Residential Building Code of the City of Grand Terrace for regulating the construction, occupancy, equipment, use, height , area and maintenance of all residential buildings and/or structures in the City. The California Residential Code and its chapters will be on file for public examination in the office of the Building Official. SECTION 3: Section 15.12.010 (Adoption) of Chapter 15.12 (Electrical Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Section 15.12.010 - Adoption Except as provided in this chapter, the 2016 California Electrical Code, California Code of Regulations, Title 24, Part 3, based on the 2014 National Electrical Code as published by the National Fire Protection Association, shall become the Electrical Code of the City of Grand Terrace, regulating all installations, arrangement, alteration, repair, use and other operation of electrical wiring, connections, fixtures and other electrical appliances on premises within the City. The California Electrical Code is on file for public examination in the office of the Building Official. SECTION 4: Section 15.16.010 (Adoption) of Chapter 15.16 (Plumbing Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Section 15.16.010 - Adoption Except as provided in this chapter, the 2016 California Plumbing Code, California Code of Regulations, Title 24, Part 5, based on the 2015 Uniform Plumbing Code as published by the International Association of Plumbing and Mechanical Officials, shall become the Plumbing Code of the City of Grand Terrace, regulating construction, installation, alteration, repair, relocation, replacement, maintenance or use of plumbing systems within the City. The California Plumbing Code will be on file for public examination in the office of the Building Official. SECTION 5: Section 15.17.010 (Adoption) of Chapter 15.17 (Green Building Standards) of Title 15 (Buildings and Construction) is hereby amended to read as follows: Section 15.17.010 - Adoption Except as provided in this chapter, the 2015 Green Building Standards Code, California Code of Regulations, Title 24, Part 11, as published by the California Building Standards Commission, shall become the Green Building Standards of the City of Grand Terrace , The provisions of this 11.a Packet Pg. 349 At t a c h m e n t : O r d i n a n c e _ 2 0 1 6 B u i l d i n g C o d e _ s e c o n d r e a d i n g ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) code shall apply to the planning, design, operation, construction, use and occupancy of every newly constructed building or structure. The Green Building Standards Code will be on file for public examination in the office of the Building Official. SECTION 6: Section 15.20.010 (Adoption) of Chapter 15.20 (Mechanical Code) of Title 15 (Buildings and Construction) is hereby amended to read as follows: (underlining indicates amended language) Section 15.20.010 - Adoption Except as provided in this Chapter, the 2016 California Mechanical Code, California Code of Regulations, Title 24 , Part 4, based on the 2015 Uniform Mechanical Code as published by the International Association of Plumbing and Mechanical Officials, shall become the Mechanical Code of the City of Grand Terrace, regulating and controlling the design, construction , installation, quality of materials, location, operation, and maintenance of heating, ventilating, cooling, refrigeration system, incinerators and other miscellaneous heat producing appliances. The California Mechanical Code is on file for public examination in the off ice of the Building Official. SECTION 7. This Ordinance has been reviewed for compliance with the California Environmental Quality Act (CEQA), the CEQA guidelines, and the City’s environmental procedures, and has been found to be exempt pursuant to Section 15061 (b)(3) (General Rule) of the CEQA Guidelines, in that the City Council hereby finds that it can be seen with certainty that there is no possibility that the passage of this Ordinance will have a significant effect on the environment. SECTION 8. Any provision of the Grand Terrace Municipal Code or appendices thereto that are inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to effect the provisions of this Ordinance. SECTION 9: If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional, such decision shall not affect this validity of the remaining portion of this Ordinance or any part thereof . The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phase thereof , irrespective of the fact that any one or more sections, subsection, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional. SECTION 10. First read at a regular meeting of the City Council held on the 13th of September, 2016, and finally adopted and ordered posted at a regular meeting of said City Council on the 27th of September, 2016. SECTION 11. This ordinance shall become effective on January 1, 2017. 11.a Packet Pg. 350 At t a c h m e n t : O r d i n a n c e _ 2 0 1 6 B u i l d i n g C o d e _ s e c o n d r e a d i n g ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) ATTEST: ____________________________ ______________________________ Pat Jacquez-Nares Darcy McNaboe City Clerk Mayor I, Pat Jacquez-Nares, City Clerk of the City of Grand Terrace, do hereby certify that the foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the ____ of _____, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ___________________________ Pat Jacquez-Nares City Clerk Approved as to form: ___________________________________ Richard L. Adams, II City Attorney 11.a Packet Pg. 351 At t a c h m e n t : O r d i n a n c e _ 2 0 1 6 B u i l d i n g C o d e _ s e c o n d r e a d i n g ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) STATE OF CALIFORNIA – GOVERNMENT OPERATIONS AGENCY GOVERNOR EDMUND G. BROWN JR BUILDING STANDARDS COMMISSION 2525 Natomas Park Drive, Suite 130 Sacramento, California 95833-2936 (916) 263-0916 FAX (916) 263-0959 BUILDING STANDARDS INFORMATION BULLETIN 16-01 DATE: July 1, 2016 TO: LOCAL BUILDING OFFICIALS INTERESTED PARTIES SUBJECT: 2016 California Building Standards Code - Now Available This bulletin provides information regarding the publication of the 2016 California Building Standards Code including the effective date and application, availability, enforcement responsibility, and significant organizational changes. Information concerning emergency building standards and filing requirements for local amendments is also addressed herein. The 2016 California Building Standards Code, Title 24, California Code of Regulations (13 Parts) was published on or before July 1 and is now available. Effective Date and Application of the 2016 California Building Standards Code Jan. 1, 2017 is the statewide effective date, established by the California Building Standards Commission (CBSC), for the 2016 California Building Standards Code. All applications for a building permit that occur on or after Jan. 1, 2017 are subject to compliance with the 2016 Code. The 2013 California Building Standards Code remains in effect and is applicable to all plans and specifications, for, and to the construction performed where the application for a building permit is received on or before Dec. 31. Availability of the 2016 California Building Standards Code The 2016 code may be purchased through the following publishers:  International Code Council (ICC) Online store: http://shop.iccsafe.org/ Email: order@iccsafe.org or ecodes@iccsafe.org Telephone: ICC Store (800) 786-4452 11.b Packet Pg. 352 At t a c h m e n t : B S C - B u l l e t i n - 1 6 - 0 1 ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) Building Standards Information Bulletin 16-01 Page 2 of 4  International Association of Plumbing and Mechanical Officials (IAPMO) Online Store: www.iapmomembership.org Email: publications@iapmo.org Telephone: (909) 472-4208  National Fire Protection Association (NFPA) / BNi Books Online store: www.bnibooks.com Telephone: (888) 264-2665 Enforcement Responsibility The California Building Standards Code is the established minimum standard for the design and construction of buildings and structures in California. State law mandates that local government enforce Title 24 standards or approved local ordinances (see Amendment by Local Ordinance that follows). Exceptions are building standards applicable to hospitals, state buildings, public schools and colleges that are subject to enforcement by state agencies. For detailed information regarding enforcement responsibilities, refer to Chapter 1, Division 1, commencing with Section 1.1, of the California Building Code, Part 2, Volume 1 of Title 24. [Reference Health & Safety Code (HSC) Sections 17950, 17958.7, 17960, 18938, 18941.5,] Amendment by Local Ordinance Local ordinances that amend Title 24 building standards are subject to requirements of California law and must be enacted and filed for each edition of the California Building Standards Code. Ordinances generally must exercise more restrictive standards than the building standards approved/adopted by the commission. These amendments must be filed and accepted, as appropriate, with CBSC, the Department of Housing and Community Development or the State Historical Building Safety Board before they are enforceable at the local level. The Local Code Ordinances page on the CBSC website (www.bsc.ca.gov/Rulemaking/LocalCodeOrdinances.aspx) has a number helpful resources including the 2016 edition of the Guide for Local Amendments of Building Standards, examples of ordinances that were filed in accordance with state law, and the updated California Code Adoption for Local Jurisdictions webinar. [Reference Health & Safety Code (HSC) Sections 17950, 17958, 17958.5, 17958.7, 18938, 18941.5, and 18959] 11.b Packet Pg. 353 At t a c h m e n t : B S C - B u l l e t i n - 1 6 - 0 1 ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) Building Standards Information Bulletin 16-01 Page 3 of 4 Significant Organizational Changes to Title 24 The following identifies significant organizational changes in the 2016 edition of Title 24. For matters not listed here, please refer to the margin markings in the new publication, which identify deletions and additions to the code. New banner: BSC-CG As prescribed in Health and Safety Code (HSC) §18940.5, CBSC was directed, to the extent feasible, to reference or reprint green building standards (CALGreen) in the relevant portions of Title 24. In accordance with this mandate, CBSC proposed the new CALGreen banner, BSC-CG, in an effort to provide easy application clarification for code users. The banner has been included in the matrix tables throughout the code to indicate CALGreen application. The specific scope of application and enforcement may be found in chapter one of each code part. Part 1 California Administrative Code (CAC) A new section was added to the CAC in Article 4, Chapter 1, which identifies provisions for proposing state agencies to receive recommendations for developing green building standards from non-proposing state agencies that have expertise in green building in accordance with HSC §18930.5. Part 2 California Building Code (CBC) The 2016 CBC is based on the 2015 International Building Code (IBC). The provisions of Chapter 34 of the 2012 IBC were relocated to the 2015 International Existing Building Code (IEBC). Accordingly, California amendments effecting building standards for existing structures have been moved to the 2016 California Existing Building Code, Part 10, Title 24. A reference table for further clarification of these changes is available on the CBSC website (www.documents.dgs.ca.gov/bsc/2015TriCycle/CrossRef-Table-CBCCh34-CEBC- P10-2016.xlsx.pdf). Part 5 California Plumbing Code (CPC) The 2016 CPC is based on the 2015 Uniform Plumbing Code (UPC). Several chapters in the 2015 UPC were reorganized, which include the following changes reflected in the 2016 CPC:  Referenced standards formerly in Chapter 14 have been relocated to Chapter 17.  Provisions regarding alternate water sources for nonpotable applications have been relocated from Chapter 15 to Chapter 16. 11.b Packet Pg. 354 At t a c h m e n t : B S C - B u l l e t i n - 1 6 - 0 1 ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) Building Standards Information Bulletin 16-01 Page 4 of 4  Provisions regarding Nonpotable Rainwater Catchment Systems have been relocated from Chapter 17 to Chapter 16. Part 10 California Existing Building Code (CEBC)  The 2016 CEBC is based on the 2015 International Existing Building Code.  As previously noted herein, California amendments effecting building standards for existing structures are now located in the 2016 CEBC. See the reference table on the CBSC website (www.documents.dgs.ca.gov/bsc/2015TriCycle/CrossRef-Table-CBCCh34-CEBC-P10- 2016.xlsx.pdf).  Part 10 (and Part 8) is still located in the Part 2, Volume 2 binder. Emergency Building Standards The water conserving Emergency Building Standards that were adopted into the 2013 Code last summer are included in the 2016 Code. Those provisions affected Parts 1, 5 and 11 of Title 24. For more information about the Emergency Building Standards please refer to Information Bulletin 15-04. Questions or comments regarding the subject of this bulletin should be directed to this office at either (916) 263-0916, or via email at cbsc@dgs.ca.gov. Sincerely, Mia Marvelli Executive Director 11.b Packet Pg. 355 At t a c h m e n t : B S C - B u l l e t i n - 1 6 - 0 1 ( 2 0 1 2 : A d o p t i o n o f 2 0 1 6 B u i l d i n g C o d e s ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Treasurer's Report as of June 30, 2016 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Receive and file the Treasurer's Report for the period ending June 30, 2016. 2030 VISION STATEMENT: This staff report supports Goal #1, “Ensuring Our Fiscal Viability”, through the continuous monitoring of expenditure budgets, allocations and operational costs. BACKGROUND: The Treasurer’s Report of funds held as cash or invested by the City and the Successor Agency to the Community Redevelopment Agency should be presented to the governing body periodically. DISCUSSION: The purpose of the Treasurer’s Report is to provide the governing body with the following information: Current cash position of the City and Successor Agency.  Identify where all cash is held and, if invested, provide information regarding the Book Value, PAR Value, Market Value, yield, and maturity:  Book Value is the value of an asset as it is listed in the City’s balance sheet or statement of financial position. The book value of the City’s cash is the amount listed in the City’s bank statement as of June 30, 2016 and recorded in the City’s financial system.  PAR value or face value is the value listed on an invested stock or bond. Had the City invested the cash in stocks or bonds, the PAR value would be the current value of the stocks or bonds.  Market value of an investment is the amount that someone will pay for it now, or the sale price. The investment value calculates what the investment will earn and likely will be worth in the future. Had the City invested the cash in stocks or bonds, the investment would have both a 12 Packet Pg. 356 PAR value and a Market value.  Yield describes the amount in cash (in percentage terms) in the form of interest or dividends received from an investment in stocks or bonds.  Maturity or maturity date refers to the payment date of a financial instrument (stock, bond, certificate of deposit (CD) at which point the principal (and all remaining interest) is due to be paid.  The attached Treasurer’s Report as of June 30st indicates book, PAR and market value of total cash and investments. Show that there are sufficient cash resources to make economic commitments for the next six months. One way the governing body can monitor the fiscal condition of the City and the Successor Agency is to review the cash position. Common benchmarks to do this is to compare the current quarter to the prior quarter and the current quarter to the same quarter in the prior fiscal year. For the Treasurer’s Report of June 30, 2016, the quarter summary would be compared to March 30, 2016 and the annual summary would be compared to June 30, 2015. Information on the benefits of these two cash reporting comparison periods is provided below:  Quarterly change in cash position: Compares the cash position at the end of a quarter to the end of the prior quarter. The cyclical nature of revenues to the City and the Successor Agency versus the relatively constant nature of expenditures is shown in a quarterly comparison. An example of this would be property tax revenue of which the majority is received in December and May versus monthly labor and utility costs. Generally, the cash position tends to decrease in the first and second quarter of a fiscal year and to increase in the third and fourth quarters. One-time revenues such as bond proceeds may also be easier to highlight first in a quarterly change report. CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Quarter Table 1 Description Mar 30 2016 Jun 30 2016 $ Change % Chg Total Cash and Investments $ 25,546,313 $ 27,355,239 $ 1,808,926 7.1% Funds with Fiscal Agent 1,758,264 1,758,706 442 0.0% Total $ 27,304,577 $ 29,113,945 $ 1,809,368 6.6%  As shown in the Table 1 above, the Cash & Investments Report indicates 12 Packet Pg. 357 total cash and investments of $29,113,945 including funds with fiscal agent at June 30, 2016. This represents an increase of $1,809,368 in cash and investments over the previous quarter. The increase between the two quarters is mostly due to the following reasons:  the 2nd General fund property tax allocation normally received in May or June of approximately $550,000; and  the Recognized Obligation Payment Schedule (ROPS) 16-17A allocation normally received in June for the July through December allocation of approximately $1.3 million CHANGE IN TREASURY POSITION Fiscal Year-to-Date Compared to Previous Year (Same Quarter) Table 2 Description Jun 30 2015 Jun 30 2016 $ Change % Chg Total Cash and Investments $ 28,134,801 $ 27,355,239 $ (779,562) -2.8% Funds with Fiscal Agent 1,757,984 1,758,706 722 0.0% Total $ 29,892,785 $ 29,113,945 $ (778,840) -2.6%  As shown in Table 2, the current cash position compared to a year ago on June 30, 2015, shows a decrease of almost $780,000. This decrease was due to Council approved use of various fund balances for various projects and activities which include:  QLEAP Projects (including public safety services, summer recreation and swim programs);  Sales Tax Economic Development Agreement with One- Source;  Assessment and Design of Park Projects;  Various transportation projects including the pavement management study and additional engineering support;  Law Enforcement Equipment;  Community Services; and  City Council equipment replacement and system upgrades. Cash Balance by Fund The attached Treasurer’s Report at June 30, 2016 shows that 71% of the total cash and investments ($19,338,907) are Successor Agency funds, while the remaining 29% or $8,016,332 are City funds. City funds include the General Fund, Child Care Fund and other Special Revenue funds such as the Gas Tax Fund and the Measure “I” Fund. 12 Packet Pg. 358 Below is the list of cash balances by Fund: CASH BALANCE BY FUND June 30, 2016 Table 3 CITY FUNDS: Fund No. Fund Description Cash Balances 09 CHILD CARE CENTER FUND $ (236,731) 10 GENERAL FUND 2,720,887 11 STREET FUND 1,337,385 12 STORM DRAIN FUND 102,428 13 PARK FUND 295,194 14 SLESF (AB3229 COPS) 20,376 15 AIR QUALITY IMPROVEMENT FUND 59,174 16 GAS TAX FUND 333,336 17 TRAFFIC SAFETY FUND 45,185 19 FACILITIES FUND 233,599 20 MEASURE "I" FUND 731,509 21 WASTE WATER DISPOSAL FUND 1,427,603 22 CDBG 7,339 23 REFUNDABLE DEPOSITS TRUST FUND 397,521 25 SPRING MOUNTAIN RANCH 195,127 26 LNDSCP & LGTG ASSESSMENT DIST 2,717 46 CAPITAL IMPROVEMENTS - STREETS 18,438 47 CAP.PRJ. BARTON/COLTON BRIDGE 2,337 48 CAPITAL PROJECTS FUND (325,923) 52 HOUSING AUTHORITY 40,029 61 COMMUNITY BENEFITS FUND 16,483 64 PUBLIC SAFETY FUND 178,857 65 SENIOR BUS PROGRAM FUND (5,829) 66 CAL RECYCLE GRANT 5,008 70 EQUIPMENT REPLACEMENT RESERVE FUND 414,282 TOTAL CITY FUNDS $ 8,016,332 SUCCESSOR AGENCY FUNDS: Fund No. Fund Description Cash Balances 31 S/A RDA OBLIGATION RETIREMENT FUND $ 1,287,054 32 S/A CAPITAL PROJECTS FUND 2,286 33 S/A DEBT SERVICE FUND 119,078 36 2011 TABS A & B BOND PROCEEDS 17,930,489 TOTAL SUCCESSOR AGENCY FUNDS $ 19,338,907 GRAND TOTAL $ 27,355,239 12 Packet Pg. 359 The attached Treasurer’s Report also shows that the City of Grand Terrace has the ability to meet its expenditure requirements for the next six months and sufficient funds are available to meet its operating needs. As stated earlier in the report, the cash balances shown above are as of a certain date in time, specifically, June 30, 2016. FISCAL IMPACT: The purpose of the Treasurer’s Report is to provide information regarding the current cash and investment position of the City and the Successor Agency to the Community Redevelopment Agency. There is no financial impact from approving the report. ATTACHMENTS: Treasury Reports June 30, 2016 (PDF) ATTACHMENTS:  Cash and investments report_June 2016 (XLSX) APPROVALS: Finance Completed 09/19/2016 7:14 PM Cynthia Fortune Completed 09/19/2016 7:14 PM City Attorney Completed 09/20/2016 8:06 AM City Manager Completed 09/21/2016 6:52 PM City Council Pending 09/27/2016 6:00 PM 12 Packet Pg. 360 City of Grand Terrace & Successor Agency to the CRA of Grand Terrace Cash & Investment Report June 30, 2016 City Successor Agency Total PAR Market Yield Maturity California Asset Management Program 3,900,175 3,900,175 3,900,175 3,920,066 0.51%N/A State Treasurer- LAIF: City Account 766,598 766,598 766,598 769,925 0.43%N/A State Treasurer- LAIF: Successor Agency 16,538,056 16,538,056 16,538,056 16,609,831 0.43%N/A TOTAL FUNDS IN INVESTMENT POOLS 4,666,774 16,538,056 21,204,829 21,204,829 21,299,822 US BANK - Safekeeping- First American Treasury Fund 1,071,786 - 1,071,786 1,071,786 1,071,786 0.00%N/A BBVA Compass Time Deposit 94,000 94,000 94,000 94,509 0.01%6/8/2017 Bank of America - Savings Acct. - Insured 50,245 50,245 50,245 50,260 0.00%N/A TOTAL FUNDS OTHER INVESTMENTS 1,122,031 94,000 1,216,031 1,216,031 1,216,555 TOTAL INVESTMENTS 5,788,804 16,632,056 22,420,860 22,420,860 22,516,377 Bank of America - Gen. Operating Acct. - Collateralized 2,225,511 1,830,310 4,055,821 4,055,821 4,055,821 0.000%N/A CitiEscrow Client Checking Acct. (Data Ticket)2,017 2,017 2,017 2,017 0.000%N/A Bank of America - Successor Agency Acct. - Insured - 876,542 876,542 876,542 876,542 0.000%N/A TOTAL CASH 2,227,528 2,706,851 4,934,379 4,934,379 4,934,379 INVESTMENTS 5,788,804 16,632,056 22,420,860 22,420,860 22,516,377 CASH 2,227,528 2,706,851 4,934,379 4,934,379 4,934,379 TOTAL CASH & INVESTMENTS 8,016,332 19,338,907 27,355,239 27,355,239 27,450,756 29%71%100% CASH WITH FISCAL AGENT (RESERVE FUNDS) U.S. Bank - First American Treasury Obligations 2011A TABS 0 1,281,601 1,281,601 1,281,601 1,283,267 0.13%N/A U. S. Bank - First American Treasury Obligations 2011B TABS 0 477,104 477,104 477,104 477,725 0.13%N/A TOTAL FUNDS WITH FISCAL AGENT 0 1,758,706 1,758,706 1,758,706 1,760,992 TOTAL CASH, INVESTMENTS & CASH WITH FISCAL AGENT 8,016,332 21,097,613 29,113,945 29,113,945 29,211,748 28%72%100% 12.a Packet Pg. 361 At t a c h m e n t : C a s h a n d i n v e s t m e n t s r e p o r t _ J u n e 2 0 1 6 ( 2 0 1 8 : T r e a s u r e r ' s R e p o r t a s o f J u n e 3 0 , 2 0 1 6 ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Monthly Business License Report for July 2016 PRESENTED BY: Cynthia Fortune, Finance Director RECOMMENDATION: Receive and file the Monthly Business License Report for the period ending July 31, 2016. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability”, through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: The Finance Department has developed a Monthly Business License Report (MBLR), which will be submitted to the City Council each month. The attached MBLR for the period ending July 31, 2016 is the first such report. The purpose of the MBLR is to recognize new businesses that have opened in Grand Terrace; identify projected revenue receipts from these new businesses and provide the locations of the new businesses that opened offices in the City. Since the City’s business licenses have an annual calendar date from January 1st to December 31st, this first report covers a seven-month period: January 1, 2016 to July 1, 2016. DISCUSSION: Chapter 5.04 of the City’s Municipal Code states that any person, firm or corporation conducting or carrying on business within the city limits shall be charged a business license tax. The City of Grand Terrace (City) contracts with MuniServices (Consultant) for the following three (3) main components: 1. Tax Administration: of the City’s business license processing, renewals, collections, on-going monitoring and administration of the business license tax. a. Online Application and Renewal:  Provide a link on the City’s website that will enable all businesses to apply for a business license and pay its business tax on-line through Consultant’s software application; 13 Packet Pg. 362  Provide a kiosk linking to the Consultant’s website to allow on-line processing and printing of applicable documents and receipts for Walk-In customers into City Hall. b. Taxpayer Notification and Remittance:  Consultant to send individualized tax forms to all known taxpayers;  Taxpayers will remit payments to the City c/o Consultant. c. Deposit Process:  Deposits will be made via Automated Clearing House (ACH) as instructed by the City;  Deposits will be for amounts received less Consultants’ fees ($12.00 per license payment processed). 2. Discovery Services: identification of entities subject to City business license taxes which are not properly registered, or otherwise not reporting business taxes to the City. a. Inventory:  Establish a comprehensive inventory of entities subject to taxation by the City;  Notify all entities of non-compliance with the City’s business tax requirements and collect the amount of identified deficiencies;  Establish a call center open during normal business hours to answer any questions regarding application, remittance and reporting requirements regarding the City’s business licenses taxes;  Consultant’s compensation will be 35% of the additional revenue received from the Discovery Services. 3. Deficiency Audit Services: identification of entities subject to City business license taxes that are not properly reporting the full amount tax which they are subject to under the City’s Municipal Code. a. Inventory:  Establish a comprehensive inventory of registered entities subject to taxation by the City;  For under-reporting entities identified, receive approval from the city to conduct a review of the entity’s records and determine the amount of tax due;  Invoice entity on behalf of the City and educate the entity on the City’s tax requirements to avoid under-reporting in the future;  Consultant’s compensation will be 35% of the additional revenue received from the Discovery Services. NEW BUSINESS LICENSES ISSUED 13 Packet Pg. 363 For the period from January 2016 through July 2016, 94 business licenses were issued. Of the 94 business licenses, 22 have physical addresses in the City. Below are charts that summarize all licenses issued during this seven-month period. Month In City Outside City TOTAL Jan 8 7 15 Feb 2 10 12 Mar 3 11 14 Apr 4 12 16 May 2 10 12 Jun 2 16 18 Jul 1 7 8 TOTAL 22 72 94 Approximately 30.5% of all business licenses issued have physical locations within City limits. These businesses are estimating total annual Gross Receipts of $2.1m. Chart of New Businesses with physical locations within and outside City limits. 13 Packet Pg. 364 NEW BUSINESS LICENSES ISSUED WITHIN THE CITY – Physical Map NEW BUSINESS LICENSES ISSUED WITHIN THE CITY – Address Detail Map Loc. Business Name DBA Address NAICS Description A ABDELJAWAD MOHAMMAD JACK'S WHOLESALE 12210 MICHIGAN STREET #6 Other Miscellaneous Nondurable Goods Merchant Wholesalers B CROW PATRICK R CORONA DETAILING SUPPLIES 22658 FLAMINGO STREET Other Direct Selling Establishments C ELITE CONSERVATION PURCHASE GREEN REDLANDS 21800 BARTON ROAD Other Miscellaneous Nondurable Goods Merchant Wholesalers D F & J JANITORIAL SERVICES 12238 1/4 MICHIGAN STREET Janitorial Services E FIVE OAKS SPEECH THERAPY SERVICES 22365 BARTON ROAD SUITE 104 Offices of Physical, Occupational and Speech Therapists, and Audiologists F GLOBAL PRO MX GLOBAL PRO MX 12210 MICHIGAN STREET SUITE 26 Motor Vehicle Parts (Used) Merchant Wholesalers 13 Packet Pg. 365 Map Loc. Business Name DBA Address NAICS Description G HAROLD LUKE MD INC 22182 BARTON ROAD Offices of Physicians (except Mental Health Specialists) H HEART MATTERS FOSTER FAMILY AGENCY THE HEART MATTERS FOSTER FAMILY AGENCY THE 21935 VAN BUREN STREET SUITE A1 Child and Youth Services I HORNBECK DAVID ERIK D & L PLUMBING 11797 HOLLY STREET Plumbing, Heating, and Air- Conditioning Contractors J HUNT ANDREW M ELEPHANT SHOE PRINTING 12050 PARADISE STREET Commercial Screen Printing K HUNT DARREN M HUNT ELECTRICAL CONTRACTORS 21935 VAN BUREN STREET SUITE B13 Electrical Contractors and Other Wiring Installation Contractors L INKLINGS INKLINGS 22131 RAVEN WAY Educational and Support Services M LUXURY WINDOW FASHIONS LUXURY WINDOW FASHIONS 12210 MICHIGAN STREET #2 Interior Design Services N SMALLEY SONYA A INKY PAGE EDITING 22872 PALM AVENUE Document preparation services O SPOTLESS MAIDS REFERRAL AGENCY SPOTLESS MAIDS 22737 BARTON ROAD Janitorial Services P SURBER MACHINE SURBER MACHINE 12210 MICHIGAN AVENUE Q TAYLOR KENT USA ENTERPRISE 22136 MAVIS STREET Electronic Shopping R TAYLOR VALDA CJLJ FINANCIAL SERVICES 22865 BRENTWOOD STREET Document preparation services S WIDEWORLD SPORTSWEAR INC 21800 BARTON ROAD UNIT 111 Men's and Boys' Clothing and Furnishings Merchant Wholesalers T WILHITE LANGLEY INC 21800 BARTON ROAD #102 New Single-Family Housing Construction (except For- Sale Builders) U ZAPPE SARA M BLUE MOUNTAIN JEWELRY DESIGN 23336 WESTWOOD STREET V ZAVALA ALMENDRA GARCIA 12040 LACROSSE AVENUE Beauty Salons FISCAL IMPACT Total business license fees collected for all business licenses issued are shown below: Description Business License Fees Collected In City $1,658 Outside City 5,735 TOTAL $7,393 13 Packet Pg. 366 There is no fiscal impact associated with the receipt of the MLBR for the period ending July 31, 2016. APPROVALS: Cynthia Fortune Completed 09/13/2016 9:45 AM Finance Completed 09/13/2016 9:46 AM City Attorney Completed 09/13/2016 3:18 PM City Manager Completed 09/21/2016 6:50 PM City Council Pending 09/27/2016 6:00 PM 13 Packet Pg. 367 AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Professional Services Agreement with Kosmont Companies to Assist the City with the Liquidation of Properties Identified in the Long Range Property Management Plan (LRPMP) and Develop Strategies to Access New State Economic Development Programs. PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Approve Professional Services Agreement with Kosmont Companies in an amount not to exceed $30,000 (Attachment VI). 2030 VISION STATEMENT This staff report supports Goal #1 "Ensure Fiscal Viability" and Goal #3 "Promote Economic Development" by providing professional consulting services to assist the City in the implementation of the Long Range Property Management Plan (LRPMP). BACKGROUND: Kosmont Companies has previously assisted the City with preparation of the Successor Agency Long Range Property Management Plan (“LRPMP”) and other redevelopment agency dissolution activities, including presentation to the Oversight Board and ongoing correspondence with the Department of Finance. A sub-consultant to Kosmont Companies, Kosmont affiliate KRC (CA BRE #01770428) prepare a Brokers Opinion of Value for the 55-acre property owned by the City identified in the Successor Agency LRPMP as the Mixed-Use Specific Plan property, located east of the I-215 Freeway, west of Michigan Avenue, south of Barton Road, and north of Pico Street in the City. (Attachment I) DISCUSSION: Like most cities in California, the loss of Redevelopment Funds as an Economic Development tool, severely limits the City of Grand Terrace’s ability to incentivize private investment into the community. As a carryover from its Redevelopment Agency, the City received ownership of various parcels of land purchased with Redevelopment funds. The City can sell the property to private developers. However, historically cities used a combination of Agency owned land and redevelopment funds (called tax increment - property taxes in a Redevelopment Area are frozen on a property and when the property is improved, the increased or increments funds go to the redevelopment agency and the base taxes continue to go to the original taxing entities) to secure development of new commercial developments. Cities must find new ways to generate 14 Packet Pg. 368 funds to assist developers with on-site and off-site infrastructure improvement. The California Legislature approved an Enhanced Infrastructure Financial District (EIFD) and Community Revitalization and Investment Authority (CRIA) as new tools to assist cities with Economic Development. Staff proposes to utilize the services of Kosmont to assess these new programs’ and return to the Council with recommendations and implementation strategies to help the City form public private partnerships. EIFD’s and CRIA’s could help Grand Terrace develop economic development programs to strengthen Grand Terrace’s economic future, while shielding its vulnerable general fund reserves. The Enhanced Infrastructure Financial District (EIFD) is very similar to Redevelopment Agency Financing. However, cities can only commit their tax increment to fund projects (other non-school taxing entities can agree to use their tax increments on projects). EIFD’s require boundaries and allows for bonds to support public and private development (Attachment II) Kosmont will assist the City with the development of those boundaries as well support for understanding the benefits of CRIA’s. (Attachment III). In addition, Kosmont will update the City’s Brokers Opinion of Value (BOV). The City original BOV was provided with the assumption that the entire 55 acres would be sold as one unit. However, a small portion of the property listed in the original BOV is being sold as a separate parcel. Therefore, staff is recommending an update to the BOV in preparation of the sale of the 50 acres. Because Kosmont Companies have played a significant part in the City’s LRPMP; developed the previous BOV; provided support to various communities to help establish CRIA’s and EIFD’s; and time is of the essence to insure the BOV is updated; staff is requesting the Council utilize Section VI (B) of Grand Terrace Fiscal Policy, waiving the competitive selection process because it is in the best interest of the City (Attachment IV). FISCAL IMPACT: There will be no additional fiscal impact for this project. It was included in the 2016/17 budget (Attachment V - budget sheet). ATTACHMENTS:  Attachment I - Amended LRPMP and BOV (PDF)  Attachment II - SB628 EIFD (PDF)  Attachment III - Assembly Bill No. 2 (PDF)  Attachment IV - Purchasing Policy from Fiscal Policies 2015-16 (PDF)  Attachment VI - Kosmont Agreement (PDF) 14 Packet Pg. 369 APPROVALS: G. Harold Harold Duffey Completed 09/22/2016 12:22 PM City Attorney Completed 09/22/2016 2:08 PM Finance Completed 09/22/2016 2:14 PM City Manager Completed 09/22/2016 1:50 PM City Council Pending 09/27/2016 6:00 PM 14 Packet Pg. 370 This page left intentionally blank. Amended Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 1 of 19 AMENDED LONG-RANGE PROPERTY MANAGEMENT PLAN SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE NOVEMBER 13,2014 Prepared By: KOSMONT COMPANIES 865 S. Figueroa Street, #3500 Los Angeles, CA 90017 Telephone:(213) 417-3300 www.kosmont.com 14.a Packet Pg. 371 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 2of19 Ta ble of Contents Section Page 1.0 Introduction 2.0 Long-Range Property #1: 22100 Block of ...6 Property #2: 22747 Barton ..9 Property #3: Vista Grande Park Project ..11 Property #4: Mixed-4 3.0 Attachments 2 14.a Packet Pg. 372 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 3of19 1.0 Introduction 1.1 Background & Purpose Health and Safety Code Section 34191.5, added by AB 1484 (signed into law on June 27, -Range Property the former redevelopment agency. Properties held by a successor agency cannot be disposed MP. This document is Grand Terrace. Table 1.1:City Location Map 14.a Packet Pg. 373 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 4of19 1.2 Successor Agency Property Summary The SA / former RDA is the owner of record on title for five (5)properties (comprised of13 parcels) in the City of Grand Terrace. Of these properties, two (2) are governmental use properties that are proposed to be transferred to the City to continue exclusive and continued governmental use. Of the remaining three (3)properties, two are designated to be liquidated with distribution of sale proceeds to local taxing entities pursuant to AB1484, and one of the properties is designated to be transferred to the City for future development. Table 1.2 below summarizes the recommendations for disposition for the LRPMP properties, and Exhibit 1.2 on the following page includes a map of the SA and Housing Agency properties. Table 1.2: Successor Agency Property Summary #Address/Description APN Purpose Future Dev.Liquid.Enf. Oblig. 122100 Block of Barton Rd. 0275-242-11 0275-242-11 X 2 22747 Barton Rd.0276-202-54 X 3Vista Grande Park Project 0276-462-10 X 4 Mixed-Use Specific Plan Project 1167-141-08 1167-151-68 1167-151-71 1167-151-74 1167-161-03 1167-161-04 1167-151-22 X 14.a Packet Pg. 374 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 14.a Packet Pg. 375 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 6of19 2.0 Long-Range Property Management Plan Property #1: 22100 Block of Barton Road Parcel Data Property #1 Address 22100 Block of Barton Road APN 0275-242-10 &0275-242-11 Lot Size 0.88 acres (38,333 square feet) Use Vacant land Zoning BRSP General Commercial Current Title City of Grand Terrace Successor Agency 14.a Packet Pg. 376 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 7of19 Acquisition & Valuation Information Property #1 Purchase Date 1/272009 (APN #0275-242-11) & 8/1/2009 (APN #0275-242-10) Purchase Price $399,231 Funding Source Tax increment Purpose Future commercial development in advancement of RDA planning objectives Estimate of Current Value $350,000 Method of Valuation Professional appraisal obtained by City dated August 23, 2011 Revenues Generated by Property &Contractual Requirements Property #1 No Revenues or Contractual Requirements There are no revenues generated by this property,and there no contractual requirements related to this property. History of Environmental Contamination or Remediation Efforts Property #1 Soil Removal Required Phase I Environmental Site Assessment and Limited Phase II Environmental Site Screening dated March 18 2009, April 15, 2009 and September 11, 2009. No known history of environmental contamination, designation as Brownfield site, or remediation was identified. During the aforementioned escrow, a subsequent Phase 1 cubic yard soil pile, as a Recognized Environmental Concern (REC). Additional soil sampling of the soil pile determined the stockpile contains non-hazardous levels of diesel and motor oil range hydrocarbons. As a condition to the close of escrow, property. To properly dispose of the soil pile to the appropriate and metals is required. The Agency has included the anticipated cost of soil removal on the ROPS . 14.a Packet Pg. 377 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 8of19 Transit-Oriented Development & Agency Planning Objectives Property #1 Potential for TOD Not applicable Agency Planning Objectives Future development of retail commercial uses will advance Agency objectives of elimination of blight and strengthening of commercial uses and the economic base of the community Brief History of Previous Development Proposals and Activities Property #1 History terminated in August of 2013 due to redevelopment dissolution. Recommendation for Disposition Property #1 Liquidation in place at this time, it is recommended that the property be sold to a developer or end-user for development consistent with Agency planning objectives for a sale price consistent with estimate of current value. Revenue generated from the sale of this property is proposed to be distributed to local taxing agencies pursuant to AB 1484. 14.a Packet Pg. 378 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 9of19 Property #2: 22747 Barton Road Parcel Data Property #2 Address 22747 Barton Road APN 0276-202-54 Lot Size 0.33 acres (14,375 square feet) Use Vacant Land Zoning BRSP Office Professional Current Title City of Grand Terrace Successor Agency 14.a Packet Pg. 379 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 10 of 19 Acquisition & Valuation Information Property #2 Purchase Date 01/13/2009 Purchase Price $360,000 Funding Source Tax increment Purpose Future commercial development in advancement of RDA planning objectives Estimate of Current Value $115,000 Method of Valuation Comparable sales evaluation Revenues Generated by Property & Contractual Requirements Property #2 No Revenues or Contractual Requirements There are no revenues generated by this property,and there no contractual requirements related to this property. History of Environmental Contamination or Remediation Efforts Property #2 None No known history of environmental contamination, designation as Brownfield site, or remediation Transit-Oriented Development & Agency Planning Objectives Property #2 Potential for TOD Not applicable Agency Planning Objectives Future commercial development will advance Agency objectives of elimination of blight and strengthening of commercial uses and the economic base of the community. Immediate proximity of the subject property to City Hall should also be noted. Brief History of Previous Development Proposals and Activities Property # 2 History Previously abandoned structure on-site was demolished.There has been no notable development proposal and other activity in connection with this property since Agency acquisition. Recommendation for Disposition Property #2 Liquidation Sale of property to developer or end-user for development consistent with Agency planning objectives and proximity to City Hall for a sale price consistent with estimate of current value. Revenue generated from the sale of this property is proposed to be distributed to local taxing agencies pursuant to AB 1484. 14.a Packet Pg. 380 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 11 of 19 Property #3: Vista Grande Park Project Parcel Data Property #3 Address 22720 Vista Grande Way APN 0276-462-10 Lot Size 0.35 (15,246 square feet) Use Vacant Land Zoning Residential (R1-20) Current Title City of Grand Terrace Successor Agency Acquisition & Valuation Information Property #3 Purchase Date 6/9/2009 Purchase Price $60,000 Funding Source Tax increment Purpose Eliminate public nuisance (red-tagged,foreclosed residential structure) and provide for open space or future civic use Estimate of Current Value $0 Method of Valuation Non-revenue generating public use with consideration of unstable geotechnical conditions 14.a Packet Pg. 381 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 12 of 19 Revenues Generated by Property & Contractual Requirements Property #3 No Revenues or Contractual Requirements There are no revenues generated by this property and no contractual requirements. History of Environmental Contamination or Remediation Efforts Property #3 Subsiding Soil Conditions Property includes unstable soil in rear portion of parcel (Natural Hazard Disclosure Report obtained by City dated May 27, 2009). Plan. There is no history of environmental contamination, designation as Brownfield site, or remediation. Transit-Oriented Development & Agency Planning Objectives Property #3 Potential for TOD Not applicable Agency Planning Objectives The Vista Grande Park Project is explicitly indicated as one of 14 priority non-housing projects in the approved RDA Five-Year Implementation Plan adopted December 8, 2009 for the years 2010-2014 for the advancement of Agency objectives #4 (improve parking and open space) and #5 (civic and cultural enhancement). Demolition of the previous red-tagged, foreclosed residential structure also served to advance Agency planning #1 (eliminate blight). Brief History of Previous Development Proposals and Activities Property #3 History Previously abandoned structure (red-tagged, foreclosed residence) on-site was demolished.There has been no notable development proposal activity or other activity in connection with this property since Agency acquisition from the previous Bank 14.a Packet Pg. 382 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 13 of 19 Recommendation for Disposition Property #3 Transfer to City for Government Use Retention of the property by the City for government use consistent with its identification as a priority non-housing redevelopment project within the approved and adopted RDA Five-Year Implementation Plan.Health and Safety Code Section 34191.5 (c) (2)(A) allows for the City to retain title to property for development that is included in a redevelopment plan and also for government use. On May 14, 2013, and June 5, 2013, the Successor Agency and Oversight Board adopted respective resolutions approving the transfer of the property to the City of Grand Terrace pursuant to Health and Safety Code Sections 34181(a) and 34191.3. On October 15, 2013, the DOF disallowed the transfer as the dog park has not yet been constructed. However, development of the property as a dog park as identified in the adopted RDA 5-Year Implementation Plan is the best use of the property, and is viable. Given the unstable geotechnical conditions of the property, one possible future use is a dog park as proposed by a community volunteer organization. Vista Grande Park construction costs were explicitly indicated among designated uses of proceeds from the RDA 2011A Tax Allocation Bonds. 14.a Packet Pg. 383 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 14 of 19 Property #4: Mixed-Use Specific Plan Project Parcel Data Property #4 Address W.Commerce Dr. 21992 & 21974 De Berry St. 21900 Block of Van Buren St. APN 1167-141-08 1167-151-68, 71, 22 1167-161-03,04,74 Lot Size 54.1 acres Use Vacant Land Zoning Commercial manufacturing: 1167-141-08,1167-151-22, 1167-161-03, 04 Restricted Manufacturing: 1167-151-71, 74 M-2 Industrial: 1167-151-68 General Plan Mixed-Use (Commercial / Residential Mix) Current Title City of Grand Terrace Successor Agency 14.a Packet Pg. 384 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 15 of 19 Acquisition & Valuation Information Property #4 Purchase Date 11/22/2000: 1167-151-68, 71, 74 07/21/2005:1167-161-04 08/16/2005: 1167-161-03 10/25/2005: 1167-141-08 07/29/2011: 1167-151-22 Purchase Price 1167-141-08 $245,280 1167-151-22 $1,393,702 1167-151-68 $500,191 1167-151-71 $166,395 1167-151-74 $523,962 1167-161-03 $899,953 1167-161-04 $409,701 Total $4,139,184 Funding Source Tax increment, including proceeds from the RDA Tax Allocation Bonds Issue of 2011B Purpose Land assembly for large commercial project in advancement of RDA planning objectives Estimate of Current Value 1167-141-08 $283,500 1167-151-22 $0 ($927,800 before adjustment for wetlands mitigation) 1167-151-68 $0 ($976,100 before adjustment for storm water mitigation) 1167-151-71 $0 ($216,400 before adjustment for storm water mitigation) 1167-151-74 $0 ($1,022,500 before adjustment for wetlands mitigation) 1167-161-03 $479,100 1167-161-04 $43,500 Total $806,100 Method of Valuation Comparable sales evaluation Revenues Generated by Property & Contractual Requirements Property #4 No Revenues or Contractual Requirements There are no revenues generated by this property and no contractual requirements. It should be noted that Parcels C and D include approximately 1.1 acres of anticipated storm drain easements. History of Environmental Contamination or Remediation Efforts Property #4 None No known history of environmental contamination, designation as Brownfield site, or remediation. It should be noted that the Property contains approximately 4 acres of wetlands that will need to be maintained onsite. 14.a Packet Pg. 385 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 16 of 19 Transit-Oriented Development & Agency Planning Objectives Property #4 Potential for TOD Not applicable Agency Planning Objectives The Mixed-Use Specific Plan Project is explicitly indicated as one of 14 priority non-housing projects in the approved RDA Five-Year Implementation Plan adopted December 8, 2009 for the years 2010- 2014 for the advancement of Agency objectives #1 (eliminate blight), #2 (strengthen commercial use), #3 (strengthen economic base), and #9 (improve utilities). 14.a Packet Pg. 386 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 17 of 19 Brief History of Previous Development Proposals and Activities Property #4 History For more than two decades, the City has attempted to foster development in the Specific Plan Project Area (also known as the Southwest Commercial Site). However, the significant drainage & sewer infrastructure improvements required have hampered development. The property contains approximately 4 acres of wetlands as designated by the California Department of Fish and Game and the U.S. Army Corps of Engineers that will need to be maintained onsite. Development of the property will require retention basins on the site and significant storm drain improvements along De Berry, Van Buren, and Pico Streets, reducing developable land on the property by approximately 4 acres. San Bernardino Association of Governments, Caltrans, and the City are working to replace the I-215 interchange at Barton Road; however local streets that would provide access to the property are not adequate for the increased traffic volume that would result from development of the property. Significant curb, gutter, and storm drain improvements would be additionally required. ral Plan updated the land use designation within the Project to allow light industrial uses, since the retail project uses envisioned within the 1983 General Plan did not prove viable due to freeway access and other deficiencies. In 2010, the General Plan was updated to re-designate the project area, as well as surrounding properties as Mixed Use, requiring the preparation of the Specific Plan. It was critical to the City to specify the requirement of a specific plan so that the project area would develop in a cohesive and orderly manner. September 11, 2007 with developer Grand Terrace Partners, LLC with Developer. The intended use included recreational commercial uses. The Developer eventually withdrew from the project, however, due to insufficient freeway access. Parcel B underwent a lot-line adjustment to accommodate Baseball Park Project on parcel 1167-151-75. A former single family residence wasdemolished on Parcel F. 14.a Packet Pg. 387 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 18 of 19 Recommendation for Disposition Property #4 Transfer to City for Future Development Retention of the property by the City for future development consistent with its identification as a priority non-housing redevelopment project within the approved and adopted RDA Five-Year Implementation Plan. Given the extensive infrastructure improvements required in order to facilitate viable commercial development in the future, it is recommended to enable the City to continue assemblage activities as outlined in the approved and adopted RDA Implementation Plan. Health and Safety Code Section 34191.5 (c) (2)(A) allows for the City to retain title to property for development that is included in an approved redevelopment plan. This property and future commercial development are consistent with the redevelopment plans and objectives. Among designated uses of proceeds from the RDA 2011A Tax Allocation Bonds were Specific Plan Project Area infrastructure study, design, and construction and Storm drain and street rehabilitation on Van Buren, Pico, and Main Streets. It is anticipated that compensation agreements will be entered into with the affected taxing entities. However, if it is determined that compensation agreements are not needed,then proceeds from future sale of the property are recommended for retention by the City. 14.a Packet Pg. 388 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Long-Range Property Management Plan City of Grand Terrace Successor Agency November 13, 2014 Page 19 of 19 3.0 Attachments A.Approved Five-Year Redevelopment Implementation Plan 2009-2014 (adopted December 8, 2009) B.Report to City Council on Amendment to Redevelopment Plan (Adopted May 11, 2010) C.Mixed-Use Specific Plan Project California Department of Fish & Game and U.S. Army Corps of Engineers Wetlands Jurisdictional Maps D.Mixed-Use Specific Plan Project Storm Drain Easement Legal Description and Map E.Tax Certificate for 2011A RDA Tax Allocation Bonds (including List of Anticipated Uses) 14.a Packet Pg. 389 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 1601 Sepulveda #382,Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com Memorandum To:G. Harold Duffey, City Manager, City of Grand Terrace Sandra Molina, Community Development Director,City of Grand Terrace From:Larry J. Kosmont, CRE®, Broker, Kosmont Realty Corporation (Broker #01770428) Date:July 10, 2015 Subject:Kosmont Realty Corporation Broker Opinion of Value: Grand Terrace Mixed-Use Specific Plan Property I. Background & Valuation Summary The City of Grand Terrace (“City”) has requested that Kosmont Realty Corporation (“KRC”), a licensed California brokerage firm (#01770428), prepare a Broker Opinion of Value (“BOV”) for property identified in the City’s Successor Agency Long Range Property Management Plan (“LRPMP”)as the Mixed-Use Specific Plan Project (“Property”).The LRPMP was approved by the California State Department of Finance (“DOF”) on April 23, 2015, and as part of LRPMP implementation efforts, the City has requested that KRC prepare this BOV to evaluate the range of fair market value of the Property as supported by current market conditions and other relevant data. Based on the sales comparison analysis methodology,KRC estimates that the value of the Property (total approximately 54.1 acres)is between $14,000 and $16,000 per acre, or approximately $755,000 to $865,000. II.Property Information Location The Property is comprised of approximately 54.1 acres of vacant land located east of the I-215 Freeway, west of Michigan Avenue, south of Barton Road, and north of Pico Street in the City. The Property is identified by San Bernardino County Assessor Parcel Numbers (“APN”) 1167- 141-08, 1167-151-68, 1167-151-71, 1167-151-74, 1167-161-03, 1167-161-04, and 1167-161- 22.ARegional Map,City Location Map, and Property Aerial Map are provided as Exhibits A, B, and C,respectively. 14.a Packet Pg. 390 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace KRC Broker Opinion of Value July 10, 2015 Page 2of7 1601 Sepulveda #382 Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com History The parcels comprising the Property were assembled by the City’s former Redevelopment Agency (“RDA”) between 2000 and 2011 with RDA tax increment funds for the purpose of a large, freeway-oriented commercial development project in advancement of RDA planning objectives.Since before Property acquisition, the City has attempted to foster development in the Property area (also known as the Southwest Commercial Site); however,significant required drainage,sewer,and road infrastructure improvements have hampered development. The City’s 1988 General Plan updated the land use designation for the Property toallow light industrial uses, since the retail project uses envisioned within the 1983 General Plan did not prove viable due to insufficient freeway access and other deficiencies. In 2010, the General Plan was updated to re-designate the project area, as well as surrounding properties,as Mixed Use, requiring the preparation of the Mixed Use Specific Plan (“Specific Plan”), which has not been completed to date.The intended purpose of the Specific Plan wastoallow for a mix of commercial and residential uses and foster the development of the Property in a cohesive and orderly manner. The former RDA entered into a Memorandum of Understanding (“MOU”) dated September 11, 2007 with developer Grand Terrace Partners, LLC (“Developer”) following an Exclusive Negotiating Agreement (“ENA”) with the Developer. The proposed use included recreational, retailcommercial, and residential uses. The Developer eventually withdrew from the project due to insufficient freeway access. Property parcel 1167-151-74 underwent a lot-line adjustment to accommodate a baseball park project on parcel 1167-151-75. A former single family residence was demolished on Property parcel 1167-161-04. Existing Conditions The General Plan land use designation for the Property is Mixed Use (commercial/residential mix). The underlying zoning is delineated as follows: Parcels (APN)Zoning 1167-141-08, 1167-151-22, 1167-161-03, 04 Commercial Manufacturing 1167-151-71, 74 Restricted Manufacturing 1167-151-68 M-2 Industrial Surrounding uses include predominantly industrial uses to the north, east, and west across the I-215 Freeway, and educational (high school)and park uses to the south. The Property is comprised of vacant land and contains approximately 4.0 acres of wetlands as designated by the California Department of Fish and Game and the U.S. Army Corps of Engineers that will be required to be maintained on-site.Per the City Engineering Department, development of the Property will require retention basins on-site and significant storm drain 14.a Packet Pg. 391 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace KRC Broker Opinion of Value July 10, 2015 Page 3of7 1601 Sepulveda #382 Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com improvements along De Berry, Van Buren, and Pico Streets, reducing developable land on the Property by anotherapproximately 4.0acres. San Bernardino Association of Governments, Caltrans, and the City are working to replace the I-215 interchange at Barton Road; however,local streets that would provide access to the Property would likely require improvements to accommodate the increased traffic volume that would result from development of the Property. Significant curb, gutter, and storm drain improvements would be additionally required. III.Valuation Methodology KRC estimates the value of the Property “as-is”with the understanding that the Property will be developed in accordance with the approved LRPMP as stipulated by California Health and Safety Code (“HSC”) Section 34191.5, amended by Assembly Bills (“AB”) X1 26 and 1484. Preparation of aMixed-Use Specific Plan is required in order for the Property and surrounding area to be developed.Given these constraints, KRC considered the following valuation analysis methodologies: Cost Approach:This approach estimates the worth of the land, as if vacant, and the replacement costs ofany improvements. From these estimates are deducted any estimates of observed physical deterioration and/or functional and economic obsolescence. This approach is based on the premise that, except under the most unusual circumstances, the value of a property cannot be greater than the cost of constructing a similar building on a comparable site. Given the lack of improvements on the vacant subject Property, the cost approach was not utilized within this BOV. Income Capitalization Approach:Investment properties are typically valued in proportion to their ability to produce income. This approach thus involves an analysis of aproperty in terms of its ability to provide a net annual income. The estimated annual income is capitalized at a rate commensurate with the risks inherent in ownership of the property, relative to the rate ofreturn offered by other investments.Given the lack of revenue-generating improvements on the subject Property, and the required Specific Plan preparation prior to development of the Property in accordance with the approved LRPMP, the income capitalization approach was not utilized within this BOV. Sales Comparison Approach:This approach is based on the principle of substitution, i.e., that the value of a property is governed by the price generally obtained for similar properties.The goal under this approach is to reduce the sales price of comparable properties to common factors that can be directly related to the subject property being evaluated, with the understanding that no two properties are exactly alike.Given that reasonably comparable sales for vacant land similar to the subject Property were observed in the local market within the most recent two years, this BOV employs the sales comparison approach. 14.a Packet Pg. 392 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace KRC Broker Opinion of Value July 10, 2015 Page 4of7 1601 Sepulveda #382 Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com IV.Valuation Analysis Sales Comparison Approach Exhibit D details an analysis of recent comparable sales for the subject Property.The average price of land among comparable sales evaluated was approximately $11,100per acre.The comparable sales were reasonably similar to the subject Property in terms of location,existing use (vacant land), overall size, zoning (with one exception),and timing (within two years).Three of the comparable sales (properties 2, 4, and 5) were oriented near major arterials similar to the subject Property, and so the Property is estimated at a value higher than the overall average evaluated in order to be more consistent with the higher values associated with these similarly oriented comparable sales. Based on the above considerations, the comparable sales analysis yields an estimated value for the Property between $14,000 and $16,000 per acre,or approximately $755,000 to $865,000. Per-Acre Land Value Estimated Property Value $14,000 $757,400 $15,000 $811,500 $16,000 $865,600 VI.Conclusion Broker Opinion Value Based on the sales comparison analysis methodology, KRC estimates that the value of the Property is between $14,000 and $16,000 per acre,or approximately $755,000 to $865,000. Property Low Range High Range Per Acre Value $14,000 $16,000 Estimated Total (Rounded)$755,000 $865,000 Note:This evaluation is a broker opinion of value (BOV ). It is not an appraisal.Should a more detailed evaluation of property value and characteristics be required, a formal appraisal should be completed. 14.a Packet Pg. 393 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace KRC Broker Opinion of Value July 10, 2015 Page 5of7 1601 Sepulveda #382 Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com Exhibit A -Regional Map Source:ESRI (2015) 14.a Packet Pg. 394 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace KRC Broker Opinion of Value July 10, 2015 Page 6of7 1601 Sepulveda #382 Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com Exhibit B City Location Map Source:ESRI (2015) 14.a Packet Pg. 395 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace KRC Broker Opinion of Value July 10, 2015 Page 7of7 1601 Sepulveda #382 Manhattan Beach California 90266 fx 213-417.3311 www.kosmontrealty.com Exhibit C-Property Aerial Map Source:ESRI, Google Maps (2015) 14.a Packet Pg. 396 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Exhibit D - Comparable Sales Valuation Analysis Mixed-Use Specific Plan Property,215Freeway Southof Barton Road, City of Grand Terrace Subject Property City GrossAcreage Net Acreage* MixedUse Specific Plan Property -215Freeway South ofBartonRoad Grand Terrace 54.10 AC 46.10 AC Comparable Sales (Details Attached) City Sale Date Sale Price Lot Size (Acres) Price / Acre Price / SF 1) Radford CampRoad Angelus Oaks 5/7/2015 156,500 $ 40.00 3,913 $ 0.09 $ 2) McCall St Menifee 2/26/2015 69,000 $ 40.00 1,725 $ 0.04 $ 3) PlaygroundDr Twin Peaks 12/31/2014 216,500 $ 45.28 4,781 $ 0.11 $ 4) 20369 Gustin Road Perris 4/8/2014 400,000 $ 31.42 12,731 $ 0.29 $ 5) 4295 Lytle Creek Rd Fontana 3/11/2014 1,650,000 $ 48.30 34,161 $ 0.78 $ 6) Wabash Dr Lake Arrowhead 9/11/2013 490,000 $ 51.72 9,474 $ 0.22 $ Average (Mean) 497,000 $ 42.79 11,131 $ 0.26 $ Subject Valuation - Sensitivity Analysis Low Median Mean High SubjectProperty Size -Gross 54.10 AC 54.10 AC 54.10 AC 54.10 AC Average ComparablePrice / Acre 4,781 $ 11,102 $ 11,131 $ 34,161 $ Average ComparablePrice/ SF 0.11 $ 0.25 $ 0.26 $ 0.78 $ Subject atAverage Price 258,672 $ 600,641 $ 602,180 $ 1,848,137 $ SubjectProperty Size -Net 46.10 AC 46.10 AC 46.10 AC 46.10 AC Average ComparablePrice / Acre 4,781 $ 11,102 $ 11,131 $ 34,161 $ Average ComparablePrice/ SF 0.11 $ 0.25 $ 0.26 $ 0.78 $ Subject atAverage Price 220,421 $ 511,821 $ 513,133 $ 1,574,845 $ Notes: 1) NetAcreage = Project Areawith developable land, not including approximately 4.0acres of wetlandsas designatedby the California Department of Fishand Game and theU.S. Army Corpsof Engineersto be maintained on-site and approximately 4.0 acres of land required forretention basins and storm drain improvements along DeBerry, Van Buren, and Pico Streetsto be installed by theCity of Grand Terrace. 2) ComparableSales = LandSales within the mostrecent 2 years between25and 75 acres within approximately 25 miles of thesubjectproperty Source: CoStar Property, LoopNet (2015) 14.a Packet Pg. 397 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Prepared for City of Grand Terrace 6/25/2015 1 2 3 4 5 6 Comparable Land Sales Map Property Address Sale Date Sale Price Property Type Subtype Radford Camp Road Angelus Oaks, CA 05/07/2015 $156,500 ($3,912.50/Acre)Land Commercial/Other (land) 0 Mccall Menifee, CA 02/26/2015 $69,000 ($1,725/Acre)Land Commercial/Other (land) Playground Dr Twin Peaks, CA 12/31/2014 $216,500 ($4,781.36/Acre)Land Residential (land) 20369 Gustin Road Perris, CA 04/08/2014 $400,000 ($12,730.74/Acre)Land Commercial/Other (land) 4295 Lytle Creek Rd Fontana, CA 03/11/2014 $1,650,000 ($34,161.49/Acre)Land Commercial/Other (land) Wabash Lake Arrowhead, CA 09/11/2013 $490,000 ($9,474.09/Acre)Land Commercial/Other (land) 20 miles20 miles 14.a Packet Pg. 398 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 14.a Packet Pg. 399 At t a c h m e n t : A t t a c h m e n t I - A m e n d e d L R P M P a n d B O V ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) This page left intentionally blank. SB 628 (Beall)Enhanced Infrastructure Financing District (EIFD)1 SB 628 (Beall)authorizes the creation of a new governmental entity called an Enhanced Infrastructure Financing District (EIFD). One or more2 of these districts may be created within a city or county3 and used to finance the construction or rehabilitation of a wide variety of public infrastructure and private facilities.An EIFD may fund these facilities and development with the property tax increment of those taxing agencies (cities, counties, special districts, but not schools) that consent. EIFD’s are also authorized to combine tax increment funding with other permitted funding sources including: Property tax revenue distributed to a city, county or special district after payment of a successor agency’s debts4. Revenues dedicated by a city or county to the EIFD from property tax corresponding to the increase in assessed valuation of taxable property attributed to those property tax shares received by a city or county pursuant to in lieu of VLF5. Fee or assessment revenues derived from one of 10 specified existing sources.6 Loans from a city,county or special district, that must be repaid at no more than the LAIF interest rate that is in effect on the date the loan is approved by the governing board of the city, county or special district making the loan7. Facilities financed89 by an EIFD may include but are not limited to: 14.b Packet Pg. 400 At t a c h m e n t : A t t a c h m e n t I I - S B 6 2 8 E I F D ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Public Infrastructure and Facilities: Highways, interchanges, ramps and bridges, arterial streets, parking and transit facilities. Sewage treatment, water reclamation plants and interceptor pipes. Facilities for the transfer and disposal of solid waste, including transfer stations and vehicles. Facilities to collect and treat water for urban uses. Flood control levees and dams, retention basins, and drainage canals. Parks, recreational facilities, open space and libraries. Brownfield restoration and other environmental mitigation.A district may use any powers of the Polanco Redevelopment Act to remediate property. Projects on a closed military base consistent with approved base reuse plans.Funds may also be used to repay loans made pursuant to Section 67851 to a military base reuse authority on or after the creation of the district. Private Facilities: Acquisition, construction and repair of industrial structures for private use. Transit priority projects as defined under Section 21155 of the Public Resources Code. Projects which implement a sustainable communities strategy. Mixed-income housing developments (An EIFD may fund only those units dedicated to low or moderate income housing, and child care, after-school care and social services integrally linked to the tenant of the restricted. Reimbursement of a developer located within the boundaries of a district for permit and other expenses incurred when constructing affordable housing pursuant to the Transit Priority Project Program under Section 65470 of the Government Code. Facilities constructed to house providers of consumer goods and services.10 Child care facilities. Summary of Key Terms Enhanced Infrastructure Financing District: An EIFD is a governmental entity established by a city or a county that carries out a plan within a defined area (boundaries of which do not need to be contiguous) to construct, improve and rehabilitate infrastructure; construct housing, libraries, and parks; remediate brownfields, etc. Public Financing Authority: The PFA is legislative body that governs the EIFD. It is comprised of 3 members of the legislative body of the 14.b Packet Pg. 401 At t a c h m e n t : A t t a c h m e n t I I - S B 6 2 8 E I F D ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) participating affected taxing entity plus two members of the public.If more than one taxing entity agrees to participate in the EIFD, then the majority of the body must be members of the legislative bodies11 of the taxing entities with at least two public members. Infrastructure Financing Plan: The EIFD, governed by the PFA, implements an Infrastructure Financing Plan adopted by the city or county12 that describes the type of public facilities and development that will be financed by the EIFD. Process for Creating an EIFD SB 62813 provides that a city or county that created a redevelopment agency may not create an EIFD or participate on the PFA until each of the following has occurred14: The successor agency receives a finding of completion from DOF; The city/county certifies15 to DOF that no former redevelopment agency assets are the subject of litigation involving the state, where the city, successor agency or designated local authority are a named plaintiff, have been or will be used to benefit any efforts on an EIFD until the legal process has concluded16; The State Controller has completed its review of agency-city/county asset transfers after January 1, 2011, pursuant to section 34167.5; and the successor agency has complied with the findings and orders of the State Controller stemming from those reviews. If an EIFD is created within a former redevelopment project area, property tax within the area must first be used for payment of the successor agency’s enforceable obligations. Adoption of Infrastructure Financing Plan 14.b Packet Pg. 402 At t a c h m e n t : A t t a c h m e n t I I - S B 6 2 8 E I F D ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Once any certification associated with the dissolution of a former redevelopment agency is completed, the initiating city or county may establish one or more districts by resolution17.Following that, the city or county directs the preparation of an infrastructure financing plan18 that includes the details of the public facilities and other forms of development that is proposed within the area of the district and how those facilities and development will be funded.19 A variety of funding sources are available. The legislation envisions the main funding source will be property tax increment generated within the area encompassed by the EIFD. The preparation of an infrastructure financing plan will include discussions with other taxing entities (county, special districts) to determine whether they consent to transferring their share of the property tax increment or other eligible revenue to the EIFD for the purpose of financing facilities and development. Amounts contributed to the district by other taxing entities need not be the same for all taxing entities. There is flexibility for amounts contributed to vary and change over time. Prior to approving a plan, the legislative body shall hold a public hearing with ample notice provisions to provide an opportunity for comments from landowners within the district, taxing agencies, and members of the public. Upon adoption, the plan is transferred to the PFA for implementation. Housing Replacement Requirements Replacement housing20: If housing within the District will be removed or destroyed because of private development or public works construction initiated by the PFA, then the Infrastructure Financing Plan must include a plan to replace the units removed on a (1)1 for 1 basis if they were occupied by low or moderate income families; and (2) 1:4 basis if they were not occupied by low or moderate income families.Relocation benefits must also be paid to displaced tenants. Affordability:Affordable housing constructed to replace removed or destroyed units or otherwise financed by the district must be affordable to and occupied by low or moderate income households. Covenants must be recorded to ensure continued affordability for not less than 55 years for rental units and 45 years for owner-occupied units. 14.b Packet Pg. 403 At t a c h m e n t : A t t a c h m e n t I I - S B 6 2 8 E I F D ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Provisions Affecting Issuing Bonds, Loans and Audits The PFA may issue bonds payable from funds21 or properties of the district with 55% voter approval of either voters or landowners within the District.22 If at least 12 persons are registered to vote within the District, then the vote is by registered voters. If fewer than 12 persons are registered, then the vote is by landowners within the District. Each landowner has one vote for each acre or portion of an acre of land that s/he owns.A public agency is not considered a “landowner” unless all of the land in the district is owned by the public agency. A city, county, or special district that contains territory within the District may loan moneys to the District to fund the activities described in the Plan at the LAIF rate of interest in effect at the time of the loan. Every two years after the issuance of bonds, the District must contract for an independent financial and performance audit conducted according to guidelines established by the Controller. A copy of the audit is provided to the Controller, DOF, and to the Joint Legislative Budget Committee. 14.b Packet Pg. 404 At t a c h m e n t : A t t a c h m e n t I I - S B 6 2 8 E I F D ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) This page left intentionally blank. Assembly Bill No. 2 CHAPTER 319 An act to add Division 4 (commencing with Section 62000) to Title 6 of the Government Code, relating to economic development. [ Approved by Governor September 22, 2015. Filed with Secretary of State September 22, 2015. ] LEGISLATIVE COUNSEL'S DIGEST AB 2, Alejo. Community revitalization authority. The Community Redevelopment Law authorizes the establishment of redevelopment agencies in communities to address the effects of blight, as defined by means of redevelopment projects financed by the issuance of bonds serviced by tax increment revenues derived from the project area. Existing law dissolved redevelopment agencies and community development agencies, as of February 1, 2012, and provides for the designation of successor agencies to wind down the affairs of the dissolved agencies and to fulfill the enforceable obligations of those agencies. Existing law also provides for various economic development programs that foster community sustainability and community and economic development initiatives throughout the state. This bill would authorize certain local agencies to form a community revitalization authority (authority) within a community revitalization and investment area, as defined, to carry out provisions of the Community Redevelopment Law in that area for purposes related to, among other things, infrastructure, affordable housing, and economic revitalization. The bill would provide for the financing of these activities by, among other things, the issuance of bonds serviced by tax increment revenues, and would require the authority to adopt a community revitalization and investment plan for the community revitalization and investment area that includes elements describing and governing revitalization activities. The bill would also provide for periodic audits by the Controller. The bill would also require the Department of Housing and Community Development, advised by an advisory committee appointed by the Director of Housing and Community Development, to periodically review the calculation of surplus housing under these provisions. The bill would require certain funds allocated to the authority to be deposited into a separate Low and Moderate Income Housing Fund and used by the authority 14.c Packet Pg. 405 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) for the purposes of increasing, improving, and preserving the community’s supply, as specified. The bill would, if an authority failed to expend or encumber surplus funds in the Low and Moderate Income Housing Fund, require those funds to be disbursed towards housing needs. The bill would require an authority to make relocation provisions for persons displaced by a plan and replace certain dwelling units that are destroyed or removed as part of a plan. The bill would authorize an authority to acquire interests in real property and exercise the power of eminent domain, as specified. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) Certain areas of the state are generally characterized by buildings in which it is unsafe or unhealthy for persons to live or work, conditions that make the viable use of buildings or lots difficult, high business vacancies and lack of employment opportunities, and inadequate public improvements, water, or sewer utilities. It is the intent of the Legislature to create a planning and financing tool to support the revitalization of these communities. (b) It is in the interest of the state to support the economic revitalization of these communities through tax increment financing. (c) It is the intent of the Legislature to authorize the creation of Community Revitalization and Investment Authorities to invest property tax increment revenue to relieve conditions of unemployment, reduce high crime rates, repair deteriorated or inadequate infrastructure, promote affordable housing, and improve conditions leading to increased employment opportunities. SEC. 2. Division 4 (commencing with Section 62000) is added to Title 6 of the Government Code, to read: DIVISION 4. Community Revitalization and Investment Authorities 14.c Packet Pg. 406 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) PART 1. General Provisions 62000. As used in this division, the following terms have the following meanings: (a) “Authority” means the Community Revitalization and Investment Authority created pursuant to this division. (b) “Plan” means a community revitalization and investment plan and shall be deemed to be the plan described in Section 16 of Article XVI of the California Constitution. (c) “Plan area” means territory included within a community revitalization and investment area. (d) “Revitalization project” means a physical improvement to real property funded by the authority. 62001. (a) A community revitalization and investment authority is a public body, corporate and politic, with jurisdiction to carry out a community revitalization plan within a community revitalization and investment area. The authority shall be deemed to be the “agency” described in subdivision (b) of Section 16 of Article XVI of the California Constitution for purposes of receiving tax increment revenues. The authority shall have only those powers and duties specifically set forth in Section 62002. (b) (1) An authority may be created in any one of the following ways: (A) A city, county, or city and county may adopt a resolution creating an authority. The composition of the governing board shall be comprised as set forth in subdivision (c). (B) A city, county, city and county, and special district, as special district is defined in subdivision (m) of Section 95 of the Revenue and Taxation Code, or any combination thereof, may create an authority by entering into a joint powers agreement pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1. (2) (A) A school entity, as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code, may not participate in an authority created pursuant to this part. (B) A successor agency, as defined in subdivision (j) of Section 34171 of the Health and Safety Code, may not participate in an authority created pursuant to this part, and an entity created pursuant to this part shall not receive any portion of the property tax revenues or other moneys distributed pursuant to Section 34188 of the Health and Safety Code. 14.c Packet Pg. 407 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (3) An authority formed by a city or county that created a redevelopment agency that was dissolved pursuant to Part 1.85 (commencing with Section 34170) of Division 24 of the Health and Safety Code shall not become effective until the successor agency or designated local authority for the former redevelopment agency has adopted findings of fact stating all of the following: (A) The agency has received a finding of completion from the Department of Finance pursuant to Section 34179.7 of the Health and Safety Code. (B) No former redevelopment agency assets which are the subject of litigation against the state, where the city or county or its successor agency or designated local authority are a named plaintiff, have been or will be used to benefit any efforts of an authority formed under this part unless the litigation, has been resolved by entry of a final judgment by any court of competent jurisdiction and any appeals have been exhausted. (C) The agency has complied with all orders of the Controller pursuant to Section 34167.5 of the Health and Safety Code. (c) (1) The governing board of an authority created pursuant to subparagraph (A) of paragraph (1) of subdivision (b) shall be appointed by the legislative body of the city, county, or city and county that created the authority and shall include three members of the legislative body of the city, county, or city and county that created the authority and two public members. The appointment of the two public members shall be subject to the provisions of Section 54974. The two public members shall live or work within the community revitalization and investment area. (2) The governing body of the authority created pursuant to subparagraph (B) of paragraph (1) of subdivision (b) shall be comprised of a majority of members from the legislative bodies of the public agencies that created the authority and a minimum of two public members who live or work within the community revitalization and investment area. The majority of the board shall appoint the public members to the governing body. The appointment of the public members shall be subject to the provisions of Section 54974. (d) An authority may carry out a community revitalization plan within a community revitalization and investment area. Not less than 80 percent of the land calculated by census tracts, or census block groups, as defined by the United States Census Bureau, within the area shall be characterized by both of the following conditions: (1) An annual median household income that is less than 80 percent of the statewide annual median income. 14.c Packet Pg. 408 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (2) Three of the following four conditions: (A) Nonseasonal unemployment that is at least 3 percent higher than statewide median unemployment, as defined by the report on labor market information published by the Employment Development Department in January of the year in which the community revitalization plan is prepared. (B) Crime rates that are 5 percent higher than the statewide median crime rate, as defined by the most recent annual report of the Criminal Justice Statistics Center within the Department of Justice, when data is available on the California Attorney General’s Internet Web site. (C) Deteriorated or inadequate infrastructure such as streets, sidewalks, water supply, sewer treatment or processing, and parks. (D) Deteriorated commercial or residential structures. (e) As an alternative to subdivision (d), an authority may also carry out a community revitalization plan within a community revitalization and investment area established within a former military base that is principally characterized by deteriorated or inadequate infrastructure and structures. Notwithstanding subdivision (c), the governing board of an authority established within a former military base shall include a member of the military base closure commission as a public member. (f) An authority created pursuant to this part shall be a local public agency subject to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1), and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000)). (g) (1) At any time after the authority is authorized to transact business and exercise its powers, the legislative body or bodies of the local government or governments that created the authority may appropriate the amounts the legislative body or bodies deem necessary for the administrative expenses and overhead of the authority. (2) The money appropriated may be paid to the authority as a grant to defray the expenses and overhead, or as a loan to be repaid upon the terms and conditions as the legislative body may provide. If appropriated as a loan, the property owners and residents within the plan area shall be made third-party beneficiaries of the repayment of the loan. In addition to the common understanding and usual interpretation of the term, “administrative expense” includes, but is not limited to, expenses of planning and dissemination of information. 62002. 14.c Packet Pg. 409 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) An authority may do all of the following: (a) Provide funding to rehabilitate, repair, upgrade, or construct infrastructure. (b) Provide for low- and moderate-income housing in accordance with Part 2 (commencing with Section 62100). (c) Remedy or remove a release of hazardous substances pursuant to the Polanco Redevelopment Act (Article 12.5 (commencing with Section 33459) of Part 1 of Chapter 4 of Division 24) or Chapter 6.10 (commencing with Section 25403) of Division 20 of the Health and Safety Code. (d) Provide for seismic retrofits of existing buildings in accordance with all applicable laws and regulations. (e) Acquire and transfer real property in accordance with Part 3 (commencing with Section 62200). The authority shall retain controls and establish restrictions or covenants running with the land sold or leased for private use for such periods of time and under such conditions as are provided in the plan. The establishment of such controls is a public purpose under the provisions of this part. (f) Issue bonds in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5. (g) Borrow money, receive grants, or accept financial or other assistance or investment from the state or the federal government or any other public agency or private lending institution for any project or within its area of operation, and may comply with any conditions of the loan or grant. An authority may qualify for funding as a disadvantaged community pursuant to Section 79505.5 of the Water Code or as defined by Section 56033.5. An authority may also enter into an agreement with a qualified community development entity, as defined by Section 45D(c) of the Internal Revenue Code, to coordinate investments of funds derived from the New Markets Tax Credit with those of the authority in instances where coordination offers opportunities for greater efficiency of investments to improve conditions described in subdivisions (d) and (e) within the territorial jurisdiction of the authority. (h) Adopt a community revitalization and investment plan pursuant to Sections 62003 and 62004. (i) Make loans or grants for owners or tenants to improve, rehabilitate, or retrofit buildings or structures within the plan area. 14.c Packet Pg. 410 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (j) Construct foundations, platforms, and other like structural forms necessary for the provision or utilization of air rights sites for buildings to be used for residential, commercial industrial, or other uses contemplated by the revitalization plan. (k) Provide direct assistance to businesses within the plan area in connection with new or existing facilities for industrial or manufacturing uses, except as specified in this division. 62003. An authority shall adopt a community revitalization and investment plan that may include a provision for the receipt of tax increment funds generated within the area according to Section 62005, provided the plan includes each of the following elements: (a) A statement of the principal goals and objectives of the plan including territory to be covered by the plan. (b) A description of the deteriorated or inadequate infrastructure within the area and a program for construction of adequate infrastructure or repair or upgrading of existing infrastructure. (c) A housing program that describes how the authority will comply with Part 2 (commencing with Section 62100). The program shall include the following information: (1) The amount available in the Low and Moderate Income Housing Fund and the estimated amounts that will be deposited in the fund during each of the next five years. (2) Estimates of the number of new, rehabilitated, or price restricted residential units to be assisted during each of the five years and estimates of the expenditures of moneys from the Low and Moderate Income Housing Fund during each of the five years. (3) A description of how the program will implement the requirements for expenditures of funds in the Low and Moderate Income Housing Fund over a 10-year period for various groups as required by Chapter 2 (commencing with Section 62115) of Part 2. (4) Estimates of the number of units, if any, developed by the authority for very low, low-, and moderate-income households during the next five years. (d) A program to remedy or remove a release of hazardous substances, if applicable. (e) A program to provide funding for or otherwise facilitate the economic revitalization of the area. 14.c Packet Pg. 411 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (f) A fiscal analysis setting forth the projected receipt of revenue and projected expenses over a five-year planning horizon, including the potential issuance of bonds backed by tax increment during the term of the plan. Bonds shall be issued in conformity with Article 4.5 (commencing with Section 53506) and Article 5 (commencing with Section 53510) of Chapter 3 of Part 1 of Division 2 of Title 5. An authority shall not spend revenue for any purpose that is not identified as part of a program described in subdivisions (b), (c), (d), and (e). (g) Time limits that may not exceed the following: (1) Thirty years for establishing loans, advances and indebtedness. (2) Forty-five years for the repayment of all of the authority’s debts and obligations, and fulfilling all of the authority’s housing obligations. The plan shall specify that an authority shall dissolve as a legal entity in no more than 45 years, and no further taxes shall be allocated to the authority pursuant to Section 62005. Nothing in this paragraph shall be interpreted to prohibit an authority from refinancing outstanding debt solely to reduce interest costs. (h) A determination that the community revitalization investment area complies with the conditions described in subdivision (d) or (e) of Section 62001. 62004. (a) The authority shall consider adoption of the plan at three public hearings that shall take place at least 30 days apart. At the first public hearing, the authority shall hear all written and oral comments but take no action. At the second public hearing, the authority shall consider any additional written and oral comments and take action to modify or reject the plan. If the plan is not rejected at the second public hearing, then the authority shall conduct a protest proceeding at the third public hearing to consider whether the property owners and residents within the plan area wish to present oral or written protests against the adoption of the plan. (b) The draft plan shall be made available to the public and to each property owner within the area at a meeting held at least 30 days prior to the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the authority to present the draft plan, answer questions about the plan, and consider comments about the plan. (c) (1) Notice of the meeting required by subdivision (b) and the public hearings required by this subdivision shall be given in accordance with subdivision (k). The notice shall do all of the following, as applicable: (A) Describe specifically the boundaries of the proposed area. (B) Describe the purpose of the plan. 14.c Packet Pg. 412 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (C) State the day, hour, and place when and where any and all persons having any comments on the proposed plan may appear to provide written or oral comments to the authority. (D) Notice of second public hearing shall include a summary of the changes made to the plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the plan proposed to be presented and adopted at the second public hearing can be reviewed. (E) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the final plan adopted pursuant to subdivision (a), and shall inform the property owner and resident of his or her right to submit an oral or written protest before the close of the public hearing. The protest may state that the property owner or resident objects to the authority taking action to implement the plan. (2) At the third public hearing, the authority shall consider all written and oral protests received prior to the close of the public hearing and shall terminate the proceedings or adopt the plan subject to confirmation by the voters at an election called for that purpose. The authority shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of property owners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of property owners and residents in the area who are at least 18 years of age file a protest. (d) An election required pursuant to paragraph (2) of subdivision (c) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The authority shall adopt, at a duly noticed public hearing, procedures for this election. (e) If a majority of the property owners and residents vote against the plan, then the authority shall not take any further action to implement the proposed plan. The authority shall not propose a new or revised plan to the affected property owners and residents for at least one year following the date of an election in which the plan was rejected. (f) At the hour set in the notice required by subdivision (a), the authority shall consider all written and oral comments. (g) If less than 25 percent of the combined number of property owners and residents in the area who are at least 18 years of age file a protest, the authority may adopt the plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the plan shall be subject to referendum as prescribed by law. 14.c Packet Pg. 413 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (h) For the purposes of Section 62005, the plan shall be the plan adopted pursuant to this section. (i) The authority shall consider and adopt an amendment or amendments to a plan in accordance with the provisions of this section. (j) The authority shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the authority’s Internet Web site and shall mail a written notice of the meeting or public hearing to each owner of land and each resident at least 10 days prior to the meeting or public hearing. (1) Notice of the first public hearing shall also be published not less than once a week for four successive weeks prior to the first public hearing in a newspaper of general circulation published in the county in which the area lies. (2) Notice of the second public hearing shall also be published not less than 10 days prior to the second public hearing in a newspaper of general circulation in the county in which the area lies. (3) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the county in which the area lies. 62005. (a) (1) The plan adopted pursuant to Section 62004 may include a provision that taxes levied and collected upon taxable property in the area included within the territory each year by or for the benefit the taxing agencies that have adopted a resolution pursuant to subdivision (d), shall be divided as follows: (A) That portion of the taxes that would have been produced by the rate upon which the tax is levied each year by or for each of the consenting local agencies upon the total sum of the assessed value of the taxable property in the territory as shown upon the assessment roll used in connection with the taxation of the property by the consenting local agency, last equalized prior to the effective date of the certification of completion, and that portion of taxes by or for each school entity, shall be allocated to, and when collected shall be paid to, the respective consenting local agencies and school entities as taxes by or for the consenting local agencies and school entities on all property are paid. (B) That portion of the levied taxes each year specified in the community revitalization plan adopted pursuant to Section 62004 for each consenting local agency that has agreed to participate pursuant a resolution adopted pursuant to subdivision (d), in excess of the amount specified in subparagraph (A), shall be allocated to, and when collected shall be paid into a 14.c Packet Pg. 414 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) special fund of the authority to finance the improvements specified in the community revitalization plan. (2) A consenting local agency may advance funds to the authority. The authority shall use those advanced funds solely for the purposes specified in the community revitalization plan and shall repay the consenting local agency with revenue from the taxes received pursuant to this subdivision. (b) For purposes of this section, the following definitions apply: (1) “Taxing agency” means a local agency as defined by subdivision (a) of Section 95 of the Revenue and Taxation Code, and does not include any school entity as defined in subdivision (f) of Section 95 of the Revenue and Taxation Code. (2) “Consenting local agency” means a local agency that has adopted a resolution of its governing body consenting to the community revitalization and investment plan. (3) “Territory” means the land that is contained within the community revitalization plan. (c) The provision for the receipt of tax increment funds shall become effective in the tax year that begins after the December 1 first following the adoption of the plan. (d) At any time prior to or after adoption of the plan, any city, county, or special district, other than a school entity as defined in subdivision (n) of Section 95 of the Revenue and Taxation Code or a successor agency as defined in subdivision (j) of Section 34171, that receives ad valorem property taxes from property located within an area may adopt a resolution directing the county auditor-controller to allocate its share of tax increment funds within the area covered by the plan according to subdivision (a) to the authority. The resolution adopted pursuant to this subdivision may direct the county auditor-controller to allocate less than the full amount of the tax increment, establish a maximum amount of time in years that the allocation takes place, or limit the use of the funds by the authority for specific purposes or programs, provided that 25 percent of the amount of tax increment designated shall be allocated for affordable housing pursuant to Section 62100. A resolution adopted pursuant to this subdivision may be repealed and be of no further effect by giving the county auditor- controller 60 days’ notice; provided, however, that the county auditor-controller shall continue to allocate to the authority the taxing entity’s share of ad valorem property taxes that have been pledged to the repayment of debt issued by the authority until the debt has been fully repaid. Prior to adopting a resolution pursuant to this subdivision, a city, county, or special district shall approve a memorandum of understanding with the authority governing the authority’s use of tax increment funds for administrative and overhead expenses pursuant to subdivision (g) of Section 62001. 14.c Packet Pg. 415 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (e) Upon adoption of a plan that includes a provision for the receipt of tax increment funds according to subdivision (a), the county auditor-controller shall allocate tax increment revenue to the authority as follows: (1) If the authority was formed pursuant to subparagraph (A) of paragraph (1) of subdivision (b) of Section 62001, the authority shall be allocated each year specified in the plan that portion of the taxes levied for each city, county, city and county, and special district that has adopted a resolution pursuant to subdivision (d), in excess of the amount specified in paragraph (1) of subdivision (a). (2) If the authority was formed pursuant to subparagraph (B) of paragraph (1) of subdivision (b) of Section 62001, the authority shall be allocated each year specified in the plan that portion of the taxes levied for each jurisdiction as provided in the joint powers agreement in excess of the amount specified in paragraph (1) of subdivision (a). (f) If an area includes, in whole or in part, land formerly or currently designated as a part of a redevelopment project area, as defined in Section 33320.1 of the Health and Safety Code, any plan adopted pursuant to this part that includes a provision for the receipt of tax increment revenues according to subdivision (a) shall include a provision that tax increment amounts payable to an authority are subject and subordinate to any preexisting enforceable obligation as that term is defined by Section 34171 of the Health and Safety Code. 62006. (a) The authority shall review the plan at least annually and make any amendments that are necessary and appropriate in accordance with the procedures set forth in Section 62004 and shall require the preparation of an annual independent financial audit paid for from revenues of the authority. (b) An authority shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days prior to the public hearing. The authority shall cause the draft report to be posted in an easily identifiable and accessible location on the authority’s Internet Web site and shall mail a written notice of the availability of the draft report on the Internet Web site to each owner of land and each resident within the area covered by the plan and to each taxing entity that has adopted a resolution pursuant to subdivision (d) of Section 62005. The notice shall be mailed by first-class mail, but may be addressed to “occupant.” (c) The annual report shall contain all of the following: 14.c Packet Pg. 416 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (1) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress. (2) A chart comparing the actual revenues and expenses, including administrative costs, of the authority to the budgeted revenues and expenses. (3) The amount of tax increment revenues received. (4) The amount of revenues expended for low- and moderate-income housing. (5) An assessment of the status regarding completion of the authority’s projects. (6) The amount of revenues expended to assist private businesses. (d) If the authority fails to provide the annual report required by subdivision (a), the authority shall not spend any funds received pursuant to a resolution adopted pursuant to subdivision (d) of Section 62005 until the authority has provided the report, except for funds necessary to carry out its obligation under Part 2 (commencing with Section 62100). (e) Every 10 years, at the public hearing held pursuant to subdivision (b), the authority shall conduct a protest proceeding to consider whether the property owners and residents within the plan area wish to present oral or written protests against the authority. Notice of this protest proceeding shall be included in the written notice of the hearing on the annual report and shall inform the property owner and resident of his or her right to submit an oral or written protest before the close of the public hearing. The protest may state that the property owner or resident objects to the authority taking action to implement the plan on and after the date of the election described in subdivision (f). The authority shall consider all written and oral protests received prior to the close of the public hearing. (f) If there is a majority protest, the authority shall not take any further action to implement the plan on and after the date the existence of a majority protest is determined. If between 25 percent and 50 percent of the property owners and residents file protests, then the authority shall call an election of the property owners and residents in the area covered by the plan, and shall not initiate or authorize any new projects until the election is held. A majority protest exists if protests have been filed representing over 50 percent of the combined number of property owners and residents, at least 18 years of age or older, in the area. (g) An election required pursuant to subdivision (f) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The authority shall adopt, at a duly noticed public hearing, procedures for holding this election. 14.c Packet Pg. 417 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (h) If a majority of the property owners and residents vote against the plan, then the authority shall not take any further action to implement the plan on and after the date of the election held pursuant to subdivision (e). This section shall not prevent the authority from taking any and all actions and appropriating and expending funds, including, but not limited to, any and all payments on bonded or contractual indebtedness, to carry out and complete projects for which expenditures of any kind had been made prior to the date of the election and any expenditures for obligations required by Part 2 (commencing with Section 62100) that were incurred prior to the date of the election. 62007. (a) Every five years, beginning in the calendar year in which the authority has allocated a cumulative total of more than one million dollars ($1,000,000) in tax increment revenues, including any proceeds of a debt issuance, for the purposes of subdivision (c) of Section 62003, the authority shall contract for an independent audit to determine compliance with the affordable housing requirements of Chapter 1 (commencing with Section 62100) and Chapter 2 (commencing with Section 62115) of Part 2, including provisions to ensure that the requirements are met within each five-year period covered by the audit and completed no later than the time limit established pursuant to subdivision (g) of Section 62003. The audit shall be conducted according to guidelines established by the Controller, which shall be established on or before December 31, 2021. A copy of the completed audit shall be provided to the Controller. The Controller shall not be required to review and approve the completed audits. (b) Where the audit demonstrates a failure to comply with the requirements of Chapter 1 (commencing with Section 62100) and Chapter 2 (commencing with Section 62115) of Part 2, the authority shall adopt and submit to the Controller, as part of the audit, a plan to achieve compliance with those provisions as soon as feasible, but in not less than two years following the audit findings. The Controller shall review and approve the compliance plan, and require the compliance plan to stay in effect until compliance is achieved. The Controller shall ensure that the compliance plan includes one or more of the following means of achieving compliance: (1) The expenditure of an additional 10 percent of gross tax increment revenue on increasing, preserving, and improving the supply of low-income housing. (2) An increase in the production, by an additional 10 percent, of housing for very low income households as required by paragraph (2) of subdivision (b) of Section 62120. (3) The targeting of expenditures pursuant to Section 62100 exclusively to rental housing affordable to, and occupied by, persons of very low and extremely low income. 14.c Packet Pg. 418 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (c) If an authority is required to conduct an audit pursuant to subdivision (a) in advance of the issuance of the Controller’s guidelines, then it shall prepare an updated audit pursuant to the Controller’s guidelines on or before January 1, 2023. 62008. (a) If an authority fails to provide a copy of the completed audit to the Controller as required by paragraph (2) of subdivision (c) within 20 days following receipt of a written notice of the failure from the Controller, the authority shall forfeit to the state: (1) Two thousand five hundred dollars ($2,500) in the case of an authority with a total revenue, in the prior year, of less than one hundred thousand dollars ($100,000), as reported in the Controller’s annual financial reports. (2) Five thousand five hundred dollars ($5,500) in the case of an authority with a total revenue, in the prior year, of at least one hundred thousand dollars ($100,000) but less than two hundred fifty thousand dollars ($250,000), as reported in the Controller’s annual financial reports. (3) Ten thousand dollars ($10,000) in the case of an authority with a total revenue, in the prior year, of at least two hundred fifty thousand dollars ($250,000), as reported in the Controller’s annual financial reports. (b) If an authority fails to provide a copy of the completed audit to the Controller as required by paragraph (2) of subdivision (c) within 20 days after receipt of a written notice pursuant to subdivision (a) for two consecutive years, the authority shall forfeit an amount that is double the amount of the forfeiture assessed pursuant to subdivision (a). (c) (1) If an authority fails to provide a copy of the completed audit to the Controller as required by paragraph (2) of subdivision (c) within 20 days after receipt of a written notice pursuant to subdivision (a) for three or more consecutive years, the authority shall forfeit an amount that is triple the amount of the forfeiture assessed pursuant to subdivision (a). (2) The Controller shall conduct, or cause to be conducted, an independent financial audit report. (3) The authority shall reimburse the Controller for the cost of complying with this subdivision. (d) Upon the request of the Controller, the Attorney General shall bring an action for the forfeiture in the name of the people of the State of California. If the Attorney General fails to respond to the request within 90 days of its receipt, then any other available remedies may be 14.c Packet Pg. 419 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) exercised. An action filed pursuant to this section to compel an agency to comply with this section is in addition to any other remedy and is not an exclusive means to compel compliance. (e) Upon satisfactory showing of good cause, the Controller shall waive the forfeiture requirements of this section. PART 2. Housing CHAPTER 1. Housing for Persons of Low and Moderate Income 62100. (a) Not less than 25 percent of all taxes that are allocated to the authority from any participating entity pursuant to Section 62005 shall be deposited into a separate Low and Moderate Income Housing Fund pursuant to Section 62101 and used by the authority for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost, as defined by the following sections of the Health and Safety Code: Section 50052.5, to persons and families of low or moderate income, as defined in Section 50093, lower income households, as defined by Section 50079.5, very low income households, as defined in Section 50105, and extremely low income households, as defined by Section 50106, that is occupied by these persons and families unless the authority makes a finding that combining funding received under this program with other funding for the same purpose shall reduce administrative costs or expedite the construction of affordable housing. If the authority makes such a finding, then (1) an authority may transfer funding from the program adopted pursuant to subdivision (c) of Section 62003 to the housing authority within the territorial jurisdiction of the local jurisdiction that created the authority or to the entity that received the housing assets of the former redevelopment agency pursuant to Section 34176 of the Health and Safety Code or to a private nonprofit housing developer, and (2) Section 34176.1 of the Health and Safety Code shall not apply to funds transferred. Funding shall be spent within the plan area in which the funds were generated. Any recipient of funds transferred pursuant to this subdivision shall comply with all applicable provisions of this part. (b) In carrying out the purposes of this section, the authority may exercise any or all of its powers for the construction, rehabilitation, or preservation of affordable housing for extremely low, very low, low- and moderate-income persons or families, including the following: (1) Acquire real property or building sites subject to Section 62112. (2) (A) Improve real property or building sites with onsite or offsite improvements, but only if both (i) the improvements are part of the new construction or rehabilitation of affordable housing units for low- or moderate-income persons that are directly benefited by the 14.c Packet Pg. 420 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) improvements, and are a reasonable and fundamental component of the housing units, and (ii) the authority requires that the units remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low, or moderate income for the same time period and in the same manner as provided in subdivision (c) and paragraph (2) of subdivision (f) of Section 62101. (B) If the newly constructed or rehabilitated housing units are part of a larger project and the agency improves or pays for onsite or offsite improvements pursuant to the authority in this subdivision, the authority shall pay only a portion of the total cost of the onsite or offsite improvement. The maximum percentage of the total cost of the improvement paid for by the authority shall be determined by dividing the number of housing units that are affordable to low- or moderate-income persons by the total number of housing units, if the project is a housing project, or by dividing the cost of the affordable housing units by the total cost of the project, if the project is not a housing project. (3) Donate real property to private or public persons or entities. (4) Finance insurance premiums necessary for the provision of insurance during the construction or rehabilitation of properties that are administered by governmental entities or nonprofit organizations to provide housing for lower income households, as defined in Section 50079.5 of the Health and Safety Code, including rental properties, emergency shelters, transitional housing, or special residential care facilities. (5) Construct buildings or structures. (6) Acquire buildings or structures. (7) Rehabilitate buildings or structures. (8) Provide subsidies to, or for the benefit of, extremely low income households, as defined by Section 50106 of the Health and Safety Code, very low income households, as defined by Section 50105 of the Health and Safety Code, lower income households, as defined by Section 50079.5 of the Health and Safety Code, or persons and families of low or moderate income, as defined by Section 50093 of the Health and Safety Code, to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the open market are those units developed without direct government subsidies. (9) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges. (10) Maintain the community’s supply of mobilehomes. 14.c Packet Pg. 421 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (11) Preserve the availability to lower income households of affordable housing units in housing developments that are assisted or subsidized by public entities and that are threatened with imminent conversion to market rates. (c) The authority may use these funds to meet, in whole or in part, the replacement housing provisions in Section 62120. However, this section shall not be construed as limiting in any way the requirements of that section. (d) The authority shall use these funds inside the plan area. (e) The Legislature finds and declares that expenditures or obligations incurred by the authority pursuant to this section shall constitute an indebtedness of the plan area. (f) (1) (A) An action to compel compliance with the requirement of this section to deposit not less than 25 percent of all taxes that are allocated to the authority pursuant to Section 62005 in the Low and Moderate Income Housing Fund shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the last day of the fiscal year in which the funds were required to be deposited in the Low and Moderate Income Housing Fund. (B) An action to compel compliance with the requirement of this section that money deposited in the Low and Moderate Income Housing Fund be used by the agency for purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing available at affordable housing cost shall be commenced within 10 years of the alleged violation. A cause of action for a violation accrues on the date of the actual expenditure of the funds. (C) An agency found to have deposited less into the Low and Moderate Income Housing Fund than mandated by Section 62101 or to have spent money from the Low and Moderate Income Housing Fund for purposes other than increasing, improving, and preserving the community’s supply of low- and moderate-income housing, as mandated by this section, shall repay the funds with interest in one lump sum pursuant to Section 970.4 or 970.5 or may do either of the following: (i) Petition the court under Section 970.6 for repayment in installments. (ii) Repay the portion of the judgment due to the Low and Moderate Income Housing Fund in equal installments over a period of five years following the judgment. (2) Repayment shall not be made from the funds required to be set aside or used for low- and moderate-income housing pursuant to this section. 14.c Packet Pg. 422 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (3) Notwithstanding clauses (i) and (ii) of subparagraph (C) of paragraph (1), all costs, including reasonable attorney’s fees if included in the judgment, are due and shall be paid upon entry of judgment or order. (4) Except as otherwise provided in this subdivision, Chapter 2 (commencing with Section 970) of Part 5 of Division 3.6 of Title 1 for the enforcement of a judgment against a local public entity applies to a judgment against a local public entity that violates this section. (5) This subdivision applies to actions filed on and after January 1, 2016. (6) The limitations period specified in subparagraphs (A) and (B) of paragraph (1) does not apply to a cause of action brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. 62101. (a) The funds that are required by Section 62100 or 62103 to be used for the purposes of increasing, improving, and preserving the community’s supply of low- and moderate-income housing shall be held in a separate Low and Moderate Income Housing Fund until used. (b) Any interest earned by the Low and Moderate Income Housing Fund and any repayments or other income to the authority for loans, advances, or grants, of any kind from the Low and Moderate Income Housing Fund, shall accrue to and be deposited in, the fund and may only be used in the manner prescribed for the Low and Moderate Income Housing Fund. (c) The moneys in the Low and Moderate Income Housing Fund shall be used to increase, improve, and preserve the supply of low- and moderate-income housing within the territorial jurisdiction of the authority. (d) It is the intent of the Legislature that the Low and Moderate Income Housing Fund be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low- and moderate-income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing. The authority shall determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low- and moderate-income housing. (e) (1) Planning and general administrative costs that may be paid with moneys from the Low and Moderate Income Housing Fund are those expenses incurred by the authority that are directly related to the programs and activities authorized under subdivision (e) of Section 62100 and are limited to the following: 14.c Packet Pg. 423 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (A) Costs incurred for salaries, wages, and related costs of the authority’s staff or for services provided through interagency agreements, and agreements with contractors, including usual indirect costs related thereto. (B) Costs incurred by a nonprofit corporation which are not directly attributable to a specific project. (2) Legal, architectural, and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project that are authorized under subdivision (e) of Section 62100 and that are incurred by a nonprofit housing sponsor are not planning and administrative costs for the purposes of this section, but are instead project costs. (f) (1) The requirements of this subdivision apply to all new or substantially rehabilitated housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund. Except to the extent that a longer period of time may be required by other provisions of law, the authority shall require that housing units subject to this subdivision shall remain available at affordable housing cost to, and occupied by, persons and families of low or moderate income and very low income and extremely low income households for the longest feasible time, but for not less than the following periods of time: (A) Fifty-five years for rental units. However, the authority may replace rental units with equally affordable and comparable rental units in another location within the community if (i) the replacement units are available for occupancy prior to the displacement of any persons and families of low or moderate income residing in the units to be replaced, and (ii) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund. (B) Forty-five years for owner-occupied units. However, the authority may permit sales of owner-occupied units prior to the expiration of the 45-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency’s investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the authority and deposited in the Low and Moderate Income Housing Fund. Only the units originally assisted by the authority shall be counted towards the agency’s obligations under Section 62102. (C) Fifteen years for mutual self-help housing units that are occupied by and affordable to very low and low-income households. However, the authority may permit sales of mutual self-help housing units prior to expiration of the 15-year period for a price in excess of that otherwise 14.c Packet Pg. 424 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) permitted under this subdivision pursuant to an adopted program that (i) protects the agency’s investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy, and (ii) ensures through a recorded regulatory agreement, deed of trust, or similar recorded instrument that if a mutual self-help housing unit is sold at any time after expiration of the 15- year period and prior to 45 years after the date of recording of the covenants or restrictions required pursuant to paragraph (2), the authority recovers, at a minimum, its original principal from the Low and Moderate Income Housing Fund from the proceeds of the sale and deposits those funds into the Low and Moderate Income Housing Fund. The remainder of the excess proceeds of the sale not retained by the seller shall be allocated to the agency and deposited in the Low and Moderate Income Housing Fund. For the purposes of this subparagraph, “mutual self-help housing unit” means an owner-occupied housing unit for which persons and families of very low and low income contribute no fewer than 500 hours of their own labor in individual or group efforts to provide a decent, safe, and sanitary ownership housing unit for themselves, their families, and others authorized to occupy that unit. This subparagraph shall not preclude the authority and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions. (2) If land on which those dwelling units are located is deleted from the plan area, the authority shall continue to require that those units remain affordable as specified in this subdivision. (3) The authority shall require the recording in the office of the county recorder of the following documents: (A) The covenants or restrictions implementing this subdivision for each parcel or unit of real property subject to this subdivision. The authority shall obtain and maintain a copy of the recorded covenants or restrictions for not less than the life of the covenant or restriction. (B) For all new or substantially rehabilitated units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund, a separate document called “Notice of Affordability Restrictions on Transfer of Property,” set forth in 14-point type or larger. This document shall contain all of the following information: (i) A recitation of the affordability covenants or restrictions. The document recorded under this subparagraph shall be recorded concurrently with the covenants or restrictions recorded under subparagraph (A), the recitation of the affordability covenants or restrictions shall also reference the concurrently recorded document. (ii) The date the covenants or restrictions expire. 14.c Packet Pg. 425 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (iii) The street address of the property, including, if applicable, the unit number, unless the property is used to confidentially house victims of domestic violence. (iv) The assessor’s parcel number for the property. (v) The legal description of the property. (4) The authority shall require the recording of the document required under subparagraph (B) of paragraph (3) not more than 30 days after the date of recordation of the covenants or restrictions required under subparagraph (A) of paragraph (3). (5) The county recorder shall index the documents required to be recorded under paragraph (3) by the authority and current owner. (6) Notwithstanding Section 27383, a county recorder may charge all authorized recording fees to any party, including a public agency, for recording the document specified in subparagraph (B) of paragraph (3). (7) Notwithstanding any other law, the covenants or restrictions implementing this subdivision shall run with the land and shall be enforceable against any owner who violates a covenant or restriction and each successor in interest who continues the violation, by any of the following: (A) The authority. (B) The city or county that established the authority. (C) A resident of a unit subject to this subdivision. (D) A residents’ association with members who reside in units subject to this subdivision. (E) A former resident of a unit subject to this subdivision who last resided in that unit. (F) An applicant seeking to enforce the covenants or restrictions for a particular unit that is subject to this subdivision, if the applicant conforms to all of the following: (i) Is of low or moderate income, as defined in Section 50093 of the Health and Safety Code. (ii) Is able and willing to occupy that particular unit. (iii) Was denied occupancy of that particular unit due to an alleged breach of a covenant or restriction implementing this subdivision. (G) A person on an affordable housing waiting list who is of low or moderate income, as defined in Section 50093, and who is able and willing to occupy a unit subject to this subdivision. 14.c Packet Pg. 426 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (8) A dwelling unit shall not be counted as satisfying the affordable housing requirements of this part, unless covenants for that dwelling unit are recorded in compliance with subparagraph (A) of paragraph (3). (9) Failure to comply with the requirements of subparagraph (B) of paragraph (3) shall not invalidate any covenants or restrictions recorded pursuant to subparagraph (A) of paragraph (3). (g) “Housing,” as used in this section, includes residential hotels, as defined in subdivision (k) of Section 37912 of the Health and Safety Code. The definitions of “lower income households,” “very low income households,” and “extremely low income households” in Sections 50079.5, 50105, and 50106 of the Health and Safety Code shall apply to this section. “Longest feasible time,” as used in this section, includes, but is not limited to, unlimited duration. (h) “Increasing, improving, and preserving the community’s supply of low- and moderate- income housing,” as used in this section and in Section 62100, includes the preservation of rental housing units assisted by federal, state, or local government on the condition that units remain affordable to, and occupied by, low- and moderate-income households, including extremely low and very low income households, for the longest feasible time, but not less than 55 years, beyond the date the subsidies and use restrictions could be terminated and the assisted housing units converted to market rate rentals. In preserving these units the authority shall require that the units remain affordable to, and occupied by, persons and families of low- and moderate-income and extremely low and very low income households for the longest feasible time, but not less than 55 years. (i) Funds from the Low and Moderate Income Housing Fund shall not be used to the extent that other reasonable means of private or commercial financing of the new or substantially rehabilitated units at the same level of affordability and quantity are reasonably available to the agency or to the owner of the units. Prior to the expenditure of funds from the Low and Moderate Income Housing Fund for new or substantially rehabilitated housing units, where those funds will exceed 50 percent of the cost of producing the units, the authority shall find, based on substantial evidence, that the use of the funds is necessary because the authority or owner of the units has made a good faith attempt but has been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity. 62102. (a) Except as specified in subdivision (d), each authority shall expend over each 10-year period of the community revitalization plan the moneys in the Low and Moderate Income Housing Fund to assist housing for persons of low income and housing for persons of very low income in at least the same proportion as the total number of housing units needed that each of those 14.c Packet Pg. 427 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) income groups bears to the total number of units needed for persons of moderate, low, and very low income within the community, as those needs have been determined for the community pursuant to Section 65584. In determining compliance with this obligation, the authority may adjust the proportion by subtracting from the need identified for each income category, the number of units for persons of that income category that are newly constructed over the duration of the implementation plan with other locally controlled government assistance and without agency assistance and that are required to be affordable to, and occupied by, persons of the income category for at least 55 years for rental housing and 45 years for ownership housing, except that in making an adjustment the agency may not subtract units developed pursuant to a replacement housing obligation under state or federal law. (b) Each authority shall expend over the duration of each plan, the moneys in the Low and Moderate Income Housing Fund to assist housing that is available to all persons regardless of age in at least the same proportion as the number of low-income households with a member under 65 years of age bears to the total number of low-income households of the community as reported in the most recent census of the United States Census Bureau. (c) An authority that has deposited in the Low and Moderate Income Housing Fund over the first five years of the period of a plan an aggregate that is less than two million dollars ($2,000,000) shall have an extra five years to meet the requirements of this section. (d) For the purposes of this section, “locally controlled” means government assistance where the city or county that created the authority or other local government entity has the discretion and the authority to determine the recipient and the amount of the assistance, whether or not the source of the funds or other assistance is from the state or federal government. Examples of locally controlled government assistance include, but are not limited to, the Community Development Block Grant Program (42 U.S.C. Sec. 5301 et seq.) funds allocated to a city or county, the Home Investment Partnership Program (42 U.S.C. Sec. 12721 et seq.) funds allocated to a city or county, fees or funds received by a city or county pursuant to a city or county authorized program, and the waiver or deferral of city or other charges. 62103. Every community revitalization plan shall contain both of the following: (a) A provision that requires, whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a revitalization project, the authority to, within two years of such destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income an equal number of replacement dwelling units at affordable housing costs, as defined by Section 14.c Packet Pg. 428 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 50052.5 of the Health and Safety Code, within the territorial jurisdiction of the authority, in accordance with all of the provisions of Sections 62120 and 62120.5. (b) A provision that prohibits the number of housing units occupied by extremely low, very low- , and low-income households, including the number of bedrooms in those units, at the time the plan is adopted, from being reduced in the plan area during the effective period of the plan. 62104. Programs to assist or develop low- and moderate-income housing pursuant to this part shall be entitled to priority consideration after a program implemented by a housing successor pursuant to Section 34176.1 of the Health and Safety Code for assistance in housing programs administered by the California Housing Finance Agency, the Department of Housing and Community Development, and other state agencies and departments, if those agencies or departments determine that the housing is otherwise eligible for assistance under a particular program. 62105. The same notice requirements as specified in Section 65863.10 shall apply to multifamily rental housing that receives financial assistance pursuant to Sections 62100 and 62101. 62106. Notwithstanding Sections 62100 and 62101, assistance provided by an authority to preserve the availability to lower income households of affordable housing units within the plan area which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates may be credited and offset against an agency’s obligations under Section 62100. 62107. (a) Except as otherwise provided in this subdivision, not later than six months following the close of any fiscal year of an authority in which excess surplus accumulates in the authority’s Low and Moderate Income Housing Fund, the authority may adopt a plan pursuant to this section for expenditure of all moneys in the Low and Moderate Income Housing Fund within five years from the end of that fiscal year. The plan may be general and need not be site- specific, but shall include objectives respecting the number and type of housing to be assisted, identification of the entities, which will administer the plan, alternative means of ensuring the affordability of housing units for the longest feasible time, as specified in subdivision (e) of Section 62101 the income groups to be assisted, and a schedule by fiscal year for expenditure of the excess surplus. 14.c Packet Pg. 429 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (b) The authority shall separately account for any excess surplus accumulated each year either as part of or in addition to a Low and Moderate Income Housing Fund. (c) If the authority develops a plan for expenditure of excess surplus or other moneys in the Low and Moderate Income Housing Fund, a copy of that plan and any amendments to that plan shall be included in the authority’s annual report pursuant to Section 62006. 62108. (a) (1) Upon failure of the authority to expend or encumber excess surplus in the Low and Moderate Income Housing Fund within one year from the date the moneys become excess surplus, as defined in paragraph (1) of subdivision (g), the authority shall do either of the following: (A) Disburse voluntarily its excess surplus to the county housing authority, a private nonprofit housing developer, or to another public agency exercising housing development powers within the territorial jurisdiction of the agency in accordance with subdivision (b). (B) Expend or encumber its excess surplus within two additional years. (2) If an authority, after three years has elapsed from the date that the moneys become excess surplus, has not expended or encumbered its excess surplus, the authority shall be subject to sanctions pursuant to subdivision (e), until the authority has expended or encumbered its excess surplus plus an additional amount, equal to 50 percent of the amount of the excess surplus that remains at the end of the three-year period. The additional expenditure shall not be from the authority’s Low and Moderate Income Housing Fund, but shall be used in a manner that meets all requirements for expenditures from that fund. (b) The housing authority or other public agency to which the money is transferred shall utilize the moneys for the purposes of, and subject to the same restrictions that are applicable to, the authority under this part, and for that purpose may exercise all of the powers of a housing authority under Part 2 (commencing with Section 34200) of Division 24 of the Health and Safety Code to an extent not inconsistent with these limitations. (c) Notwithstanding Section 34209 of the Health and Safety Code or any other law, for the purpose of accepting a transfer of, and using, moneys pursuant to this section, the housing authority of a county or other public agency may exercise its powers within the territorial jurisdiction of an authority located in that county. (d) The amount of excess surplus that shall be transferred to the housing authority or other public agency because of a failure of the authority to expend or encumber excess surplus within one year shall be the amount of the excess surplus that is not so expended or encumbered. The 14.c Packet Pg. 430 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) housing authority or other public agency to which the moneys are transferred shall expend or encumber these moneys for authorized purposes not later than three years after the date these moneys were transferred from the Low and Moderate Income Housing Fund. (e) (1) Until a time when the authority has expended or encumbered excess surplus moneys pursuant to subdivision (a), the authority shall be prohibited from encumbering any funds or expending any moneys derived from any source, except that the authority may encumber funds and expend moneys to pay the following obligations, if any, that were incurred by the authority prior to three years from the date the moneys became excess surplus: (A) Bonds, notes, interim certificates, debentures, or other obligations issued by an authority, whether funded, refunded, assumed, or otherwise, pursuant to subdivision (f) of Section 62003. (B) Loans or moneys advanced to the authority, including, but not limited to, loans from federal, state, or local agencies, or a private entity. (C) Contractual obligations which, if breached, could subject the authority to damages or other liabilities or remedies. (D) Indebtedness incurred pursuant to Section 62100 or 62104. (E) An amount, to be expended for the operation and administration of the authority, that may not exceed 75 percent of the amount spent for those purposes in the preceding fiscal year. (2) This subdivision shall not be construed to prohibit the expenditure of excess surplus funds or other funds to meet the requirement in paragraph (2) of subdivision (a) that the agency spend or encumber excess surplus funds, plus an amount equal to 50 percent of excess surplus, prior to spending or encumbering funds for any other purpose. (f) This section shall not be construed to limit any authority that an authority may have under other provisions of this part to contract with a housing authority, private nonprofit housing developer, or other public agency exercising housing developer powers, for increasing or improving the community’s supply of low- and moderate-income housing. (g) For purposes of this section: (1) “Excess surplus” means any unexpended and unencumbered amount in an authority’s Low and Moderate Income Housing Fund that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the Low and Moderate Income Housing Fund pursuant to Sections 62100 and 62104 during the authority’s preceding four fiscal years. The first fiscal year to be included in this computation is the 2016–17 fiscal year, and the first date on which an excess surplus may exist is July 1, 2021. 14.c Packet Pg. 431 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (2) Moneys shall be deemed encumbered if committed pursuant to a legally enforceable contract or agreement for expenditure for purposes specified in Sections 62100 and 62101. (3) (A) For purposes of determining whether an excess surplus exists, it is the intent of the Legislature to give credit to authorities which convey land for less than fair market value, on which low- and moderate-income housing is built or is to be built if at least 49 percent of the units developed on the land are available at an affordable housing cost to lower income households for at least the time specified in subdivision (e) of Section 62101, and otherwise comply with all of the provisions of this division applicable to expenditures of moneys from a low- and moderate-income housing fund established pursuant to Section 62101. Therefore, for the sole purpose of determining the amount, if any, of an excess surplus, an authority may make the following calculation: if an authority sells, leases, or grants land acquired with moneys from the Low and Moderate Income Housing Fund, established pursuant to Section 62101, for an amount which is below fair market value, and if at least 49 percent of the units constructed or rehabilitated on the land are affordable to lower income households, as defined in Section 50079.5 of the Health and Safety Code, the difference between the fair market value of the land and the amount the authority receives may be subtracted from the amount of moneys in an agency’s Low and Moderate Income Housing Fund. (B) If taxes that are deposited in the Low and Moderate Income Housing Fund are used as security for bonds or other indebtedness, the proceeds of the bonds or other indebtedness, and income and expenditures related to those proceeds, shall not be counted in determining whether an excess surplus exists. The unspent portion of the proceeds of bonds or other indebtedness, and income related thereto, shall be excluded from the calculation of the unexpended and unencumbered amount in the Low and Moderate Income Housing Fund when determining whether an excess surplus exists. (C) This subdivision shall not be construed to restrict the authority of an authority provided in any other provision of this part to expend funds from the Low and Moderate Income Housing Fund. (D) The Department of Housing and Community Development shall develop and periodically revise the methodology to be used in the calculation of excess surplus as required by this section. The director shall appoint an advisory committee to advise in the development of this methodology. The advisory committee shall include department staff, affordable housing advocates, and representatives of the housing successors of former redevelopment agencies, the League of California Cities, the California Society of Certified Public Accountants, the Controller, and any other authorities or persons interested in the field that the director deems necessary and appropriate. 14.c Packet Pg. 432 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (h) Communities in which an agency has disbursed excess surplus funds pursuant to this section shall not disapprove a low- or moderate-income housing project funded in whole or in part by the excess surplus funds if the project is consistent with applicable building codes and the land use designation specified in any element of the general plan as it existed on the date the application was deemed complete. A local agency may require compliance with local development standards and policies appropriate to and consistent with meeting the quantified objectives relative to the development of housing, as required in housing elements of the community pursuant to subdivision (b) of Section 65583. 62109. (a) Notwithstanding Sections 50079.5, 50093, and 50105 of the Health and Safety Code, for purposes of providing assistance to mortgagors participating in a homeownership residential mortgage revenue bond program pursuant to Section 33750 of the Health and Safety Code, or a home financing program pursuant to Section 52020 of the Health and Safety Code, or a California Housing Finance Agency home financing program, “area median income” means the highest of the following: (1) Statewide median household income. (2) Countywide median household income. (3) Median family income for the area, as determined by the United States Department of Housing and Urban Development with respect to either a standard metropolitan statistical area or an area outside of a standard metropolitan statistical area. (b) To the extent that any portion of the Low and Moderate Income Housing Fund is expended to provide assistance to mortgagors participating in programs whose income exceeds that of persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, the authority shall, within two years, expend or enter into a legally enforceable agreement to expend twice that sum exclusively to increase and improve the community’s supply of housing available at an affordable housing cost, as defined in Section 50052.5, to lower income households, as defined in Section 50079.5 of the Health and Safety Code, of which at least 50 percent shall be very low income households, as defined in Section 50105 of the Health and Safety Code. (c) In addition to the requirements of subdivision (c) of Section 33413 of the Health and Safety Code, the authority shall require that the lower and very low income dwelling units developed pursuant to this subdivision remain available at an affordable housing cost to lower and very low income households for at least 45 years, except as to dwelling units developed with the 14.c Packet Pg. 433 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) assistance of federal or state subsidy programs which terminate in a shorter period and cannot be extended or renewed. (d) The authority shall include within the report required by Section 62008 information with respect to compliance by the agency with the requirements of this subdivision. 62110. The covenants or restrictions imposed by the authority pursuant to subdivision (f) of Section 62101 may be subordinated under any of the following alternatives: (a) To a lien, encumbrance, or regulatory agreement under a federal or state program when a federal or state agency is providing financing, refinancing, or other assistance to the housing units or parcels, if the federal or state agency refuses to consent to the seniority of the authority’s covenant or restriction on the basis that it is required to maintain its lien, encumbrance, or regulatory agreement or restrictions due to statutory or regulatory requirements, adopted or approved policies, or other guidelines pertaining to the financing, refinancing, or other assistance of the housing units or parcels. (b) To a lien, encumbrance, or regulatory agreement of a lender other than the authority or from a bond issuance providing financing, refinancing, or other assistance of owner-occupied units or parcels where the authority makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available. (c) To an existing lien, encumbrance, or regulatory agreement of a lender other than the authority or from a bond issuance providing financing, refinancing, or other assistance of rental units, where the agency’s funds are utilized for rehabilitation of the rental units. (d) To a lien, encumbrance, or regulatory agreement of a lender other than the authority or from a bond issuance providing financing, refinancing, or other assistance of rental units or parcels where the authority makes a finding that an economically feasible alternative method of financing, refinancing, or assisting the units or parcels on substantially comparable terms and conditions, but without subordination, is not reasonably available, and where the authority obtains written commitments reasonably designed to protect the authority’s investment in the event of default, including, but not limited to, any of the following: (1) A right of the authority to cure a default on the loan. (2) A right of the authority to negotiate with the lender after notice of default from the lender. 14.c Packet Pg. 434 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (3) An agreement that if prior to foreclosure of the loan, the authority takes title to the property and cures the default on the loan, the lender will not exercise any right it may have to accelerate the loan by reason of the transfer of title to the authority. (4) A right of the authority to purchase property from the owner at any time after a default on the loan. 62111. Subsidies provided pursuant to subdivision (e) of Section 62100 may include payment of a portion of the principal and interest on bonds issued by a public agency to finance housing for persons and families specified in that paragraph if the authority ensures by contract that the benefit of the subsidy will be passed on to those persons and families in the form of lower housing costs. 62112. For each interest in real property acquired using moneys from the Low and Moderate Income Housing Fund, the authority shall, within five years from the date it first acquires the property interest for the development of housing affordable to persons and families of low and moderate income, initiate activities consistent with the development of the property for that purpose. These activities may include, but are not limited to, zoning changes or agreements entered into for the development and disposition of the property. If these activities have not been initiated within this period, the city or county that created the authority may, by resolution, extend the period during which the authority may retain the property for one additional period not to exceed five years. The resolution of extension shall affirm the intention of the city or county that the property be used for the development of housing affordable to persons and families of low and moderate income. In the event that physical development of the property for this purpose has not begun by the end of the extended period, or if the authority does not comply with this requirement, the property shall be sold and the moneys from the sale, less reimbursement to the agency for the cost of the sale, shall be deposited in the authority’s Low and Moderate Income Housing Fund. CHAPTER 2. Replacement and Location 62115. The authority shall prepare a feasible method or plan for relocation of all of the following: (a) Families and persons to be temporarily or permanently displaced from housing facilities in the plan area. 14.c Packet Pg. 435 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (b) Nonprofit local community institutions to be temporarily or permanently displaced from facilities actually used for institutional purposes in the project area. (c) The relocation plan required by this section shall comply with the relocation plan and assistance requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1. 62116. The city, county, or city and county that created the authority shall insure that the method or plan of the authority for the relocation of families or single persons to be displaced by a revitalization project shall provide that no persons or families of low and moderate income shall be displaced unless and until there is a suitable housing unit available and ready for occupancy by the displaced person or family at rents comparable to those at the time of their displacement and that all other requirements of Chapter 16 (commencing with Section 7260) of Division 7 of Title 1 of the Government Code are met. The housing units shall be suitable to the needs of those displaced persons or families and must be decent, safe, sanitary, and otherwise standard dwellings. The authority shall not displace the person or family until the housing units are available and ready for occupancy. 62117. Whenever all or any portion of a revitalization plan area is developed with low- or moderate- income housing units and whenever any low- or moderate-income housing units are developed with any authority assistance or pursuant to Section 62120, the authority shall require in the recorded covenants for those units that the housing be made available for rent or purchase to the persons and families of low or moderate income displaced by the revitalization project. Those persons and families shall be given priority in renting or buying that in advance of marketing the units to the general public. Failure to give that priority shall not affect the validity of title to real property; however, a unit may not be counted as a replacement or production unit in the event of noncompliance with this provision. The authority shall keep a list of persons and families of low and moderate income displaced by the revitalization project who are to be given priority, and may establish reasonable rules for determining the order or priority on the list. The list shall be provided to the owner of those properties at or before any certificate of occupancy is issued. 62118. If insufficient suitable housing units are available in the plan area for low- and moderate- income persons and families to be displaced from a community revitalization area, the city council or board of supervisors that created the authority shall assure that sufficient land be made available within its territorial jurisdiction for suitable housing for rental or purchase by 14.c Packet Pg. 436 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) low- and moderate-income persons and families. If insufficient suitable housing units are available in the community for use by persons and families of low and moderate income displaced by the revitalization project, the authority may, to the extent of that deficiency, direct or cause the development, rehabilitation, or construction of housing units within the community, both inside and outside of revitalization plan areas. 62119. Permanent housing facilities shall be made available within two years from the time occupants are displaced and that pending the development of such facilities there will be available to such displaced occupants adequate temporary housing facilities at rents comparable to the units from which the displaced occupants were displaced. 62120. (a) Whenever dwelling units housing persons and families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a revitalization project that is subject to a written agreement with the authority or where financial assistance has been provided by the authority, the authority shall, within two years of the destruction or removal, rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units that have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the authority. One hundred percent of the replacement dwelling units shall be available at an affordable housing cost to persons in the same or a lower income category (extremely low, low, very low, or moderate), as the persons displaced from those destroyed or removed units. (b) (1) Prior to the time limit on the effectiveness of the community revitalization plan established pursuant to subdivision (g) of Section 62003 at least 30 percent of all new and substantially rehabilitated dwelling units developed by an authority shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to, and occupied by, persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (2) (A) (i) Prior to the time limit on the effectiveness of the revitalization plan established pursuant to subdivision (g) of Section 62003 at least 15 percent of all new and substantially rehabilitated dwelling units developed within a plan area under the jurisdiction of an authority by public or private entities or persons other than the authority shall be available at affordable housing cost to, and occupied by, persons and families of low or moderate income. Not less 14.c Packet Pg. 437 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) than 40 percent of the dwelling units required to be available at affordable housing cost to, and occupied by, persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (ii) To satisfy this paragraph, in whole or in part, the authority may cause, by regulation or agreement, to be available, at an affordable housing cost, to, and occupied by, persons and families of low or moderate income or to very low income households, as applicable, two units outside a project area for each unit that otherwise would have been required to be available inside a project area. (iii) “Substantially rehabilitated dwelling units” means all units substantially rehabilitated, with authority assistance. (iv) As used in this paragraph and in paragraph (1), “substantial rehabilitation” means rehabilitation, the value of which constitutes 25 percent of the after rehabilitation value of the dwelling, inclusive of the land value. (B) To satisfy the requirements of paragraph (1) and subparagraph (A), the authority may purchase, or otherwise acquire or cause by regulation or agreement the purchase or other acquisition of, long-term affordability covenants on multifamily units that restrict the cost of renting or purchasing those units that either: (i) are not presently available at affordable housing cost to persons and families of low- or very low income households, as applicable; or (ii) are units that are presently available at affordable housing cost to this same group of persons or families, but are units that the authority finds, based upon substantial evidence, after a public hearing, cannot reasonably be expected to remain affordable to this same group of persons or families. (C) To satisfy the requirements of paragraph (1) and subparagraph (A), the long-term affordability covenants purchased or otherwise acquired pursuant to subparagraph (B) shall be required to be maintained on dwelling units at affordable housing cost to, and occupied by, persons and families of low or very low income, for the longest feasible time but not less than 55 years for rental units and 45 years for owner-occupied units. Not more than 50 percent of the units made available pursuant to paragraph (1) and subparagraph (A) may be assisted through the purchase or acquisition of long-term affordability covenants pursuant to subparagraph (B). Not less than 50 percent of the units made available through the purchase or acquisition of long-term affordability covenants pursuant to subparagraph (B) shall be available at affordable housing cost to, and occupied by, very low income households. (D) To satisfy the requirements of paragraph (1) and subparagraph (A), each mutual self-help housing unit, as defined in subparagraph (C) of paragraph (1) of subdivision (f) of Section 62101, that is subject to a 15-year deed restriction shall count as one-third of a unit. 14.c Packet Pg. 438 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (3) The requirements of this subdivision shall apply independently of the requirements of subdivision (a). The requirements of this subdivision shall apply, in the aggregate, to housing made available pursuant to paragraphs (1) and (2), respectively, and not to each individual case of rehabilitation, development, or construction of dwelling units, unless an agency determines otherwise. (4) Each authority, as part of the community revitalization and investment plan required by Section 62003, shall adopt a plan to comply with the requirements of this subdivision. The plan shall be consistent with the community’s housing element. The plan shall be reviewed and, if necessary, amended at least in conjunction with the plan implementation cycle. The plan shall ensure that the requirements of this subdivision are met every 10 years. If the requirements of this subdivision are not met by the end of each 10-year period, the agency shall meet these goals on an annual basis until the requirements for the 10-year period are met. If the agency has exceeded the requirements within the 10-year period, the agency may count the units that exceed the requirement in order to meet the requirements during the next 10-year period. (c) (1) The authority shall require all replacement dwelling units and other dwelling units rehabilitated, developed, constructed, or price restricted pursuant to subdivision (a) or (b) remain available at affordable housing cost to, and occupied by, persons and families of extremely low income, low-income, moderate-income, and very low income households, respectively, for the longest feasible time, but for not less than 55 years for rental units, 45 years for home ownership units, and 15 years for mutual self-help housing units, as defined in subparagraph (C) of paragraph (1) of subdivision (f) of Section 62101, except as set forth in paragraph (2). Nothing in this paragraph precludes the agency and the developer of the mutual self-help housing units from agreeing to 45-year deed restrictions. (2) Notwithstanding paragraph (1), the authority may permit sales of owner-occupied units prior to the expiration of the 45-year period, and mutual self-help housing units prior to the expiration of the 15-year period, established by the authority for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program that protects the authority’s investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program that establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds, based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the authority, and deposited into the Low and Moderate Income Housing Fund. The authority shall, within three years from the date of sale pursuant to this paragraph of each home ownership or mutual self-help housing unit subject to a 45-year deed restriction, and every third mutual self-help housing unit subject to a 15-year deed restriction, expend funds to make affordable an equal number of units at the same or lowest income level as the unit or units sold pursuant to this 14.c Packet Pg. 439 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) paragraph, for a period not less than the duration of the original deed restrictions. Only the units originally assisted by the authority shall be counted towards the authority’s obligations under Section 62120. (3) The requirements of this section shall be made enforceable in the same manner as provided in paragraph (7) of subdivision (f) of Section 62101. (4) If land on which the dwelling units required by this section are located is deleted from the plan area, the authority shall continue to require that those units remain affordable as specified in this subdivision. (5) For each unit counted towards the requirements of subdivisions (a) and (b), the authority shall require the recording in the office of the county recorder of covenants or restrictions that ensure compliance with this subdivision and shall comply with the requirements of paragraphs (3) and (4) of subdivision (f) of Section 62101. (d) Except as otherwise authorized by law, this section does not authorize an authority to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development. (e) Notwithstanding subdivision (a), the authority may replace destroy or remove dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: (1) The total number of bedrooms in the replacement dwelling units equals or exceeds the number of bedrooms in the destroyed or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one bedroom. (2) The replacement units are affordable to, and occupied by, the same income level of households as the destroyed or removed units. (f) “Longest feasible time,” as used in this section, includes, but is not limited to, unlimited duration. 62120.5. (a) Not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the low- and moderate-income housing market, the authority shall adopt by resolution a replacement housing plan. Not less than 30 days prior to adopting a replacement housing plan by resolution, the authority shall make available a draft 14.c Packet Pg. 440 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) of the proposed replacement housing plan for review and comment by property owners and residents within the plan area, any persons who have requested notice of that replacement housing plan, other public agencies, and the general public. The replacement housing plan shall include all of the following: (1) A description of the housing to be destroyed or removed, including the address, parcel number, number and size of units, whether the units are occupied, and if so, the income categories of the occupants, if that information is available, whether the units are rental or ownership, the rent levels or sale price of the units, and if the units have existing affordable covenants, the nature and source of the subsidy and duration of the covenants. (2) A description of the housing to be rehabilitated, developed, or constructed pursuant to Section 62120 to replace the units described in paragraph (1), including the general location of the replacement units, the number and size of the replacement units, the affordability levels of the replacement units, whether the replacement units will be rental or ownership, and duration of the affordability covenants applicable to the units. (3) An analysis of the cost of producing the replacement units and a description of the source and adequacy of funds or financing, or both, available for the rehabilitation, development, or construction. (4) A finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution, or that such approval has been obtained. (5) The timetable for meeting the plan’s relocation, rehabilitation, and replacement housing objectives. A dwelling unit whose replacement is required by Section 62120 but for which no replacement housing plan has been prepared, shall not be destroyed or removed from the low- and moderate-income housing market until the agency has by resolution adopted a replacement housing plan. (b) Nothing in this section shall prevent an authority from destroying or removing from the low- and moderate-income housing market a dwelling unit which the authority owns and which is an immediate danger to health and safety. The authority shall, as soon as practicable, adopt by resolution a replacement housing plan with respect to that dwelling unit pursuant to this part. 62120.7. An authority causing the rehabilitation, development, or construction of replacement dwelling units, other than single-family residences, pursuant to Section 62120, or pursuant to a replacement housing plan as required by Section 62120.5, or pursuant to provisions of a revitalization plan required by Section 62103, primarily for persons of low income, as defined in 14.c Packet Pg. 441 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Section 50093 of the Health and Safety Code, shall give preference to those developments that are proposed to be organized as limited-equity housing cooperatives, when so requested as part of the public review, provided the project is achievable in an efficient and timely manner. The limited-equity housing cooperatives shall, in addition to the provisions of Section 817 of the Civil Code, be organized so that the consideration paid for memberships or shares by the first occupants following construction or acquisition by the corporation, including the principal amount of obligations incurred to finance the share or membership purchase, does not exceed 3 percent of the development cost or acquisition cost, or of the fair market value appraisal by the permanent lender, whichever is greater. 62121. An authority shall provide relocation assistance and shall make all of the payments required by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1, including the making of those payments financed by the federal government. This section shall not be construed to limit any other authority which an authority may have to make other relocation assistance payments, or to make any relocation assistance payment in an amount which exceeds the maximum amount for that payment authorized by Chapter 16 (commencing with Section 7260) of Division 7 of Title 1. 62122. In order to facilitate the rehousing of families and single persons displaced by any governmental action, an authority, at the request of the city council or board of supervisors that created the authority, may dispose of the real property acquired under the provisions of subdivision (b) of section 62201, by sale or long-term lease, for use as, or development of, housing for those displaced persons. 62123. (a) An authority shall monitor, on an ongoing basis, any housing affordable to persons and families of low or moderate income developed or otherwise made available pursuant to any provisions of this part. As part of this monitoring, an authority shall require owners or managers of the housing to submit an annual report to the authority. The annual reports shall include for each rental unit the rental rate and the income and family size of the occupants, and for each owner-occupied unit whether there was a change in ownership from the prior year and, if so, the income and family size of the new owners. The income information required by this section shall be supplied by the tenant in a certified statement on a form provided by the authority. 14.c Packet Pg. 442 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (b) The data specified in subdivision (a) shall be obtained by the authority from owners and managers of the housing specified therein and current data shall be included in any reports required by law to be submitted to the Department of Housing and Community Development or the Controller. The information on income and family size that is required to be reported by the owner or manager shall be supplied by the tenant and shall be the only information on income or family size that the owner or manager shall be required to submit on his or her annual report to the agency. (c) (1) The authority shall compile and maintain a database of existing, new, and substantially rehabilitated, housing units developed or otherwise assisted with moneys from the Low and Moderate Income Housing Fund, or otherwise counted towards the requirements of subdivision (a) or (b) of Section 62120. The database shall be posted in an easily identifiable and accessible location on the authority’s Internet Web site and updated on an annual basis and shall include the date the database was last updated. The database shall require all of the following information for each owner-occupied unit or rental unit, or for each group of units, if more than one unit is subject to the same covenant: (A) The street address and the assessor’s parcel number of the property. (B) The size of each unit, measured by the number of bedrooms. (C) The year in which the construction or substantial rehabilitation of the unit was completed. (D) The date of recordation and document number of the affordability covenants or restrictions required under subdivision (f) of Section 33334.3 of the Health and Safety Code. (E) The date on which the covenants or restrictions expire. (F) For owner-occupied units that have changed ownership during the reporting year, as described in subdivision (a), the date and document number of the new affordability covenants or other documents recorded to assure that the affordability restriction is enforceable and continues to run with the land. (G) Whether occupancy in the unit or units is restricted to any special population, including, but not limited to, senior citizens and persons with disabilities. (H) Whether occupancy in the unit or units is restricted to an extremely low, very low, low-, or moderate-income household. (2) Notwithstanding subparagraphs (A) and (D) of paragraph (1), the database shall omit any property used to confidentially house victims of domestic violence. 14.c Packet Pg. 443 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (3) Upon establishment of a database under this section, the authority shall provide reasonable notice to the community regarding the existence of the database. (d) The authority shall adequately fund its monitoring activities as needed to insure compliance of applicable laws and agreements in relation to affordable units. For purposes of defraying the cost of complying with the requirements of this section and the changes in reporting requirements enacted by the act enacting this section, an authority may establish and impose fees upon owners of properties monitored pursuant to this section. PART 3. Property Acquisition 62200. “Real property” means any of the following: (a) Land, including land under water and waterfront property. (b) Buildings, structures, fixtures, and improvements on the land. (c) Any property appurtenant to or used in connection with the land. (d) Every estate, interest, privilege, easement, franchise, and right in land, including rights-of- way, terms for years, and liens, charges, or encumbrances by way of judgment, mortgage, or otherwise and the indebtedness secured by those liens. 62201. Within the plan area or for purposes of revitalization an authority may: (a) Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any real or personal property, any interest in property, and any improvements on it, including repurchase of developed property previously owned by the authority. An authority shall obtain an appraisal from a qualified independent appraiser to determine the fair market value of property before the authority acquires or purchases real property. (b) Accept, at the request of the legislative body of the community, a conveyance of real property (located either within or outside the plan area) owned by a public entity and declared surplus by the public entity, or owned by a private entity. The authority may dispose of that property to private persons or to public or private entities, by sale or long-term lease for development. All or any part of the funds derived from the sale or lease of that property may, at the discretion of the legislative body of the community, be paid to the community, or to the public entity from which any of that property was acquired. 14.c Packet Pg. 444 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (c) Sell, lease, grant, or donate real property owned or acquired by the authority in a plan area to a housing authority or to any public agency for public housing projects. (d) Offer for resale property acquired by an authority for rehabilitation and resale within one year after completion of rehabilitation. Properties held by the authority in excess of a one-year period shall be listed in the authority’s annual report with information conveying the reasons that property remains unsold and indicating plans for its disposition. (e) Acquire real property by eminent domain, provided that authority is exercised within 12 years from the adoption of the plan. (1) Every plan adopted by an authority which contemplates property owner participation in the revitalization of the plan area shall contain alternative provisions for revitalization of the property if the owners fail to participate in the revitalization as agreed. Prior to the adoption of a plan, each property owner whose property would be subject to acquisition by purchase or condemnation under the plan shall be sent a statement in nontechnical language and in a clear and coherent manner using words with common and everyday meaning to that effect attached to the notice of the hearing as required by subdivision (b) of Section 62004. Alternatively, a list or map of all properties which would be subject to acquisition by purchase or condemnation under the plan may be mailed to affected property owners with the notices of hearing pursuant to Section 62004. (2) Without the consent of an owner, an authority shall not acquire any real property on which an existing building is to be continued on its present site and in its present form and use unless that building requires structural alteration, improvement, modernization, or rehabilitation, or the site or lot on which the building is situated requires modification in size, shape, or use, or it is necessary to impose upon that property any of the standards, restrictions, and controls of the plan and the owner fails or refuses to agree to participate in the plan. (3) Property already devoted to a public use may be acquired by the agency through eminent domain, but property of a public body shall not be acquired without its consent. (4) An authority shall not acquire from any of its members or officers any property or interest in property except through eminent domain proceedings. 62202. An authority shall not provide any form of direct assistance to: (a) An automobile dealership that will be or is on a parcel of land which has not previously been developed for urban use. 14.c Packet Pg. 445 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (b) A development that will be or is on a parcel of land of five acres or more which has not previously been developed for urban use and that will, when developed, generate sales or use tax pursuant to Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code, unless the principal permitted use of the development is office, hotel, manufacturing, or industrial. For the purposes of this subdivision, a parcel shall include land on an adjacent or nearby parcel on which a use exists that is necessary for the legal development of the parcel. (c) A development or business, either directly or indirectly, for the acquisition, construction, improvement, rehabilitation, or replacement of property that is or would be used for gambling or gaming of any kind whatsoever, including, but not limited to, casinos, gaming clubs, bingo operations, or any facility wherein banked or percentage games, any form of gambling device, or lotteries, other than the California State Lottery, are or will be played. (d) The prohibition in subdivision (c) is not intended to prohibit an authority from acquiring property on or in which an existing gambling enterprise is located, for the purpose of selling or leasing the property for uses other than gambling, provided that the agency acquires the property for fair market value. (e) This section shall not be construed to apply to an authority’s assistance in the construction of public improvements that serve all or a portion of a project area and that are not required to be constructed as a condition of approval of a development described in subdivision (a), (b), or (c), or to prohibit assistance in the construction of public improvements that are being constructed for a development that is not described in subdivision (a), (b), or (c). 62203. (a) Any covenants, conditions, or restrictions existing on any real property within a plan area prior to the time the authority acquires title to that property, which covenants, conditions, or restrictions restrict or purport to restrict the use of, or building upon, that real property, shall be void and unenforceable as to the authority and any other subsequent owners, tenants, lessees, easement holders, mortgagees, trustees, beneficiaries under a deed of trust, or any other persons or entities acquiring an interest in that real property from that time as title to the real property is acquired by an authority whether acquisition is by gift, purchase, eminent domain, or otherwise. (b) Thirty days prior to the acquisition of real property other than by eminent domain, the authority shall provide notice of that acquisition and the provisions of this section to holders of interests which would be made void and unenforceable pursuant to this section, as follows: 14.c Packet Pg. 446 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (1) The authority shall publish notice once in a newspaper of general circulation in the community in which the agency is functioning. (2) The authority shall mail notice to holders of those interests if those holders appear of record 60 days prior to the date of acquisition. The authority may accept any release by written instrument from the holder of any interest or may commence action to acquire that interest after the date of acquisition of the real property. (c) This section shall not apply to covenants, conditions, or restrictions imposed by an authority pursuant to a plan. This section also shall not apply to covenants, conditions, or restrictions where an authority in writing expressly acquires or holds property subject to those covenants, conditions, or restrictions. This section shall not limit or preclude any rights of reversion of owners, assignees, or beneficiaries of those covenants, conditions, or restrictions limiting the use of land in gifts of land to cities, counties, or other governmental entities. This section shall not limit or preclude the rights of owners or assignees of any land benefited by any covenants, conditions, or restrictions to recover damages against the agency if under law that owner or assignee has any right to damages. No right to damages shall exist against any purchaser from the authority or his or her successors or assignees, or any other persons or entities. 62204. (a) If an authority has adopted a plan but has not commenced an eminent domain proceeding to acquire any particular parcel of property subject to eminent domain thereunder within three years after the date of adoption of the plan, the owner or owners of the entire fee at any time thereafter may offer in writing to sell the property to the authority for its fair market value. If the authority does not, within 18 months from the date of receipt of the original offer, acquire or institute eminent domain proceedings to acquire the property, the property owner or owners may file an action against the authority in inverse condemnation to recover damages from the authority for any interference with the possession and use of the real property resulting from the plan, provided that this section shall not be construed as establishing or creating a presumption to any right to damages or relief solely by reason of the failure of the authority to acquire the property within the time set forth in this section. (b) No claim need be presented against an authority under Part 3 (commencing with Section 900) of Division 3.6 of Title 1 as a prerequisite to commencement or maintenance of an action under subdivision (a), but any action shall be commenced within one year and six months after the expiration of the 18 months period. 14.c Packet Pg. 447 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (c) An authority may commence an eminent domain proceeding or designate the property to be exempt from eminent domain under the plan at any time before the property owner commences an action under this section. If the authority commences an eminent domain proceeding or designates the property to be exempt from acquisition by eminent domain before the property owner commences an action under this section, the property owner may not thereafter bring an action under this section. (d) After a property owner has commenced an action under this section, the authority may declare the property to be exempt from acquisition by eminent domain and abandon the taking of the property only under the same circumstances and subject to the same conditions and consequences as abandonment of an eminent domain proceeding. (e) Commencement of an action under this section does not affect any authority an authority may have to commence an eminent domain proceeding, take possession of the property pursuant to Article 3 (commencing with Section 1255.410) of Chapter 6 of Title 7 of the Code of Civil Procedure, or abandon the eminent domain proceeding. (f) In lieu of bringing an action under subdivision (a) or if the limitations period provided in subdivision (b) has run, the property owner may obtain a writ of mandate to compel the authority, within that time as the court deems appropriate, to declare the property acquisition exempt or to commence an eminent domain proceeding to acquire the property. (g) A declaration that the property is exempt from acquisition by eminent domain shall be by resolution and shall be recordable. It shall exempt the property from eminent domain under the plan, and the authority shall have no power of eminent domain as to the property. 62205. Section 1245.260 of the Code of Civil Procedure shall not apply to any resolution or ordinance adopting, approving, or amending the amendment of plan. Section 1245.260 of the Code of Civil Procedure shall apply to a resolution adopted by an authority pursuant to Section 1245.220 of the Code of Civil Procedure with respect to a particular parcel or parcels of real property. 62206. (a) The authority shall obligate lessees and purchasers of real property acquired in revitalization projects undertaken or assisted by the authority and owners of property improved as a part of a revitalization project to refrain from restricting the rental, sale, or lease of the property on any basis listed in subdivision (a) or (d) of Section 12955, as those basis are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of 14.c Packet Pg. 448 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Section 12955, and Section 12955.2. All deeds, leases, or contracts for the sale, lease, sublease, or other transfer of any land in a revitalization project shall contain or be subject to the nondiscrimination or nonsegregation clauses hereafter prescribed. (b) Notwithstanding subdivision (a), with respect to familial status, subdivision (a) shall not be construed to apply to housing for older persons, as defined in Section 12955.9. With respect to familial status, nothing in subdivision (a) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51, Section 4760, and Section 6714 of the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 shall apply to subdivision (a). 62207. Express provisions shall be included in all deeds, leases, and contracts that the authority proposes to enter into with respect to the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of any land in a revitalization project in substantially the following form: (a) (1) In deeds the following language shall appear: “The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those basis are defined in Sections 12926, 12926.1 of, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 of, and Section 12955.2 of, the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land.” (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 shall apply to paragraph (1). 14.c Packet Pg. 449 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (b) (1) In leases the following language shall appear: “The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those basis are defined in Sections 12926, 12926.1 of, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 of, and Section 12955.2 of, the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.” (2) Notwithstanding paragraph (1), with respect to familial status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9. With respect to familial status, nothing in paragraph (1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 of, and Sections 4760 and 6714 of, the Civil Code, and subdivisions (n), (o), and (p) of Section 12955 shall apply to paragraph (1). (c) In contracts entered into by the agency relating to the sale, transfer, or leasing of land or any interest therein acquired by the agency within any survey area or redevelopment project the foregoing provisions in substantially the forms set forth shall be included and the contracts shall further provide that the foregoing provisions shall be binding upon and shall obligate the contracting party or parties and any subcontracting party or parties, or other transferees under the instrument. 62208. (a) The authority shall retain controls and establish restrictions or covenants running with land sold or leased for private use for those periods of time and under those conditions as are provided in the plan. The establishment of those controls is a public purpose under this division. (b) An authority shall obligate lessees or purchasers of property acquired in a revitalization project to: 14.c Packet Pg. 450 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) (1) Use the property for the purpose designated in the revitalization plans. (2) Begin the revitalization of the project area within a period of time which the authority fixes as reasonable. (3) Comply with the covenants, conditions, or restrictions that the authority deems necessary to prevent speculation or excess profittaking in undeveloped land, including right of reverter to the agency. Covenants, conditions, and restrictions imposed by an authority may provide for the reasonable protection of lenders. (4) Comply with other conditions which the authority deems necessary to carry out the purposes of this part. 14.c Packet Pg. 451 At t a c h m e n t : A t t a c h m e n t I I I - A s s e m b l y B i l l N o . 2 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) This page left intentionally blank. City of Grand Terrace Fiscal Policies September 8, 2015 14.d Packet Pg. 452 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Fiscal Policy Policy No. 3.01 Subject: Purchasing Effective Date: 5/13/14 Page 1 of 6 PURPOSE: The purpose of this policy is to ensure that the City’s purchasing practices are carried out in accordance with the Purchasing Ordinance, which was approved by the City Council on November 27, 2012. DEFINITIONS: Notice Inviting Bids: A document issued to specified potential bidders, or posted on the City’s website, inviting bids for specified merchandise or service. The subsequent contract is generally awarded to the lowest responsible bidder. Purchase Order: A document which authorizes the delivery of specified merchandise or the rendering of certain service and the making of a charge for such merchandise or service. Purchase Requisition: A document submitted by a department requesting approval to purchase specified merchandise or service. Upon its approval, a Purchase Order is issued to the selected vendor or service provider. Purchasing Officer: The Purchasing Ordinance designates a Purchasing Officer, to be appointed by the City Manager. The City Manager has currently appointed the City’s Finance Director as the Purchasing Officer. Under the direction of this position, the Finance Department is charged with the responsibility of administering the Purchasing Ordinance. Request for Proposals (RFP): A document issued to specified potential service providers, or posted on the City’s website, requesting proposals for services. The subsequent contract is awarded based on a number of factors including professional expertise, experience, service level, references and pricing. Consideration of factors other than pricing differentiates an RFP process from a “Notice Inviting Bids” process. POLICY & PROCEDURES: I. Informal Purchases ($0 - $500) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is not required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Request for Payment form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Use of City credit card or petty cash may be appropriate for certain low-value purchases, with separate guidelines applying to these purchases. 45 of 92 14.d Packet Pg. 453 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Fiscal Policy Policy No. 3.01 Subject: Purchasing Effective Date: 5/13/14 Page 2 of 6 II. Informal Purchases ($501 - $1,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Purchase Requisition form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Approval from the City Manager is required. III. Open Market Purchases ($1,001 - $10,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. Three (3) informal price quotes must be obtained. C. A Purchase Requisition must be submitted to Finance by the requesting department with the price quotes attached as back-up. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). IV. Formal Purchases (over $10,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. Formal contracting procedures must be followed as enumerated in Section 3.24.080 of the Purchasing Ordinance, including: 46 of 92 14.d Packet Pg. 454 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Fiscal Policy Policy No. 3.01 Subject: Purchasing Effective Date: 5/13/14 Page 3 of 6 1. Notice Inviting Bid 2. Bidders’ List 3. Bidders’ Security 4. Bid Opening Procedure 5. Performance Bonds as applicable 6. Formal Award of Contract by the City Council C. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). V. Professional Services A. Professional Services are not awarded via formal bidding, since there are a number of factors other than pricing used to determine the company that is best suited to provide the service. Such factors include professional expertise, experience, service level and references. B. Although not formally bid, it is recommended that professional services with an expected value greater than $10,000 utilize a competitive selection process via a Request for Proposals (RFP). C. RFPs should be posted on the City’s web page and distributed to known companies with expertise in the applicable service area. Generally, at least 30 days should be allowed for proposal submittal following the RFP issuance date. It may also be appropriate to schedule a pre-submittal conference to clarify the RFP and respond to the interested parties’ questions. D. Contracts for professional services with a value of $10,000 or less may be awarded by the City Manager. E. Contracts for professional services with a value greater than $10,000 must be awarded by the City Council. 47 of 92 14.d Packet Pg. 455 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Fiscal Policy Policy No. 3.01 Subject: Purchasing Effective Date: 5/13/14 Page 4 of 6 F. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report (if applicable) attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). G. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) H. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). VI. Single Source Purchases / Waiver of Bidding / Piggy Backing A. If it is determined that only one company is available or capable of providing the desired goods or services, the purchase may be approved without obtaining price quotes (purchases of $1,001 to $10,000), conducting formal bidding (purchases over $10,000), or utilizing an RFP process (professional services over $10,000), provided that approval is received for the single source purchase, as follows: 1. Purchases with a value of $1,001 - $10,000: Memo explaining the basis for the single source purchase must be submitted by the applicable Department Head along with the Purchase Requisition and approved by the City Manager. 2. Purchases with a value greater than $10,000: Approval for the single source purchase must be submitted via a staff report in conjunction with the contract award and approved by the City Council. B. If a purchase is not considered to be single source but a waiver of bidding/competitive selection is requested because it is in the best interest of the City, approvals must be obtained by the City Manager ($1,001 - $10,000) or City Council (over $10,000) as described above. C. Justification must be provided if a waiver of bidding/competitive selection is requested. A waiver is an exception to the competitive bid process. As a result, explanation/documentation is required to begin the review process. Below are examples for requesting the waiver of the bid/competitive selection process: i. Sole Source: Only one company is available/capable of performing the task or providing the goods or services; the goods or services provided by 48 of 92 14.d Packet Pg. 456 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Fiscal Policy Policy No. 3.01 Subject: Purchasing Effective Date: 5/13/14 Page 5 of 6 a specific company are unique in quality, performance, or use specifications. ii. Time Sensitive: The need for the desired good/service is needed to correct or prevent an emergency; iii. Intrinsic Value: When a good or service is determined by its historic, artistic, or educational value. D. If the City has determined that another municipality (host agency) has completed the competitive bid/RFP process awarding a contract within the last 6 months for goods and/or services that the City may require, in order to avoid time and costs, the City has the option to “piggyback” on the public agency’s existing contract provided the following requirements are met: i. Approval must comply with the purchasing policy as follows: a. $0 - $500 requires Department Head approval; b. $501 - $10,000 requires City Manager approval; and c. Over $10,000 requires City Council approval. ii. The other public agency’s bid and contract award process meet’s the City’s bid and contract award requirements; iii. The host agency and the City (piggybacking agency) must sign an agreement allowing the piggyback; iv. The vendor/contractor must agree to the piggyback, offering the same terms and conditions written in their contract to the piggyback agency; and v. The vendor must inform both the host agency and the piggybacking agency in writing that they agree to the piggyback. VII. Contract Requirements A. If a purchase involves work to be performed on City premises or the public right of way, regardless of the dollar amount, a City contract is recommended to adequately address liability issues. If there is uncertainty regarding whether or not a contract is needed for a given purchase, the City Attorney should be consulted. B. Contracts up to $10,000 in value may be approved by the City Manager, following City Attorney approval as to legal form. Whenever possible, the standard City contract form should be used. C. Contracts over $10,000 in value require City Council approval via the agenda process. 49 of 92 14.d Packet Pg. 457 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Fiscal Policy Policy No. 3.01 Subject: Purchasing Effective Date: 5/13/14 Page 6 of 6 D. Contracts should include a requirement for the service provider to obtain a City Business License. The department administering the contract is responsible for coordinating with Finance to ensure that a Business License is obtained if the contract value is $10,000 or less (City Manager approval). If the contract value is greater than $10,000 (City Council approval), the City Clerk’s Office will coordinate with Finance to ensure that a Business License is obtained. E. The department administering the contract is also responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements if the contract value is $10,000 or less (City Manager approval). If the contract value is greater than $10,000 (City Council approval), the City Clerk’s Office will be responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements. 50 of 92 14.d Packet Pg. 458 At t a c h m e n t : A t t a c h m e n t I V - P u r c h a s i n g P o l i c y f r o m F i s c a l P o l i c i e s 2 0 1 5 - 1 6 ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) This page left intentionally blank. AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT ("Agreement") is made as of this 27th day of September, 2016 by and between the CITY OF GRAND TERRACE ("City") and KOSMONT & ASSOCIATES, INC. d/b/a KOSMONT COMPANIES ("Consultant"). 1. CONSULTANT'S SERVICES. Consultant agrees to perform during the term of this Agreement, the tasks, obligations, and services set forth in the "Scope of Services" attached to and incorporated into this Agreement as Exhibit A (the "Services"). 2. TERM OF AGREEMENT. The term of this Agreement shall be from the effective date pursuant to Paragraph "38" of this Agreement and shall end on December 20, 2016 or when the work is satisfactorily completed, whichever occurs first, unless extended by a supplemental agreement. 3. FAMILIARITY WITH WORK. By execution of this Agreement, Consultant warrants that (1) It has thoroughly investigated and considered the work to be performed, based on all available information. (2) It carefully considered how the work should be preformed, and (3) It fully understands the difficulties and restrictions attending the performance of the work under this Agreement. (4) It has the professional and technical competency to perform the work and the production capacity to complete the work in a timely manner with respect to the schedule included in the scope of services. 4. PAYMENT FOR SERVICES. City shall pay for the services performed by Consultant pursuant to the terms of this Agreement, the compensation set forth in the "Schedule of Compensation" attached to and incorporated into this Agreement as Exhibit “B” and portion of Exhibit “A.” The fees for services shall not exceed the authorized amount of $30,000 as set forth in Exhibit "B," unless the CITY has given specific advance approval in writing. 5. TIME FOR PERFORMANCE. Consultant shall not perform any work under this Agreement until (a) Consultant furnishes proof of insurance as required under Paragraph "8" of this Agreement. All services required by Consultant under this Agreement shall be completed on or before the end of the term of the Agreement. 14.e Packet Pg. 459 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 6. DESIGNATED REPRESENTATIVE. Consultant hereby designates __________ as the Consultant Representative, and said Representative shall be responsible for job performance, negotiations, contractual matters, and coordination with the City. Consultant's professional services shall be actually performed by, or shall be immediately supervised by, the Consultant Representative. 7. HOLD HARMLESS; INDEMNIFICATION. Consultant hereby agrees to protect, indemnify and hold City and its employees, officers and servants free and harmless from any and all losses, claims, liens, demands and causes of action of every kind and character including, but not limited to, the amounts of judgment, interests, court costs, legal fees and other expenses incurred by the City arising in favor of any party, including claims, liens, debts, personal injuries, including employees of the City, death or damages to property (including property of the City) and without limitation by enumeration, all other claims or demands of every character occurring or arising directly out of the negligent acts, recklessness or willful misconduct of Consultant in the performance of its services under this Agreement. This provision is not intended to create any cause of action in favor of any third party against Consultant, or the City or to enlarge in any way the Consultant's liability but is intended solely to provide for indemnification of the City for liability for damages or injuries to third persons or property arising from Consultant's negligent performance hereunder. 8. INSURANCE. Consultant shall procure and maintain at all times during the term of this Agreement insurance as set forth in Exhibit "C" attached hereto. Proof of insurance shall consist of a Certificate of Insurance provided on IOS-CGL form No. CG 0001 II 85 or 88 executed by Consultant's insurer and in a form approved by, the City's City Attorney and City's Legal Counsel. 9. LICENSES, PERMITS, AND FEES. Consultant shall obtain a City of Grand Terrace Business License and any and all other permits and licenses required for the services to be performed under this Agreement. 10. INDEPENDENT CONTRACTOR STATUS. City and Consultant agree that Consultant, in performing the Services herein specified, shall act as an independent Contractor and shall have control of all work and the manner in which it is performed. Consultant shall be free to contract for similar services to be performed for other entities while under contract with City. Consultant is not an agent or employee of City, and is not entitled to participate in any pension plan, insurance, bonus or similar benefits City provides for its employees. Consultant shall be responsible to pay and hold City harmless from any and all payroll and other taxes and interest thereon and penalties, therefore, which may become due as a result of services performed hereunder. 11. ASSIGNMENT. This Agreement is for the specific services with Consultant as set forth herein. Any attempt by Consultant to assign the benefits or burdens of this Agreement without written approval of City is prohibited and shall be null and 14.e Packet Pg. 460 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) void; except that Consultant may assign payments due under this Agreement to a financial institution. 12. STANDARD. Consultant agrees that the services to be rendered pursuant to this Agreement shall be performed in accordance with the standards customarily provided by an experienced and competent professional organization rendering the same or similar services. Consultant shall re-perform any of said services, which are not in conformity with standards as determined by the City. 13. CONFIDENTIALITY. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant's covenant under this Section shall survive the termination of this Agreement. 14. RECORDS AND INSPECTIONS. Consultant shall maintain full and accurate records with respect to all services and matters covered under this Agreement. City shall have free access at all reasonable times to such records, and the right to examine and audit the same and to make transcripts therefrom, and to inspect all program data, documents, proceedings and activities. Consultant shall maintain an up-to-date list of key personnel and telephone numbers for emergency contact after normal business hours. 15. OWNERSHIP OF CONSULTANT'S WORK PRODUCT. All reports, documents, all analysis, computations, plans, correspondence, data, information, computer media, including disks or other written material developed and/or gathered by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Such Material shall not be the subject of a copyright application by Consultant. Any re-use by City of any such materials on any project other than the project for which they were prepared shall be at the sole risk of City unless City compensate Consultant for such use. Such work product shall be transmitted to City within ten (10) days after a written request therefore. Consultant may retain copies of such products. 16. NOTICES. All notices given or required to be given pursuant to this Agreement shall be in writing and may be given by personal delivery or by mail. Notice sent by mail shall be addressed as follows: City: G. Harold Duffey, City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, Ca 92313 14.e Packet Pg. 461 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) Consultant: Kosmont & Associates, Inc. d/b/a “Kosmont Companies” 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 If the name of the principal representative designated to receive the notices, demands or communications, or the address of such person, is changed, written notice shall be given within five (5) working days of said changes 17. TAXPAYER IDENTIFICATION NUMBER. Consultant shall provide City with a complete Request for Taxpayer Identification Number and Certification, Form W - 9, as issued by the Internal Revenue Service. 18. APPLICABLE LAWS, CODES AND REGULATIONS. Consultant shall perform all services described in accordance with all applicable laws, codes and regulations required by all authorities having jurisdiction over the Services. Consultant agrees to comply with prevailing wage requirements as specified in the California Labor Code, Sections 1770, et seq. 19. RIGHT TO UTILIZE OTHERS. City reserves the right to utilize others to perform work similar to the Services provided hereunder. 20. BENEFITS. Consultant will not be eligible for any paid benefits for federal , social security, state workers' compensation, unemployment insurance, professional insurance, medical/dental, retirement PERS or fringe benefits offered by the City of Grand Terrace. 21. PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System ("PERS") to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 14.e Packet Pg. 462 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 22. TRAVEL EXPENSES. Any reimbursement expenses must be pre-authorized and shall be based upon the approved rates of the San Bernardino County Auditor- Controller. 23. CONFLICT OF INTEREST. Consultant agrees that any conflict or potential conflict of interest shall be fully disclosed prior to execution of contract and Consultant shall comply with all applicable federal, state and county laws and regulations governing conflict of interest. 24. ECONOMIC INTEREST STATEMENT. Consultant hereby acknowledges that pursuant to Government Code Section 87300 and the Conflict of Interest Code adopted by City hereunder, Consultant is designated in said Conflict of Interest Code and is therefore required to file an Economic Interest Statement (Form 700) with the City Clerk, for each employee providing advise under this Agreement, prior to the commencement of work. 25. POLITICAL ACTIVITY/LOBBYING CERTIFICATION. Consultant may not conduct any activity, including any payment to any person, officer, or employee of any governmental agency or body or member of Congress in connection with the awarding of any federal contract, grant, loan, intended to influence legislation, administrative rulemaking or the election of candidates for public office during time compensated under the representation that such activity is being performed as a part of this Agreement. 26. NON-DISCRIMINATION. In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age physical or mental handicap, medical condition, or sexual orientation. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. 27. AUDIT OR EXAMINATION. Consultant shall keep all records of funds received from City and make them accessible for audit or examination for a period of three years after final payments are issued and other pending matters. 28. MODIFICATION OF AGREEMENT. This Agreement may not be modified, nor may any of the terms, provisions or conditions be modified or waived or otherwise affected, except by a written amendment signed by all parties. 29. WAIVER. If at any time one party shall waive any term, provision or condition of this Agreement, either before or after any breach thereof, no party shall thereafter be deemed to have consented to any future failure of full performance hereunder. 14.e Packet Pg. 463 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 30. COVENANTS AND CONDITIONS. Each term and each provision of this Agreement to be performed by Consultant shall be construed to be both a covenant and a condition. 31. RIGHT TO TERMINATE. City may terminate this Agreement at any time, with or without cause, in its sale discretion, with thirty (30) days written notice. 32. EFFECT OF TERMINATION. Upon termination as stated in Paragraph "31" of this Agreement, City shall be liable to Consultant only for work performed by Consultant up to and including the date of termination of this Agreement, unless the termination is for cause, in which event Consultant need be compensated only to the extent required by law. Consultant shall be entitled to payment for work satisfactorily completed to date, based on proration of the monthly fees set forth in Exhibit "B" attached hereto. Such payment will be subject to City's receipt of a close-out billing. 33. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of San Bernardino. In the event of litigation in a U.S. District Court, exclusive venue shall lie in the Central District of California. 34. LITIGATION FEES. Should litigation arise out of this Agreement for the performance thereof, the court shall award costs and expenses, including attorney's fees, to the prevailing party. In awarding attorney's fees, the court shall not be bound by any court fee schedule but shall award the full amount of costs, expenses and attorney's fees paid and/or incurred in good faith. "Prevailing Party" shall mean the party that obtains a favorable and final judgment or order from a court of law described in paragraph "33." This paragraph shall not apply and litigation fees shall not be awarded based on an order or otherwise final judgment that results from the parties' mutual settlement, arbitration, or mediation of the dispute. 35. SEVERABILITY. If any provision of this agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions nevertheless will continue in full force and effect without being impaired or invalidated in any way. 36. FORCE MAJEURE. The respective duties and obligations of the parties hereunder shall be suspended while and so long as performance hereto is prevented or impeded by strikes, disturbances, riots, fire, severe weather, government action, war acts, acts of God, or any other cause similar or dissimilar to the foregoing which are beyond the control of the party from whom the affected performance was due. 14.e Packet Pg. 464 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 37. INTEGRATED AGREEMENT. This Agreement, together with Exhibits "A”, “B”, and “C” supersede any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that no representation by any party, which is not embodied herein, nor any other agreement; statement or promise not contained in this Agreement shall be valid and binding. Any modification of the Agreement shall be effective only if it is in writing and signed by all parties. 38. EFFECTIVE DATE. The effective date of this Agreement is the date the Notice to Proceed is received by Consultant, and shall remain in full force and effect until amended or terminated. Dated: _____________________ "CITY" By: _______________________ G. Harold Duffey City Manager ATTEST: APPROVED AS TO FORM __________________________ ___________________________ Pat Jacquez-Nares, City Clerk Richard L. Adams II, City Attorney Dated: _____________________ "CONSULTANT" By: __________________ Larry J. Kosmont, CRE President & CEO 14.e Packet Pg. 465 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) This page left intentionally blank. 14.e Packet Pg. 466 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.456.3088 I www.kosmont.com September 21, 2016 G. Harold Duffey City Manager City of Grand Terrace 22795 Barton Rd, Grand Terrace Grand Terrace, CA 92313 Re: Proposal for Preliminary Assessment of New Potential Funding and Financing Tools: Enhanced Infrastructure Financing Districts (“EIFD”) and Community Revitalization and Investment Authorities (“CRIA”) Dear Mr. Duffey: Kosmont & Associates, Inc., doing business as Kosmont Companies (“Consultant” or “Kosmont”), is pleased to present this proposal to the City of Grand Terrace (“City” or “Client”) for a preliminary assessment of new potential funding and financing tools, including EIFD and CRIA. This proposal serves as an Agreement when executed and returned by Client to Kosmont. I. INTRODUCTION Kosmont is an integrated real estate, economic development and public finance advisory firm offering a broad array of services that range from initial project planning, asset management, infrastructure, zoning/entitlement strategies and economic analysis through the structuring of complex public/private transactions, negotiations, development and implementation of funding strategies including the issuance of tax-exempt/taxable bonds and related due diligence to facilitate project implementation. Kosmont Companies, a certified Minority Business Enterprise (MBE) and Small Business Enterprise (SBE), is a nationally recognized leader in infrastructure, economic development and public/private financing structures. Since 1986, our company has compiled a distinguished track record of successful public/private projects in transportation, retail, industrial, residential, mixed use, hospitality, infrastructure, and special purpose sports and recreation projects. Our involvement typically ensures that Kosmont’s public agency and private sector clients secure tangible results. Kosmont has assisted hundreds of public agencies with successfully conceiving, developing, financing and implementing successful infrastructure and economic development projects that meet or exceed our clients’ goals and result in new revenues, jobs and business opportunities. Kosmont’s professional staff is comprised of recognized experts in economic development, finance and real estate involving private sector and government interaction. We are industry leaders in linking the public and private sectors to accomplish the four key EXHIBIT A 14.e Packet Pg. 467 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Preliminary Assessment of EIFD / CRIA September 21, 2016 Page 2 of 10 KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.456.3088 I www.kosmont.com elements of a successful partnership – a sound economic foundation, operation within the bounds of public policy, recognizable benefits to the community, and competitive returns on public and private investments. II. BACKGROUND AND OBJECTIVE Kosmont has previously assisted the City with preparation of the Successor Agency Long Range Property Management Plan (“LRPMP”) and other redevelopment agency dissolution activities, including presentation to the Oversight Board and ongoing correspondence with the Department of Finance. Kosmont understands that the City is interested in evaluating new potential funding and financing tools as authorized by recent State legislation for the implementation of certain related economic development projects and activities. The State of California recently approved two new economic development tools pursuant to the passage of Assembly Bill No. 2 (“AB2”), authored by Assembly Member Luis Alejo, referred to as CRIAs, and Senate Bill No. 628 (“SB628”), authored by State Senator James Beall, known as EIFDs. Kosmont understands that the City desires to (i) become educated on these potential economic development tools, (ii) evaluate its eligibility for either the EIFD or CRIA program, and (iii) identify the steps needed and timeline involved in order to establish such an entity. Kosmont also understands that the City may desire Kosmont’s assistance to pursue other economic development efforts as the City establishes new economic development priorities in order to stimulate and revitalize the local economy and key areas of the City. III. SCOPE OF SERVICES Task 1: Initial Discussions on Project Funding and Financing Strategies Kosmont will coordinate initial discussions with the City (e.g. via conference call) to discuss its goals and objectives related to the evaluation of potential tools such as EIFD and CRIA, including considerations such as the timing of potential private development and the public improvements to be financed with the use of such tools. Consultant will assist City with outreach to various public and private property owners and relevant third parties (e.g. school district, developers, brokers, capital sources, etc.) to evaluate and identify various possible transaction structures to facilitate economic development project implementation. Transaction strategies and economic development tools to be evaluated may include, but would not be limited to, EIFDs, CRIAs, lease-leaseback, and Cap-and-Trade funds from the State Greenhouse Gas Reduction Fund (GGRF). 14.e Packet Pg. 468 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Preliminary Assessment of EIFD / CRIA September 21, 2016 Page 3 of 10 KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.456.3088 I www.kosmont.com Task 2: Boundary and Governance Evaluation After determining the City’s goals and objectives for pursuit of such tools such as EIFD or CRIA, Consultant will provide a preliminary analysis of the potential boundaries of the proposed district and options on the appropriate governance structure. Consultant will identify other prospective public agency partners (e.g. County of San Bernardino, water district, utility agency) for the implementation of such as district. Kosmont will provide the following:  Summary of EIFD and CRIA legislation fundamentals  Preliminary district boundary maps  Overview of land owners in the proposed EIFD boundary  Summary of potential infrastructure costs to be financed via the proposed district (cost estimates to be provided by City)  Identification of potential governance structures  Initial evaluation of potential public agency partners  Matrix of entity formation steps and potential start-up costs. Task 2 findings will be summarized in PowerPoint Presentation format. Task 3: Financing and Funding Analysis Kosmont will prepare a funding and financing analysis, including a preliminary tax increment analysis reflecting proposed future development and potential public and private sector partners. Consultant will review readily available planning documents (e.g. relevant specific plans, general plan, proposed project concepts) to determine the general types and timing of development projects that are planned within the boundaries of the potential district, with focus on prospective or illustrative key proposed private project(s) as appropriate to the assignment. Kosmont will identify potential complementary economic development tools and funding resources (e.g. development impact fees, grant funding, Community Facilities District [“CFD”] assessments, development agreement contributions). Kosmont will evaluate up to three (3) scenarios, representing different baseline levels of tax increment dedication by potential taxing entity partners (e.g. City dedication of 100% of its share, 100% of City share plus 100% of County share, 50% of City share plus 50% of County share). Task 3 findings will be summarized in PowerPoint Presentation format, with tax increment analysis detail to be provided in spreadsheet appendix format as appropriate. Task 4: Meeting and Presentation Assistance Kosmont anticipates preparation and presentation of the Summary PowerPoint Presentation to City staff and/or Council at one (1) City Council meeting, community workshop, or similar public hearing. Kosmont envisions the Summary Presentation as a tool to educate the City Council, potential public agency partners, the general public, and 14.e Packet Pg. 469 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Preliminary Assessment of EIFD / CRIA September 21, 2016 Page 4 of 10 KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.456.3088 I www.kosmont.com other interested parties on the potential benefits of pursuing such tools as EIFD and CRIA along with potential associated processes and deadlines for formation, costs, and timing. Task 5: Updated Broker Opinion of Value (“BOV”) for City-Owned Property by Kosmont Realty Corporation (“KRC”) As a sub-consultant to Kosmont Companies, Kosmont affiliate KRC (CA BRE #01770428) will prepare an updated BOV for the approximately 50-acre property owned by the City identified in the Successor Agency LRPMP as the Mixed-Use Specific Plan property, located east of the I-215 Freeway, west of Michigan Avenue, south of Barton Road, and north of Pico Street in the City. KRC will characterize BOV findings in Summary Memorandum format. IV. ESTIMATED BUDGET AND PROJECT TIMEFRAME Task Estimated Time for Completion Estimated Budget 1. Initial Discussions on Project Funding and Financing Strategies 2 weeks $ 5,500 to $ 7,000 2. Boundary and Governance Evaluation 4 weeks $ 7,000 to $ 8,000 3. Financing and Funding Analysis 4 weeks $ 9,500 to $10,500 4. Meeting and Presentation Assistance 2 weeks $ 3,500 to $ 4,000 Estimated Total Professional Services (Hourly) Fees 12 weeks (3 months) $25,500 to $29,500 Compensation for Tasks 1 through 4 is estimated at $25,500 to $29,500 for professional services (hourly) fees at Consultant’s billing rates as shown on Attachment A. Compensation for Task 5 BOV to be performed by KRC is estimated at $5,000. Delivery of a draft summary BOV Summary Memorandum is anticipated within four (4) to six (6) weeks of assignment authorization. Further increases, if necessary, will require approval by Client in advance. Budget may be increased by Client at any time. Consultant’s attendance or participation at any publicly noticed (e.g., City Council, Planning Commission, Public Agency Board, other) meeting requested by Client in 14.e Packet Pg. 470 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Preliminary Assessment of EIFD / CRIA September 21, 2016 Page 5 of 10 KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.456.3088 I www.kosmont.com addition to the Task 4 meeting is in addition to compensation for Tasks 1 through 4 and will be billed at the professional services (hourly) fees as shown on Attachment A. Services will be invoiced monthly at Consultant’s standard billing rates, as shown on Attachment A. In addition to professional services (hourly) fees, invoices will include reimbursement for out-of-pocket expenses such as travel and mileage (provided that there shall be no overnight travel without the Client’s prior approval and that mileage shall be reimbursed at Kosmont’s normal mileage reimbursement rate of 54 cents per mile), professional printing, conference calls, and delivery charges for messenger and overnight packages at actual cost. Unless otherwise agreed to in advance, out-of-area travel, if any, requires advance funding of flights and hotel accommodations. Consultant will also include in each invoice an administrative services fee to cover in- house copy, fax, telephone and postage costs equal to four percent (4.0%) of Consultant’s monthly professional service fees incurred. Any unpaid invoices after 30 days shall accrue interest at the rate of 10% per annum. Consultant is prepared to commence work upon receipt of executed Agreement. DISCLOSURE: Kosmont Transactions Services (“KTS”) and Kosmont Realty Corporation (“KRC”): Compensation for possible future transaction-based services or brokerage services. The following is being provided solely as an advance disclosure of possible real estate brokerage and finance services and potential compensation formats for such services. This disclosure is not intended to commit the Client. When public agency assignments involve real estate/property brokerage or public financing transactions on behalf of the public agency, such transaction based services are typically provided by Kosmont Transactions Services (“KTS”) or Kosmont Realty Corporation (“KRC”). KRC is currently registered with the Securities and Exchange Commission and the Municipal Securities Rulemaking Board as a Municipal Advisor. KRC is licensed by the CA Bureau of Real Estate (License #01770428) and is certified as a Minority Business Enterprise (MBE). KRC is also registered as doing business as KTS. KTS provides transactional Financial Advisory Services and compensation is typically for financial advisory/loan broker services. KRC provides Brokerage Services and compensation is typically for brokerage commissions such as property and lease transactions and/or success/broker fees. KRC also provides Broker Opinions of Value (BOV) services on a fixed fee basis. 14.e Packet Pg. 471 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) City of Grand Terrace Preliminary Assessment of EIFD / CRIA September 21, 2016 Page 10 of 10 KOSMONT COMPANIES 1601 N. Sepulveda Blvd. #382, Manhattan Beach, CA 90266 I ph 424.456.3088 I www.kosmont.com ATTACHMENT A Kosmont Companies 2016-17 Public Agency Fee Schedule Professional Services President & CEO $305.00/hour Executive Vice President $290.00/hour Partner/Senior Vice President/Senior Consultant $275.00/hour Vice President/Associate $195.00/hour Project Analyst/Project Research $165.00/hour Assistant Project Analyst/Assistant Project Manager $125.00/hour GIS Mapping/Graphics Service $ 95.00/hour Clerical Support $ 60.00/hour  Additional Expenses In addition to professional services (labor fees): 1) An administrative fee for in-house copy, fax, phone and postage costs will be charged, which will be computed at four percent (4.0 %) of monthly Kosmont Companies professional service fees incurred; plus 2) Out-of-pocket expenditures, such as travel and mileage, professional printing, and delivery charges for messenger and overnight packages will be charged at cost. 3) If Kosmont retains Third Party Vendor(s) for Client (with Client’s advance approval), fees and cost will be billed to Client at 1.1X (times) fees and costs. 4) Consultant’s attendance or participation at any public meeting requested by Client will be billed at the professional services (hourly) fees as shown on this Attachment A.  Charges for Court/Deposition/Expert Witness-Related Appearances Court-related (non-preparation) activities, such as court appearances, depositions, mediation, arbitration, dispute resolution and other expert witness activities, will be charged at a court rate of 1.5 times scheduled rates, with a 4-hour minimum. Rates shall remain in effect until December 31, 2017. 14.e Packet Pg. 472 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) EXHIBIT "B" SCHEDULE OF COMPENSATION I. AMOUNT OF COMPENSATION. For performing and completing all services pursuant to Exhibit "A" Scope of Services, is a total amount not to exceed $30,000 (thirty thousand dollars) plus reimbursable expenses which will be charged at cost. II. BILLING. At the end of each calendar month in which services are performed or expenses are incurred under this Agreement, Consultant shall submit an invoice to the City at the following address: City of Grand Terrace 22795 Barton Road Grand Terrace, Ca 92313 The invoice submitted pursuant to this paragraph shall show the: 1) Purchase order number; 2) Project name/description; 3) Name and hours worked by each person who performed services during the billing period; 4) The title/classification under which they were billed; 5) The hourly rate of pay; 6) Actual out-of-pocket expenses incurred in the performance of services; and, 7) Other such information as the City may reasonably require. III. METHOD OF PAYMENT. Payment to Consultant for the compensation specified in Section I, above, shall be made after the City Manager or designee determines that the billing submitted pursuant to Section II, above, accurately reflects work satisfactorily performed. City shall pay Consultant within thirty (30) days there from. 14.e Packet Pg. 473 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) EXHIBIT "C" The Consultant shall maintain throughout the duration of the term of the Agreement, liability insurance covering the Consultant and, with the exception of Professional Liability Insurance, designating City and City including its elected or appointed officials, directors, officers, agents, employees, volunteers, or consultants, as additional insured against any and all claims resulting in injury or damage to persons or property (both real and personal) caused by any aspect of the Consultant's work, in amounts no less than the following and with such deductibles as are ordinary and reasonable in keeping with industry standards. It shall be stated, in the Additional Insured Endorsement, that the Consultant's insurance policies shall be primary as respects any claims related to or as the result of the Consultant’s work. Any insurance, pooled coverage, or self-insurance maintained by the City and City, its elected or appointed officials, directors, officers, agents, employees, volunteers, or consultants shall be non-contributory. Professional Liability Insurance $1,000,000/$2,000,000 General Liability: a. General Aggregate $2,000,000 b. Products Comp/Op Aggregate $2,000,000 c. Personal & Advertising Injury $1,000,000 d. Each Occurrence $1,000,000 e. Fire Damage (any one fire) $ 50,000 f. Medical Expense (any one person) $ 5,000 Workers' Compensation: a. Workers' Compensation Statutory Limits b. EL Each Accident $1,000,000 c. EL Disease - Policy Limit $1,000,000 d. EL Disease - Each Employee $1,000,000 Automobile Liability a. Any vehicle, combined single limit $1,000,000 The Consultant shall provide thirty (30) days advance notice to City in the event of material changes or cancellation of any coverage. Certificates of insurance and additional insured endorsements shall be furnished to City thirty (30) days prior to the effective date of this Agreement. Refusal to submit such certificates shall constitute a material breach of this Agreement entitling City to any and all remedies at law or in equity, including termination of this Agreement. If proof of insurance required under this Agreement is not delivered as required or if such insurance is canceled and not adequately replaced, City shall have the right but not the duty to obtain replacement 14.e Packet Pg. 474 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) insurance and to charge the Consultant for any premium due for such coverage. City has the option to deduct any such premium from the sums due to the Consultant. Insurance is to be placed with insurers authorized and admitted to write insurance in California and with a current A.M. Best's rating of A-:VII or better. Acceptance of insurance from a carrier with a rating lower than A-:VII is subject to approval by City 's Risk Manager. Consultant shall immediately advise City of any litigation that may affect these insurance policies. 14.e Packet Pg. 475 At t a c h m e n t : A t t a c h m e n t V I - K o s m o n t A g r e e m e n t ( 2 0 2 7 : K o s m o n t A g r e e m e n t ) This page left intentionally blank. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Exclusive Negotiations Agreement with the Lewis Group PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Approve Four Month Exclusive Negotiations Agreement with the Lewis Group. 2030 VISION STATEMENT This staff report supports Goal #3, "Promote Economic Development" by providing an Exclusive Negotiating Agreement for the terms and conditions of purchase of City owned land east of the I-215 Interchange between Main St. and Commerce otherwise known as Redevelopment Property #4. BACKGROUND: On December 4, 2014, the Lewis Acquisition Company, LLC, transmitted a letter requesting to enter into an Exclusive Negotiating Agreement with the City to develop 55 acres, formerly held by the City’s Redevelopment Agency but transferred to the City in its Long Range Property Management Plan (PMP). On January 13, 2015, the City Council of Grand Terrace approved an Exclusive Negotiation Agreement (ENA) with the Lewis Group for a period of 15 months (Attachment I agreement). The 55 Acres were purchased with property tax increment Funds (taxes are frozen on a property for a certain period of time and the incremental increase in property taxes during that period is given to the Redevelopment Agency for acquisition of property, as a way to reinvest in the community) other agencies (called Taxing Entities) have a vested interest in the value of the property. The Taxing Entities are the original agencies that receive a share of a County’s 1% property Taxes. Because tax increment financing was used to acquire Redevelopment Assets, the State requires a City to enter into revenue sharing agreements with the Taxing Entities, before a City can liquidate any Redevelopment Agency assets (Attachment II regulations) After a year of negotiations, The Taxing Entities all agreed to use the original county distribution formula of the 1% property tax as the basis to distribute any revenue from the 55 acres (Attachment II formula). However, due to the length of the negotiations with the Taxing Entities and even some interpretation of State law, the ENA with the Lewis Group expired. DISCUSSION: Now that the Taxing Entities have come to a consensus on distribution of proceeds from 15 Packet Pg. 476 the 55 acres, there should be no future delays in the transfer of the land from City ownership to the Lewis Group. Therefore, staff is proposing the Council approve a new, ENA (Attachment III) with an aggressive four month schedule. The ENA describes Lewis’s approach to the following: Public Private Partnership: The ENA identifies the Lewis Group’s intent to move forward with the acquisition of the City’s 55 Acres and its intent to conduct due diligence to determine if partnerships can be developed with private property owners for a consolidated effort in the optimization of land in the general vicinity of their acquisition from the City. Community Input: Lewis will seek input as it develops concepts on the final design and features of any future development and will view infrastructure and public right of way needs of the project from a Citywide prospective and not just the 55 Acre project, but how those improvements can create solutions for the capacity of the City’s existing infrastructure. Continue to Conduct Market Analysis: Determine the proper balance of end uses to estimate the economic feasibility of the project. The ENA addresses Lewis’s ability to bring on additional partners, but does not allow the Lewis Group to acquire and reassign the 55 Acres to a third party. Lays Out the Goals to be Negotiated in the Deposition of Development Agreement (DDA)/ Purchase and Sales Agreement (PSA): General discussion in the ENA forecast items that normally appear within a DDA. Items like a Specific Plan, Environmental Impact Reports and detailed analysis for probable construction cost estimates for infrastructure, all of which are identified in the ENA as cost which will be borne by the Developer. A project schedule is also included as Exhibit B. Although this schedule is aggressive, the Lewis Group and staff continued working after the ENA expired and accomplished a majority of the tasks outlined in the original ENA (Attachment II). Lewis Acquisition Company, LLC, (Developer) is one of the nation's largest privately- held real estate organizations with more than $1.5 billion in assets. Headquartered in the City of Upland, Lewis has successfully developed more than 65,000 homes and apartments and over 9,000,000 square feet of dynamic neighborhood, community and lifestyle retail centers throughout California and Nevada. Lewis retail centers have been predominant throughout the Inland Empire. The term of the ENA is four months, with a forty-five day time extension period available to process the agreement. Approval of this agreement will greatly enhance the City of Grand Terrace’s ability to strategically plan its economic development future. FISCAL IMPACT: 15 Packet Pg. 477 No immediate fiscal impact during this fiscal year but the actions taken by the Council may result in a significant fiscal impact for the City as the ENA moves to a DDA and ultimately a project that may transform the economic condition of the City of Grand Terrace. ATTACHMENTS:  Attachment I - Agmt No. 2015-01 Lewis Exclusive Negotiation Agreement (PDF)  Attachment II - Taxing Entities Agreement (PDF)  Attachment III - New Lewis ENA (DOCX) APPROVALS: G. Harold Harold Duffey Completed 09/21/2016 10:43 AM City Attorney Completed 09/21/2016 2:46 PM Finance Completed 09/22/2016 7:40 AM City Manager Completed 09/22/2016 1:13 PM City Council Pending 09/27/2016 6:00 PM 15 Packet Pg. 478 15.a Packet Pg. 479 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 480 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 481 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 482 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 483 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 484 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 485 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 486 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 487 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 488 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 489 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 490 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 491 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 492 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 493 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 494 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s 15.a Packet Pg. 495 At t a c h m e n t : A t t a c h m e n t I - A g m t N o . 2 0 1 5 - 0 1 L e w i s E x c l u s i v e N e g o t i a t i o n A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s AGREEMENT FORT AXING ENTITY COMPENSATION 22720 Vista Grande Way This Master Agreement for Taxing Entity Compensation (this "Agreement"), dated for reference purposes as of August 09, 2016, is entered into by and among the Successor Agency to the fonner Community Redevelopment Agency of the City of Grand Terrace, a public entity established under Health and Safety Code 34173 ("Successor Agency"), the City of Grand Terrace, a California municipal corporation ("City"), and the "Taxing Entities", the signatories hereto and more specifically identified on Exhibit "A" attached hereto and incorporated herein. RECITALS A. Pursuant to Assembly Bill xl 26, effective February 1, 2012, the Redevelopment Agency of the City of Grand Terrace ("Redevelopment Agency") was dissolved, and pursuant to Health & Safety Code Section 34173, the City elected to serve as the Successor Agency. B. Pursuant to Health and Safety Code Section 34191.5, the Successor Agency prepared an Amended Long-Range Property Management Plan ("LRPMP") that addresses disposition of certain real property formerly owned by the Redevelopment Agency, including the real property commonly known as 22720 Vista Grande Way, APN #s 0276-462-10 (the "Property") located in the City of Grand Terrace, County of San Bernardino, California, and more particularly depicted in page 11 of the LRPMP which page is attached hereto as Exhibit "C". C. On December 17 , 2014, the LRPMP was approved by Resolution of the Oversight Board to the Successor Agency (the "Oversight Board"), a seven-member board established pursuant to Health and Safety Code Section 34179 that includes representatives appointed by the County Board of Supervisors, City, the Superintendent, and San Bernardino Valley Municipal Water District. D. On April 23 , 2015, the State Department of Finance ("DOF") approved the LRPMP. E. Pursuant to the LRPMP, the Successor Agency shall convey the Property to the City in the manner provided by Health and Safety Code section 34180( f) and in consideration of their approval, the Taxing Entities shall be compensated as provided herein. NOW THEREFORE, the Parties agree as follows. 1. Purpose. This Agreement is executed with reference to the facts set forth in the foregoing Recitals which are incorporated into this Agreement by this reference. The Property was acquired for the purpose of and the City intends to retain the Property for governmental use as open space/public park purposes. The purpose of this Agreement is to address the allocation of revenues among the Taxing Entities entitled to share in the property tax base ("Tax Base") in the event that the City ultimately sells the Property instead of retaining it. 2. Special Districts and Funds. The governing boards of certain of the Taxing Entities administer certain special districts and funds that receive allocations of property taxes from the 15.b Packet Pg. 496 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Property, and are authorized to execute this Agreement on behalf of such special districts and funds as described below. 2.1 County Funds. The County of San Bernardino (County) administers the following special funds, and in addition to entering into this Agreement for the County itself, is authorized to, and has entered into and executed this Agreement on behalf of the following:: (a) County General Fund (b) County Free Library 2.2 County Flood Control District. The County of San Bernardino Flood Control District (Flood Control District) administers the following special funds, and in addition to entering into this Agreement for the Flood Control District itself, is authorized to, and has entered into and executed this Agreement on behalf of the following: (a) Flood Control District Zone 2 (b) Flood Control Administration 1 & 2 2.3 County Fire Protection District. The San Bernardino County Fire Protection District (County Fire Protection District) administers the following special funds, and in addition to entering into this Agreement for the Fire Protection District itself, is authorized to, and has entered into and executed this Agreement on behalf of the following: County Fire District Valley Service 2.4 Superintendent of Schools. The San Bernardino County Superintendent of Schools administers the following special districts and funds and in addition to entering into this Agreement for itself is authorized to and has entered into and executed this Agreement on behalf of the Superintendent itself and the following: Superintendent of Schools 2.5 San Bernardino Community College District. The San Bernardino Community College District administers the following special districts and funds and in addition to entering into this Agreement for itself is authorized to and has entered into and executed this Agreement on behalf of itself, and on behalf of the following: San Bernardino Community College District 2.6 Colton Joint Unified School District. The Colton Joint Unified School District administers the following special districts and funds and in addition to entering into this Agreement for itself is authorized to and has entered into and executed this Agreement on behalf of itself and the following: Colton Joint USD 2. 7 Riverside-Corona Resource Conservation District. The Riverside-Corona Conservation District administers the following special districts and funds and in addition to entering 2 15.b Packet Pg. 497 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) into this Agreement for itself is authorized to and has entered into and executed this Agreement on behalf of itself and the following: Riverside-Corona Conservation District 2.8 San Bernardino Valley Municipal Water District. The San Bernardino Valley Municipal Water District administers the following special districts and funds and in addition to entering into this Agreement for itself is authorized to and has entered into and executed this Agreement on behalf of itself and the following special fund: San Bernardino Valley Municipal Water District 3. Property to be Retained for Governmental Purpose Consistent with LRPMP. (a) The LRPMP provides that pursuant to Health & Safety Code Section 34191 .5( c )(2), the Property will be transferred by the Successor Agency to the City for use as a public park. There is no intent to sell, transfer, or otherwise liquidate the Property by City. However, in the event that the City does sell the Property, the Taxing Entities each acknowledge that each would be entitled to a share of Net Unrestricted Proceeds and that in consideration of its share of the Net Unrestricted Proceeds, upon each Taxing Entity's receipt of its share of the Net Unrestricted Proceeds from all or any portion of the Property, said Taxing Entity relinquishes and has no further interest in the Property or to the portion of the Property from which the Net Unrestricted Proceeds were generated. (b) Notwithstanding anything to the contrary herein or in the LRPMP, to the extent the City retains the Property, or any portion thereof, and the City performs commercial development activities funded from the City's own funds and under the City's auspices, the City must pay the Taxing Entities the higher of: (i) the current fair market value of the property retained by the City; or (ii) the fair market value, as of the 2011 tax lien date, of the Property or such portion thereof retained by the City. The appraisals required under this section shall be performed by an independent appraiser approved by the Successor Agency's Oversight Board (collectively, the "Retention Value"). Notwithstanding this subsection (b), the City's obligations under this subsection (b) are not triggered by any development of the Property, or portion thereof, supporting or related to a governmental or public purpose, including but not limited to the construction or installation of any facilities, structures, or equipment even if such facilities, structures, or equipment result in revenue to the City. 4. Compensation Arrangement. The City agrees that, consistent with the LRPMP, in connection with any future conveyance of the Property made to third-party developers subsequent to the initial conveyance from Successor Agency to City, the City will instruct the third-party developer to remit the purchase price into escrow and require the escrow company to distribute the Net Unrestricted Proceeds to the Taxing Entities in accordance with each Taxing Entity's pro rata share of the Tax Base of the Property as more specifically set forth in Exhibit "B" attached hereto. "Net Unrestricted Proceeds" shall mean, with respect to the Property, the gross purchase price and other compensation received by the City for the sale of the Property, less any proceeds of sale that are restricted by virtue of the source of funds (e.g. grant funds or proceeds of bonds) that were 3 15.b Packet Pg. 498 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) used for the original acquisition or improvement of the Property, and less the sum of the City's actual costs for the following (but only to the extent paid from City funds and not from funds provided by the Successor Agency, a Developer, or another separate entity): (i) The City's actual costs, for normal maintenance, management and insurance of the applicable Property from the date the Property is transferred by the Successor Agency to the City to the date the Property is disposed of by the City pursuant to this Agreement; plus (ii) The City's actual costs of any capital improvements or repairs to maintain the Property in a safe and lawful condition incurred from the date the Property is transferred by the Successor Agency to the City to the date the Property is disposed of by The City to the Developer pursuant to this Agreement; plus (iii) The City's actual costs of site preparation, including hazardous materials remediation and pollution legal liability insurance premiums, if any, required to be paid by the City under agreement with a party purchasing the Property to prepare the Property for disposition, but only to the extent the Property is disposed of by the City pursuant to this Agreement; plus (iv) The City's actual costs, to pay third party vendors for appraisal, legal, real estate consultant and marketing, title company, title insurance and to the extent applicable any other costs related to Developer selection, preparation and approval of a development agreement, and closing costs for disposition of the Property; plus (v) Any broker's commissions payable by the City pursuant to a development agreement for the Property but only to the extent the Property is disposed of by the City to a Developer pursuant to a development agreement. Upon request, the City shall deliver to the Taxing Entities an accounting of all such costs, expenses and restricted proceeds. For purposes of this Section, City and Successor Agency represent that Parcel # 0276-462-10 was purchased using tax increment proceeds. There is no restriction on the proceeds of sale of any parcel, by virtue of the source of funds used for acquisition within the meaning of this Section. This Section 4 shall not apply to the Property, or any portion thereof, retained by the City for commercial development activities perfonned by the City funded from the City's own funds and under the City's auspices, which shall instead require distributions of the full Retention Value except as set forth in Section 3. The City agrees that, consistent with the LRPMP, in connection with the retention of any of the parcels comprising the Property, for commercial development activities undertaken by the City, funded from the City's own funds and under the City's auspices, the City will distribute to the Taxing Entities in accordance with each Taxing Entity's pro rata share of the Tax Base of the Property as more specifically set forth in Exhibit "B". 5. Sale Procedures and Proceeds. The Parties acknowledge that City is retaining the Property for governmental and public purposes consistent with the LRPMP. The Parties further acknowledge that, in the event that the City chooses to sell the Property at any time following execution of this Agreement, consistent with Senate Bill 4 70, the City may be obligated to hold a noticed public hearing and prepare a report that includes, among other things (i) an explanation of why the disposition will assist in the creation, retention, or expansion of job opportunities, increased property tax revenues, and the development of affordable housing, transit priority projects and sustainable development, and (ii) an explanation of the difference between the highest and best use value and the disposition price taking into consideration development 4 15.b Packet Pg. 499 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) constraints and requirements, and the covenants, conditions and development costs required by the sale or lease. Upon preparation of the report required by Government Code Section 52201, in addition to the public notice requirements therein the City will deliver a copy of said report to all Taxing Entities. The County Educational Revenue Augmentation Fund ("ERAF") may be entitled to a distribution of a portion of the Net Unrestricted Proceeds from the disposition of each Property. Pursuant to instruction and direction from the DOF and the Auditor-Controller, there is no need for a separate signatory to execute this Agreement on behalf of ERAF because the ultimate beneficiaries of any distribution of Disposition Proceeds to ERAF are themselves Taxing Entities that are signatories to this Agreement. By executing this Agreement, the Taxing Entities consent to such distribution to ERAF as more specifically set forth in Exhibit B. 6. Compensation Agreement. Health and Safety Code Section 34191 .3 provides that once an LRPMP has been approved by DOF, the LRPMP supersedes all other provisions of the statute relating to the disposition and use of the former redevelopment agency's real property assets. With the previous Oversight Board consent and DOF approval of the Long Range Property Management Plan, the City and Successor Agency enter into this agreement with the Taxing Entities to address the disposition of the Property pursuant to this Long Range Property Management Plan. The Parties intend this Agreement to satisfy the requirement of California Health and Safety Code §34180(£)(1) and the LRPMP. 7. Notice of Compensation Agreement. No later than fourteen (14) business days following execution of this Agreement by all parties, the City shall record in the Official Records of the County of San Bernardino a "Notice of Compensation Agreement" substantially in the form attached hereto as Exhibit D and incorporated herein by this reference. The City shall mail a copy of the recorded Notice of Compensation Agreement to all Taxing Entities within a reasonable time of receipt of the recorded Notice of Compensation Agreement. 8. Miscellaneous Provisions. 8.1 Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified on the signature pages to this Agreement or to such other address as a Party may designate by written notice delivered to the other Parties in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender's account, in which case notice is effective on delivery if delivery is confinned by the delivery service. 8.2 Headings; Interpretation. The section headings and captions used herein are solely for convenience and shall not be used to interpret this Agreement. The Parties agree that this Agreement shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if all Parties had prepared it. 8.3 Action or Approval. Whenever action and/or approval by City is required under this Agreement, the City Manager or his or her designee may act on and/or approve such matter unless specifically provided otherwise, or unless the City Manager determines in his or her discretion that such action or approval requires referral to City Council for consideration. 5 15.b Packet Pg. 500 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) 8.4 Entire Agreement. This Agreement, including all Exhibits attached hereto and incorporated herein by this reference, contains the entire agreement among the Parties with respect to the subject matter hereof, and supersedes all prior written or oral agreements, understandings, representations or statements between the Parties with respect to the subject matter hereof. 8.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be an original and all of which taken together shall constitute one instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto having additional signature pages executed by the other Parties. Any executed counterpart of this Agreement may be delivered to the other Parties by facsimile and shall be deemed as binding as if an originally signed counterpart was delivered. 8.6 Severability. If any term, provision, or condition of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall continue in full force and effect unless an essential purpose of this Agreement is defeated by such invalidity or unenforceability. 8.7 No Third Party Beneficiaries. Except as expressly set forth herein, nothing contained in this Agreement is intended to or shall be deemed to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies hereunder. 8.8 Parties Not Co-Venturers; Independent Contractor; No Agency Relationship .. _ Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another. The relationship of the Parties shall not be construed as a joint venture, equity venture, partnership or any other relationship. 8.9 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without regard to principles of conflicts of laws. Any action to enforce or interpret this Agreement shall be filed and heard in the Superior Court of San Bernardino County, California or in the Federal District Court for the Central District of California. SIGNATURES ON FOLLOWING PAGES. 6 15.b Packet Pg. 501 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) IN WITNESS WHEREOF, the Parties have executed this Agreement by their authorized representatives as indicated below. CITY OF GRAND TERRACE, A MUNICIPAL CORPORATION By: ___________ _ Name: ~---------~ Title: ~----------- Attest by: City Clerk Approved as to form: City Attorney Address for Notices: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Clerk SIGNATURES CONTINUE ON FOLLOWING PAGES. 15.b Packet Pg. 502 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) The undersigned authorized signatory hereby executes this Agreement. SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF GRAND TERRACE, A PUBLIC ENTITY ESTABLISHED UNDER HEALTH AND SAFETY CODE 34173 By: __________ _ Attest by: Agency Secretary Approved as to form: Agency Attorney Address for Notices: Successor Agency 22795 Barton Road Grand Terrace, CA 92313 Attn: City Clerk SIGNATURES CONTINUE ON FOLLOWING PAGES. 15.b Packet Pg. 503 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBIT A TAXING ENTITIES County of San Bernardino General Fund County of San Bernardino County Free Library County of San Bernardino Flood Control District County of San Bernardino Fire District San Bernardino County Superintendent of Schools San Bernardino Community College District Colton Joint Unified School District Riverside-Corona Conservation District San Bernardo Valley Municipal Water District "Taxing Entities" shall also mean and include Educational Revenue Augmentation Fund maintained by the Auditor-Controller pursuant to the Agreement and the provisions of Health and Safety Code Section 34188. Notwithstanding anything to the contrary herein, ERAF is only considered a Taxing Entity for purposes of distributing funds and for no other purpose, and no additional approval or signature will be required on behalf of ERAF. A-1 1610\I 0\1847227.1 15.b Packet Pg. 504 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBITB BREAKDOWN OF TAXING ENTITIES SHARE OF TAX BASE Taxing Entity Pro2erty Tax Share County of San Bernardino General Fund 12.72% Education Revenue Augmentation Fund 19.26% County of San Bernardino County Free Library 1.23% County of San Bernardino Flood Control Zone 2 2.26% County of San Bernardino Flood Control Admin 0.16% 1&2 San Bernardino County Fire Protection District 10.34% Valley Service San Bernardino County Superintendent of 0.64% Schools San Bernardino Community College District 4.47% Colton Joint Unified School District 26.53% Riverside-Corona Conservation District 0.12% San Bernardo Valley Municipal Water District 2.30% City of Grand Terrace 19.97% B-1 I 610\10\1847227. I 15.b Packet Pg. 505 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBITC DEPICTION OF PROPERTY AS SET FORTH IN LRPMP C-1 1610\10\1847227.1 15.b Packet Pg. 506 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBITD NOTICE OF COMPENSATION AGREEMENT REQUESTED BY AND WHEN RECORDED MAIL TO: County of San Bernardino Department of Community Development and Housing 385 N. Arrowhead Ave., 3rd Floor San Bernardino, CA 92415-0043 RECORDER: EXEMPT Record without fee per Govt. 6103 (SPACE ABOVE THIS LINE FOR RECORDER'S USE) APN(S): 0276-462-10 COMPENSATION AGREEMENT (City of Grand Terrace -22720 Vista Grande Way) NOTICE IS HEREBY GIVEN, that the Successor Agency to the former Community Redevelopment Agency of the City of Grand Terrace (the "Successor Agency"), the City of Grand Terrace (the "City"), the San Bernardino County General Fund, the San Bernardino County Flood Control District Zone 2 and Admin 1 & 2, the San Bernardino County Free Library, the San Bernardino County Superintendent of Schools, San Bernardino County Fire Protection District -Valley Service, the San Bernardino Community College District, the Riverside-Corona Conservation District, and the San Bernardino Valley MWD ("Taxing Entities") entered into that certain Compensation Agreement, dated August 9, 2016 (the "Compensation Agreement"), with reference to that certain real property located in the City of Grand Terrace known as 22720 Vista Grande Way, and further described in Exhibit A incorporated herein by reference (the "Property"). The Successor Agency is the successor in interest to the dissolved Community Redevelopment Agency of the City of Grand Terrace (the "Former RDA"). Upon the Former RD A's dissolution title to the Property transferred to the Successor Agency. As authorized under the "Redevelopment Dissolution Statutes (Part 1.8 and 1.85 of Division 24 of the Health and Safety Code), the Successor Agency has prepared, and the California Department of Finance has approved, a Long Range Property Management Plan ("LRPMP"). Under the approved LRPMP, the Successor Agency is authorized to transfer the Property to the City, subject to the terms of the Compensation Agreement. Substantially concurrently herewith, in conformance with the terms of the LRPMP, the Successor Agency is transferring title to the Property to the City (in its capacity as owner of the Property, the City shall be referred to as the "Owner"). As designated in the LRPMP, the City will retain the Property for a governmental purpose as allowed under Health and Safety Code Section 34181 as allowed under Health and Safety Code Section 34191.5(c)(2). 1 1610\10\1813400.2 15.b Packet Pg. 507 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Among other requirements, the LRPMP requires the City to execute the Compensation Agreement with the Taxing Entities providing for a contingent payment of Disposition Proceeds (as defined in the Compensation Agreement) in the event of the Owner's subsequent disposition of the Property, under specified conditions. The Compensation Agreement includes certain obligations related to the Property, including without limitation and as further described in the Compensation Agreement: 1. A requirement for the Owner to provide the Taxing Entities with notice of the DDA Public Hearing Notice pursuant to Section 5(a) or the Notice of FMV Payment pursuant to Section 5(b ), which notices shall include the information required under the Compensation Agreement. 2. A requirement that the Owner provide the Taxing Entities and the County Auditor-Controller a Disposition Proceeds Statement including the information required under Section 6 of the Compensation Agreement. 3. A requirement for the Owner remit the Disposition Proceeds into an escrow account for distribution to the Taxing Entities in proportion to their Applicable Shares base property tax as determined by the Compensation Agreement. A complete copy of the Compensation Agreement is maintained in the Office of the Clerk of the Board of Supervisors, and is available to review at 385 N. Arrowhead A venue, Second Floor, San Bernardino, CA between 9 a.m. and 5 p.m. In the event of any conflict between this summary of the Compensation Agreement (the "Summary") and the Compensation Agreement, the terms of the Compensation Agreement shall prevail. This Summary may only be amended or terminated with the written agreement of the Owner and the City. Upon the earlier of satisfaction of the requirements of the Compensation Agreement as outlined in Section 6(c) of the Compensation Agreement, or earlier termination of the Compensation Agreement pursuant to Section 7 of the Compensation Agreement, the City shall release this Summary (the "Release"), by the execution and recordation of a release in substantially the form attached hereto as Exhibit B, incorporated herein by reference. This Summary is being recorded and filed by the Owner of the Property, and shall be indexed against the Owner's interest in the Property and the City. [Remainder of Page Left Intentionally Blank.] 2 1610\10\1813400.2 15.b Packet Pg. 508 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) IN WITNESS WHEREOF, the Owner and the County have entered into this Compensation Agreement as of the first date written above. APPROVED AS TO LEGAL FORM: By: Date: Compensation Agreement Signature Page 1610\10\1813400.2 City: City of Grand Terrace, a political subdivision of the State of California By: Date: 15.b Packet Pg. 509 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) APPROVED AS TO LEGAL FORM: By: Date: City: City of Grand Terrace, a political subdivision of the State of California By: Date: [ALL SIGNATURES MUST BE NOTARIZED] Compensation Agreement Signature Page 1610\10\1813400.2 15.b Packet Pg. 510 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ) On , before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Name: Notary Public 1610\1 0\1813400.2 15.b Packet Pg. 511 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. ST A TE OF CALIFORNIA ) ) ) On , before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Name: Notary Public 1610\10\1813400.2 15.b Packet Pg. 512 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBIT A LEGAL DESCRIPTION The leased land is situated in the State of California, City of Grand Terrace, and is described as follows: 0276-462-10 VISTA GRANDE TRACT PTN LOTS 1/A AND 2 MB 17110 TOGETHER WITH THAT PTN OF VISTA GRANDE WAY VACATED 7-3 1-64 0 R 6202/577 DESC AS BEGS 0 DEG 14 MIN 00 SECONDS E 68.57 FT FROM THE NW COR SD LOT 2 TH N 0 DEG 14 MIN 00 SECONDS W 85 .59 FT TH N 62 DEG 44 MIN 05 SECONDS E 29.75 FT TH N 63 DEG 48 MIN 46 SECONDS E 32.07 FT TH N 79 DEG 41 MIN 55 SECONDS E 211.49 FT TO A PT ON THEW LI OF VISTA GRANDE WAY RELOCATED BY DEED 10-16-63 0 R 6010/285 60 FT WIDE TH SLY ALG WLY LI OF RELOCATED VISTA GRANDE WAY TO A PT OF INTERSECTION WITH A LI THAT BEARS N 83 DEG 57 MIN 40 SECONDS E 257.20 FT FROM THE POB TH S 83 DEG 57 MIN 40 SECONDS W 257.20 FT TO POB A-1 1610\10\1847227.1 15.b Packet Pg. 513 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBITB FORM OF RELEASE AGREEMENT REQUESTED BY AND WHEN RECORDED MAIL TO: County of San Bernardino Department of Community Development and Housing 385 N. Arrowhead Ave., 3rd Floor San Bernardino, CA 92415-0043 RECORDER: EXEMPT Recording without fee per Govt. 6103 Space above line for Recorder's use only 0276-462-10 AGREEMENT TO RELEASE (City of Grand Terrace -22720 Vista Grande Way) This Agreement to Release is made as of (this "Release Agreement"), by the City of Grand Terrace, in its capacity as a taxing entity (the "City") and in its capacity as the owner of that certain real property located at 22720 Vista Grande Way in the City of Grand Terrace, and further described in Exhibit A incorporated herein by reference. RECITALS A. the Successor Agency to the former Community Redevelopment Agency of the City of Grand Terrace (the "Successor Agency"), the City of Grand Terrace (the "City"), the San Bernardino County General Fund, the San Bernardino County Flood Control District Zone 2 and Admin 1 & 2, the San Bernardino County Free Library, the San Bernardino County Superintendent of Schools, San Bernardino County Fire Protection District -Valley Service, the San Bernardino Community College District, the Riverside-Corona Conservation District, and the San Bernardino Valley MWD ("Taxing Entities") entered into that certain Compensation Agreement dated August 9, 2016 (the "Compensation Agreement"), with reference to the Real Property. B. In connection with the Compensation Agreement, the Owner and the City executed the Summary, which was recorded against the Real Property in the Official Records of the County of San Bernardino as Instrument No. [INSERT RECORDING NUMBER] on [INSERT DATE]. C. The City has determined that the Owner has fulfilled its obligations under the Compensation Agreement and desires to release the Summary from the Owner's interest in the Real Property. B-1 161 0\10\1847227.1 15.b Packet Pg. 514 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by this reference, and the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, it is hereby declared, understood and agreed as follows: The City hereby releases the Owner (and its successors) and the Real Property from any and all obligations owed to the City under the Summary. In granting this Release Agreement, the City hereby expressly waives and relinquishes all rights and benefits afforded by California Civil Code Section 1542, as well as any similar law, statute, provision or policy in any other jurisdiction subsequently adopted in the State of California, and the County understands and acknowledges the significance of such specific waiver of California Civil Code Section 1542, which reads as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HA VE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR." City Initials Section 3. This Release Agreement contains the entire agreement between the parties hereto and supersedes all prior agreements, oral or written, with respect to the subject matter hereof. This Release Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared it. Section 4. This Release Agreement shall be binding on and inure to the benefit of the legal representatives, heirs, successors and assigns of the parties. Section 5. This Release Agreement shall be governed by and construed in accordance with the laws of the State of California. Section 6. This Release Agreement may be signed by the different parties hereto in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same agreement. [Signatures on following page] B-2 1610\10\1847227.1 15.b Packet Pg. 515 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) IN WITNESS WHEREOF, the parties have executed this Agreement to Release as of the day first above written. APPROVED AS TO LEGAL FORM: By: Date: [ALL SIGNATURES MUST BE NOTARIZED] 1610\10\1847227.1 CITY: CITY OF GRAND TERRACE, a political subdivision of the State of California By: Date: 15.b Packet Pg. 516 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) STATE OF CALIFORNIA COUNTY OF -------- On , before me, , Notary Public, personally appeared _________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Name: Notary Public 1610\10\184 7227.1 15.b Packet Pg. 517 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) ST ATE OF CALIFORNIA COUNTY OF -------- ) ) ) On , before me, , Notary Public, personally appeared _________________ , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Naine: Notary Public 1610\10\1847227.1 15.b Packet Pg. 518 At t a c h m e n t : A t t a c h m e n t I I - T a x i n g E n t i t i e s A g r e e m e n t ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) This page left intentionally blank. Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 AGREEMENT NO. 2016- EXCLUSIVE NEGOTIATION AGREEMENT THIS EXCLUSIVE NEGOTIATION AGREEMENT ("Agreement") is entered into by and between (i) the CITY OF GRAND TERRACE, a public body, corporate and politic ("City"), and (ii) LEWIS LAND DEVELOPERS, LLC, a Delaware limited liability company ("Developer"). City and Developer may be referred to herein individually as a "Party" or collectively as the "Parties." RECITALS WHEREAS, the Successor Agency for the Grand Terrace Community Redevelopment Agency ("Successor Agency") owned certain properties, which are further described in Exhibit A of this Agreement, ("Successor Agency Properties") which were acquired for the purpose of developing a shopping center; and WHEREAS, with the dissolution of redevelopment agencies in 2011, as part of the winding up of the affairs of the Grand Terrace Community Redevelopment Agency, pursuant to the Health & Safety Code, the Successor Agency was required to draft a Long Range Property Management Plan ("LRPMP") to control the disposition of its real property assets, which includes the Successor Agency Properties; and WHEREAS, the LRPMP required that the Successor Agency Properties be transferred to the City for future development and also required that the City enter into compensation agreements with the Successor Agency's affected taxing entities prior to transferring the Successor Agency Properties to a third party, as described by the Health & Safety Code; and WHEREAS, the Health & Safety Code requires that the LRPMP be approved by the California Department of Finance ("DOF") before the Successor Agency’s transfer of the Successor Agency Properties to the City; and WHEREAS, the DOF has approved the LRPMP and the Successor Agency has transferred the Successor Agency Properties to the City; and WHEREAS, Developer is interested in acquiring all or a portion of the Successor Agency Properties and desires to enter into exclusive negotiations with the City for the sale of the Successor Agency Properties by City to Developer; and WHEREAS, the City is likewise interested in entering into exclusive negotiations with the Developer for the sale of all or a portion of the Successor Agency Properties by City to Developer. NOW, THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, City and Developer mutually agree as follows: 1. PURPOSE The purpose of this Agreement is to provide for the exclusive negotiation by the parties of a Disposition and Development Agreement ("DDA"), an Owner Participation Agreement ("OPA"), and/or other similar agreement providing for, among other things, the following: 15.c Packet Pg. 519 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 A. Acquisition. Developer i s interested in acquiring all or portions of the Successor Agency Properties for economic development (collectively, the "City Properties"). In addition and to the extent feasible, in Developer's sole discretion, Developer is interested in acquiring some privately owned real property surrounding the City Properties for economic development (collectively, the "Private Properties") (the City Properties and the Private Properties are collectively referred to herein as the "Properties"). If acquired by Developer, t he Properties will be developed in accordance with the General Plan and a future "Specific Plan" (defined below) for commercial, industrial, retail, restaurant, office, residential, entertainment, open space, parking uses and/or other compatible uses (collectively, the "Project" as the same may be modified pursuant to Paragraph l .B. below). The Project shall be subject to and consistent with the requirements of the California Environmental Quality Act, related State Guidelines and related local ordinances (collectively, "CEQA"). B. Coordination of the P lanning, Design and Construction of the Project. The Parties intend at this time that the Project be developed and constructed as described above. However, City and Developer recognize that some changes may be required in the Project due to marketability, feasibility, ability to acquire surrounding properties or agreements with existing property owners, etc. Developer shall advise City of any changes it wishes to make in the Project design or phasing as approved, and shall be responsible for public outreach, seeking community input, and securing all necessary land use approvals which may be required. C. City Assistance. The City may provide assistance in the form of financial contributions, development fees, and/or improvements, in accordance with all applicable legal requirements, for the development of public improvements including, but not limited to, public parking, infrastructure and open space adjacent to the Properties; provided however, none of the City assistance, if any, shall apply to the Project meeting the necessary entitlements. . 2. EXCLUSIVE RIGHT TO NEGOTIATE A. City hereby grants to Developer, and Developer hereby accepts, an exclusive right to negotiate in accordance with the terms of this Agreement, for a period of four (4) months, commencing on the Effective Date (defined below) and continuing in full force and effect until expiration, unless extended as provided in Paragraphs 3.J and/or 3.K of this Agreement, or until earlier termination pursuant to this Agreement. In the event that Developer is unable to acquire any of the Properties for any reason within the period set forth herein, Developer may either (i) terminate this Agreement, or (ii) modify the Project description to exclude the portion of the Properties Developer was unable to acquire. B. City and Developer agree, for the period set forth in this Paragraph 2, to negotiate diligently and in good faith to prepare a DDA, OPA, or other similar agreement to be entered into by City and Developer with regard to the purposes described above. During the term of this Agreement, City agrees not to negotiate for the development of the Properties, or any portion thereof, with any party other than Developer, or to initiate any other development of the Properties or any portion thereof. 15.c Packet Pg. 520 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 C. In the event that Developer determines, in its sole and absolute discretion, that the Project is not feasible, or that the parties are not likely to finalize and execute a mutually agreeable DDA, OPA, or other similar agreement, Developer may terminate this Agreement by delivering written notice thereof to City. Upon such termination, all other obligations under this Agreement shall terminate. 3. TERMS AND CONDITIONS OF THE EXCLUSIVE NEGOTIATION AGREEMENT City and Developer hereby agree to the following terms and conditions: A. Financial Investment. City and Developer, in entering into this Agreement, have directed their respective representatives to undertake negotiations regarding the public and private investment required to accomplish the objectives intended by a proposed DDA, OPA, or other similar agreement. B. City's Right to Additional Information. City reserves the right, during the term of this Agreement, to request reasonable additional information and data from Developer necessary for review and evaluation of the proposed Project, related agreements, financing, etc. Developer agrees to provide such additional information or data as requested in a timely manner. All proprietary information provided by Developer to City shall remain confidential to the extent permissible by law. C. Hazardous Materials. City represents and warrants that: (i) the City has no actual knowledge of any Hazardous Materials on, under or about the Successor Agency Properties; (ii) the City has no actual knowledge of any Hazardous Materials that are or were generated, stored, released, or disposed of upon or in the Successor Agency Properties in violation of any Hazardous Materials Laws; (iii) the City has no actual knowledge that it has received any notice and has no actual knowledge of any actual or alleged violation of Hazardous Materials Laws; and (iv) the City has no actual knowledge of any underground storage tanks currently, previously or ever existing within the Successor Agency. City and Successor Agency shall not be responsible for conducting or financing any testing of the Properties for Hazardous Materials pursuant to any Hazardous Materials Laws. The City and Successor Agency has not conducted any testing of the Successor Agency Properties for any Hazardous Materials pursuant to any applicable laws, statutes, rules and regulations. The term "actual knowledge" as used herein shall mean the actual knowledge of current City staff as of the Effective Date of this Agreement. As used in this Agreement, the term "Hazardous Materials" means hazardous substances, hazardous waste, hazardous materials, toxic substances, contamination, pollution and words of similar import which are located in, on, under or about the Successor Agency Properties (including any improvements) which is the subject of this Agreement, giving those terms the broadest meaning as accorded by statutes, regulations and/or court decisions in the federal or State jurisdictions in which the Successor Agency Properties are located. Such statutes, regulations and/or court decisions are referred to in this Agreement as "Hazardous Materials Laws". D. Schedule of Performance. City and Developer shall negotiate during the Agreement period referred to in Section 2.A above a schedule of performance consistent with the goals and milestone dates and actions set forth on Exhibit B hereto ("Schedule of 15.c Packet Pg. 521 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 Performance"). The time frames set forth in the Schedule of Performance are estimates and the parties agree that so long as Developer is proceeding in good faith, additional time for completion of one or more steps shall be provided as reasonably agreed to by the parties. E. Owner Participation Procedures. Notwithstanding this Agreement, the proposed development of the Properties shall be subject to applicable procedures related to owner participation agreements and/or disposition of property formerly held by redevelopment agencies established by state law or local ordinance. F. Public Outreach and Stakeholder Contact. To ensure that the Project reflects reasonable community interests and desires, Developer may conduct various outreach efforts, including public meetings and individual contacts, to communicate with and receive input from stakeholders in the Properties. Such outreach process shall be done in coordination with the City. Those stakeholders include, but are not limited to, residents, business and property owners within and adjacent to the Properties, as well as those who may be affected by impacts from the proposed Project. G. Project Feasibility. During negotiations, Developer shall undertake its responsibilities and tasks necessary to define the scope of development, identify the Project's development feasibility, and delineate each party's role and obligations necessary to formulate a DDA, OPA, or other similar agreement. Project feasibility shall be supported by an economic pro-forma analysis, which should contain Developer's economic assumptions, site acquisition costs, hard costs, soft costs, financing costs, and other appropriate financial information. Developer shall also include a market analysis to validate that the Project (as existing and/or as modified) would engender a reasonable level of return for Developer. Project feasibility documents described above shall be submitted to City by Developer within four (4) months following the Effective Date. City and Developer each acknowledge that the task of developing a detailed timeline for development of the Project and proposed Project financing plan is a deliberate process requiring consideration of numerous elements. City and Developer further acknowledge that the completion of this process may require the City and Developer to consider various alternate structures for any future DDA, OPA, or other similar agreement between them for acquisition and economic development of the Properties, including but not limited to public/private financing programs, with the potential for public agency financial and/or land contributions to the Project, as well as, site acquisition and preparation, in order to promote the economic development goals of the Project on terms that are economically feasible and mutually satisfactory to both City on the one hand and Developer on the other hand. H. No Obligation by City. It is understood by Developer and City that nothing herein shall obligate or be deemed to obligate City to approve or execute a DDA, OPA, or other similar agreement, to commence any actions for voluntary or involuntary acquisition of real or personal property, or any interest therein, or convey any interest in any portion of the Properties to Developer. The parties understand and agree that City cannot be obligated to approve or execute a DDA, OPA, or other similar agreement, commence any action for acquisition or convey any interest in any portion of the Properties to Developer unless and until, among other legal requirements and as applicable, (i) CEQA requirements are met, (ii) all necessary 15.c Packet Pg. 522 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 steps for acquisition are met, including but not limited to, offers to purchase, good faith negotiations, and (iii) a DDA, OPA, or other similar agreement satisfactory to City is first negotiated, executed by Developer, approved by the City Council of City, in City's sole discretion, after duly noticed public hearing, and executed by City, as appropriate. Developer acknowledges and agrees that the Successor Agency is not a party to this Agreement. The parties all agree to negotiate in good faith to accomplish the objectives described in this Agreement. I. Planning Costs and Expenses. If the parties are unable to reach agreements on a DDA, OPA, and/or other similar agreement, City and Developer each shall bear their own costs and expenses in connection with negotiating and finalizing this Agreement. Should the parties reach agreement on a DDA, OPA, and/or other similar agreement, that agreement shall provide for reimbursement by Developer to the City for all third party planning, engineering and costs related to closing the transaction incurred by City as part of the purchase price of the Properties, to include costs and expenses of negotiating and finalizing this Agreement and the DDA, OPA, and/or other similar agreement. J. Forty-Five Day Time Extension. If the proposed DDA, OPA, or other similar agreement contemplated by this Agreement is timely executed by Developer and delivered to City on or before the expiration date of this Agreement, then this Agreement shall, without the payment of any additional negotiating fees or penalties, be further extended for forty-five (45) days from the date of such submission. This extension shall be for the sole purpose of enabling the City Council to publish notices, make documents available for public review, hold public hearings, consider statutorily required findings, and consider all other discretionary or legally required actions necessary or appropriate in order to decide whether or not to approve the proposed DDA, OPA, or other similar agreement. If either City has not executed the proposed DDA, OPA, or other similar agreement by such forty-fifth (45th) day, then this Agreement shall automatically terminate without further notice unless the forty-five (45) day period has been extended by prior written agreement of City and Developer. K. Other Time Extensions. Prior to the expiration or termination of this Agreement and with mutual agreement of Developer, the City Manager, or his or her designee, may further administratively extend this Agreement in writing for up to two term periods of three months each. L. DDA, OPA, or Other Similar Agreement to Supersede this Agreement. This Agreement will be superseded and be terminated by the DDA, OPA, or other similar agreement, if and when the proposed DDA, OPA, or other similar agreement is executed by Developer, approved by the City in the manner required by law, and executed by City. M. City Responsible for CEQA Compliance. City, at Developer's cost, shall be responsible for complying with CEQA in connection with the Project and the development of the Properties. Developer shall pay for the services of all necessary consultants to comply with CEQA requirements (including, but not limited to, the preparation and issuance of any required environmental impact report, supplemental 15.c Packet Pg. 523 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 impact report, negative declaration or mitigated negative declaration). Developer shall respond fully and in a timely manner to any and all reasonable requests for information from City's consultants. N. Real Estate Commissions. City shall not be liable for any real estate commissions or brokerage fees which may arise in connection with purchase or sale of real or personal property in the course of implementation of this Agreement and the DDA, OPA or other similar agreement. Developer's affiliate, Lewis Management Corp. ("LMC"), is licensed by the California Bureau of Real Estate ("CA BRE") under CA BRE Broker License # 01994759. LMC claims no commission or finder's fee in connection with this transaction. LMC's employee, Robert Martin (CA BRE Broker License # 00963777), represents Developer and claims no commission or finder's fee in connection with this Agreement or the transactions contemplated thereby. Each Party agrees to indemnify, hold harmless, and defend the other Party from any claim by any broker, agent or finder retained, or claimed to have been retained, by that first Party. O. Conflicts of Interest. For the term of this Agreement, no elected official or employee of City, during the term of his or her office or service with City, shall have any direct or indirect interest in this Agreement or obtain any present or anticipated material benefit arising therefrom. P. Assignment. Developer understands that City is entering into this Agreement based on the prior experience and qualifications of Developer. Therefore, Developer shall not assign, sell or otherwise transfer any or all of its rights under this Agreement to any third party without the prior written approval of the City. Approval of any assignment shall be in the reasonable discretion of the City. City understands and acknowledges that in connection with finalizing and executing a DDA, OPA, or other similar agreement, Developer may partner with additional development, equity and debt persons and entities and/or may create new affiliate entities to be the developer thereafter, and expects to continue as the manager of such entities. Notwithstanding with foregoing, Developer intends to and may assign its rights under this Agreement to an entity duly formed and authorized to conduct business in California in which any or all of Richard Lewis, Robert Lewis, Roger Lewis, Randall Lewis and John Goodman directly or indirectly own a controlling interest. Q. Indemnity. Developer agrees to defend (with counsel reasonably approved by City and Developer), hold harmless and indemnify the Successor Agency, City, and each of their officers, agents and employees (the "Indemnified Parties") from and against any and all third party claims, causes of action, liabilities, damages, judgments, losses, costs or expenses (including, without limitation, attorneys' fees) actually caused by or resulting from Developer's acts or omissions pursuant to this Agreement or by any governmental approval or determination of the City Council of the City of Grand Terrace in relation to this Agreement and/or environmental compliance; provided that the obligations in this Paragraph 3.Q. shall not apply to any claims arising from the negligence or willful misconduct of any of the Indemnified Parties; and provided, further, that the obligations in this Paragraph 3.Q. shall apply only to the extent damages are the result of negligent acts or 15.c Packet Pg. 524 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 omissions or willful misconduct of Developer or Developer's agents, officers, owners or employees. Notwithstanding this limitation, Developer agrees to defend or pay the reasonable cost of defense of any action brought by any third party challenging the City's ability to enter into this Agreement on any grounds whatsoever. R. Governing Law. This Agreement shall be interpreted and enforced in accordance with the provisions of California law in effect at the time it is executed, without regard to conflicts of law provisions. Venue for any action commenced hereunder shall be in a court of competent jurisdiction in the County of San Bernardino. S. No Third Party Beneficiaries. City and Developer expressly acknowledge and agree that they do not intend, by their execution of this Agreement, to benefit any persons or entities not signatory to this Agreement, including, without limitation, any brokers representing the parties to this transaction. No person or entity not a signatory to this Agreement shall have any rights or causes of action against either City or Developer arising out of or due to City's or Developer's entry into this Agreement, excepting only the Successor Agency and its officers and employees' right to defense and indemnification set out above. T. Attorneys' Fees. In the event any action is taken by either party to this Agreement to enforce this Agreement, the prevailing party shall be entitled to recover from the other party its reasonable attorneys' fees and costs. 4. TERMS TO BE NEGOTIATED City and Developer shall negotiate a proposed DDA, OPA, or other similar agreement to include, without limitation, the following provisions: A. The development of a "Specific Plan" which will specify the following detail: i. The distribution, location, and extent of the uses of land, including open space, within the area covered by the Specific Plan. ii. The proposed distribution, location, and extent and intensity of major components of public and private roads, sewage, water, drainage, solid waste disposal, dry utilities, and other essential facilities proposed to be located within the area covered by the Plan and needed to support the land uses described in the Specific Plan. iii. Standards and criteria by which development will proceed, and standards for the conservation, development, and utilization of natural resources, where applicable. iv. A program of implementation measures including regulations, programs, public works projects and financing measures necessary to carry out the scope identified in the Specific Plan. All costs related to development of the Specific Plan will be prepared and paid for by the Developer, including but not limited to a conceptual circulation plan, sewer area plan, hydrology/drainage plan, water 15.c Packet Pg. 525 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 improvement plan, and an architectural design theme. The Specific Plan consultant will be selected by the Developer, subject to the approval of the City. The goal shall be to adopt a clear and concise Specific Plan that affords sufficient specificity to provide a streamlined administrative process for approving future projects within the Specific Plan. B. The development of an Environmental Impact Report (“EIR”) by the City that will include, but not be limited to, conducting the following studies: cultural, biological, noise, traffic impact, and green-house gas/air quality. The EIR consultant shall be selected by the City through the City's procurement procedures. The cost of developing the EIR including all required studies will be paid for by the Developer. C. A single master development plan comprised of multiple phases that is functional, aesthetic, and minimizes conflicts with and is sensitive to adjacent and nearby properties. Architectural and site design issues to be resolved shall include, but are not limited to, architectural and landscape quality, recreation and open space areas, access and circulation, determination of parcel boundaries, on-site and off-site improvements, Properties-perimeter treatment, landscape buffers, parking, signage, lighting, and easements, as applicable. D. Implementation of the Project design to maximize compatibility with the abutting and adjacent uses and to minimize negative impacts such as noise, light and traffic intrusion. E. Land acquisition procedures, the time schedule for conveyance, if any, of portions of the Properties from City, the financing plan, and the cost of the Properties. F. The timing and conditions precedent for the conveyance, if any, of the Properties or any portion thereof to Developer. G. A schedule of performance encompassing appropriate and necessary legal, administrative, financial and construction benchmarks to be met by the appropriate party. H. The responsible party for all costs associated with the removal or remediation of any potentially hazardous materials from the Properties and demolition of all improvements on the Properties. I. Ownership of all plans, drawings and specifications prepared by Developer in the event of termination of the DDA, OPA, or other similar agreement. J. Operational and maintenance plans for the Project, including the parking and common/open space areas. K. A financing plan to address any financial participation by the City and any other public agency. L. Remedies for any default and repurchase of property transferred as part of any DDA, OPA, or other similar agreement to Developer. 15.c Packet Pg. 526 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 M. A “Put” option wherein the City agrees to repurchase the Properties in the event of certain conditions to be agreed upon by the Parties. 5 TERMINATION Prior to expiration or termination of this Agreement, either party may terminate this Agreement upon occurrence of a material default, and the failure to cure such default after a thirty (30) day written notice to the other Party and opportunity to cure said default. Default shall be evidenced by failure to timely perform any obligations under this Agreement. 6. NOTICES Any notice or other communication given or made pursuant to this Agreement shall be in writing and shall be deemed given if (i) delivered personally or by courier, (ii) faxed, (ii) sent by confirmed e-mail delivery, (iv) sent by overnight express delivery, or (v) mailed by registered or certified mail (return receipt requested), postage prepaid, to a party at its respective address set forth below (or at such other address as shall be specified by the party by like notice given to the other party): A. To City: Attn: G. Harold Duffey, City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Tel: (909) 824-6621 FAX: With copy to: Assistant City Manager B. To Developer: Attention: Mr. John M. Goodman Lewis Land Developers , LLC c/o Lewis Management Corp. 1156 N Mountain Avenue Upland, CA 91786 P. 0. Box 670 Upland, CA 91785-0670 Fax: (909) 949-6720 With copy to: Lewis Management Corp. Attention: General Counsel 1156 N. Mountain Avenue Upland, CA 91786 P. 0. Box 670 Upland, CA 91785-0670 Fax: (909) 949-6725 15.c Packet Pg. 527 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 7. ENTIRE AGREEMENT This Agreement represents the entire agreement of the Parties and supersedes all negotiations or previous agreements between the Parties with respect to any of the subject matter hereof. This Agreement may not be amended unless agreed to in writing and certified by the signatures of the Parties hereunder. 8. EFFECTIVE DATE This Agreement shall be effective on the last signature date set forth below . (BALANCE OF PAGE INTENTIONALLY LEFT BLANK.) 15.c Packet Pg. 528 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 SIGNATURE PAGE CITY OF GRAND TERRACE By:___________________________ Name:_________________________ Its:____________________________ Dated:________________________ APPROVED AS TO FORM By:__________________________ Name:_______________________ Its: City Attorney Dated:_______________________ DEVELOPER LEWIS LAND DEVELOPERS, LLC, a Delaware limited liability company By: LEWIS MANAGEMENT CORP., a California corporation - Its Manager By:___________________________ Name:_________________________ Its:____________________________ Dated: ________________________ 15.c Packet Pg. 529 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 EXHIBIT A List of Successor Agency Properties A.P.N.: 1167-151-22-0-000 Legal Description EAST RIVERSIDE LAND CO SUB PTN LOTS 25 AND 26 LYING E OF SELY LI FLOOD CONTROL EX S 161 FT E 100 FT SD LOT 26 AND EX PTN LOT 25 DESC AS COM AT SW COR SD LOT TH N 89 DEG 33 MIN 07 SECONDS E ALG S LI SD LOT BEING ALSO N LI VAN BUREN ST 139.34 FT TO TRUE POB TH N 40 DEG 53 MIN 11 SECONDS E 181.12 FT TH N 89 DEG 33 MIN 07 SECONDS E 125 FT TH S 0 DEG 26 MIN 53 SECONDS E 136 FT TO N LI VAN BUREN ST TH S 89 DEG 33 MIN 07 SECONDS W ALG N LI VAN BUREN ST 244.62 FT TO POB AND EX RR R/W. A.P.N.: 1167-151-68-0-000 Legal Description PTN SE 1/4 SEC 6 TP 2S R 4W AND PTN SW 1/4 SEC 5 TP 2S R 4W COM PT S LI SD SE 1/4 SD PT BEING 50 FT E OF C/L AT& SF RR TH N 2 DEG 05 MIN 21 SECONDS E 1384.65 FT TO TRUE POB TH S 89 DEG 57 MIN 43 SECONDS E 266.45 FT TH N 00 DEG 02 MIN 17 SECONDS E 42.05 FT S 89 DEG 57 MIN 43 SECONDS E 439.66 FT S 00 DEG 02 MIN 17 SECONDS W 71.07 FT TO N LI PICO ST TH ALG SD N LI PICO ST S 89 DEG 52 MIN 46 SECONDS E 70.00 FT TO TH LEAVING SD N LI PICO ST N 00 DEG 02 MIN 17 SECONDS E 141.01 FT TH N 89 DEG 52 MIN 46 SECONDS W 118.00 FT TH N 00 DEG 02 MIN 17 SECONDS E 1017.69 FT S 89 DEG 53 MIN 18 SECONDS E 118.00 FT N 00 DEG 02 MIN 17 SECONDS E 100.00 FT N 89 DEG 53 MIN 18 SECONDS W 118.00 FT N 00 DEG 02 MIN 17 SECONDS E 46.07 FT TH S 65 DEG 59 MIN 20 SECONDS W 354.73 FT TO BEG OF 248.00 FT RADIUS CURVE CONCAVE SELY ALG SD CURVE THRU C/A 49 DEG 40 MIN 36 SECONDS AN ARC DISTANCE 215.02 FT TANGENT SD CURVE S 16 DEG 18 MIN 44 SECONDS W 660.07 FT AND S 02 DEG 05 MIN 21 SECONDS W 340.93 FT TO TRUE POB EX PTN DESC AS COM AT SW COR SEC 5 TP 2S R 4W SD PT ALSO BEING C/L INTERSECTION MAIN ST AND TAYLOR ST TH N 00 DEG 27 MIN 20 SECONDS E ALG C/L TAYLOR ST 1324.80 FT TO C/L INTERSECTION TAYLOR ST AND PICO ST TH N 00 DEG 27 MIN 24 SECONDS E ALG SD C/L 163 FT TH S 89 DEG 32 MIN 26 SECONDS E 48 FT TO PT ON ELY LI CERTAIN 15 FT STRIP CONVEYED TO SO CAL MOTOR ROAD CO RECORDED 4/25/1988 IN BK 73 PG 345 OF DEEDS SD PT BEING TRUE POB TH S 89 DEG 32 MIN 36 SECONDS E 69.99 FT TH S 00 DEG 27 MIN 06 SECONDS E 163.16 FT TO C/L PICO ST TH N 89 DEG 27 MIN 57 SECONDS W ALG SD C/L 70 FT TO INTERSECTION OF C/L PICO ST AND PROLONGATION SD 15 FT STRIP TH N 00 DEG 27 MIN 24 SECONDS E ALG SD PROLONGATION ALO ALG ELY LI SD 15 FT STRIP 163.06 FT TO TRUE POB. 15.c Packet Pg. 530 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 A.P.N.: 1167-151-71-0-000 Legal Description EAST RIVERSIDE LAND CO SUB LOT 41 AND WEST 1/2 LOT 42 SEC 5 TP 2S R 4W EX WLY 15 FT SD LOT 41 AND EX W 85 FT S 141.01 FT SD LOT 41 EX PTN LYING SLY AND ELY OF FOL DESC LI COM PT E LI SD LOT 42 AND N R/W LI PICO ST TH N 00 DEG 29 MIN 04 SECONDS E 564.49 FT BEING TRUE POB SD LI TH N 89 DEG 28 MIN 20 SECONDS W 920.05 FT TH S 00 DEG 31MIN 40 SECONDS W 404.39 FT TO BEG TANGENT CURVE CONCAVE ELY RAD 50 FT RAD BEARS S 89 DEG 28 MIN 20 SECONDS E TH SLY AND SWLY ALG SD CURVE TO LEFT C/A 36 DEG 52 MIN 12 SECONDS ARC DIST 32.18 FT TO BEG REVERSE CURVE CONCAVE NLY RAD 50 FT RAD BEARS S 53 DEG 39 MIN 29 SECONDS W TH SLY WLY AND NLY ALG SD CURVE TO RIGHT THRU C/A 253 DEG 44 MIN 10 SECONDS ARC DIST FT TO NON TANGENT LI RAD BEARS S 52 DEG 36 MIN 21 SECONDS E TH N 89 DEG 27 MIN 57 SECONDS W 280.48 FT TO PT ON E LI 15 FT STRIP CONVEYED TO SO CALIF MOTOR ROAD CO 4-25-88 BK 73 PG 345 OF DEEDS TH S 00 DEG 27 MIN 24 SECONDS W 196 FT TO PT ON S R/W PICO ST BEING PT TERMINATION SD LI. A.P.N.: 1167-151-74-0-000 Legal Description LOT 39 AND LOT 40 OF EAST RIVERSIDE LAND COMPANY PER MAP RECORDED IN BOOK 6, PAGE 44 OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, STATE OF CALIFORNIA;EXCEPTING THEREFROM THAT PORTION OF LOT 39 DESCRIBED AS FOLLOWS:BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 39;THENCE NORTH 89 DEG 53'26" WEST ALONG THE SOUTH LINE OF SAID LOT 39, 329.78 FEET;THENCE NORTH 00 DEG 04'28" EAST, 331.23 FEET;THENCE SOUTH 89 DEG 53'27" EAST, 329.85 FEET TO THE EAST LINE OF SAID LOT 39;THENCE SOUTH 00 DEG 05'10" WEST ALONG SAID EAST LINE, 331.23 FEET TO THE POINT OF BEGINNING ALSO EXCEPTING THEREFROM THAT PORTION OF LOT 40 DESCRIBED AS FOLLOWS:THE WEST 15 FEET OF SAID LOT 40 AS CONVEYED TO THE SOUTHERN CALIFORNIA ROAD MOTOR COMPANY, RECORDED APRIL 25, 1888 IN BOOK 73, PAGE 345 OF DEEDS, RECORDS OF SAID COUNTY ALSO EXCEPTING THEREFROM THE NORTH 100 FEET OF THE EAST 70 FEET OF THE WEST 85 FEET OF SAID LOT 40 15.c Packet Pg. 531 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) Exclusive Negotiation Agreement Lewis Land Developers 7-20-16 Page 1 of 16 A.P.N.: 1167-161-03-0-000 Legal Description EAST RIVERSIDE LAND CO SUB E 225 FT LOT 11 EX E 50 FT N 218.77 FT AND EX W 85 FT S 130 FT 2.75 AC M/L A.P.N.: 1167-161-04-0-000 Legal Description EAST RIVERSIDE LAND CO SUB W 85 FT E 225 FT S 130 FT LOT 11 .25 AC M/L 15.c Packet Pg. 532 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) EXHIBIT B SCHEDULE OF PERFORMANCE 1. Define the Project Area - Developer researches adjoining properties, contacts property owners and defines project boundaries based upon discussions with the City. (City and Developer) Timing: 4 months from Effective Date 2. Initiate preliminary land use analysis to determine the appropriate mix of uses (City and Developer) Timing: 4 months from Effective Date 3. Conduct initial feasibility analyses to include preliminary infrastructure analysis, physical property constraints to include soils, toxics, biological and cultural investigations, title search to identify unacceptable exceptions to title, riparian areas analysis including identifying potential grants and financial sources to assist in mitigation, market analysis and financial analysis Timing: 4 months from Effective Date 4. Develop draft DDA to incorporate provisions under Paragraph 4. (City and Developer) Timing: 4 months from Effective Date 5. Review potential service impacts on City Law Enforcement and Fire Services to determine if project can be serviced with existing resource capacity or will other options need to be developed to maintain the same level of public safety service within the City. 15.c Packet Pg. 533 At t a c h m e n t : A t t a c h m e n t I I I - N e w L e w i s E N A ( 2 0 2 1 : E x c l u s i v e N e g o t i a t i o n s A g r e e m e n t w i t h t h e L e w i s G r o u p ) This page left intentionally blank. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Update City of Grand Terrace Conflict of Interest Code PRESENTED BY: Pat Jacquez-Nares, City Clerk RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO. 2014-64 IN ITS ENTIRETY AND ADOPTING A CONFLICT OF INTEREST CODE APPLICABLE TO DESIGNATED POSITIONS, INCLUDING TO MEMBERS AND STAFF OF THE OVERSIGHT BOARD TO THE GRAND TERRACE REDEVELOPMENT AGENCY, SUCCESSOR AGENCY TO THE GRAND TERRACE REDEVELOPMENT AGENCY, GRAND TERRACE PUBLIC FINANCE AUTHORITY, AND TO THE GRAND TERRACE SUCCESSOR AGENCY HOUSING AUTHORITY 2030 VISION STATEMENT: This staff reports supports Goal No. 5 in that the Conflict of Interest Code promotes transparency within the organization and community. BACKGROUND: The Political Reform Act requires every local government agency to review its Conflict of Interest Code biennially. In reviewing the City's Conflict of Interest Code, staff identified the staff positions that should be included in the Code. Those positions were included in the attached Resolution to properly reflect positions that may potentially have a material effect on his/her financial interest in the decision making process. FISCAL IMPACT: This item does not require an expenditure of funds. ATTACHMENTS:  Resolution - 2016 Conflict of Interest Code (DOCX) APPROVALS: Pat Jacquez-Nares Completed 09/14/2016 5:57 PM Finance Completed 09/18/2016 5:58 PM 16 Packet Pg. 534 City Attorney Completed 09/19/2016 1:10 PM City Manager Completed 09/21/2016 6:52 PM City Council Pending 09/27/2016 6:00 PM 16 Packet Pg. 535 RESOLUTION NO. 2016-XX PAGE 1 OF 4 SEPTEMBER 27, 2016 RESOLUTION NO. 2016- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RESCINDING RESOLUTION NO. 2014-64 IN ITS ENTIRETY AND ADOPTING A CONFLICT OF INTEREST CODE APPLICABLE TO DESIGNATED POSITIONS, INCLUDING TO MEMBERS AND STAFF OF THE OVERSIGHT BOARD TO THE GRAND TERRACE REDEVELOPMENT AGENCY, SUCCESSOR AGENCY TO THE GRAND TERRACE REDEVELOPMENT AGENCY, GRAND TERRACE PUBLIC 2014THE GRAND TERRACE HOUSING AUTHORITY WHEREAS, the California Fair Political Practices Commission has adopted Section 18730 of Title 2 of the California Code of Regulations which contains the terms of a Standard Conflict of Interest Code, which can be incorporated by reference, and which may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act after public notice and hearings; and WHEREAS, a Conflict of Interest Code for City officials, employees and commissioners was adopted on September 23, 2014 by Resolution No. 2014-64; and WHEREAS, since the last revision of the Grand Terrace Conflict of Interest Code on September 23, 2014, it has been determined that there are proposed revisions to the Code; and WHEREAS, Government Code Section 87306.5 requires every local agency to review its Conflict of Interest Code in all even-numbered years. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Resolution No. 2014-64 is hereby rescinded. SECTION 2. In compliance with Government Code Section 87300, the City Council hereby adopts the FPPC’s Model Conflict of Interest Code authorized by 2 CCR § 18730 and the attached Exhibit “A” Designated Employees, and Exhibit “B” Appendix of Disclosure Categories. SECTION 3. The City Clerk shall certify to the passage and adoption of this Resolution and it shall take effect and be in force. PASSED, APPROVED AND ADOPTED this 27th day of September, 2016. ___________________________________ Darcy McNaboe, Mayor ATTEST: 16.a Packet Pg. 536 At t a c h m e n t : R e s o l u t i o n - 2 0 1 6 C o n f l i c t o f I n t e r e s t C o d e ( 2 0 1 4 : U p d a t e C i t y o f G r a n d T e r r a c e C o n f l i c t o f I n t e r e s t C o d e ) RESOLUTION NO. 2016-XX PAGE 2 OF 4 SEPTEMBER 27, 2016 _____________________________ Pat Jacquez-Nares, City Clerk APPROVED AS TO FORM: _____________________________ Richard L. Adams II, City Attorney 16.a Packet Pg. 537 At t a c h m e n t : R e s o l u t i o n - 2 0 1 6 C o n f l i c t o f I n t e r e s t C o d e ( 2 0 1 4 : U p d a t e C i t y o f G r a n d T e r r a c e C o n f l i c t o f I n t e r e s t C o d e ) RESOLUTION NO. 2016-XX PAGE 3 OF 4 SEPTEMBER 27, 2016 EXHIBIT “A” Designated Employees The following is a listing of positions for which the employee is required to submit Statements of Economic Interest (Form 700) pursuant to the Political Reform Act of 1974.1 To the extent that certain positions are required to perform actions on behalf of the City and also another agency or authority (such as the Successor Agency), the following disclosure requirements shall also apply to duties performed on behalf of any such agency/agencies. DEPARTMENTS / POSITIONS DISCLOSURE CATEGORIES Child Care Services Director of Child Care Services 1 Assistant Director of Child Care Services 2 City Attorney City Attorney 1 Assistant City Attorney 1 Deputy City Attorney 1 City Council / Boards of Directors Members of City Council2 1 City Clerk City Clerk 1 City Manager City Manager 1 Assistant City Manager 1 Personnel Technician 2 1 Government Code § 87200 already requires the following individuals (among others) to disclose their economic interests: mayors, city council members, planning commissioners, city managers, city attorneys, city treasurers, other public officials who manage public investments, and candidates for any of these offices at any election. For ease of reference, this Conflict of Interest Code includes such individuals, even though they already have statutory disclosure obligations. This code is not intended to increase or decrease their existing statutory obligations to disclose. 2 Members of the City Council currently serve as ex officio members of the following Boards: (1) Grand Terrace Public Financing Authority (2) Grand Terrace Successor Agency Housing Authority; (3) Successor Agency to the Grand Terrace Redevelopment Agency. Certain members of the City Council are also members of the Oversight Board of the Grand Terrace Redevelopment Agency. All City Councilmembers already are required to disclose all financial interests that they have which may be affected by their membership on the City Council, and therefore, they are already required to disclose all interests which may also affect the actions they take as members of these boards. 16.a Packet Pg. 538 At t a c h m e n t : R e s o l u t i o n - 2 0 1 6 C o n f l i c t o f I n t e r e s t C o d e ( 2 0 1 4 : U p d a t e C i t y o f G r a n d T e r r a c e C o n f l i c t o f I n t e r e s t C o d e ) RESOLUTION NO. 2016-XX PAGE 4 OF 4 SEPTEMBER 27, 2016 Finance Department Director of Finance/Treasurer 1 Project Manager 1 Senior Account Technician 4 Account Technician 4 Principal Accountant 4 Fire Department Fire Chief or Designee to Grand Terrace 1 Planning Commission Members 1 Planning & Development Services Planning & Development Services Director 1 Senior Code Enforcement Officer 2 Associate Planner 1 Building Official 1 Police Department Sheriff Captain assigned to Grand Terrace 1 Sheriff Lieutenant assigned to Grand Terrace 2 Public Works Public Works Director 1 Management Analyst 2 Consultants* 1 *Consultants (and certain people filling new positions – see below) shall be included in the list of designated employees and shall disclose, pursuant to the broadest disclosure category in the Code, subject to the following limitations: The City Manager or Agency’s Executive Director may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements described in this section. Such written determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager/Executive Director’s determination is a public record and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code. Commission Regulation Section 18700.3 defines “consultant” as an individual who, pursuant to a contract with a state or local governmental agency: (1) Makes a governmental decision whether to: a. Approve a rate, rule or regulation; b. Adopt or enforce a law; c. Issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order or similar authorization or entitlement; 16.a Packet Pg. 539 At t a c h m e n t : R e s o l u t i o n - 2 0 1 6 C o n f l i c t o f I n t e r e s t C o d e ( 2 0 1 4 : U p d a t e C i t y o f G r a n d T e r r a c e C o n f l i c t o f I n t e r e s t C o d e ) RESOLUTION NO. 2016-XX PAGE 5 OF 4 SEPTEMBER 27, 2016 d. Authorize the agency to enter into, modify, or renew a contract provided it is the type of contract which requires agency approval; e. Grant agency approval to a contract which requires agency approval and in which the agency is a party or to the specifications for such a contract; f. Grant agency approval to a plan, design, report, study or similar item; g. Adopt, or grant agency approval of, policies, standards or guidelines for the agency or for any subdivision thereof; or (2) Serves in a staff capacity with the agency and that capacity participates in making a governmental decision as defined in Regulation 18704(a) and (b) or performs the same or substantially all the same duties for the agency that would otherwise be performed by an individual holding a position specified in the agency’s Conflict of Interest Code under Section 87302. Newly Created Positions To the extent required by Commission Regulation 18219, as it may be amended from time to time, “an employee in a newly created position that makes or participates in the making of decision and whose specific position is not yet listed in the conflict of interest code” is also required to disclose pursuant to the broadest disclosure category, subject to the same limitation, above, via which the City manager may determine, in writing, that the employee is not required to fully comply with the disclosure requirements, etc. 16.a Packet Pg. 540 At t a c h m e n t : R e s o l u t i o n - 2 0 1 6 C o n f l i c t o f I n t e r e s t C o d e ( 2 0 1 4 : U p d a t e C i t y o f G r a n d T e r r a c e C o n f l i c t o f I n t e r e s t C o d e ) RESOLUTION NO. 2016-XX PAGE 6 OF 4 SEPTEMBER 27, 2016 EXHIBIT “B” DISCLOSURE CATEGORIES CATEGORY 1 Full Disclosure – All interests in real property as well as investments, business positions and sources of income, including gifts, loans and travel payments. 2 Full Disclosure – (excluding interests in real property) – Investments and business positions and sources of income, including gifts, loans and travel payments. 3 Interest in Real property – Interests in real property located in the city, including property located within a two mile radius of any property owned or used by the City. 4 General Contracting – Investments, business positions and of income, including gifts, loans and travel payments from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type utilized by the City. 16.a Packet Pg. 541 At t a c h m e n t : R e s o l u t i o n - 2 0 1 6 C o n f l i c t o f I n t e r e s t C o d e ( 2 0 1 4 : U p d a t e C i t y o f G r a n d T e r r a c e C o n f l i c t o f I n t e r e s t C o d e ) AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Award of Contract for Public Works Yard Parking Lot Improvement Project PRESENTED BY: Yanni Demitri, Public Works Director RECOMMENDATION: 1. Award a Construction Contract to Mike Roquet Construction, Inc. for Public Works Yard Parking Lot Improvement Project 2. Authorize City Manager to execute the Contract and any necessary Change Orders for this project. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" by investing in critical improvements to infrastructure. BACKGROUND: City staff requested that a vendor conduct an evaluation of the automatic gate that leads to the Public Works Yard, and provide an estimate for repair. After the evaluation, the vendor informed City staff that the gate could not be repaired until the pavement of the parking lot was repaired. The uneven and cracked concrete is what caused the gate to stop functioning properly. Furthermore, there is a water line in front of the Maintenance Building in the Public Works Yard that is at risk of rupturing, because the asphalt is not compacted properly around the pipeline. DISCUSSION: The security of the City's Public Works Yard is essential as maintenance trucks/equipment as well as the City's two hybrid vehicles and the bus for the Senior Transportation Program are stored there. The city hybrid vehicles are valued at nearly $30,000 and the City does not own the Senior Transportation Program bus, but is rather leasing the bus from OmniTrans. Loss or damage to these vehicles could be very costly to the City. Additionally, water damage could be extensive and expensive if the water line in the Public Works Yard were to rupture. The City Maintenance Staff are currently covering the area above the water line with a metal plate, but this is a temporary fix. On August 10, 2016, the City Clerk issued a Notice Inviting Bids for a Public Works Yard Parking Lot Improvement Project on behalf of the Public Works Department. The notice was posted to the City website and sent directly to a bidder's list. By the time of the bid opening on August 24, 2016, three (3) bids were submitted. The companies and 17 Packet Pg. 542 their bids are as follows: Bid 1 Mike Roquet Construction, Inc. - Highland, CA $17,653.00 Bid 2 All American Asphalt - Corona, CA $20,098.50 Bid 3 Hardy and Harper - Santa Ana, CA $30,000.00 Mike Roquet Construction, Inc. was the lowest, responsive bidder. The firm's contractor's license is valid, and all references provided positive feedback. The scope of work includes: removing and hauling away existing asphalt concrete, removing automatic gate loop detector near the gate entrance, over-excavating existing native soil, grading, and installing new asphalt concrete. Construction is expected to commence in October 2016 and be completed within two days. Work will only take place when the City Hall is closed so as not to disrupt normal business hours. Staff is recommending that Council award a Construction Contract to Mike Roquet Construction, Inc. for Public Works Yard Parking Lot Improvement, and authorize the City Manager to execute the contract and any necessary change orders for the project. FISCAL IMPACT: There are funds budgeted in the 2016-17 Facilities Maintenance accounts to cover the total project cost of $18,536 (including a 5% contingency) as shown below: Fund Program Account Balance General Fund (10) Facilities Maintenance (195) Maintenance of Buildings & Grounds 10-195-245-000-000 $38,056.00 Total to be used for Maintenance Yard improvements $18,536.00 Remaining Account Balance $19,520.00 ATTACHMENTS:  Attachment I - Agreement with Mike Roquet Construction Inc. (PDF)  Attachment II - Bid Summary (PDF) APPROVALS: Yanni Demitri Completed 08/31/2016 4:39 PM Finance Completed 09/08/2016 12:49 PM City Attorney Completed 09/08/2016 12:54 PM City Manager Completed 09/08/2016 12:32 PM City Council Pending 09/27/2016 6:00 PM 17 Packet Pg. 543 D-1 CONTRACT AGREEMENT THIS CONTRACTORS AGREEMENT (“Agreement”) is made and entered into this 13th day of Septembre 2016, (“Effective Date”) by and between the CITY OF GRAND TERRACE (“City”), a public entity, and Mike Roquet Construction, Inc., ("Contractor"), a California Corporation. 1. Scope of Services. Contractor shall perform all the services as described as follows: a)For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by said City, said Contractor agrees with said City to perform and complete in a workmanlike manner all work required under the Bidding Schedule of the City’s Specification, in accordance with the Specifications and Drawings therefor, to furnish at his own expense all labor, materials, equipment, tools and services necessary therefor, except those materials, equipment, tools and services as may be stipulated in said specification to be furnished by said City and to do everything required by this Agreement and the said Specifications and Drawings. b) The Notice Inviting Bids, Instructions to Bidders, Proposal, Information required of Bidder, Specification, Drawings, Exhibits and all addenda issued by the City with respect to the foregoing prior to the opening of bids, are hereby incorporated in and made a part of this Agreement. c)In entering into a Public Works Contract for a subcontract to supply goods, services or materials pursuant to a Public Works Contract, the Contractor or subcontractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code, arising from purchases of goods, services, or materials pursuant to the Public Works Contract or the subcontract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the parties. 2.Term. This Agreement shall be effective on the date first written above and the Agreement shall remain in effect until terminated as provided herein. 3.Compensation/Payment. Contractor shall perform the Services under this Agreement for the total sum not to exceed $17,653.00. Payment shall be made in accordance with City's usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to City at the address set forth in Section 4, hereof. 4.Notices. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To City To 17.a Packet Pg. 544 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-2 City of Grand Terrace 22795 Barton Rd. Bldg. B Grand Terrace, CA 92313 5.Prevailing Wage. If applicable, Contractor and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code and implemented the City Council of the City of Grand Terrace. The Director’s determination is on file and open to inspection in the office of the City Clerk and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. 6.Contract Administration. A designee of the City will be appointed to administer this Agreement on behalf of City and shall be referred to herein as Contract Administrator. 7.Standard of Performance. While performing the Services, Contractor shall exercise the reasonable care and skill customarily exercised by reputable members of Contractors in the Metropolitan Southern California Area, and shall use reasonable diligence and best judgment while exercising its skill and expertise. 8.Personnel. Contractor shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Contractor recognizes that the qualifications and experience of the personnel to be used are vital to Contractor and timely completion of the Services. 9.Assignment and Subcontracting. Neither party shall transfer any right, interest, or obligation in or under this Agreement to any other entity without prior written consent of the other party. In any event, no assignment shall be made unless the assignee expressly assumes the obligations of assignor under this Agreement, in writing satisfactory to the parties. Contractor shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible City’s Contract Administrator. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 13. Contractor acknowledges that any transfer of rights may require City Manager and/or City Council approval. 10.Independent Contractor. In the performance of this Agreement, Contractor and his employees, subcontractors and agents, shall act in an independent capacity as independent contractors, and not as officers or employees of the City or the City of Grand Terrace. Contractor acknowledges and agrees that the City has no obligation to pay or withhold state or federal taxes or to provide workers’ compensation or unemployment insurance to Contractor to Contractors employees, subcontractors and agents. Contractor as an independent contractor shall be responsible for any and all taxes that apply to Contractor as an employer. 11.Pers Eligibility Indemnity. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer 17.a Packet Pg. 545 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-3 contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 12 Indemnifications. 12.1 Indemnity. Except as to the sole negligence or willful misconduct of the City, Contractor shall defend, indemnify and hold the City, and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys’ fees, which arises out of or is in any way connected with the performance of work under this Agreement by Contractor or any of the Contractor's employees, agents or subcontractors and from all claims by Contractor's employees, subcontractors and agents for compensation for services rendered to in the performance of this Agreement, notwithstanding that the City may have benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Contractor or of Contractor's employees, subcontractors or agents. 12.2 Attorney’s Fees. The parties expressly agree that any payment, attorneys’ fees, costs or expense that the City incurs or makes to or on behalf of an injured employee under the City’s self-administered workers' compensation is included as a loss, expense or cost for the purposes of this Section, and that this Section shall survive the expiration or early termination of the Agreement. 13.Insurance. 13.1 General Provisions. Prior to the City’s execution of this Agreement, Contractor shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverage’s in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverage’s may be modified in writing by the City’s Risk Manager or City Attorney, or a designee, unless such modification is prohibited by law. 13.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Contractor’s indemnification obligations under Section 12 hereof. 13.1.2 Ratings. Any insurance policy or coverage provided by Contractor as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder’s rating of A- or higher and a Financial Class of VII or higher. 13.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to City by certified or registered mail, postage prepaid. 13.1.4 Adequacy. The City, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by 17.a Packet Pg. 546 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-4 Contractor pursuant to this Agreement are adequate to protect. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage as deems adequate, at Contractor's sole expense. 13.2 Workers’ Compensation Insurance: By executing this Agreement, certifies that Contractor is aware of and will comply with Section 3700 of the Labor Code of the State of California requiring every employer to be insured against liability for workers’ compensation, or to undertake self-insurance before commencing any of the work. Contractor shall carry the insurance or provide for self-insurance required by California law to protect said Contractor from claims under the Workers’ Compensation Act. Prior to City's execution of this Agreement, Contractor shall file with City either (1) a certificate of insurance showing that such insurance is in effect, or that Contractor is self- insured for such coverage, or (2) a certified statement that Contractor has no employees, and acknowledging that if Contractor does employ any person, the necessary certificate of insurance will immediately be filed with City. Any certificate filed with City shall provide that City will be given ten (10) days prior written notice before modification or cancellation thereof. 13.3 Commercial General Liability and Automobile Insurance. Prior to City's execution of this Agreement, Contractor shall obtain, and shall thereafter maintain during the term of this Agreement, commercial general liability insurance and automobile liability insurance as required to insure against damages for personal injury, including accidental death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Contractor. The City and the City, and its officers, employees and agents, shall be named as additional insured’s under the Contractor’s insurance policies. 13.3.1 Contractor’s commercial general liability insurance policy shall cover both bodily injury (including death) and property damage (including, but not limited to, premises operations liability, products-completed operations liability, independent ’s liability, personal injury liability, and contractual liability) in an amount not less than $1,000,000 per occurrence and a general aggregate limit in the amount of not less than $2,000,000. 13.3.2 Contractors automobile liability policy shall cover both bodily injury and property damage in an amount not less than $500,000 per occurrence and an aggregate limit of not less than $1,000,000. All of Contractor’s automobile and/or commercial general liability insurance policies shall cover all vehicles used in connection with Contractor’s performance of this Agreement, which vehicles shall include, but are not limited to, owned vehicles, leased vehicles, Contractor’s employee vehicles, non-owned vehicles and hired vehicles. 13.3.3 Prior to City's execution of this Agreement, copies of insurance policies or original certificates and additional insured endorsements evidencing the coverage required by this Agreement, for both commercial general and automobile liability insurance, shall be filed with City and shall include the City and its officers, employees and agents, as additional insured’s. Said policies shall be in the usual form of commercial general and automobile liability insurance policies, but shall include the following provisions: It is agreed that the City of Grand Terrace and its officers, employees and agents, are added as additional insures under this policy, solely for work done by and on 17.a Packet Pg. 547 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-5 behalf of the named insured for the City of Grand Terrace. 13.4 Subcontractors’ Insurance. Contractor shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss that may be caused by the subcontractors’ scope of work and activities provided in furtherance of this Agreement, including, but without limitation, the following coverage’s: Workers Compensation, Commercial General Liability, Errors and Omissions, and Automobile liability. Upon City’s request, Contractor shall provide City with satisfactory evidence that Subcontractors have obtained insurance policies and coverage’s required by this section. 14.Business Tax. Contractor understands that the Services performed under this Agreement constitutes doing business in the City of Grand Terrace, and Contractor agrees that Contractor will register for and pay a business tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such tax certificate current during the term of this Agreement. 15.Time of Essence. Time is of the essence for each and every provision of this Agreement. 16.City's Right to Employ Other. City reserves the right to employ other in connection with the Services. 17.Solicitation. Contractor warrants that they have not employed or retained any person or City to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, City shall have the right to terminate this Agreement without liability and pay only for the value of work has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Contractor the full amount of such commission, percentage, brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 18.General Compliance with Laws. Contractor shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Professional, or in any way affect the performance of services by Contractor pursuant to this Agreement. Contractor shall at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. 19.Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Contractor and the City. 20.Termination. City, by notifying Contractor in writing, shall have the right to terminate any or all of professional’s services and work covered by this Agreement at any time, with or without cause. In the event of such termination, Contractor may submit s final written statement of the amount of Contractor's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the City’s rights under Sections 16 and 21 hereof. In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to City. 17.a Packet Pg. 548 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-6 20.1 Other than as stated below, City shall give Contractor thirty (30) days prior written notice prior to termination. 20.2 City may terminate this Agreement upon fifteen (15) days written notice to Contractor, in the event: 20.2.1 Contractor substantially fails to perform or materially breaches the Agreement; or 20.2.2 City decides to abandon or postpone the Services. 21.Offsets. Contractor acknowledges and agrees that with respect to any business tax or penalties thereon, utility charges, invoiced fee or other debt which Contractor owes or may owe to the City, City reserves the right to withhold and offset said amounts from payments or refunds or reimbursements owed by City to Contractor. Notice of such withholding and offset shall promptly be given to by City in writing. In the event of a dispute as to the amount owed or whether such amount is owed to the City, City will hold such disputed amount until either the appropriate appeal process has been completed or until the dispute has been resolved. 22.Successors and Assigns. This Agreement shall be binding upon City and its successors and assigns, and upon Contractor and its permitted successors and assigns, and shall not be assigned by, Contractor either in whole or in part, except as otherwise provided in paragraph 9 of this Agreement. 23.Governing Law, Venue, Dispute Resolution and Attorneys' Fees. This Agreement shall be governed by and construed in accordance with laws of the State of California. Prior to commencing suit in a court of competent jurisdiction, any controversy, dispute or claim arising out of the Agreement shall first be submitted to an alternative dispute resolution process as set forth in Section 24 herein. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set by the court in such action. 24.Alternative Dispute Resolution. In the event of any controversy, dispute or claim arising out of or relating to this Agreement, the parties hereto shall consult and negotiate with each other and, recognizing their mutual interest, attempt to reach a solution satisfactory to both parties. If they do not reach settlement within a period of 60 days, the matter shall be submitted to an alternative dispute resolution process, either nonbinding arbitration or mediation, (“Process”) by written notice from either party to the other. The parties shall meet and confer in good faith and select a Process and an arbitrator or a mediator that is agreeable to both sides. The selected Process shall be completed no later than 120 days (“Process Period”) after tender of the aforementioned written notice, unless the Parties mutually agree to an extension of the Process Period. If the matter is not successfully resolved by the selected Process, within the Process Period, the parties are free to commence litigation in a court of competent jurisdiction as defined in Section 23 herein. Any litigation commenced without both parties’ consent prior to the end of the Process Period, shall be subject to a stay until the end of the Process Period. The Parties further agree to equally bear the cost of the Process. 17.a Packet Pg. 549 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-7 25.Nondiscrimination. During Contractor’s performance of this Agreement, Contractor shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Contractor agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. 26.Severability. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 27.Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions hereof and thereof. 28.Entire Agreement: This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings or agreements of the parties. Neither party has been induced to enter into this Agreement by, nor is neither party relying on, any representation or warranty outside those expressly set forth in this Agreement. 29.Interpretation. City and Contractor acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 29.1 Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of the Agreement or any of its terms. References to section numbers are to sections in the Agreement unless expressly stated otherwise. 29.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. 17.a Packet Pg. 550 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) D-8 IN WITNESS WHEREOF City and Contractor have caused this Agreement to be duly executed the day and year first above written. THE CITY OF GRAND TERRACE, A public body By: _________________________ Harold Duffey City Manager Attest: ______________________ Pat Jacques-Nares City Clerk APPROVED AS TO FORM: _______________________ Richard L. Adams II City Attorney By: _____________________________________________ ________________________________________________ [Printed Name] 17.a Packet Pg. 551 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PROPOSAL FOR PUBLIC WORKS YARD PARKING LOT IMPROVEMENT Bids due no later than 4:00 PM on Wednesday, August 24, 2016 at the office of the City Clerk. TO: CITY OF GRAND TERRACE, acting by and through its Governing Body, herein called the "CITY". Pursuant to and in compliance with your Notice to Contractors calling for Bids and other documents relating thereto , the undersigned bidder, having familiarized himself with the terms of the Contract, the local conditions affecting the performance of the Contract, and the cost of the work at the place where the work is to be done, and with the drawings and specifications and other Contract Documents, hereby proposed and agrees to perform within the time stipulated , the Contract, including all of its component parts, and everything required to be performed, and to provide and furnish any and all applicable taxes, utility and transportation services necessary to perform the Contract and complete in a workmanlike manner all of the work required in connection with the project known as: "PUBLIC WORKS YARD PARKING LOT IMPROVEMENT". All in strict conformity with the specifications and other Contract Documents, including Addenda No. I , and , on file at the OFFICE OF THE CITY CLERK, 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA, 92313, for the sum of: (SEE BID SCHEDULE FOR COST BREAKDOWN OF ITEMS) COMPANY NAME l'V\IKf° /ZOG<\./~\ {t;r..,r.,--r1'-vr-ru.Jf\/, tA.J~ · TITLE ,CJ . ()v "f 5) Cf , /~I 6 ('{ lrt-t\l) { v..j CITY 1 I ZIP CODE CONTRACTOR'S LICENSE "A" NO . _!_o_c_· 7-~~·;('p_& ______ _ DIR REGISTRATION NO. ~----1'----=--""--=-~---+-~~~~~~- C-1 17.a Packet Pg. 552 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) DA TE _o.=.......i}'--z---'-l~( /.....,.___! (,,_· ___ _ STATE CONTRACTOR'S LICENSE NO. CITY BUSINESS LICENSE NO. (if available) CORPORATE SEAL Corporation incorporated under the State of (II {... / r,;,"',1-t.J I I' BIDDER'S NAME, ADDRESS & PHONE TELEPHONE: t;c;-I )_53 ·3 7 t::(7 (Area Code) BY: ;//~ Signature Print or type name TITLE: r tlt.S1 l)t~-r Names and addresses of all members of co-partnership or names and titles of all officers of the corporation: C-2 17.a Packet Pg. 553 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) BID SCHEDULE FOR PUBLIC WORKS YARD PARKING LOT IMPROVEMENT BIDDER: ____ M_ik_e_R_o_q_ue_t_c_o_n_s_t_ru_c_ti_on_,_l_n_c. ___ _ (Company Name) BASE BID ITEM ESTIMATED NO. DESCRIPTION OF ITEMS QUANTITY UNIT UNIT PRICE IN WORDS Remove and haul SQ. 1 away existing asphalt 3,095 eighty six cents FT section in one location Over-excavate 4" of SQ. 2 existing native soil in 3,095 eighty six cents FT an area Fine-grade and SQ. 3 compact asphalt 3,095 eighty six cents subgrade to 95 % FT Install 3" asphalt over 4 4" of class II (CMB) on SQ. three dollars and 3,095 sq. ft. of 3,095 FT eleven cents conventional AC Remove existing loop 5 detector by the gate 1 EA forty-two dollars and entrance of the Public forty-five cents Works Yard Any items not included 6 in bid line items 1-5 1 LS that are essential to zero complete the project TOTAL BASE BID (ITEMS 1-6): Seventeen thousand, six hundred and fifty-three dollars and no cents. (WORDS) $ 17,653.00 (FIGURE) C-3 UNIT PRICE .86 .86 .86 3.11 42.45 0.00 TOTAL COST 2,661 .70 2,661 .70 2,661.70 9,625.45 42.45 0.00 17.a Packet Pg. 554 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) ADDENDA ACKNOWLEDGMENT The undersigned acknowledges receipt of the following ADDENDA and the cost if any, or such revisions have been included in the TOTAL BID of the Bidding Schedule (s). ADDENDUM NO. _1 ____________ , DATED __ s_11_s_12_0_16_ ADDENDUMNO. _____________ ,DATED _____ _ ADDENDUM NO. _____________ , DATED ____ _ ADDENDUM NO. _____________ , DATED ____ _ Name of Bidder Mike Roquet Construction, Inc. Address P.O. Box 539, Highland, CA 92346 -------------------------- State License No. _1_0_07_5_6_8 _______ Telephone No. (951 ) 533-3797 By:-----~~---..·-=~~~~~-­ SigtiatUre President Title Date the 24th day of ___ A_u_g_u_st ___ 2_01_6_ C-5 17.a Packet Pg. 555 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) BIDDER'S INFORMATION BIDDER certifies that the following information is true and correct: Bidder's Name Mike Roquet Construction, Inc. Business Address P.O. Box 539 ------------------------- High I and CA 92346 Telephone (051) 533-3797 State Contractor's License "A" No. 1007568 ~------------------- Original Date Issued 9-~o -/5' Expiration Date ___,9.__-_>_o_-_I_? ______ _ DIR Registration No . __ r_o_c_o_o~3_1.[_k_3....._.'] __ The following are the names, titles, addresses, and telephone numbers of all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest in this proposal: The dates of any voluntary or involuntary bankruptcy judgments against any principal having an interest in this proposal, or any firm, corporation, partnership or joint venture of which any principal having an interest in this proposal was an owner, corporate officer, partner, or joint venture are as follows: none All current and prior DBA's, alias, and/or fictitious business names for any principal having an interest in this proposal are as follows: Roquet Paving, Inc. RP Construction C-6 17.a Packet Pg. 556 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) IN WITNESS WHEREOF, BIDDER executes and submits this proposal with the names, title , hands, and seals of all aforenamed principals th is 24th day of August , 201§_. BIDDER A notary public or oth~r officer completing this certificate venfies only the ~dentity of~ individual who signed ttie document to which this certificate is attached. and no1 r---------------------------- the truthlulness, accuracy, or vatidity of that document. l Subscribed and sworn to this )lf day of _A_..,.,,..,..·...L_l_t-______ , 20 ~' "~- NOT ARY PUBLIC .!f_~{ }<QtA-1- C-7 17.a Packet Pg. 557 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) DESIGNATION OF SUBCONTRACTORS BIDDER proposes to subcontract certain portions of the work, and to procure materials and equipment from suppliers and vendors as follows: NAME, ADDRESS, TELEPHONE NUMBER, LICENSE NO., AND DIR REG NO. OF SUBCONTRACTORS No subcontractors will be used on this project ITEMS OF WORK Prior to award of contract, Contractor shall submit a list of suppliers and vendors in writing to the City Engineer. C-8 17.a Packet Pg. 558 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) REFERENCES The Contractor shall list in the spaces provided below, not less than three comparable contracts which have been completed within the past two years. Contract Annual Contract Client/Agency Contact Name/Title Year(s) Type of Work Performed Amount Name Phone Number 2016 Parking lot repair 10 ,000.00 Ashley Gary Valdez Furniture (608) 304-0899 Ian Hacker 2016 Asphalt repair/grading 25,000.00 Baral (949) 390-4122 Asphalt repair/grading 20 ,000.00 Dan Carlone Dan Carlone 2016 Construction (909) 386-1828 C-9 17.a Packet Pg. 559 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) NON-COLLUSION AFFIDAVIT STATE OF CALIFORNIA COUNTY OF Scirr'I ~71evz_d'ntJ SS (NAME), }11Kt;; Ro&,µG-r affiant being first duly sworn, deposes and says: that he or she is the PR.Es I !)eflJ I of ------------------------~ (sole owner, partner, other proper title) _ _..;.~-' l<_G_;;._.;_f.._o_~___:;:e.=--'t"_c._o_,_1"_' '>__,_:r:_;:_. --=J:.-"-N-"c_.__ _______ , the party making the foregoing bid and (Contracting Firm Name) that the Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization , or corporation; that the Bid is genuine and not collusive or sham ; that the Bidder has not directly or indirectly induced or solicited any other Bidder to put in a false or sham Bid , and has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone else to put in a sham Bid , or that anyone shall refrain from bidding ; that the Bidder has not in any manner, directly or indirectly sought by agreement, communication, or conference with anyone to fix the bid price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other Bidder, or to secure any advantage against the public body awarding the Contract of anyone interested in the proposed Contract; that all statements contained in the Bid are true; and , further, that the Bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation , partnership, company associations, organization , bid depository, or to any member or agent thereof to effectuate a collusive or sham Bid , (Public Contract Code Section 7106) Bidder's Name: Mike Roquet Construction, Inc. P.O. Box 539 Bidder's Address: Highland, CA 92346 (951) 533-3797 Telephone No.: (Title) All signatures must be notarized and securely attached to this form. C-10 17.a Packet Pg. 560 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached , and not the truthfulness, accuracy, or validity of that document. State of California County of SAN BERNARDINO On Aue; us.1 A 4; h It before me, JASPREET KAUR,NOTARY PUBLIC (insert name and title of the officer) personally appeared MfCttltEJ. ,y RdJ.VET who proved to me on the basis of satisfactory evidence to be the person(1) whose name($) is/ai:e- subscribed to the within instrument and acknowledged to me that he/9he/they executed the same in his/her/their authorized capacityfies), and that by his/l'leF/therr signature(~) on the instrument the person(liJ'), or the entity upon behalf of which the person ~) acted, execufed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ~ tp~ ~.,.,.: ... JASPREETKAUR , -. ~~ . . COMM. #2075195 :JI i ~'¢ ~ . • NOTARY PUBLIC· CALIFORNIA ~~ ;f.-SAN BERNARDIN~ ~~·~ires A"2018 (Seal) 17.a Packet Pg. 561 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) r .. Bond Number: CDGB 105142 FORM OF BID BOND KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned, Mike Roquet Construction, Inc. State National Insurance Company, Inc. administered by , as Principal, and Contractor Managing General Insurance Agency. Inc. as Surety, are hereby and firmly bound unto __ C_i~ty_o_f_Gran __ d_T_errac __ e ____ as Owner in the penal sum of ten percent of the greatest amount bid (10% of the G.A.B.)for the payment of which , will and truly to be made, we hereby jointly and severally bind ourselves, our heirs, executors, administrator, successors and assigns. Signed this __ mn_·_e_te_e_nth~(_19th~)~---day of ___ A_u_gus_t ______ _ ,2016. The condition of the above obligation is such that whereas the Principal has submitted to ___ C_i....;;.ty_o_f_Gr_an_d_T_e_rr_ac_e ____ certain Bid, attached hereto and hereby made a part hereof to enter into a Contract in writing for the PUBLIC WORKS YARD PARKING LOT IMPROVEMENT. NOW, THEREFORE, a. If said Bid shall be rejected , or in the alternate, b. If said Bid shall be accepted and the Principal shall execute and deliver a Contract in the Form of Contract attached hereto (properly completed in accordance with said Bid) and shall furnish a bond for his faithful performance of said Contract, and shall in all other respects perform the agreement created by said Bid , then this obl igation shall be void , otherwise, the same shall remain in force and effect; it is expressly understood and agreed that the liability of the Surety for any and all claims hereunder shall, in no event, exceed the penal amount of this obligation as herein stated. The Surety, for value received , hereby stipulates and agrees that the obligation of said Surety and its. bond shall be in no way impaired or affected by any extension of the time within which the Owner may accept such Bid ; and said Surety does hereby waive notice of any such extension . C-11 17.a Packet Pg. 562 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) Bond Number: CDGB105142 IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their hands and seals, and such of them as are corporations have caused their corporate seals to be hereto affixed and these presents to be signed by their proper officers, the day and year first mentioned. SEAL PRINCIPAL: Mike Roquet Construction, Inc. BY: SURETY: BY: State National Insurance Company, Inc. administered by Contractor Managing General Insurance Agency, Inc. 20335 Ventura Blvd., Suite 426 Woodland!JjilJ" ts,.t;~m~-:::::> .. C-12 17.a Packet Pg. 563 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) Bond No: CDGB105142 State National Insurance Company, Inc. Administered by: Premium: $0.00 CONTRACTOR MANAGING GENERAL INSURANCE AGENCY, INC. POWER OF ATTORNEY KNOW BY ALL THESE PRESENTS That STATE NATIONAL INSURANCE COMPANY, INC. a corporation organized and existing under the laws of the State of Texas, having its principal office in Bedford, Texas does hereby constitute and awoint Stephanie Hope Shear (individually, jointly, or se\Crally) its true and lawful agent and attorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds in an amount not to exceed: Three Million and 00/100 Dollars ($3,000,000) and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise. The acknowledgement and execution ofboud by said Attorney-in-Fact, shall be as binding upon STATE NATIONAL INSURANCE COMPANY, INC. as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by its regularly elected officers at the principal office. RESOLVED that the signature and date of any authorized officer and the seal of the Company may be affLXed by facsimile or other electronic image to any Power of Attorney or certification thereof authorizing the execution and delivery of any bond, undertaking, contracts of indemnity and other writings obligatory in the nature thereof, and such signature, date, and seal when so used shall have the same force and effect as though manually affixed. This Power of Attorney shall remain in full force and effect until revoked by STATE NATIONAL INSURANCE COMPANY, INC. in a signed writing delivered to the foregoing Attorney-in-Fact. STATE OF TEXAS County of Tarrant IN WITNESS WHEREOF, STATE NATIONAL INSURANCE COMPANY, INC. bas caused this instrument to be signed and its corporate seal to be affixed by its authorized officer, this 7th day of August, 2015. STATE NATIONAL INSURANCE COMPANY, INC. On this 7th day of August, 2015 before me came the individuals who executed the preceding instrument, to me personally known, and being by me duly sworn, said that each of the herein described and authorized officer of STATE NATIONAL INSURANCE COMPANY, INC.; that the seal affixed to said instrument is the Corporate Seal of said Company; that the Corporate Seal and each signature were duly affixed by order of the Board of Directors of said Company. IN WITNESS WHEREOF, I have hereunto set my hand at Bedford, Texas the day and year above written. ~ltirw J,L [Notary Stan1p] Signature of Notary I, the undersigned, Secretary of STATE NATIONAL INSURANCE COMPANY, INC., do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney executed by STATE NATIONAL INSURANCE COMPANY, INC., which is still in full force and effect. . . . 19th August 6 IN WITNESS WHEREOF, I have thereunto systematically set my hand and attested the seal of said Company tlus:_ ____ day of___, 201_ -;;~-/.~ /"'' • Trace l .edbetter.., Secretary 17.a Packet Pg. 564 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) . .. . • CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of LOS ANGELES AUG 1 9 2016 On before me, SHIRLEY GIGGLES, NOTARY PUBLIC Date Here Insert Name and Title of the Officer personally appeared STEPHANIE HOPE SHEAR Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Place Notary Seal Above ---------------OPTIONAL--------------- Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: Signer(s) Other Than Capacity(ies) Claimed by Signer(s) Signer's Name: ___________ _ Signer's Name: ____________ _ D Corporate Officer -Title(s): ______ _ D Corporate Officer -Title(s): ______ _ D Partner -D Limited D General D Partner -D Limited D General D Individual D Attorney in Fact D Individual D Attorney in Fact D Trustee D Guardian or Conservator D Trustee D Guardian or Conservator D Other: _____________ _ D Other: -------------~ Signer Is Representing : ________ _ Signer Is Representing: ________ _ ©2014 National Notary Association · www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907 17.a Packet Pg. 565 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-1 GENERAL PROVISIONS SECTION 1 - DEFINITIONS AND ABBREVIATIONS 1.01 CITY The word "City" shall mean the City of Grand Terrace named in the Contract Documents. 1.02 ENGINEER The word "Engineer" shall mean the Director of Public Works or individual authorized by the City to oversee the execution of this Contract, acting either directly or through properly authorized agents, each agent acting only within the scope of authority delegated to him by the Engineer. 1.03 CONTRACTOR The word "Contractor" shall mean the party entering into Contract with the City for performance of the work called for in these specifications and shown on the drawings, including the Contractor's authorized agents. 1.04 SUBCONTRACTOR The word "Subcontractor" shall mean any person, firm, or corporation entering into agreement with the Contractor for performance at the site of the work, of any part of the Contractor's obligation under the Contract. The Contractor, shall in his bid offer, set forth: (a) The name and the location of the place of business of each subcontractor who will perform work or labor or render service to the prime Contractor in or about the construction of the work or improvements, or a subcontractor licensed by the State of California who, under subcontract to the prime Contractor, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications, in an amount in excess of one-half of 1 percent of the prime Contractor's total bid. (b) The portion of the work which will be done by each such subcontractor under this contract shall be listed individually. The prime Contractor shall list only one subcontractor for each such portion as is defined by the prime Contractor in his bid. 17.a Packet Pg. 566 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-2 1.05 CONTRACT The word "Contract" shall mean the Contract Documents and shall include the written Agreement entered into by the City and the Contractor for the performance of work described in the specifications and shown on the Drawings, together with the Notice Inviting Bids, the Instruction to Bidders, the Proposal, the Information Required of Bidder, the Specifications, the Drawings, all addenda issued by the City with respect to the foregoing prior to the opening of bids, and all change orders issued by the City and signed by the Contractor pertaining to the Contract after the Contract is awarded. 1.06 SPECIFICATIONS The word "Specifications" shall mean the General Conditions of the Contract and the Special Provisions of the Contract, together with all addenda and change orders issued with respect thereto. STANDARD SPECIFICATIONS. The work embraced herein shall be done in accordance with the provisions of the Standard Specifications for Public Works Construction, 2009 Edition, commonly known as the "Greenbook", produced by Public Works Standards, Inc. and published by BNI Publications Inc., insofar as the same may apply, which specifications are hereinafter referred to as the Standard Specifications, and as modified herein. 1.07 DRAWINGS The words "Drawings" or "Contract Drawings" shall mean those drawings accompanying the Specifications which show the location, nature, extent and form of the work together with applicable details. 1.08 COUNCIL The City Council of the City of Grand Terrace. 1.09 ENGINEERS ESTIMATE The lists of estimated quantities of work to be performed as contained in the Contract Documents. 1.10 INSPECTOR The representative of the Engineer or Director of Public Works who is assigned to inspect conformance of the work in accordance with plans and specifications. 1.11 OVERLAY A supplemental surface course placed on an existing pavement to improve its surface 17.a Packet Pg. 567 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-3 conformation or increase its strength. 1.12 ROADBED That portion of the street included between the outside lines of curbs or paving. 1.13 STANDARD PLANS Standard Detail Drawings of the County of Riverside/San Bernardino and the State Department of Transportation. 1.14 SURFACE COURSE The top layer of pavement (exclusive of open graded A.C.), designed to provide structural values and a surface resistant to traffic abrasion. 1.15 TRAVELED WAY That portion of the roadway reserved for the movement of vehicles for the general public, exclusive of shoulders and auxiliary lanes. Where traffic has been diverted or restricted to certain lanes, with the approval of the City Engineer, these diversions or restricted lanes become the traveled way. 1.16 RIGHT-OF-WAY Includes City of Grand Terrace Public Right-of-Way and City of Grand Terrace Public Easements. 17.a Packet Pg. 568 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-4 SECTION 2 - SPECIFICATIONS, DRAWINGS AND RELATED DATA 2.01 INTENT OF SPECIFICATIONS AND DRAWINGS The intent of the Specifications and Drawings is that the Contractor furnish all plans, labor, materials, equipment and services, except as may be specifically noted otherwise, which are required or necessary to fully complete the work. 2.02 SPECIFICATIONS AND DRAWINGS COMPLEMENTARY The Specifications and Drawings are complementary to each other. 2.03 DISCREPANCIES IN SPECIFICATIONS AND DRAWINGS Any discrepancies, errors, or omissions found in the Specifications or Drawings shall be promptly reported to the Engineer who will issue a correction in writing. The Contractor shall not take advantage of any such discrepancies, errors, or omissions, but shall comply with any corrective measures regarding the same prescribed by the Engineer. 2.04 CONFLICTS BETWEEN SPECIFICATIONS AND DRAWINGS In case of conflict between the Specifications and the Drawings, the Specifications shall govern over the Drawings. In cases of conflict between the General Conditions and Special Provisions of the Specifications, the Special Provisions shall govern over the General Conditions. 2.05 SHOP DRAWINGS (a) Wherever called for in these Specifications or on the Drawings, or where required by the Engineer, the Contractor shall furnish to the Engineer for review, 7 prints of each shop drawing. The term "Shop Drawing" as used herein shall be understood to include detail design, calculations, fabrication and installation drawings, lists, graphs, operating instructions, etc. Unless otherwise required, said drawings shall be submitted at a time sufficiently early to allow review of same by the Engineer, and to accommodate the rate of construction progress required under the Contract. (b) All shop drawing submittals shall be accompanied by a letter of transmittal identifying Contractor, fabricator and subcontractor. The Contractor may authorize a material or equipment supplier to deal directly with the Engineer with regard to shop drawings, however, ultimate responsibility for the accuracy and completeness of the information contained in the submittal shall remain with the Contractor. (c) Normally, a separate transmittal shall be used for each specific item or class of material or equipment for which a submittal is required. Transmittal of shop 17.a Packet Pg. 569 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-5 drawings on various items using a single transmittal, will be permitted only when the item taken together constitute a manufacturer's "package" or are so functionally related that expediency indicates review of the group or package as a whole. (d) Within 15 calendar days after receipt of said prints, the Engineer will return prints of each drawing to the Contractor with his comments noted thereon. It is considered reasonable that the Contractor shall make a complete and acceptable submittal to the Engineer by the second submission of drawings. The Owner reserves the right to withhold monies due the Contractor to cover additional costs of the Engineer's review beyond the second transmission. (e) If 3 prints of the drawing are returned to the Contractor marked "NO EXCEPTIONS TAKEN", formal revision of said drawing will not be required. (f) If 3 prints of the drawing are returned to the Contractor marked "MAKE CORRECTIONS NOTED", formal revision of said drawing will not be required. (g) If one print of the drawing is returned to the Contractor marked "AMEND - RESUBMIT", the Contractor shall revise said drawing and shall resubmit 7 copies of said revised drawing to the Engineer. (h) If one print of the drawing is returned to the Contractor marked "REJECTED - RESUBMIT", the Contractor shall revise said drawing and shall resubmit 7 copies of said revised drawing to the Engineer. (I) Fabrication of an item shall not be commenced before the Engineer has reviewed the pertinent shop drawings and returned copies to the Contractor marked either "NO EXCEPTIONS TAKEN", "MAKE CORRECTIONS NOTED" or "AMEND - RESUBMIT". Revisions indicated on shop drawings shall be considered as changes necessary to meet the requirements of the Contract Drawings and Specifications and shall not be taken as the basis of claims for extra work. The Contractor shall have no claim for damages or extension of time due to any delay resulting from the Contractor's having to make the required revisions to shop drawings (unless review by the Owner or said drawings is delayed beyond a reasonable period of time and unless the Contractor can establish that the Owner's delay in review actually resulted in a delay in the Contractor's construction schedule). The review of said drawings by the Owner will be limited to checking for general agreement with the Specifications and Drawings, and shall in no way relieve the Contractor of responsibility for errors or omissions contained therein nor shall such review operate to waive or modify any provision contained in the Specifications or Contractor drawings. Fabricating dimensions, quantities of material, applicable code requirements, and other Contract requirements shall be the Contractor's responsibility. 2.06 REFERENCE TO STANDARDS OR PUBLICATIONS 17.a Packet Pg. 570 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-6 Any reference made in the Specifications or Drawings to any specifications, standard, or publication of any organization shall, in the absence of a specific designation to the contrary, be understood to refer to the latest edition of the specification, standard, or publication in effect as of date of advertising the work. 2.07 REFERENCE TO PROPRIETARY PRODUCTS Where references to proprietary products appear in the Specifications or Drawings, it is for the purpose of establishing an acceptable standard of equality or design. Unless a substitute is expressly prohibited, the Contractor may request approval of a substitute for any such proprietary product. Such request must be in writing and must include descriptive literature, specifications, test reports, or samples, as appropriate, to enable the Engineer to determine the acceptability of the product proposed for substitution. No substitute product shall be used on the work until written approval has been received from the Engineer. 2.08 SPECIFICATION AND DRAWINGS FURNISHED TO THE CONTRACTOR The Owner shall furnish the Contractor 5 sets of Specifications, together with reduced drawings (if any) and 5 sets of full-scale Drawings. Additional quantities of Specifications and Drawings will be furnished at reproduction cost. 17.a Packet Pg. 571 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-7 SECTION 3 - ENGINEER-CONTRACTOR RELATIONS 3.01 ENGINEER'S AUTHORITY (a) The Engineer will decide all questions which may arise as to the quality and acceptability of materials and equipment furnished, work performed, rate of progress of the work, interpretation of the Specifications and Drawings, and all questions as to the acceptable fulfillment of the Contract by the Contractor. (b) Any difference which may arise between the Contractor and any other contractors also under the surveillance of the Engineer will be arbitrated by the Engineer; however, the Engineer will not arbitrate disputes between the Contractor and his subcontractors. 3.02 ARBITRATION Any controversy or claim arising out of or relating to this Contract which cannot be resolved by mutual agreement shall be settled by arbitration in accordance with the rules of the American Arbitration Association. 3.03 RIGHT-OF-WAY (a) Lands or right-of-ways for the work to be constructed under the Contract will be provided by the Owner as shown on the Drawings. Nothing contained in the Specifications or Drawings shall be interpreted as giving the Contractor exclusive occupancy of the lands or right-of-ways provided. Any additional lands or right-of-ways required for construction operations shall be provided by the Contractor at his own expense. (b) Except as may otherwise be provided, the Contractor shall secure, from the agencies having jurisdiction, the necessary permits to create obstructions, to make excavations if required under the Contract, and to otherwise encroach upon right-of-ways, and present evidence to the owner that such permission has been granted, before work is commenced. Regulations and requirements of all agencies concerned shall be strictly adhered to in the performance of this Contract, including the furnishing of insurance and bonds if required by such agencies. The enforcement of such requirements under this Contract shall not be made the basis for claims for additional compensation. (c) The Contractor shall not do any work that would affect any oil, gas, sewer, or water pipeline, any telephone, telegraph, or electric transmission line, fence, or any other structure, nor enter upon the right-of-ways involved until notified that the Owner has secured authority therefore from the proper party. After authority has been obtained, the Contractor shall give said party due notice of his intention to begin work, and shall give said party convenient access and every facility for removing, shoring, supporting, or otherwise protecting such pipeline, 17.a Packet Pg. 572 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-8 transmission line, ditch, fence, or structure, and for replacing same. The Contractor shall not be entitled to any extension of time or extra compensation on account of any postponement, interference, or delay caused by any such pipeline, transmission line, fence, or structure being on the line of the work except as provided in Section 3.04. 3.04 CONSTRUCTION INTERFERENCES (a) As used in this section, the word "Utility" shall be understood to include tracks, overhead or underground wires, cables, pipelines, conduits, ducts, sewers or storm drains. As used in this Section, the term "Service Connection" shall be understood to mean all or any portion of a pipeline (including sewer house laterals), conduit, wire, cable or duct, including meter, between a utility distribution line and an individual customer, or customers when served by a single service connection. As used in this Section, the term "Construction Interference" shall be understood to include any utility or service connection within the limits of excavation or over excavation required for the work under the Contract as shown or as ordered by the Engineer, or any utility or service connection located in the space which will be required by any of the work under this Contract. (b) In the event any utility or service connection is required to be disturbed or removed to permit construction of a pipeline or other structure under the Contract, such disturbance or removal shall be done only with the approval of the Engineer and following notification to the Owner of the interfering utility or service connection. Any such utility or service connection removed or otherwise disturbed shall be reconstructed as promptly as possible in its original or other authorized location in a condition at least as good as prior to such removal or disturbance, subject to the inspection of the owner of same. The Contractor's responsibility under this Section to remove or replace shall apply even in the event such damage or destruction occurs after backfilling. The Owner of the utility or service connection shall be notified immediately after damage or destruction occurs or is discovered. (c) During the performance of the work under this Contract, the Owner of any utility affected by the work shall have the right to enter when necessary upon any portion of the work for the purpose of maintaining service and of making changes in or repairs to said utility. (d) The Drawings show the approximate positions of known utilities in the immediate vicinity of the work, but the City does not guarantee that all existing utilities are shown. Service connections normally are not shown on the Drawings. The Contractor, before commencing any excavation, shall ascertain from records or otherwise, the existence, horizontal and vertical position, and ownership of all existing utilities and service connections. If the Contractor discovers any utility in the line of the work which is not shown on the Drawings, he shall immediately notify the Engineer of the existence of same. The City will 17.a Packet Pg. 573 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-9 not be liable for any consequences arising as a result of a service connection being incorrectly located in the field by the agency having jurisdiction over said service connection. "--Notwithstanding any provisions to the contrary contained in Section 4215 of the California Government Code, the provisions of which are hereby waived by the Contractor." (e) All costs involved in removing, relocating, protecting supporting, repairing, maintaining or replacing a main trunkline or utility facility which actually constitutes a construction interference, when said utility is not shown with reasonable accuracy as an interference or is omitted from the Drawings, will be paid for by the Owner as extra work. In such case, the Owner will also compensate the Contractor for equipment on the project necessarily idled during and by reason of such work. The Owner's obligation to repair damage to such a facility and to compensate the Contractor for idled equipment shall not extend to damage resulting from the failure of the Contractor to use reasonable care. (f) All costs involved in removing, relocating, protecting, supporting, repairing, maintaining or replacing any utility or service connection other than those described in Subsection (e) herein shall be borne by the Contractor. (g) The Contractor shall not be assessed liquidated damages for failure to complete the work on time to the extent that such delay was caused by failure of connection to authorize or otherwise provide for its removal, relocation, protection, support, repair, maintenance and replacement. (h) The City reserves the right, upon the determination of the actual position of existing utilities, and service connections, to make changes in alignment or grade of the Owner's pipelines when, by so doing, the necessity for relocation of existing utilities or services connections will be avoided. Such changes will be ordered in writing by the Engineer. Where applicable, adjustment in the Contract price will be on the basis of the unit prices stated in the Bidding Schedule. Where unit prices in the Bidding Schedule are not applicable, adjustment in Contract price will be in accordance with Section 5.02. 3.05 LINES AND GRADES (a) Lines and Grades shall be provided by the Owner to the extent specified in Special Provisions. (b) The Contractor shall preserve all bench marks, stakes, and other survey marks, and in case of their removal or destruction by his employees, he shall be liable for the cost of their replacement. 3.06 LEGAL ADDRESS OF CONTRACTOR 17.a Packet Pg. 574 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-10 The address given in the form entitled "INFORMATION REQUIRED OF BIDDER" is hereby designated as the place to which all notices, letters, and other communications to the Contractor will be mailed or delivered. The mailing or delivering to said address of any notice, letter, or other communication shall be deemed sufficient service thereof upon the Contractor. The date of such service shall be the date of such mailing or delivery. Said address may be changed at any time by written notice signed by the Contractor and delivered to the Engineer. 3.07 CONTRACTOR'S SUPERINTENDENCE A qualified superintendent, acceptable to the Engineer, shall superintend the work and shall provide competent supervision of the work until its completion. The superintendent shall have full authority to act in behalf of the Contractor, and all directions given by the Engineer to the superintendent shall be considered given to the Contractor. If the superintendent is not present on a part of the work where the Engineer desires to give instructions, such instructions may be given by the Engineer to the foreman in charge of the particular work to which the instructions apply. Such instructions given to a foreman likewise shall be considered given to the Contractor. Such instructions given by the Engineer to the superintendent or to a foreman, when they concern items of substantial importance, will be confirmed in writing. All instructions within the Engineer's authority as specified in Section 3.01. All as provided for in this Subsection of the Standard Specifications except the Contractor shall submit a phone number or numbers where he or his representative may be contacted 24 hours a day, 7 days a week in the event of an emergency. 3.08 PROTESTS If the Contractor considered any work demanded of him to be outside the requirements of the Contract, or if he considers any order, instruction, or decision of the Engineer or of any inspector to be unfair, he shall, immediately upon receipt of such order, instruction, or decision, ask for a written confirmation of the same, whereupon he shall proceed without delay to perform the work or to conform to the order, instruction, or decision satisfactory; but, unless the Contractor finds such order, instruction, or decision satisfactory, he shall within 10 days after receipt of same, file a written protest with the Engineer, stating clearly and in detail his objections and the reasons therefore. Except for such protests or objections as are made of record in the manner specified and within the time stated herein, the Contractor hereby waives all round for protests or objections to the orders, instructions, or decisions of the Engineer and hereby agrees that, as to all matters not included in such protest, the orders, instructions and decisions of the Engineer and hereby agrees that, as to all matters not included in such protest, the orders, instructions and decisions of the Engineer will be limited to matters properly falling within the Engineer's authority as specified in Section 3.01. 3.09 INSPECTION AND TESTING (a) All materials furnished and all work performed under the Contract shall be subject to inspection by the Engineer. The Contractor shall be held strictly to the true intent of the Specifications and Drawings in regard to quality to materials, 17.a Packet Pg. 575 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-11 workmanship, and diligent execution of the Contract. Such inspection may include mill, plant, shop or field inspection as required. The Engineer shall be permitted access to all parts of the work, including plants where materials or equipment are manufactured or fabricated, and he shall be furnished with such materials, information and assistance by the Contractor and his subcontractors and suppliers as is required to make a complete and detailed inspection. (b) Work done in the absence of prescribed inspection may be required to be removed and replaced under the proper inspection, and the entire cost of removal and replacement, including the cost of all materials shall be borne by the Contractor, regardless of whether the work removed is found to be defective or not. Work covered up without the authority of the Engineer, shall, upon the order of the Engineer be uncovered to the extent required, and the Contractor shall similarly bear the entire cost of performing all the work and furnishing all the materials necessary for the removal of the covering and its subsequent replacement, as directed and approved by the Engineer. (c) Except as otherwise provided herein, the cost of inspection will be paid by the Owner. All inspection fees imposed by agencies other than the Owner shall be paid by the Contractor. (d) The Engineer will make, or have made, such tests as he deems necessary to insure that the work is being accomplished in accordance with the requirements of the Contract. Unless otherwise specified in the Special Conditions, the cost of such testing will be borne by the Owner. In the event such tests reveal non-compliance with the requirements of the Contract, the Contractor shall bear the cost of such corrective measures deemed necessary by the Engineer, as well as the cost of subsequent retesting. 3.10 ASSIGNMENT FORBIDDEN (a) The Contractor shall not assign, sublet, sell, transfer, or otherwise dispose of the Contract or any portion thereof, or his right, title, or interest therein, or his obligations thereunder, without the written consent of the Owner. (b) If the Contractor violates the provisions of Subsection 3.10 (a), the Contract may be terminated at the option of the Owner. In such event, the Owner shall be relieved of all liability and obligations to the Contractor, and to his assignee or transferee, growing out of such termination. 3.11 SUBCONTRACTS (a) In the Owner's discretion, subcontracts may be permitted to such extent as shall be shown to be necessary or advantageous to the Contractor in the prosecution of the work and without injury to the Owner's interests. The resubletting of the work by a subcontractor shall be subject to the same 17.a Packet Pg. 576 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-12 limitations as an original subletting. Each subcontractor shall be properly licensed for the type of work which he is to perform. (b) A copy of each subcontract, if in writing (or if not in writing, then a written statement signed by the Contractor giving the name of the Subcontractor and the terms and conditions of each subcontract), shall be filed promptly upon the Owner's request. Each subcontract shall contain a reference to the Agreement between the Owner and the Contractor, and the terms of that Agreement covered thereby. Each subcontract shall provide for annulment of the same by the Contractor upon written order of the Engineer, if, in the Owner's opinion, the Subcontractor fails to comply with the requirements of the prime Contract insofar as the same may be applicable to this work. (c) The Contractor shall be responsible to the Owner for the acts and omissions of his subcontractor and their employees to the same extent as he is responsible for the acts and omissions of his own employees. Nothing contained in this Section shall create any contractual relationship between any subcontractor and the Owner or relieve the Contractor of any liability or obligation under the prime Contract. 3.12 SUSPENSION OF WORK (a) The Owner may, by written notice to the Contractor, suspend the work, in whole or in part, for such period or periods as he may deem necessary, due to unsuitable weather, delay in delivery of Owner-furnished equipment or materials, or such other conditions as are considered unfavorable for prosecution of the work, or failure on the part of the Contractor to carry out the provisions of the Contract or to provide materials or workmanship meeting the requirements of the Specifications. Suspended work shall be resumed by the Contractor within 10 days of receipt from the Owner of written notice to proceed. (b) The Contractor shall have no claim for damages alleged to have been suffered by reason of any suspension of the work without termination of the Contract, and he shall receive no additional compensation because of any such suspension. 3.13 TERMINATION OF CONTRACT BY OWNER (CONTRACTOR NOT AT FAULT) The Owner may terminate the Contract upon 10 days written notice to the Contractor, if it is found that reasons beyond the control of either the Owner of Contractor make it impossible or against the Owner's interests to complete the work. In such a case, the Contractor shall have no claims against the Owner except (1) for the value of work performed up to the date the Contract is terminated, and (2) for the cost of materials and equipment on hand, in transit or 17.a Packet Pg. 577 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-16 on definite commitment, as of the date the Contract is terminated, which would be needed in the work and which meet the requirements of the Specifications. The value of the work performed and the cost of the materials and equipment delivered to the site, as mentioned above, shall be determined by the Engineer in accordance with the procedure prescribed for the making of the final estimate and payment as described in Section 5.08. 3.14 TERMINATION OF CONTRACT BY OWNER (CONTRACTOR AT FAULT) (a) The Owner may terminate the Contract upon 10 days written notice to the Contractor in the event of any default by the Contractor. It shall be considered a default by the Contractor whenever he shall (1) declare bankruptcy, become insolvent, or assign his assets for the benefit of his creditors; (2) disregard or violate important provisions of the Contract documents or Engineer's instructions, or fail to prosecute the work according to the approved progress schedule; or (3) fail to provide a qualified superintendent, competent workmen, or subcontractors, or materials or equipment meeting the requirements of the Specifications and Drawings. (b) In the event the Contract is terminated in accordance with Subsection 3.14(a), the Owner may take possession of the work and of all materials, tools, equipment, and property of the Contractor, which have been provided in connection with the work, and may complete the work by whatever method or means he may select. The cost of completing the work shall be deducted from the Contract balance and the work completed in accordance with the Drawings and Specifications. If such cost exceeds the balance which would have been due, the Contractor shall pay the excess amount to the Owner. If such cost is less than the balance which could have been due, the Contractor shall have no claim to the difference except to such extent as may be necessary, in the opinion of the Engineer, to reimburse the Contractor or the Contractors sureties for any expense properly incurred for materials, tools, equipment, property, and labor, devoted to the prosecution of the work, of which the Owner shall have received the benefit. In computing such expenses, as it relates to equipment and property, the salvage value at completion of the work shall be deducted from the depreciated value at the time the Contract was terminated, and the difference shall be considered as an expense. 3.15 TERMINATION OF CONTRACT BY CONTRACTOR The Contractor may terminate the Contract upon 10 days written notice to the Owner, whenever (1) the entire work has been suspended in accordance with Section 3.12, for 60 consecutive calendar days through no fault or negligence of the Contractor, and notice to resume work or to terminate the Contract has not been received from the Owner within this time period; or (2) the Owner should fail to pay the Contractor any substantial sums due him in accordance with the terms of the Contract and within the time limits prescribed. In the event of such termination, the 17.a Packet Pg. 578 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-17 Contractor shall have no claim against the Owner except for those claims specifically enumerated in Section 3.13. 3.16 FAILURE TO COMPLY If the Contractor should refuse or neglect to comply with the provisions of the Contract or the orders of the Owner, the Owner may have such provisions or orders carried out by others at the expense of the Contractor. 3.17 CONTRACT TIME OF COMPLETION The Contractor shall complete the construction of the work to the satisfaction of the Owner, in accordance with the Standard Specifications and the Special Conditions. A "Notice to Proceed" will be issued by the Owner, the date of which shall commence the Contract time. The allotted time for this project is as follows: All work shall be performed on a Friday and Saturday, if more than one day is needed, from 7:30am – 6:00pm. SECTION 4 - MATERIALS AND WORKMANSHIP 4.01 SAFEGUARDING OF EQUIPMENT, MATERIALS AND WORK The Contractor shall properly safeguard all equipment, materials, and work against loss, damage, malicious mischief, or tampering by unauthorized persons until acceptance of the work by the City. Locked and covered storage or continuous surveillance by a watchman shall be provided if required to accomplish this purpose. 4.02 NEW MATERIALS AND EQUIPMENT Unless otherwise specified, shown, or permitted by the Engineer, all materials and equipment incorporated in the work shall be new and current manufacture. The Engineer may request the Contractor to furnish manufacturer's certificates to this effect. 4.03 CONTRACTOR'S UTILITIES The Contractor shall provide his own water, telephone, and all electric power required in performance of the work under the Contract, and shall pay all installation charges and monthly bills in connection therewith. 4.04 TITLE TO MATERIALS FOUND ON THE WORK The City reserves the right to retain title to all soils, stone, sand, gravel, and other materials developed and obtained from the excavation and from other operations connected with the 17.a Packet Pg. 579 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-18 work. Unless otherwise specified in the Special Provisions, neither the Contractor nor any subcontractor shall have any right, title, or interest in or to any such materials. The Contractor will be permitted to use in the work, without charges, any such materials which meet the requirements of the Special Provisions and Drawings. 4.05 DEFECTIVE EQUIPMENT, MATERIALS OR WORK (a) Inspection of the work shall not relieve the Contractor of any of his obligations under the Contract. Even though equipment, materials or work required to be provided under the Contract have been inspected, accepted and estimated for payment, the Contractor shall, at his own expense, replace or repair any such equipment, materials, or work found to be defective or otherwise not in compliance with the requirements of the Contract up to the end of the maintenance and guarantee period. (b) Any equipment or materials brought upon the job site by the Contractor and subsequently rejected by the Engineer as not complying with the requirements of the Contract shall be removed immediately by the Contractor to a satisfactory distance from the job site. (c) If the Contractor shall fail to repair or replace unsatisfactory equipment, materials, or work, or to remove unsatisfactory equipment or materials from the job site, within 10 calendar days after being ordered to do so by the Engineer, the Engineer, acting on behalf of the City, may make the ordered repairs or remove the condemned equipment or materials and the City will deduct the cost thereof from any monies due or to become due the Contractor. 4.06 SOUND CONTROL REQUIREMENTS 4.07 RUBBISH CONTROL During the progress of the work, the Contractor shall keep the site of the work and other areas used by him in a neat and clean condition, and free from any accumulation of rubbish. 4.08 DUST CONTROL The Contractor shall at all times conduct his work so as to avoid unnecessary dust. He shall provide adequate equipment and water as determined by the Engineer to be necessary for accomplishment of this objective. 4.09 CHARACTER OF WORKMEN None but skilled workmen shall be employed on work requiring special qualifications. When required in writing by the Engineer, the Contractor or any subcontractor shall discharge any person who is, in the opinion of the Engineer, incompetent, disorderly, or otherwise unsatisfactory, and shall not again employ such discharged person on the work except with the 17.a Packet Pg. 580 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-19 consent of the Engineer. Such discharge shall not be the basis of any claim for damages against the City or any of his agents. 17.a Packet Pg. 581 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-17 SECTION 5 - PROGRESS AND PAYMENT 5.01 BREAKDOWN OF CONTRACT PRICE Prior to commencement of the work, if requested by the Engineer, the Contractor shall submit a detailed price breakdown of any or all of his bid items for the work. Such price breakdown shall include quantities, unit prices, and any other information required, in sufficient detail, to enable it to be used by the Engineer in preparing the monthly progress estimates. The Contractor shall use the price breakdown form bound with Specifications if one is included. 5.02 CHANGE ORDERS (a) The City may, as the need arises, order changes in the work through additions, deletions, or modifications, without invalidating the Contract. Such changes will be effected through written change orders delivered to the Contractor, describing the change required in the work, together with any adjustment in Contract price or time of completion as hereinafter provided. No such change shall constitute the basis of claims for damage or anticipated profits; however, the City will make reasonable allowance for the value of any work materials or equipment furnished and subsequently rendered useless because of such change. Any adjustment in Contract price resulting from a change order will be considered in computing subsequent monthly payments due the Contractor. Any work performed in accordance with a change order shall be subject to all provisions of the original Contract, and the Contractor's sureties shall be bound thereby to the same degree as under the original Contract. (b) No labor cost for move in and out of minimum charges, other than the hourly rate, shall be allowed for persons available from the force already on the job site. Only the foremen directly supervising the job shall be included in the labor charges. Labor rates for delays will be the actual costs. Labor rates for extra work will be taken from the rates published periodically by the California Department of Transportation. Equipment rental rates for delays and for extra work will be taken from the rates published periodically by the California Department of Transportation. Move in and out or minimum charges other than the hourly rate, shall not apply to equipment available from the force already on the job site. Right-of-way delay factors shown on the Equipment Rental Rates do not apply. Copies of the prevailing Equipment Rental Rates are available from the: STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION 1900 ROYAL OAKS DRIVE SACRAMENTO, CALIFORNIA 95819 17.a Packet Pg. 582 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-18 (c) Any adjustment in Contract price shall be based on unit price bid on the work, where such bid items are applicable. (d) If the original bid prices are not applicable, the adjustment in Contract price shall be based on a lump sum or unit price agreed upon by the City and the Contractor prior to executing the change order. (e) If the original bid prices are not applicable and the City and Contractor are unable to agree upon a lump sum or unit price prior to executing the change order, the adjustment in Contract price shall be made on a cost-plus basis. In such an event, the following items will be included as the direct costs: Materials and supplies Labor (including foremen's wages) Workmen's Compensation Insurance Unemployment insurance contributions paid to the State Social Security Taxes paid to the Federal Government Labor union health and welfare, pension, vacation-holiday, and apprenticeship fund contributions Reasonable value for use of equipment for actual time of use In addition to the direct costs enumerated above, the City will pay to the Contractor for said extra work a percentage of said direct costs to compensate for the following profit and overhead items: Profit General expenses All insurance except Workmen's Compensation Insurance Excise taxes Property taxes License and inspection fees Bond premiums All other items of expense not specifically enumerated above Said percentage will be 15 percent of said direct costs provided the Contractor actually performs said extra work himself. In the event said extra work is performed by a Subcontractor, the percentage paid to the Contractor will be 20 percent of said Subcontractor's direct costs. Said percent will include allowance for profit and overhead costs for both the Contractor and Subcontractor. In the event said extra work is performed through more than one Subcontractor in succession, said percentage will not exceed 25 percent. (f) When work is being performed on a cost-plus basis, the Contractor shall submit written reports as directed by the City, showing all items of direct cost, as defined in Subsection 5.02 (e), which enter into the work. If required by the City, the Contractor shall furnish books, vouchers, invoices, and other records to substantiate the direct cost items listed in said reports. 17.a Packet Pg. 583 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-19 5.03 OVERTIME Except as otherwise provided in this Section, the Contractor shall receive no additional compensation for overtime work even though such overtime work may be required under emergency conditions and may be ordered by the Engineer in writing. Additional compensation will be paid the Contractor for overtime work only in the event extra work is ordered by the Engineer and the change order specifically authorizes the use of overtime work, and then only to such extent as overtime wages are regularly being paid by the Contractor for overtime work of a similar nature in the same locality. 5.04 EXTENSION OF TIME (a) The Contractor may be entitled to an extension of Contract time (1) if the work has been suspended by the City, in whole or in part; or (2) Where weather or other circumstances occur which delay progress and which are clearly beyond the control of the Contractor; provided that, in either case, the Contractor is not at fault and is not negligent under the terms of the Contract. The extension of time allowed shall be as determined by the City. (b) To receive consideration, a request for extension of time must be made in writing to the City stating the reason for said request, and such request must be received by the City within 10 days following the end of the delay-causing condition. 5.05 LIQUIDATED DAMAGES (a) The Contractor shall pay to the City the amount of two hundred and fifty dollars per day, not as a penalty but as liquidated damages, if he fails to complete the work within the time agreed upon. The period for which said damages shall be paid shall be the number of calendar days from the date of termination of any extension of time approved by the City. The City may deduct the amount of said damages from any monies due or to become due the Contractor. (b) The said amount is fixed and agreed upon by and between the Contractor and the City because of the impracticability and extreme difficulty fixing and ascertaining the actual damages the City would sustain; and said amount is agreed to be the amount of damages which the City would sustain. (c) The Contractor will not be assessed liquidated damages for delay in completion of the project, which such a delay was caused by the failure of the City or the Owner of a utility to provide for removal or relocation of an existing unknown utility facility. 5.06 PROGRESS SCHEDULES 17.a Packet Pg. 584 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-20 Within 10 days after award of the Contract, or at such times as may be required by the City, the Contractor shall submit progress schedules showing the order in which he proposed to carry on the work and the dates when the various parts will begin and be completed. Progress schedules shall be subject to the approval of the City and if in his opinion a schedule submitted is inadequate to secure the completion of the work in the time agreed upon, or is otherwise not in accordance with the Specifications, he may require the Contractor to submit a new schedule which will insure timely completion of the work. 5.07 MONTHLY ESTIMATES AND PAYMENTS (a) On or about the 25th day of each month, the Engineer shall prepare and transmit to the City, an estimate of the cumulative amount and value of work performed by the Contractor up to that date. Except as may otherwise be provided in the Special Provisions, said amount will include 80 percent of the value of all acceptable materials and equipment delivered to the site of the work. Said value will be based on certified copies of invoices delivered by the Contractor and Engineer. To this figure will be added all amounts due or paid the Contractor for performance of extra work in accordance with change orders. From the total computed above, a deduction of 10 percent will be made. Further deductions will be made for: (1) amounts due the City for equipment or materials furnished or services rendered; (2) amounts due the City under the terms of the Contract; (3) amounts of any claims of lien filed with the City in accordance with Section 6.05; and (4) amounts required to be deducted by Federal, State, or local governmental authority. From the balance thus determined will be deducted the amount of all previous payments and the remainder shall constitute the partial payment due the Contractor. (b) The City's estimate of the partial payment due the Contractor will not be required to be made by strict measurement, and an approximate estimate will suffice. The partial payments may be withheld or reduced if in the City's opinion, the Contractor is not diligently or efficiently endeavoring to comply with the intent of the Contract, or if the Contractor fails to pay his labor and material bills as they become due. (c) Contractor shall furnish the City promptly, upon request, all information and records necessary to determine the cost of the work for purposes of estimating partial payments, including an itemized statement, in a form satisfactory to the City, of the actual cost of all acceptable materials delivered by the Contractor to the site. (d) No partial payment shall be construed as an acceptance of the work or of any portion of the work, nor shall the making of such payment preclude the City from demanding the recovering from the Contractor such damages as it may sustain by reason of the Contractor's failure to comply with requirements of the Contract. 17.a Packet Pg. 585 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-21 (e) In the event the Contract is terminated, any funds due the Contractor and retained by the City in accordance with Subsection 5.07 shall become the property of the City to the extent necessary to repay to the City any excess in the Contract price above the cost of the work completed at the time of termination. After issuance of notice of discontinued work, no further payments will be made to the Contractor for the work covered by the notice until completion of the work and final settlement has been made. (f) Securities may be substituted by the Contractor for monies withheld as a retention by the City to insure the performance of the work described in the Contract agreement. At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a State or Federally chartered bank as the escrow agent, who shall pay such moneys to the Contractor upon satisfactory completion of the Contract. Securities eligible for investment under this Section shall include those listed in Section 16430 of the Government Code or bank or savings and loan certificates of deposit. The Contractor shall be the beneficial owner of any securities substituted for money withheld and shall receive any interest thereon. 5.08 FINAL ESTIMATE AND PAYMENT (a) When the City is of the opinion that the Contractor has completely performed all work required under the Contract, he will submit to the Contractor a draft of the final estimate. The Contractor will be expected to submit his written approval of said final estimate within 5 calendar days after receipt or, in the event the Contractor disagrees with said final estimate, he shall, within said 5-day period, file a written statement of all claims which he intends to present. If the Contractor delays more than 5 calendar days in approving said final estimate or in presenting his own claims, the time for the final payment shall be extended by the period of such delay. (b) Upon receipt by the City of the Contractor's written approval of said final estimate in accordance with Subsection 5.08(a), the City will certify physical completion of the work. (c) After acceptance of the work by the City and 35 calendar days after filing of the Notice of Completion, the City will pay to the Contractor the amount remaining after deducting all prior payments and all amounts to be kept or retained under the provisions of the Contract. In the event acceptance of the work is delayed more than 30 calendar days beyond the date of the last partial payment under the Contract, the City will make further partial payment in accordance with Section 5.07. (d) If the Contractor disagrees with the City's final estimate and files a written statement of his claims in accordance with Subsection 5.08(a), the City will issue, as a semi-final estimate, the proposed estimate submitted to the Contractor, and 17.a Packet Pg. 586 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-22 the City will make payment estimate submitted to the Contractor, in accordance with the provisions of Subsection 5.08(c). The City then will investigate the Contractor's claims, make any revisions to said semi-final estimate as he appropriate. The City then will make final payment to the Contractor in accordance with the provisions of Subsection 5.08(c). 5.09 FINAL PAYMENT TERMINATES LIABILITY OF OWNER The acceptance by the Contractor of the final payment referred to in Subsection 5.08(c) shall be a release of the City and its agents from all claims of and liability to the Contractor for anything done or furnished for, or relating to, the work or for any act or neglect of the City or of any person relating or affecting the work, except claims against the City for the remainder, if any, of the amounts kept or retained under the provisions of Section 6.05. 17.a Packet Pg. 587 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-23 SECTION 6 - BONDS, INSURANCE, LEGAL RESPONSIBILITY, AND PUBLIC SAFETY 6.01 FAITHFUL PERFORMANCE BOND Each bond which is written by an out-of-state bonding company shall contain the name, address and telephone number of an agent located in the State of California who is authorized to act for the bonding company. The Contractor shall secure with a corporate surety or sureties satisfactory to the City, a bond in the amount of 100 percent of the total Bid Amount to guarantee faithful performance of the Contract. The amount of this Faithful Performance Bond shall be reduced to 50% of the Contract amount or $500.00 whichever is greater and shall remain in full force and effect for one year from the date of the Final Notice of Completion to assure and guarantee against any defective materials furnished in the performance of the Contract. 6.02 LABOR AND MATERIAL BOND The Contractor shall secure with a corporate surety or sureties satisfactory to the City, a bond in the amount of 100 percent of the total Bid Amount to guarantee payment of claims of laborers and material-men under the Contract. 6.03 ADDITIONAL SURETY If, during the life of the Faithful Performance Bond, any of the sureties named in said bond become insufficient in the opinion of the City, he may require the Contractor to furnish additional sufficient sureties within 5 days of receipt of written order to do so. In the event the Contractor fails or neglects to furnish sufficient additional sureties, when ordered, within the prescribed time period, the City may suspend the work or terminate the Contract, and the Contractor shall have no claim for damages. 6.04 CONTRACTOR INDEBTEDNESS Indebtedness incurred for any cause in connection with this work must be paid by the Contractor and the City is hereby relieved at all times from any indebtedness or claim other than payments under terms of the Contract and the Contractor will indemnify and hold harmless the City and its officers and employees from any loss, demand, damages, claims or actions arising from or in connection with said indebtedness. 6.05 UNPAID CLAIMS If, upon or before the completion of the work, or at any time prior to expiration of the period within which claims of lien may be filed of record, any person claiming to have performed any labor or to have furnished any materials, supplies, or services toward the performance of this Contract, or to have agreed to do so, shall file with the City a verified statement of such 17.a Packet Pg. 588 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-24 claim stating in general terms the kind of labor and materials, the value of same, and the name of the person to or for whom the same was furnished, together with a statement that the same has not been paid; or if any person shall bring against the City or any of its agents. Any action to enforce such claim the City will, until the action is settled, withhold from monies due the Contractor an amount sufficient to satisfy the decision of the court together with costs. 6.06 INSURANCE (a) General - The Contractor shall not commence work under this Contract until he has obtained all the insurance required under this Section and such insurance has been approved by the City, nor shall the Contractor allow any subcontractor to commence work on his subcontract until the insurance required of the subcontractor has been so obtained and approved. All insurance required under this Section shall be maintained continuously during the life of the Contract up to the date of acceptance of the work by the City. (b) Worker's Compensation Insurance - The Contractor shall procure and maintain Workmen's Compensation Insurance as required by applicable State or territorial law for all of his employees to be engaged in work at the site of the project under this Contract, and, in case of any such work sublet the Contractor shall require the subcontractor similarly to provide Workman's Compensation Insurance for all of the latter's employees to be engaged in such work unless such employees are covered by the protection afforded by the Contractor's Workmen's Compensation Insurance. In case any class of employees engaged in hazardous work on the project under this Contract is not protected under the Worker's Compensation Statute, the Contractor shall provide and shall cause each subcontractor to provide adequate employer's liability insurance for the protection of such of his employees as are not otherwise protected. (c) Contractor's Public Liability and Property Damage Insurance and Vehicle Liability Insurance - The Contractor shall procure and maintain Contractor's Liability Insurance in the amounts specified herein. (d) Subcontractor's Public Liability and Property Damage Insurance and Vehicle Liability Insurance - The Contractor shall either (1) require each of his subcontractors to procure and to maintain Subcontractor's Public Liability and Property Damage Insurance and Vehicle Liability Insurance of the type and in the amounts specified in the Special Provisions or, (2) insure the activities of his subcontractors in his own policy, in like amount. (e) Builder's Risk Insurance (Fire and Extended Coverage) - The Contractor shall procure and maintain Builder's Risk Insurance (All Risk Coverage) on a 100 percent completed value basis on the insurable portion of the project for the benefit of the City, the Contractor and subcontractors as their interests may appear. 17.a Packet Pg. 589 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-25 (f) Scope of Insurance - The insurance required under Subsections (c) and (d) hereof shall provide adequate protection for the Contractor and his subcontractor's respectively, against damage claims which may arise from operations under this Contract, whether such operations be by the insured or by anyone directly or indirectly employed by him. In addition, the insurance required under subsections (c), (d) and (e) hereof shall name the City and Engineer, and their officers, agents and employees, as "additional insured" under the policies. The insurance coverage should contain the following provisions: "Solely as respects work done by and on behalf of the named insured for the City of Grand Terrace, it is agreed that the City of Grand Terrace, is added as an additional insured under this policy. It is further agreed that the other insurance conditions of the policy are amended to conform therewith." All liability insurance policies shall bear an endorsement or shall have attached a rider whereby it is provided that, in the event of expiration, material alteration, or proposed cancellation of such policies for any reason whatsoever, the City shall be notified by registered or certified mail not less than 30 days before expiration, material alteration or cancellation is effective. All liability insurance shall cover comprehensive general and automobile liability for both bodily injury (including death) and property damage, including but not limited to aggregate products, aggregate operations, aggregate protective and aggregate contractual with the following minimum limits: Bodily injury (including death) $1,000,00 each person, $1,000,000 each occurrence Property Damage $500,000 each occurrence, $1,000,000 aggregate Special attention is directed to possible flood hazards, and/or nuisance water such as irrigation and other runoff. The Contractor shall be responsible for all injuries or damages to any portion of the work occasioned by the above causes and he shall make good such injuries or damages at no cost to the City prior to the completion and acceptance of the work. (g) Proof of Insurance - The Contractor shall furnish the City with certificates showing the type, amount, class of operations covered, effective dates and date of expiration of policies. Such certificates shall also contain substantially the following statements: "The insurance covered by this certificate will not be cancelled or materially altered, except after 30 days written notice has been received by the City." 17.a Packet Pg. 590 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-26 6.07 NO PERSONAL LIABILITY The Contractor shall indemnify and save harmless the City, its officers, agents, and employees, against and from all claims and personal liability arising under or by reason of the Contract or any performance of the work. 6.08 DIR REQUIREMENTS Pursuant to State Bill 854, the following new requirements apply to all public works projects: A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform pubic work pursuant to Section 1725.5 at the time the contract is awarded. The website for contractor registration with the Department of Industrial Relations (DIR) is https://efiling.dir.ca.gov/PWCR; the annual non-refundable fee, valid July 1 through June 30 (state fiscal year), is $300. Contractors and subcontractors must submit electronic payroll records to the DIR's Compliance Monitoring Unit (CMU) in addition to providing wet-ink original copies to the City or its designated labor compliance officer. 6.09 PERMITS AND LICENSES Unless otherwise provided in the Special Provisions, the Contractor shall obtain at his own expense all permits and licenses required for prosecution of the work and shall pay all taxes properly assessed against his equipment or property used in connection with the work. No work shall be started within the street right-of-way or on City property until the Contractor has obtained the necessary permits. The Contractor shall obtain and pay for all permits and fees and give all notices necessary and incident to the due and lawful prosecution of the work and to the preservation of the public health and safety. Fees will not be collected on those permits obtained from the City Engineer's Office. For work on private property where shown on the plans, the City will provide rights of entry at no cost to the Contractor. Such rights of entry do not relieve the Contractor of the need to provide at his cost, permits and insurance required of the Contractor by other agencies and organizations. The Contractor shall obtain and pay for all costs incurred for licenses necessitated by his operations. Prior to starting any work, the Contractor shall be required to have a City Business License valid for the life of the Contract; his subcontractors shall also have Business Licenses valid for the time they are engaged in work. 17.a Packet Pg. 591 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-27 6.10 SALES AND USE TAXES The Contractor shall pay all sales and use taxes assessed by Federal, State or local authorities on materials furnished by the Contractor in performance of the work. 6.11 PATENTS AND COPYRIGHTS The Contractor shall indemnify and save harmless the City and its officers, agents, and employees, against all claims or liability arising from the use of any patented or copyrighted design, device, material, or process by the Contractor or any of his subcontractors in the performance of the work. 6.12 Reserved 6.13 PUBLIC SAFETY AND CONVENIENCE - Please refer to Special Provisions For convenience to the Contractor to comply with the other provisions of this section, the following telephone numbers are listed. Fire Department 909-825-0221 Sheriff Department 909-824-0680 Courtesy Ambulance Service 909-884-3155 RTA 909-682-1234 Colton Unified School District 909-976-4110 If the above telephone numbers are changed, the Contractor is not relieved of his responsibility of notifying the various departments. 6.14 SANITARY PROVISIONS The Contractor shall provide and maintain such sanitary accommodations for the use of his employees and those of his subcontractors as may be necessary to comply with the requirements of local and State health departments. 6.15 FEDERAL SAFETY AND HEALTH REGULATIONS (a) Contractors and subcontractors shall comply with the provisions of the Safety and Health Regulations for construction, promulgated by the Secretary of Labor under Section 107 of the "Contract Work Hours and Safety Standards Act", as set forth in Title 29, C.F.R. (b) Contractors and subcontractors shall comply with the provisions of the Occupational Safety and Health Standards, promulgated by the Secretary of Labor under the "Occupational Safety and Health Act of 1970," as set forth in Title 29. C.F.R. 17.a Packet Pg. 592 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-28 SECTION 7 - STATE OF CALIFORNIA REQUIREMENTS 7.01 WAGES (a) Pursuant to the provisions of the California Labor Code, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the said work is performed, and not less than the general prevailing rate of per diem wages for legal holidays and overtime work in each craft or type of workmen needed to execute the work contemplated under the Contract, shall be paid to all workmen on and in connection with said work by the Contractor and by any subcontractor doing or contracting to do any part of said work. The Contractor shall, as a penalty to the City, forfeit $25.00 for each calendar day, or portion thereof, for each workman paid less than the stipulated prevailing rates of such work or craft in which such workman is employed, whether paid by the Contractor or by any subcontractors under him. The Contractor agrees to comply with the provisions of Sections 1775 and 1776 of the California Labor Code. The Contractor is also required to post the applicable prevailing wage rates at the jobsite. Pursuant to 1773.2, the Contractor shall refer to the wage schedule on file at the City Clerk's Office at 22795 Barton Road, Grand Terrace, California, 92313. (b) The Contractor and the subcontractors shall comply with the Davis-Bacon Fair Labor Standards Act (40 USC a--276a-5) and the implementation regulations issued pursuant thereto (29 CFR Section 1.5) and any amendments thereof. (c) The issuance, as payment for wages, of any evidence of indebtedness is prohibited unless the same is negotiable and payable on demand without discount. (d) In accordance with the provisions of Section 3700 of the California Labor Code, the Contractor shall secure the payment of compensation to his employees. 7.02 PAYROLL RECORDS Contractor shall provide the City with certified copies of payroll records upon demand, and within 24 hours of such demand. 7.03 APPRENTICES ON PUBLIC WORKS The Contractor shall comply with all applicable provisions of Sections 1775.5 of the California Labor Code relating to employment of apprentices on public works. 17.a Packet Pg. 593 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-29 7.04 WORKING HOURS (a) The Contractor shall comply with Chapter 8.108 G.T.M.C. restricting work between the hours of eight p.m. and seven a.m. weekdays, including Saturday or at any time on Sunday or a National Holiday. (b) The Contractor shall comply with all applicable provisions of Sections 1810 to 1817, inclusive, of the California Labor Code relating to working hours. The Contractor shall, as penalty to the City, forfeit $25.00 for each workman employed in the execution of the Contract by the Contractor or by any subcontractor for each calendar day during which such workman is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the above-mentioned Sections of the California Labor Code. 7.05 PROTECTION OF WORKERS IN TRENCH EXCAVATION Contractor shall comply with all of the requirements of California Division of Industrial Safety. The protection of workers must meet the requirements of Construction Safety Orders. 7.06 CONTRACTOR NOT RESPONSIBLE FOR DAMAGES RESULTING FROM CERTAIN ACTS OF GOD As provided in Sections 4150 and 4152, inclusive, of the California Government code, the Contractor shall not be responsible for the cost of repairing or restoring damage to the work, which damage is determined to have been proximately caused by an Act of God in excess of five percent of the contracted amount, provided, that the work damaged is built in accordance with accepted and applicable building standards and the attached plans and specifications. The Contractor shall obtain insurance to indemnify the City for any damage to the work caused by an Act of God if the premium for said insurance coverage is not called for as a separate bid item in the Bidding Schedule for the work. For the purpose of this Section, the term "Acts of God" shall include only the following occurrences or conditions and effect; earthquakes in excess of a magnitude of 3.5 on the Richter Scale. 7.07 NOTICE OF COMPLETION As required by the Civil Code, and within ten calendar days after date of acceptance of the work by the City's governing body, the City will file, in the County Recorder's Office, a Notice of Completion of the work. 7.08 CONCRETE FORMS, FALSEWORK AND SHORING The Contractor shall comply fully with the requirements of Section 1717 of the 17.a Packet Pg. 594 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) E-30 Construction Safety Orders, State of California, Department of Industrial Relations, regarding the design of concrete forms, falsework and shoring, and the inspection of same prior to placement of concrete. Where the said Section 1717 requires the services of a registered civil engineer in the State of California to approve design calculation and working drawings of the falsework or shoring system, or to inspect such system prior to placement of concrete, the Contractor shall employ a registered civil engineer for these purposes. 17.a Packet Pg. 595 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-1 PART 3 CONSTRUCTION METHODS SECTION 300 - EARTHWORK 300-1 CLEARING AND GRUBBING 300-1.2 Preservation of Property. Any irrigation systems in conflict with the proposed improvements that are removed, damaged, disturbed, or broken shall be modified/relocated, repaired, and/or replaced to be operable and provide full irrigation coverage to the areas requiring irrigation using new materials, equal or better than the original materials, with 20 mm (3/4 in) Schedule 40 PVC being the minimum acceptable for underground lines and 13 mm (1/2 in) Schedule 80 being minimum acceptable for risers and with the systems not being out of operation for more than two (2) days. All trees, shrubbery and lawns deprived of normal irrigation watering due to a disruption of service caused by the Contractor’s operations shall be regularly and thoroughly irrigated by the Contractor so that said plantings will not be damaged. If any trees, shrubbery or lawns die or suffer unacceptable damage as a result of or precipitated by the Contractor’s operations the Contractor shall replace same with the same plant species and size. Existing grass lawns within areas that must be excavated and/or re-graded shall be replaced with grass sod in kind. Dead, dying, and unacceptably damaged grass shall be replaced with new grass sod. 17.a Packet Pg. 596 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-2 SPECIAL PROVISIONS SIGNING, STRIPING, AND PAVEMENT MARKERS All equipment, materials, and components for signing and striping, and the installation thereof, shall conform to the 2010 Caltrans Standard Plans, and Standard Specifications, Section 56, "Signs," Section 84, "Traffic Stripes and Pavement Markings," and Section 85, “Pavement Markers,” unless otherwise noted in these Special Provisions and on the Plans. These Plans and Specifications are hereinafter referred to as State Standard Plans and State Standard Specifications. Copies of these documents are available from Caltrans, District 7 office at 100 South Main Street, Los Angeles, California 90012 or from Caltrans, 6002 Folsom Boulevard, Sacramento, California 95819, (916) 445-3520. All materials required for the completion of work as shown on the Plans shall be provided by the Contractor. SECTION 56 - SIGNS 56-4 ROADSIDE SIGNS 56-4.03 Construction. Relocated signs shall be installed using existing posts at new locations and shall be set at a minimum 30-inch depth and at a minimum 12-inch square portland cement concrete (PCC). The post depth of the concrete footing shall be sufficient to extend at least 6-inches below the bottom of the posts. ¼-inch expansion paper shall be placed between the sign foundation and sidewalk. New signs shall be installed using metal posts set at a minimum of 30-inch depth in a minimum 12-inch square PCC. The metal post shall be 2-inch square galvanized steel "Quik-Punch," with 30-inch break away base and 18-inch sleeve. The length of the metal post shall be sufficient to extend from the top of the sign to 30-inches below the top of the concrete footing and provide a 7-foot clearance between the finished grade and the bottom of the sign. The depth of the concrete footings shall be sufficient to extend at least 6-inches below the bottom of the posts. ¼-inch expansion paper shall be placed between the sign foundation and sidewalk. Marker and delineators shall conform to the provision in Section 82, "Markers and Delineators." 56-4.04 Payment. Payment for signing shall be included in the various unit price items per the bid schedule, and no additional compensation will be allowed therefor. 17.a Packet Pg. 597 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-3 SECTION 84 - TRAFFIC STRIPES AND PAVEMENT MARKINGS 84-1 GENERAL 84-1.02 Materials. Traffic stripes and pavement markings shall be thermoplastic and curb marking shall be paint unless otherwise shown on the Plans. Contractor shall repaint any curb markings removed by construction under this contract. 84-1.03A Tolerances and Appearance. The Contractor shall furnish the necessary control points for all striping and markings, and shall be responsible for the completeness and accuracy thereof to the satisfaction of the Engineer. The Contractor shall establish all traffic striping between these points by string line or other method to provide striping that will vary less than ½- inch in 50-feet from the specified alignment. When no previously applied figures, markings, or traffic striping are available to serve as a guide, suitable layouts shall be spotted in advance of the permanent paint application. Traffic lines may be spotted by using a rope as a guide for marking spots every 5-feet, by using a marking wheel mounted on a vehicle, or by any other means satisfactory to the Engineer. The Contractor shall mark or otherwise delineate the traffic lanes in the new roadway or portion of roadway, or detour before opening it to traffic. The Contractor shall provide an experienced technician to supervise the location, alignment, layout, dimensions, and application of the paint. Spotting shall be completed prior to the removal of any existing stripes. Existing stripes and markings shall be removed prior to painting new stripes and markings, but in no case shall any section of street be left without the proper striping for more than 24 hours, or over weekends or holidays. Existing traffic stripes (including raised pavement markers), pavement legends, and markings that do not conform to the plans shall be removed by wet sandblasting per Section 15-2.02C, "Remove Traffic Stripes and Pavement Markings," and Section 15-2.02D, "Remove Pavement Markers," of the State Standard Specifications. 84-2 THERMOPLASTIC TRAFFIC STRIPES AND PAVEMENT MARKINGS 84-2.02 Materials. Traffic striping shall be thermoplastic including crosswalks, arrows, and other pavement legends. 17.a Packet Pg. 598 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-4 The installation of traffic stripes includes placement of raised pavement markers when called for on the plans. Adhesive for raised pavement markers shall be per Section 85, "Pavement Markers." Epoxy shall be the Rapid Set type. 84-2.04 Payment. Payment for striping details, pavement markings, and curb marking shall be included in the various unit price items per the bid schedule, and no additional compensation will be allowed therefor. 84-3 PAINTED TRAFFIC STRIPES AND PAVEMENT MARKINGS 84-3.02 Materials. Paint for curb markings shall be ready-mixed rapid dry type. Ready-mixed paints shall be suitable for use on either asphalt concrete or portland cement concrete. 84-3.03 Construction. Paint shall be applied in two coats. The second coat of paint shall be applied no less than 24 hours from application of the first coat. Each coat paint shall include glass beads. 84-3.07 Payment. Payment for curb marking shall be included in the various unit price items per the bid schedule, and no additional compensation will be allowed therefor. SECTION 85 – PAVEMENT MARKERS 85-1.03C Epoxy Adhesive. Adhesive for raised pavement markers shall be rapid set type epoxy. Removal of pavement markers shall be per Section 15-2.02D, “Remove Pavement Markers.” 85-1.04 Payment. Payment for pavement markers shall be included in the various unit price items per the bid schedule, and no additional compensation will be allowed therefor. 17.a Packet Pg. 599 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-5 SPECIAL PROVISIONS SIGNALS, LIGHTING, AND ELECTRICAL SYSTEMS All equipment, materials, and components for installation of solar powered flashing beacons shall conform to the 2010 Caltrans Standard Plans and Standard Specifications, Section 86, "Signals, Lighting, and Electrical Systems," except as noted in the Special Provisions and on the Plans. These Plans and Specifications are hereinafter referred to as State Standard Plans and State Standard Specifications. Copies of these documents are available from the Caltrans, District 7 office at 100 South Main Street, Los Angeles, California 90012 or from Caltrans, 6002 Folsom Boulevard, Sacramento, California 95819, (916) 445-3520. 86-1 GENERAL 86-1.03 Cost Breakdown. The cost breakdown shall be submitted to the Engineer in conjunction with equipment list and drawings. 86-1.04 Equipment List and Drawings. The equipment list shall be submitted to the Engineer within ten (10) working days after the date of the Notice of Contract Approval. Materials lists, manufacturer's data, brochures, technical data, etc., shall be labeled and identified, and shall be submitted in bound booklet form. The Contractor shall retain one copy of all approved material lists and samples at the job site, readily accessible for inspection by the Engineer. Said materials lists and samples shall be the basis for approval or rejection of work. 86-1.05 Warranties, Guarantees, and Instruction Sheets. The Contractor shall guarantee the entire work constructed under this contract and will fully meet all requirements as to quality of workmanship and materials furnished by him. The Contractor shall make, at the Contractor’s expense, any repairs or replacements made necessary by defects in workmanship or materials that becomes evident within 1 year after acceptance of work by the Agency and to restore to full compliance with the requirements of these Specifications, any part of the work which during the 1-year period is found to be deficient with respect to any provision of the Plans and Specifications. The Contractor shall make all repairs and replacements promptly upon receipt of written orders from the Engineer. If the Contractor fails to make the repairs and replacements promptly, the City may do the work and the Contractor and his surety shall be liable to the City for the cost. 17.a Packet Pg. 600 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-6 Whenever any work or equipment is to be guaranteed or maintained by a manufacturer, supplier, or subcontractor, said obligation shall be that of the Contractor. All guarantees shall be in writing and delivered to the Engineer by the Contractor prior to final acceptance of the work. Where the Contractor-installed facilities are damaged prior to final acceptance by the Engineer, the Contractor shall repair or replace such facilities at his own expense. 86-1.07 Scheduling of Work. No work shall commence and no material or equipment shall be stored at the jobsite until such time that the Contractor notifies the Engineer in writing of the date that all electrical materials and equipment are to be received. Upon receipt of said notification by the Engineer, the Contractor may commence work within 5-working days prior to said delivery date. The job site shall be maintained in a neat and orderly condition at all times and areas of sidewalk removal to be left open for less than 5 days shall be covered with plywood sheeting and barricades. Areas to be left open more than 5 days shall be patched with temporary AC pavement, smoothed to provide a level finished walking surface. All striping, pavement markings, and signing shall be in place prior to flashing beacon turn on. Turn on of the flashing beacon system shall not be made on a Friday or the day preceding a legal holiday, and will be permitted between the hours of 9 a.m. and 2 p.m. only. The City shall be notified 48 hours prior to the intended turn on. 86-2 MATERIALS AND INSTALLATION 86-2.01 Excavation and Backfilling. Excavation for foundations shall be hand dug until clear of obstructions. 86-4 TRAFFIC SIGNAL FACES AND FITTINGS 86-4.09 Flashing Beacons. Solar powered flashing beacons shall be Carmanah Model No. 247-E. All flashing beacons shall be 12” yellow LED per approved Caltrans specifications. 86-8 PAYMENT 86-8.01 Payment. The second paragraph of Section 86-8.01, "Payment," 17.a Packet Pg. 601 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PUBLIC WORKS YARD PARKING LOT REPAIR SP-7 of the State Standard Specifications, is superseded by the following: Payment for the installation of solar powered flashing beacons shall be included in the price bid for each solar powered flashing beacon installation as shown on the Plans, and no additional compensation will be allowed therefor. 17.a Packet Pg. 602 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) PARKING LOT IMPROVEMENT SPECIFICATIONS SCOPE OF WORK Job Location: Public Works Yard on East side of City Hall 22795 Barton Road, Grand Terrace, CA 92313 The City of Grand Terrace seeks the services of a qualified Contractor to meet the needs of the City in the most cost-effective and efficient manner possible to provide parking lot repair services in a thorough and professional manner, and to provide labor, tools, equipment, materials and supplies necessary to complete the work in a timely manner that will meet the City’s requirements. PARKING LOT REPAIR (3” AC over 4” Class II Base): 1.Remove and haul away existing asphalt section in one location totaling 3,095 square feet 2.Over-excavate 4” of existing native soil in an area totaling 3,095 square feet 3.Fine-grade and compact asphalt subgrade to 95 %. 4.Install 3” asphalt over 4” of class II (CMB) on 3,095 sq. ft. of conventional AC 5.Remove existing loop detector by the gate entrance of the Public Works Yard 6.All work shall be performed on a Friday and Saturday, if more than one day is needed, from 7:30am – 6:00pm. *Fine grade: soil or any material brought within elevation tolerances per Green Book specifications *CMB: crushed miscellaneous base meeting class II specifications *AC:asphalt concrete 17.a Packet Pg. 603 At t a c h m e n t : A t t a c h m e n t I - A g r e e m e n t w i t h M i k e R o q u e t C o n s t r u c t i o n I n c . ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) 17.b Packet Pg. 604 At t a c h m e n t : A t t a c h m e n t I I - B i d S u m m a r y ( 1 9 9 3 : P u b l i c W o r k s Y a r d P a r k i n g L o t I m p r o v e m e n t ) This page left intentionally blank. AGENDA REPORT MEETING DATE: September 27, 2016 Council Item TITLE: Adoption of a Resolution to apply for, and accept if awarded, funds from the California Department of Parks and Recreation’s Habitat Conservation Fund PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Adopt a RESOLUTION OF THE CITY COUNCIL AUTHORIZING STAFF TO APPLY FOR A GRANT FROM THE HABITAT CONSERVATION FUND TO BUILD TRAILHEAD AMENITIES ON CITY OWNED LAND AT THE CORNER OF OBSERVATION AND VAN BUREN 2030 VISION STATEMENT: This Project supports the City’s 2030 Vision Plan, Goal #4. Develop and Implement Successful Partnerships - Work Collaboratively with Community Groups, Private and Public Sector Agencies to Facilitate the Delivery of Services Benefiting Youth, Seniors and Our Community Work with Local, Regional and State Agencies to Secure Funding for Programs and Projects. BACKGROUND: The Blue Mountain and the Blue Mountain Trail is the cornerstone of the City’s Identity as well as a regional nature center for recreation for children and their families. The City, along with the Friends of Blue Mountain, have been working toward developing a trailhead to provide visitor amenities including restroom facilities, hydration stations, interpretive elements, off-street parking, lighting and benches. The California Department of Parks and Recreation’s Office of Grants and Local Services (OGALS) administers the state-funded Habitat Conservation Fund (HCF) grant program which allocates approximately $2 million each year to cities, counties, and districts. Established by the California Wildlife Protection Act of 1990 (Proposition 117), HCF provides funds to local entities to protect threatened species, to address wildlife corridors, to create trails, and to provide for nature interpretation programs which bring urban residents into park and wildlife areas. The Blue Mountain Trailhead project is an eligible project for funding through the HCF program and the City is an eligible applicant. DISCUSSION: The Blue Mountain Trailhead Project will create safe access to the Blue Mountain Trail 18 Packet Pg. 605 at the Observation and Van Buren and minimize parking and traffic impact on the immediately adjacent neighborhood. In addition, the HCF Program encourages applicants to develop partnerships or cooperative agreements with such entities as federal, state, and local parks, non-profit organizations, local business groups, and schools, to maximize project opportunities and funding strategies. As a result, this project will provide the City the opportunity to engage residents and neighbors to take ownership and pride in their community and the project. In addition, the City can work with local businesses to create an economic opportunity in promoting the completed trailhead once completed. Finally, the project will provide the opportunity to create curriculum that will meet state education standards and open the Blue Mountain Trail and ecosystem to local students as a living classroom. The application process requires an adopted resolution by the lead applicant’s governing body which demonstrates to the State that the City Council: 1. Approves the filing of an application for the Habitat Conservation Fund Program; and 2. Certifies that said applicant has or will have available, prior to commencement of any work on the project included in this application, the required match and sufficient funds to complete the project; and 3. Certifies that the applicant has or will have sufficient funds to operate and maintain the project(s), and 4. Certifies that the applicant has reviewed, understands, and agrees to the provisions contained in the contract shown in the Grant Administration Guide; and 5. Delegates the authority to the Grand Terrace City Manager, or designee, to conduct all negotiations, execute and submit all documents, including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the project; and 6. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. FISCAL IMPACT: If funded, the project will require a dollar-for-dollar from local, private, non-State sources. Eligible match sources include local, federal, or private funds, or donated materials and services. The City can fulfill the required match with in-kind City services, labor and equipment necessary to build the proposed trailhead amenities. Staff anticipates use of some Park and Open Space Mitigation Fees (Quimby Fees) to cover the dollar-for-dollar contribution. The Fund had $303,395 fund balance as of June 30, 2015 and is expected to increase to approximately $700,000 by June 30, 2017. ATTACHMENTS: 18 Packet Pg. 606  2016 CC Resolution - HCF Grant (DOCX) APPROVALS: G. Harold Harold Duffey Completed 09/21/2016 6:20 PM City Attorney Completed 09/22/2016 11:55 AM Finance Completed 09/22/2016 2:55 PM City Manager Completed 09/22/2016 1:09 PM City Council Pending 09/27/2016 6:00 PM 18 Packet Pg. 607 This page left intentionally blank. RESOLUTION NO. 2016- PAGE 1 OF 2 SEPTEMBER 27, 2016 RESOLUTION NO: 2016- RESOLUTION OF THE CITY COUNCIL AUTHORIZING STAFF TO APPLY FOR A GRANT FROM THE HABITAT CONSERVATION FUND TO BUILD TRAILHEAD AMENITIES ON CITY OWNED LAND AT THE CORNER OF OBSERVATION AND VAN BUREN WHEREAS, the people of the State of California have enacted the California Wildlife Protection Act of 1990, which provides funds to the State of California for grants to local agencies to acquire, enhance, restore or develop facilities for public recreation and fish and wildlife habitat protection purposes; and WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility for the administration of the HCF Program, setting up necessary procedures governing project application under the HCF Program; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the applicant to certify by resolution the approval of application(s) before submission of said application(s) to the State; and WHEREAS, the applicant will enter into a contract with the State of California to complete the project(s); NOW, THEREFORE, BE IT RESOLVED that the Grand Terrace City Council hereby: 1. Approves the filing of an application for the Habitat Conservation Fund Program; and 2. Certifies that said applicant has or will have available, prior to commencement of any work on the project included in this application, the required match and sufficient funds to complete the project; and 3. Certifies that the applicant has or will have sufficient funds to operate and maintain the project(s), and 4. Certifies that the applicant has reviewed, understands, and agrees to the provisions contained in the contract shown in the Grant Administration Guide; and 5. Delegates the authority to City Manager, or designee, to conduct all negotiations, execute and submit all documents, including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the project. 6. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. 18.a Packet Pg. 608 At t a c h m e n t : 2 0 1 6 C C R e s o l u t i o n - H C F G r a n t ( 2 0 2 6 : A d o p t i o n o f a R e s o l u t i o n t o a p p l y f o r , a n d a c c e p t i f a w a r d e d , f u n d s f r o m t h e C a l i f o r n i a RESOLUTION NO. 2016- PAGE 2 OF 2 SEPTEMBER 27, 2016 Passed, Approved and Adopted the 27th day of September, 2016. Darcy McNaboe, Mayor ATTEST: APPROVED AS TO FORM: Pat Jacquez-Nares, City Clerk Richard L. Adams II, City Attorney I PAT JACQUEZ-NARES, CITY CLERK, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 27th day of September, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Pat Jacquez-Nares, City Clerk 18.a Packet Pg. 609 At t a c h m e n t : 2 0 1 6 C C R e s o l u t i o n - H C F G r a n t ( 2 0 2 6 : A d o p t i o n o f a R e s o l u t i o n t o a p p l y f o r , a n d a c c e p t i f a w a r d e d , f u n d s f r o m t h e C a l i f o r n i a CITY OF GRAND TERRACE PLANNING COMMISSION MINUTES• APRIL 21, 2016 Council Chambers Regular Meeting 6:30 PM A. 1. Grand Terrace Civic Center • 22795 Barton Road CALL TO ORDER Chairman Comstock convened the Meeting of the Planning Commission and Site and Architectural Review Board. Pledge of Allegiance was led by Planning Commissioner Cesena. Attendee Name Title Status Arrived Tom Comstock Chairman Present Ryan Stephens Vice-Chairman Absent Jeffrey Allen Commissioner Present Tara Cesena Commissioner Present Edward A. Giroux Commissioner Present AGENDA Motion: APPROVAL OF AGENDA RESULT: ADOPTED [UNANIMOUS] AYES: ABSENT: Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens B. PUBLIC ADDRESS None C. CONSENT CALENDAR 1. Approval of Minutes -Regular Meeting -02/20/2014 RESULT: AYES: ABSENT: ACCEPTED [UNANIMOUS] Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens 2. Approval of Minutes-Regular Meeting -05/07/2015 City of Grand Terrace Page 1 19 Packet Pg. 610 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - A p r i l 2 1 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission April 21, 2016 RESULT: AYES: ABSENT: ACCEPTED [UNANIMOUS] Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens 3. Approval of Minutes -Regular Meeting -09/17/2015 RESULT: AYES: ABSENT: ACCEPTED [UNANIMOUS] Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens 4. Approval of Minutes -Regular Meeting -10/15/2015 RESULT: AYES: ABSENT: ACCEPTED [UNANIMOUS] Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens 5. Approval of Minutes -Regular Meeting -11/19/2015 RESULT: AYES: ABSENT: ACCEPTED [UNANIMOUS] Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens 6. Approval of Minutes-Regular Meeting -12/17/2015 RESULT: AYES: ABSENT: ACCEPTED [UNANIMOUS] . Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens D. PUBLIC HEARINGS 7. Amendment to 2013-2021 Housing Element Planning & Development Services Director, Sandra Molina identified that John Douglas, Housing Consultant, was present and could answer questions related to the hearing item. Housing Consultant, John Douglas, was called to speak. He presented details of item and pointed out some modifications needed in order for the City to be compliant with HCD standards. Commissioner Allen asked staff whether crime studies had been performed on multifamily units with carports and garages to determine which was safer. Mr. Douglas responded by saying that he was not aware of any studies performed and stated that developers wouldn't be required to construct a garage under the code. City of Grand Terrace Page 2 19 Packet Pg. 611 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - A p r i l 2 1 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission April 21, 2016 Commissioner Giroux asked questions related to: (1) who would be responsible for maintaining roadways on the rezoned sites; (2) whether the code had a security requirement that would be imposed on future developers; (3) whether public notices were sent to surrounding owners. Ms. Molina responded to questions, indicating that the developer or HOA would be responsible for road maintenance. Secondly, she advised Mr. Giroux that the hearing item was to discuss housing programs but that there was opportunity to discuss modifications security on the next item. Lastly, she confirmed that public notices had been distributed to residents within a 300 ft radius of the proposed rezone sites and to the property owners. City Attorney, Baron Bettenhausen suggested that both hearing items be considered together but have separate resolutions. Chair Comstock preferred that the Commission postpone specific ordinance questions until the next hearing item and focus on finishing the first item. Commission Allen expressed his concerns about future developers being locked into building 24 units per acre densities for the rezoned parcels. Ms. Molina clarified that the high density residential requirement would allow between 20-24 units per acre and that HCD would not allow anything less than 20 units for that designation. Nancy Martinez was called to speak and expressed her concern for future traffic on Grand Terrace Road. Ron Gomez, was called to speak and expressed his concerns about increased traffic due to the rezone and stated he was against · rezone change. He suggested that a different location be selected. 1} CONDUCT A PUBLIC HEARING TO RECEIVE THE STAFF REPORT AND RECOMMENDATIONS; AND 2) ADOPT RESOLUTION 2016-11 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF GRAND TERRACE RECOMMENDING CITY COUNCIL APPROVAL OF GENERAL PLAN AMENDMENT 16-01 AMENDING THE 2013-2021 HOUSING ELEMENT RESULT: AYES: ABSENT: APPROVED [UNANIMOUS] Tom Comstock, Jeffrey Allen, Tara Cesena, Edward A. Giroux Ryan Stephens 8. Amendment to Land Use Element of General Plan and Zoning Regulations in Conformity with 2013-2021 Housing Element City of Grand Terrace Page 3 19 Packet Pg. 612 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - A p r i l 2 1 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission April 21, 2016 Community Development Director, Sandra Molina briefly touched on the item. She answered a question about site development responding that no development was scheduled for the proposed rezoned sites . Commissioner Allen questioned why one rezone would have an overlay but the other does not. Ms. Molina directed the question to Mr. Douglas . Mr. Douglas was called to speak and responded to Mr. Allen 's question by saying that the state law requires that over 50% of parcels be zoned high density residential and the remaining parcels could have an overlay to provide flexibility to property owners. Chair Comstock asked how large the parcel on Michigan Avenue was. Ms. Molina clarified that it was 1.07 acres in size. Public Comment Jeffrey McConnell was called to speak. Commission Deliberations The Commission had questions for staff related to future buyer disclosures of rezoned sites and also requested further clarification of the Transitional versus Supportive Housing definition relating to people with disabilities. Staff responded that it was up to future buyers to verify disclosures prior to purchasing and that the State regulated the inclusion of disabilities into the definition. There was also brief discussion about CUP revocation relating to chapter 18.83 and density bonuses for developers 1) RECEIVE STAFF REPORT AND RECOMMENDATIONS, 2) CONDUCT A PUBLIC HEARING, AND 3) ADOPT RESOLUTION 2016-12; A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF GRAND TERRACE RECOMMENDING THAT THE CITY COUNCIL ADOPT GENERAL PLAN AMENDMENT 16-02 AMENDING THE LAND USE ELEMENT AND LAND USE MAP; ADOPT ZONE CHANGE 16-01 AND ZONING CODE AMENDMENT 16-01 REVISING THE ZONING MAP AND AMENDING THE ZONING CODE TO IMPLEMENT HOUSING ELEMENT RELATED AMENDMENTS E. INFORMATION TO COMMISSIONERS Director Molina briefed the Commission on changes within the Community Development Department and mentioned that a new Public Works Director and weekend Code Enforcement officer had been hired. She also mentioned a 3 year grant for a new Senior Bus Program with a new driver hired. City of Grand Terrace Page 4 19 Packet Pg. 613 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - A p r i l 2 1 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission April 21, 2016 F. INFORMATION FROM COMMISSIONERS Commission Allen asked how the public reach the weekend code enforcement officer and Ms. Molina responded that an on line feature would be available on the city website. Mr. Allen expressed his desire to attend the State of CA Planning Commission Academy. He also asked whether there had been any AirBnb or Home Away complaints or complements to which Ms . Molina responded by saying she was not aware, nor had an complaints been received. Ms. Molina also clarified that the Planning Commission Academy is slated to begin at the end of October and she would follow up. Chair Comstock requested an update of the proposed roundabout and Ms. Molina advised that construction would begin in summer 2017. Mr. Comstock also asked whether the burned down building at the end of Commerce Way, would be a part of the freeway interchange and Ms. Molina responded that the property is being acquired by Caltrans and would be torn down as part of the project. ADJOURN Adjourn to the next scheduled meeting of the Site and Architectural Review Board/Planning Commission to be held on May 5, 2016 at 6:30 p.m. Sandra Molina Planning & Development Services Director City of Grand Terrace Page 5 19 Packet Pg. 614 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - A p r i l 2 1 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) This page left intentionally blank. CITY OF GRAND TERRACE PLANNING COMMISSION MINUTES • JUNE 2, 2016 Council Chambers Regular Meeting 6:30 PM Grand Terrace Civic Center• 22795 Barton Road CALL TO ORDER Chairman Comstock convened the Meeting of the Planning Commission and Site and Architectural Review Board. Pledge of Allegiance was led by Vice-Chairman Stephens. Attendee Name Title Status Tom Comstock Chairman ' Present Ryan Stephens Vice-Chairman Present Jeffrey Allen Commissioner Present Tara Cesena Commissioner Present Edward A. Giroux Commissioner Present APPROVAL OF AGENDA APPROVED [UNANIMOUS] I _RESULT~ AYES: Comstock, Stephens, Allen, Cesena, Giroux 1. Motion: Approved Planning Commission Agenda, June 2, 2016 PUBLIC ADDRESS Arrived Jeffrey McConnell, Walnut Avenue provided a project update about the infill project on Burns Avenue; stating he spoke with the Engineer and the corrections are being worked on. The grading should start in about a month. A. PUBLIC HEARINGS 2. Site and Architectural Review 15-06, Administrative Conditional Use Permit 15-07 and Environmental 15-08 Located at 22805 Barton Road Planning & Development Services Director, Sandra Molina presented details of the project and answered questions regarding the limited amount of parking and ensuring there is enough room for emergency services. Ms. Molina identified that County Fire would service the site .. City of Grand Terrace Page 1 20 Packet Pg. 615 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - J u n e 2 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission June 2, 2016 Deborah Hong, applicant, responded to the Commission's concerns related to parking, a garage, and the coffee shop and medical offices' hours. Commissioner Giroux expressed concern about traffic visibility with the proposed landscaping. He suggested changing condition 198 to ensure that proposed plant material at maturity does not exceed 3 ft. above curb height. Esmond Dee, building owner and physician, expanded on the medical uses planned for the site, as well as the expected customer volume and behavior for the coffee shop. He advised that the coffee shop would be set up for to-go coffee, not for customers to stay. Dr. Dee answered questions about the intended use for the residence. Public Comment Jim Miller, 22996 Palm Ave, he voiced his concern about drainage from the proposed parking lot. Mr. Miller asked that a curb be added on the west side of parking lot to give any water runoff a directed place to flow. Jeffrey McConnell, Walnut Ave, inquired whether the residence on top would make the project mixed-use or sustainable development according to United Nations Agenda 21. Staff clarified that the project was designated as mixed-use in the Barton Road Specific Plan. Bobby Forbes, 11850 Burns Ave., expressed her concerns related to parking. She stated that the parking situation was horrible in that lot. She was strongly opposed to the coffee shop and said it would cause people to linger in the parking lot, causing more accidents. However, she favored using the site for a doctors' office. Commission Deliberations Commissioner Comstock inquired to staff about the future recourse the City would have if parking caused traffic hazards and public safety issues. Staff responded that once the site and architectural application for medical use was established, recourse would be limited, but that the CUP for the coffee shop could be re-evaluated in the future by the Commission. Staff suggested that the Public Works Director review traffic at the site and bring forward any recommendations. Vice-Chair Stephens and Chairman Comstock both emphasized that their concern with parking is only due to the coffee shop, not the medical facility. Commissioner Giroux stated that a full traffic study was needed on the lot. Chairman Comstock emphasized that his concern was only about eastbound lanes with low visibility due to the curve in the road. Commissioner Cesena pointed out that two previous coffee shops in town didn't stay viable, so traffic to the coffee shop might not be a problem. She stated that getting rid of the coffee shop would only allow enough room for two extra parking spaces. City of Grand Terrace Page 2 20 Packet Pg. 616 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - J u n e 2 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission June 2, 2016 Commissioner Stephens suggested that the Commission pass the CUP and then review the impact of the coffee shop several months from now. He also requested adding a condition to limit the use of the residence above the facility to physicians only, and not allow renting to long-term residents in the future. City Attorney, Baron Bettenhausen, communicated that in order to revoke a CUP in future, the City would need to make a finding that there is a nuisance. He pointed out that the lot is zoned for a long term residence to be allowed with a CUP, but the lot could be conditioned at the Commission's discretion. Staff suggested that the Commission incorporate their concerns and recommended conditions into the motion. Motion: Adopt a RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION AND APPROVING SITE AND ARCHITECTURAL REVIEW 15-06 AND ADMINISTRATIVE CONDITIONAL USE PERMIT 15-07 TO ESTABLISH A medical office/OUTPATIENT SURGERY CENTER, RESIDENCE AND TAKE-OUT COFFEE SHOP, LOCATED AT 22805 BARTON ROAD (ASSESSOR'S PARCEL NUMBER 0276-202-16. Adding conditions 1-6 as outlined by staff tonight. Ms. Molina identified the following change to Condition 198, adding "does not exceed 3 feet above curb height," to the verbiage Ms. Molina identified the following conditions to be added: Condition 27: Prior to the issuance of a building permit for the coffee shop, access along Barton Road shall be reviewed by the City's Traffic Engineer and all recommendations adhered to. Condition 28: The proposed residence shall be used as temporary doctor's quarters only and shall not be occupied for period of time longer then thrifty (30) consecutive days, or let out for rent. Condition 29: The applicant shall submit a grading plan demonstrating that parking lot drainage is being retained on site. Condition 30: No later than six (6) months after issuance of a certificate of occupancy for the coffee shop, the Planning and Development Services Director shall have the use evaluated by the City's Traffic Engineer for traffic related impacts. If adverse traffic impacts are identified, the Administrative Conditional Use Permit for the coffee shop shall be reviewed, pursuant to Section 18.80.032 (Revisions or modifications) 1) CONDUCT A PUBLIC HEARING; AND 2 ADOPT A RESOLUTION 2016-13 OF THE PLANNING COMMISSION OF THE CITY City of Grand Terrace Page3 20 Packet Pg. 617 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - J u n e 2 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s ) Minutes Grand Terrace Planning Commission June 2, 2016 OF GRAND TERRACE, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION AND APPROVING SITE AND ARCHITECTURAL REVIEW 15-06 AND ADMINISTRATIVE CONDITIONAL USE PERMIT 15-07 TO ESTABLISH AN OUTPATIENT SURGERY CENTER, RESIDENCE AND TAKE-OUT COFFEE SHOP, LOCATED AT 22805 BARTON ROAD (ASSESSOR'S PARCEL NUMBER 0276-202-16 RESULT: MOVER: SECONDER: AYES: APPROVED [UNANIMOUS] Tom Comstock, Chairman Ryan Stephens, Vice-Chairman Comstock, Stephens, Allen, Cesena, Giroux B. INFORMATION TO COMMISSIONERS None C. INFORMATION FROM COMMISSIONERS Vice-Chair Stephens informed the council that he tendered his letter of resignation and this was his last meeting with the commission. He expressed gratitude to the City, staff, and other commission members. Chairman Comstock thanked Vice-Chair Stephens for his service. ADJOURN Adjourn to the next scheduled meeting of the Site and Architectural Review Board/Planning Commission to be held on June 16, 2016 at 6:30 p.m. Tom Comstock Chairman of the Grand Terrace Planning Commission City of Grand Terrace Sandra Molina Planning & Development Services Director Page4 20 Packet Pg. 618 Co m m u n i c a t i o n : P l a n n i n g C o m m i s s i o n M i n u t e s - J u n e 2 , 2 0 1 6 ( B o a r d , C o m m i s s i o n a n d C o m m i t t e e U p d a t e s )