NOTICE AND CALL
OF A
VIRTUAL SPECIAL MEETING
OF THE
CITY COUNCIL
TO THE MEMBERS OF THE AFOREMENTIONED AGENCIES AND THE CITY CLERK OF
THE CITY OF BALDWIN PARK
NOTICE IS H EREBY GIV EN that a S pecial M eeting i s hereby called t o b e held on WEDNESDAY, February 16, 2022 at 5:00 PM.
Said Special Meeting shall be for the purpose of conducting business in accordance with the attached Agenda.
NO OTHER BUSINESS WILL BE DISCUSSED
THE COUNCIL CHAMBER WILL BE CLOSED TO THE PUBLIC DUE TO THE SURGE OF COVID CASES.
Posted: February 10, 2022.
Emmanuel J. Estrada
Mayor
AFFIDAVIT OF POSTING
I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of February 16, 2022.
Marlen Garcia,
City Clerk
AGENDA
BALDWIN PARK CITY COUNCIL
VIRTUAL SPECIAL MEETING
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 February 16, 2022
5:00 PM
THE COUNCIL CHAMBER WILL BE CLOSED TO THE PUBLIC
Audio Streaming will be available at:
https://www.youtube.com/channel/UCFLZ0 dDFRjy59rhiDZ13Fg/featured?view_as=subscriber _ http://baldwinpark.granicus.com/ViewPublisher.php?view_id=10 Audio Streaming Simultaneously in Spanish will be available at:
https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA Emmanuel J. Estrada - Mayor
Daniel Damian - Mayor Pro Tem
Alejandra Avila - Council Member
Monica Garcia - Council Member
Paul C. Hernandez - Council Member
PLEASE TURN OFF ALL ELECTRONIC DEVICES
PUBLIC COMMENTS
The public is encouraged to address the City
Council or any of its Agencies listed on this
agenda. In accordance with Chapter 39 of the
Baldwin Park Municipal Code, Speakers must
address the Council as a whole and refrain
from making impertinent, slanderous, or
profane remarks or disrupt the peace of the
meeting.
COMENTARIOS DEL PUBLICO
Se invita al público a dirigirse al Concilio o cualquiera otra de sus Agencias nombradas en esta agenda .
De acuerdo con el capítulo 39 del Código Municipal
de la Ciudad de Baldwin Park, los comentaros deben
se dirigidos al Concilio como una sola entidad, y no
ser imper tinentes, difamatorios, o profanos, o
interrumpir la paz de la reunión.
CALL TO ORDER:
ROLL CALL: Council Members: Alejandra Avila, Monica Garcia, Paul C. Hernandez, Mayor Pro Tem Daniel Damian, and Mayor Emmanuel J. Estrada
PUBLIC COMMUNICATIONS
Three (3) minute speaking time limit
Tres (3) minutos será el limite para hablar
THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL
PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may b e taken o n a m atter un less it is listed on the a genda, or un less certain em ergency or s pecial circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by per sons; or 2) D irect s taff t o i nvestigate and/or s chedule mat ters f or c onsideration at a f uture meeting. [Government Code §54954.2]
ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO
FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o c ircunstancia es pecial. El c uerpo l egislativo y s u per sonal podran: 1) R esponder br evemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2] If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 5:00 PM to 6:00 PM on February 16, 2022 to [email protected]. You will be contacted by a staff member and will be granted 3 (three) minutes to speak live during the meeting. If you are a non-English Speaker and require translation services in another language other than Spanish, or sign, please indicate your request in your communication up to 48 hours prior to the meeting . If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced). A one hour limit may be placed on the time for public communications so that City business can be conducted, after which time, communications can resume.
OPEN SESSION/STUDY SESSION
• Street Vending Update Presentation
Presented by Ben Martinez, Director of Community Development
RECESS TO CLOSED SESSION
1. Real Property Negotiations Pursuant to Government Code §54956.8:
A. Property: 14334 Ramona Boulevard
Negotiating Parties: City of Baldwin Park and Jimmy’s Bike Shop
CITY COUNCIL
VIRTUAL SPECIAL MEETING – 5:00 P.M.
2. Conference With Legal Counsel— Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code Section 54956.9:
Potential Case(s): 5 (Five)
RECONVENE IN OPEN SESSION
REPORT FROM CLOSED SESSION
ADJOURNMENT
CERTIFICATION
I, Marlen G arcia, City Clerk of the City of Baldwin Park hereby that, certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 24 hours prior to the meeting of February 16, 2022.
Marlen Garcia
City Clerk
For further information regarding agenda items, please contact the office of the City Clerk at (626) 960-4011 ext. 466 or e- mail [email protected].
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II)
AGENDA
BALDWIN PARK CITY COUNCIL
VIRTUAL REGULAR MEETING
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 February 16, 2022
7:00 PM
THE COUNCIL CHAMBER WILL BE CLOSED TO THE PUBLIC
Audio Streaming will be available at:
https://www.youtube.com/channel/UCFLZ0_dDFRjy59rhiDZ13Fg/featured?view_as=subscriber http://baldwinpark.granicus.com/ViewPublisher.php?view_id=10 Audio Streaming Simultaneously in Spanish will be available at:
https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA Emmanuel J. Estrada - Mayor
Daniel Damian - Mayor Pro Tem
Alejandra Avila - Council Member
Monica Garcia - Council Member
Paul C. Hernandez - Council Member
PLEASE TURN OFF ALL ELECTRONIC DEVICES DURING THE MEETING.
PUBLIC COMMENTS
The public is encouraged to address the City
Council or any of its Agencies listed on this
agenda on any matter posted on the agenda
or on any other matter within its jurisdiction.
In accordance with Chapter 39 of the
Baldwin Park Municipal Code, Speakers
must address the Council as a whole and
refrain from making impertinent, slanderous,
or profane remarks or disrupt the peace of
the meeting.
COMENTARIOS DEL PÚBLICO
Se invita al público a dirigirse al Concilio o cualquier otra de sus Agencias nombradas en esta agenda,
para hablar sobre cualquier asunto publicado en la
agenda o cualquier tema que esté bajo su
jurisdicción. De acuerdo con el capítulo 39 del
Código Municipal de la Ciudad de Baldwin Park, los
comentaros deben se dirigidos al Concilio como
una sola entidad, y no ser impertinentes,
difamatorios, o profanos, o interrumpir la paz de la
reunión.
City Council Agenda Page 2
CITY COUNCIL
VIRTUAL REGULAR MEETING – 7:00 PM
CALL TO ORDER
INVOCATION
PLEDGE OF ALLEGIANCE
ROLL CALL
Council M embers: Alejandra A vila, M onica G arcia, Paul C .
Hernandez, Mayor Pro Tem Daniel Damian, and Mayor Emmanuel J.
Estrada
REPORT FROM CLOSED SESSION
ANNOUNCEMENTS
The C ity C ouncil ar e also m embers of the Board of D irectors of the H ousing Authority, an d Finance Authority, w hich ar e c oncurrently c onvening w ith t he C ity C ouncil t his evening and each Council Member is paid an additional stipend of $30 for attending the Housing Authority meeting and $50 for attending the Finance Authority meeting.
PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS
• Cannabis Program Presentation
Presented by B enjamin M artinez, D irector of C ommunity D evelopment and H DL Companies
PUBLIC COMMUNICATIONS
Three (3) minute speaking time limit
Tres (3) minutos será el límite para hablar
THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL
PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No ac tion may be t aken on a m atter unl ess i t i s l isted on t he agenda, or unl ess c ertain em ergency or s pecial circumstances exist. T he legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2]
ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO
FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2] available between the hours of 7:00 PM to 8:00 PM on February 16, 2022 to [email protected]. You will be contacted by a staff If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be member and will be granted 3 (three) minutes to speak live during t he meeting. If you are a non-English Speaker and require translation services in another language other than Spanish, or sign, please indicate your request in your communication up to 48 hours prior to the meeting. If large numbers of persons wishing to speak are gathered (a reduc tion of the speaking time allotted for each speaker may be announced). A one hour limit may be placed on the time for public communications so that City business can be conducted, afte r which time, communications can resume.
City Council Agenda Page 3
CONSENT CALENDAR
All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda.
1. City of Baldwin Park’s Warrants and Demands
Staff r ecommends t hat t he C ity C ouncil r atify t he attached Warrants an d D emands Register.
2. Meeting Minutes
Staff recommends that the City Council approve meeting minutes for the following City Council Meetings:
Special City Council Meeting of February 2, 2022.
Regular City Council Meeting of February 2, 2022.
3. Treasurer’s Report – December 2021
Staff r ecommends t hat C ouncil r eceive and f ile t he T reasurer’s R eport f or December 2021.
4. Claim Rejection
Staff r ecommends that t he C ity C ouncil r eject t he f ollowing c laims an d direct s taff t o send the appropriate notice of rejection to claimant(s):
Edwin Parra The claimant alleges POBAR rights were violated, discrimination, hostile work env ironment, har assment, and whistle blower retaliation.
Frank Real The claimant alleges POBAR rights were violated, discrimination, hostile work en vironment, har assment, and whistle blower retaliation.
Cetina Gonzalo The claimant alleges POBAR rights were violated, discrimination, hostile work env ironment, har assment, and whistle blower retaliation.
Jose Jimenez The claimant alleges POBAR rights were violated, discrimination, hostile work env ironment, har assment, and whistle blower retaliation.
Luis Valdivia The claimant alleges POBAR rights were violated, discrimination, hostile work env ironment, har assment, and whistle blower retaliation.
These government claims, and all government claims, should be considered as potential lawsuits in the future. Thus, it is requested that all City Staff, the Mayor and all Council Members refrain from making any statements, whether public or private in nature. It is important that no statements be made so as to not prejudice this claim in any way which can happen if public or private comments are made about this claim by City staff or Council Members.
5. Approve an Industrial Disability Retirement (IDR) Claim for Joseph D. Bartolotti Staff recommends that the City Council approve the IDR and Resolution No. 2022-003 effectuating the approval.
6. Approve an Industrial Disability Retirement (IDR) Claim for Darryl R. Kosaka Staff recommends that the City Council approve the IDR and Resolution No. 2022-004 effectuating the approval.
City Council Agenda Page 4
7. Ratify and Adopt Resolution to Approve Updates to the City of Baldwin Park Job Clarification Plan t o i nclude R evisions to t he C lass S pecifications o f P olice Captain, Police Lieutenant and Police Sergeant
Staff recommends that the City Council approve Resolution No. 2022-005 to update the class s pecifications f or P olice C aptain, Police Li eutenant and P olice S ergeant, respectively.
8. Award of Contract with Shaw Integrated Solutions for CIP22-029 Replacement of Carpet for Teen Center
Staff recommends that the City Council:
1. Waive f ormal bid procedures per t he C ity’s P urchasing O rdinance N o. 11 01 an d Baldwin Park Municipal Code Chapter 34 section 37 (A); and
2. Authorize Director of Recreation & Community Services to Execute the Contract with Shaw Integrated Solutions.
9. Approving t he f orm of t he A greements t o be us ed w ith t he San G abriel V alley Habitat f or H umanity, Inc. t o Implement a n A cquisition and Rehabilitation Housing Program u sing H OME I nvestment P artnership A ct P rogram Funds t o Create Homeownership Opportunities
Staff is recommending that the City Council:
1. Approve the form of the attached Agreements for use in the Program; and
2. Authorize t he C hief E xecutive Officer ( “CEO”) and C ity Attorney t o c arry o ut all subsequent and needed ac tions to proceed with the Program, including approving real estate purchase transactions, and executing agreements.
10. Consideration of a n Agreement be tween the C ity of B aldwin Park and t he S an Gabriel Valley Regional Housing Trust to Provide Homeless Housing and Related Services for Homeless Families at 13167 Garvey Avenue
Staff recommends the City Council:
1. Approve the Resolution No. 2022-006 directing the Chief Executive Officer (CEO) to execute the Agreement between the City of Baldwin Park and the SGVRHT; and
2. Direct the Director of Community Development to prepare and invoice the SGVRHT for 25% of the HHPP grant award or $312,500 within 30 days; and
3. Direct the Director of Community Development to prepare a site plan and schematic design for the housing development and, when ready, return to the City Council for review, discussion, and direction thereof; and
4. Authorize the Director of Finance to make the necessary appropriations and budget adjustments for the HHPP grant funds.
11. Second r eading of O rdinance N o. 1 467 E ntitled: “An O rdinance of t he C ity Council of t he C ity of B aldwin P ark, C alifornia, A mending Chapter 5 0 of t he Baldwin P ark M unicipal C ode a nd Enacting a N ew Section i n C hapter 5 0 Establishing Mandatory Organic Waste Disposal Reduction Requirements Under Senate Bill (SB) 1383 Related to Short-lived Climate Pollutants (SLCP)” Staff recommends that the City Council waive second reading and adopt Ordinance No. 1467, entitled: “An Ordinance of the C ity C ouncil o f t he C ity of B aldwin P ark, California, A mending Chapter 5 0 o f t he B aldwin P ark M unicipal C ode and E nacting a N ew Section i n C hapter 50 Establishing M andatory Organic Waste D isposal R eduction R equirements U nder S enate B ill (SB) 1383 Related to Short-Lived Climate Pollutants (SLCP)”.
City Council Agenda Page 5
12. Adopt Resolution No. 2022-007 Entitled “A Resolution of the City Council of the City of B aldwin Park A uthorizing Submittal of A pplications for a ll C alRecycle Grant and Payment Programs”
Staff r ecommends t hat t he C ity C ouncil a dopt R esolution N o. 2 022-007 entitled, “A Resolution of t he C ity C ouncil of t he C ity of B aldwin P ark A uthorizing S ubmittal of Applications for all CalRecycle Grant and Payment Programs”.
13. Award P rofessional Service A greement to La Cañada D esign G roup ( LCDG) for Landscape, Architectural and Engineering Design Services for the Completion of the Zocalo/Civic Center Park Plaza Project and Conceptual Designs for a New City Hall Annex Building and Facade Upgrades to the Exterior of the City Hall Building Staff recommends that the City Council:
1. Authorize the Director of Public Works to execute a professional services agreement with L a Ca ñada D esign G roup I nc. ( LCDG) i n t he a mount of $ 346,770 f or architectural and engineering design services of the Zocalo/ Civic Plaza Project; and
2. Authorize the Director of Finance to appropriate $236,480 from Fund No. 270 - SB- 129 C alifornia N atural R esources A gency/California D epartment o f P arks a nd Recreation, appropriate $34,240 from Fund No. 275 – ARPA American Rescue Plan Act (Loss Revenue Category), appropriate $76,050 from Fund No. 245 – Prop C to fully fund the project; and
3. Authorize the Director of Finance to record the State Parks grant in the amount of $6,000,000 under Grant Fund No. 270 and make the necessary appropriations and budget adjustments; and
4. Authorize t he D irector of P ublic Works t o pr ocess t he n ecessary i nvoice a nd payment documentation.
14. Approval of E mployment A greement w ith V eronica A lvarez f or t he P osition of Accounting Manager
Staff recommends that the City Council approve the agreement with Veronica Alvarez for t he pos ition of A ccounting M anager an d di rect t he M ayor a nd t he C ity C lerk t o execute it.
CITY CO UNCIL ACT ING AS S UCCESSOR AG ENCY O F THE DI SSOLVED CO MMUNITY
DEVELOPMENT COMMISSION
CONSENT CALENDAR
All items listed are considered to be routine business by the City Council and will be approved with one motion. There will be no separate discussion of these items unless a City Councilmember so requests, in which case, the item will be removed from the general order of business and considered in its normal sequence on the agenda.
SA-1 Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park Treasurer’s Report – December 2021 Staff r ecommends t hat the B oard r eceive an d f ile the T reasurer’s R eport f or December2021.
SA-2 Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park Warrants and Demands
Staff recommends that the Board ratify the attached Warrants and Demands Register.
City Council Agenda Page 6
SA-3 Successor Agency to the Dissolved Community Development Commission of t he C ity of B aldwin P ark Approving t he For m of t he A greements t o be us ed with the San Gabriel Valley Habitat for Humanity, Inc. to implement an Acquisition and R ehabilitation Housing P rogram us ing Low- and M oderate-Income H ousing Funds to Create Homeownership Opportunities
Staff recommends that the Successor Agency:
1. Approve the form of the attached Agreements for use in the Program; and
2. Authorize t he C hief E xecutive O fficer ( “CEO”) and C ity A ttorney t o c arry out al l subsequent and needed actions to proceed with the Program, including approving real estate purchase transactions, and executing agreements.
PUBLIC HEARING
15. FY 2022-23 Annual Action Plan Housing and Community Development Needs and Priorities Public Hearing
Staff recommends that the City Council:
1. Conduct a public hearing to consider the city’s housing and non-housing community development needs for the preparation of the FY 2022-23 Annual Action Plan; and
2. Following the public hearing, receive and file this report, any comments made by the Mayor, City Council, and/or residents during the public hearing, for inclusion in the Fiscal Year 2022-23 Annual Action Plan.
REPORTS OF OFFICERS
16. Consideration of Ordinance of t he C ity of B aldwin Park t o Establish C ampaign Contribution Limits and Penalties in Baldwin Park
Staff recommends that the City Council consider the new ordinance and, if acceptable, introduce f or f irst r eading, by t itle onl y, O rdinance e ntitled: “An O rdinance o f t he C ity Council of the C ity of B aldwin P ark E stablishing C ampaign C ontribution Limits a nd Penalties” and di rect staff t o br ing b ack f or s econd reading and ado ption at t he nex t regularly scheduled City Council Meeting.
CITY CO UNCIL / CITY CL ERK / CI TY TREASURER / STAFF R EQUESTS &
COMMUNICATION
Request by Mayor Pro Tem Daniel Damian
• Mayor Pro Tem Daniel Damian requests City Council discussion and direction to move the City of Baldwin Park’s annual parade from the month of November to the month of December.
ADJOURNMENT
City Council Agenda Page 7
CERTIFICATION
I, Marlen Garcia, City Clerk of the City of Baldwin Park hereby certify that, under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Ha ll bulletin bo ard n ot l ess t han 72 hours pr ior to t he meeting. D ated t his 10th day of February, 2022.
Marlen Garcia
City Clerk
For f urther i nformation r egarding agenda i tems, please contact the of fice of t he C ity Clerk a t (626) 960-4011 ex t. 466 or v ia e-mail at [email protected].
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960 -4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II) _________ ________
STAFF REPORT
ITEM NO. 1
TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: City of Baldwin Park’s Warrants and Demands
SUMMARY
Attached is the Warrants and Demands Register for the City of Baldwin Park to be ratified by the City Council.
RECOMMENDATION
Staff recommends that the City Council ratify the attached Warrants and Demands Register.
FISCAL IMPACT
The payroll for the last period was $479,013.38 and the attached General Warrants Register was $1,480,572.68 for a total amount of $1,959,586.06.
BACKGROUND
The attached Claims and Demands report format meets the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous City Council meeting and the following is a summary of the payment released:
1. The last payroll of the City of Baldwin Park consists of check numbers 201301 to 201311 Additionally, Automated Clearing House (ACH) Payroll deposits were made on behalf of City Employees from control number 31054 to 31293 for the period January 9, 2022 through January 22, 2022, inclusive; these are presented and hereby ratified in the amount of $479,013.38.
2. General Warrants, with the bank drafts in the amount of $69,072.11 and checks from 235058 to 235196 in the amount of $1,411,500.57 for the period of January 24, 2022 to February 3, 2022, inclusive; in the total amount of $1,480,572.68 constituting of claims and demands against the City of Baldwin Park, are herewith presented to the City Council as required by law, and the same hereby ratified.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Check Register
________ _________
STAFF REPORT
ITEM NO. 2
TO: Honorable Mayor and Members of the City Council
FROM: Lourdes Morales, Chief Deputy City Clerk
DATE: February 16, 2022
SUBJECT: Meeting Minutes
SUMMARY
The City Council held Special and Regular City Council Meetings on the dates listed below.
RECOMMENDATION
Staff recommends that the City Council approve meeting minutes for the following City Council Meetings:
Special City Council Meeting of February 2, 2022.
Regular City Council Meeting of February 2, 2022.
FISCAL IMPACT
There is no fiscal impact associated with this item.
BACKGROUND
Not applicable
ALTERNATIVES
Not applicable
LEGAL REVIEW
This report does not require legal review.
ATTACHMENTS
1. Special City Council Meeting of February 2, 2022.
2. Regular City Council Meeting of February 2, 2022.
Special Meeting of 02/2/22 Page 1 of 2
MINUTES
BALDWIN PARK CITY COUNCIL VIRTUAL STUDY SESSION
AND SPECIAL MEETING
February 2, 2022 5:00 P.M.
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706
CALL TO ORDER
The meeting was called to order at 5:07 PM by Mayor Estrada.
ROLL CALL
City Clerk Garcia performed roll call:
PRESENT:
Council Member Daniel Damian
Council Member Monica Garcia
Council Member Paul C. Hernandez arrived at 5:17 PM
Mayor Pro Tem Alejandra Avila
Mayor Emmanuel J. Estrada
PUBLIC COMMUNICATIONS
Mayor Estrada opened Public Communications at 5:07 PM.
Seeing no one wishing to speak, Mayor Estrada closed Public Communications at 5:08 PM.
OPEN SESSION/STUDY SESSION
Baldwin Park on the Move Sales Tax Proposal Presentation Presented by Juan Garza, Six Haeron and Kian Kaeni, from Dragonfly Public Affairs
Kian Kaeni and Juan Garza provided an overview of the sales tax measure highlighting the benefits to recreational programs, public safety, affordable housing, and homeless services; the timeline for the City to place the measure onto this years ballot; and the revenue it can potentially generate in the next three years. Kian also presented data depicting the surrounding cities with the increased sales tax as well as the cities who were not successful in passing the measure. Juan Garza provided input on his personal experience as a former Council Member/Mayor and answered questions related to the manner in which the funds could be distributed.
The City Council recessed into closed session at 5:48 PM.
RECESS TO CLOSED SESSION
1. Conference With Legal Counsel—Existing Litigation
Pursuant to paragraph (1) of subdivision (d) of Government Code Section 54956.9:
Special Meeting of 02/2/22 Page 2 of 2
Case Name: Suzanne Ruelas v. City of Baldwin Park Case No. 20STCV17682 Case Name: Tuan Le v. City of Baldwin Park Case No. 21STCV34473
2. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of _______________________
Government Code Section 54956.9:
Potential Case(s): Ten (10)
RECONVENE IN OPEN SESSION
___________________
The City Council reconvened into open session regular meeting at 7:20PM
REPORT ON CLOSED SESSION
City Attorney Robert N. Tafoya announced no reportable action was taken.
ADJOURNMENT
There being no further business, motion was made by Mayor Estrada seconded by Mayor Pro Tem Damian, to adjourn the meeting at 9:06 PM.
Emmanuel J. Estrada, Mayor
ATTEST:
Marlen Garcia, City Clerk
APPROVED:
MINUTES
BALDWIN PARK CITY COUNCIL VIRTUAL REGULAR MEETING
February 2, 2022, 7:00 P.M.
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706
CALL TO ORDER
The meeting was called to order 7:20 PM by Mayor Estrada.
INVOCATION
No invocation was provided.
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Chief Executive Officer Enrique C. Zaldivar.
ROLL CALL
City Clerk Garcia performed roll call:
MEMBERS PRESENT:
Council Member Daniel Damian
Council Member Monica Garcia
Council Member Paul C. Hernandez
Mayor Pro Tem Alejandra Avila
Mayor Emmanuel J. Estrada
REPORT ON CLOSED SESSION
City Attorney Robert N. Tafoya announced no reportable action was taken.
ANNOUNCEMENTS
Mayor Pro Tem Damian and Council Member Avila expressed their condolences to the family affected by the passing of Florenso.
PROCLAMATIONS, COMMENDATIONS & PRESENTATIONS
Oath of Office for Commissioners
Mayor Estrada conducted the oath of office for Housing Commissioner’s Lauren Franklin and Esthela Herrera.
Black History Month Proclamation
Housing Commissioner Lauren Franklin received the proclamation. Project Homekey Baldwin Park
Presented by Elisa McCormick, Director of PHK Baldwin Park Ms. McCormick provided an overview of the services offered and invited the City Council to tour the facility.
Regular Meeting of 2/2/22 Page 2 of 4
PUBLIC COMMUNICATIONS
Mayor Estrada opened Public Communications at 7:52 PM.
John Rios commented on illegal street vending violations and expressed concerns with the City Council’s progress.
Katherine Loeser provided library updates highlighting tax forms were available at the library and spring reading would be available to student’s thanks’ to Council Member Hernandez.
Greg Tuttle spoke in opposition of the sales tax presentation; commented on Robert Tafoya’s pending cases; expressed concerns with illegal street vending; and commented on parking enforcement officers citing selectively in the city.
Mayor Estrada closed public communications at 8:04 PM.
CONSENT CALENDAR
All items listed under the consent calendar are considered to be routine business by the Council Members and were approved with one motion.
Item #4 was pulled from the consent calendar for separate consideration.
MOTION: It was moved by Mayor Estrada, seconded by Council Member Avila to approve the remainder of the Consent Calendar. Motion carried by unanimous consent 5/0.
1. City of Baldwin Park’s Warrants and Demands
The City Council ratified the attached Warrants and Demands Register.
2. Meeting Minutes
The City Council approved meeting minutes for the Special and Regular Meeting of January 19, 2022.
3. Claim Rejection
The City Council rejected claims for Ramon David Burgos, Jesus Ruiz Sanchez, and Chung Ping Wong.
Pulled for Separate Consideration
4. Amendment to the Consultant Services Agreement between the City of Baldwin Park, and Lorraine Mendez and Associates
MOTION: It was moved by Mayor Pro Tem Damian, seconded by Council Member Hernandez to table this item for the next City Council Meeting. Motion carried by unanimous consent 5/0.
Regular Meeting of 2/2/22 Page 3 of 4
REPORTS OF OFFICERS
__________________________
5. Introduction of Ordinance No. 1467 “An Ordinance of the City Council of the City of Baldwin Park, California, Amending Chapter 73 of the Baldwin Park Municipal Code Relating to Speed Limits on Certain Streets”
MOTION: It was moved by Council Member Hernandez, seconded by Council Member Avila to table the item until staff reevaluates certain streets via an additional traffic study.
Motion carried by unanimous consent 5/0.
6. Introduction of Ordinance No. 1468 “An Ordinance of the City Council of the City of Baldwin Park, California, Amending Chapter 50 of the Baldwin Park Municipal Code and enacting a New Section in Chapter 50 Establishing Mandatory Organic Waste Disposal Reduction Requirements under Senate Bill (SB) 1383 Related to Short-lived Climate Pollutants (SLCP)”
MOTION: It was moved by Mayor Estrada, seconded by Council Member Hernandez to introduce for first reading, by title only, Ordinance 1468 entitled: “An Ordinance of the City Council of the City of Baldwin Park, California, Amending Chapter 50 of the Baldwin Park Municipal Code and Enacting a New Section in Chapter 50 Establishing Mandatory Organic Waste Disposal Reduction Requirements Under Senate Bill (SB) 1383 Related to Short-Lived Climate Pollutants (SLCP)”; and direct staff to bring back for second reading and adoption at the next regularly scheduled City Council Meeting. Motion carried by unanimous consent 5/0.
CITY COUNCIL / CITY CLERK / CITY TREASURER / STAFF REQUESTS &
COMMUNICATION
Mayor Estrada requests City Council discussion and direction on a Citywide Clean- Up Event in collaboration with local organizations.
Mayor Estrada provided direction to staff to move forward with coordinating efforts for a citywide clean up event with the assistance of students, staff, and the city’s waste hauler.
ADJOURNMENT
There being no other business to discuss, and all other matters having been addressed, a motion was made by Mayor Estrada, seconded by Mayor Pro Tem Damian, to adjourn the meeting at 9:06 PM.
Mayor:
ATTEST:
Emmanuel J. Estrada, Mayor
Marlen Garcia, City Clerk
Regular Meeting of 2/2/22 Page 4 of 4
___________________APPROVED:
________ ________
STAFF REPORT
ITEM NO. 3_
TO: Honorable Mayor and Members of the City Council
FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: Treasurer’s Report – December 2021
SUMMARY
Attached is the Treasurer’s Report for the month of December 2021. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDATION
Staff recommends that Council receive and file the Treasurer’s Report for December 2021.
FISCAL IMPACT
None
BACKGROUND
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Exhibit “A”, Treasurer’s Report
________
STAFF REPORT
_________ITEM NO. 4
TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer
Laura J. Thomas, Human Resources/Risk Manager
DATE: February 16, 2022
SUBJECT: Claim Rejection
SUMMARY
This report seeks City Council consideration and direction to reject the Claims for Damages to person or property received for filing against the City of Baldwin Park.
RECOMMENDATION
Staff recommends that the City Council reject the following claims and direct staff to send the appropriate notice of rejection to claimant(s):
These government claims, and all government claims, should be considered as potential lawsuits in the future. Thus, it is requested that all City Staff, the Mayor and all Council Members refrain from making any statements, whether public or private in nature. It is important that no statements be made so as to not prejudice this claim in any way which can happen if public or private comments are made about this claim by City staff or Council Members.
FISCAL IMPACT
Fiscal impact is unknown at this time.
BACKGROUND
In order for the statute of limitations to begin on the claims received, it is necessary for the City Council to reject the claims by order of motion and that the claimants are sent written notification of said action.
Edwin Parra
The claimant alleges POBAR rights were violated, discrimination, hostile work environment, harassment, and whistle blower retaliation.
Frank Real
The claimant alleges POBAR rights were violated, discrimination, hostile work environment, harassment, and whistle blower retaliation.
Gonzalo Cetina
The claimant alleges POBAR rights were violated, discrimination, hostile work environment, harassment, and whistle blower retaliation.
Jose Jimenez
The claimant alleges POBAR rights were violated, discrimination, hostile work environment, harassment, and whistle blower retaliation.
Luis Valdivia
The claimant alleges POBAR rights were violated, discrimination, hostile work environment, harassment, and whistle blower retaliation.
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ALTERNATIVES
There are no other alternatives for the Council to consider since rejection of the claims is necessary for the Statute of Limitations to begin on the claims received.
ATTACHMENTS
None
_________ ________
STAFF REPORT
ITEM NO. 5
TO: Honorable Mayor and Members of the City Council
FROM: Enrique Zaldivar, Chief Executive Officer
Laura J. Thomas, Human Resources/Risk Manager
DATE: February 16, 2022
SUBJECT: Approve an Industrial Disability Retirement (IDR) Claim for Joseph D. Bartolotti
SUMMARY
This report requests City Council’s consideration and direction on the Determination of Disability for Joseph D. Bartolotti as he had filed for an Industrial Disability Retirement (IDR).
RECOMMENDATION
Staff recommends that the City Council approve the IDR and Resolution No. 2022-003 effectuating the approval.
FISCAL IMPARK
There is no immediate fiscal impact with the approval of this IDR.
BACKGROUND
Mr. Bartolotti retired from his employment effective June 27, 2020, and subsequently submitted a request for an IDR with CalPERS. Mr. Bartolotti was a Police Captain who had been employed by the City of Baldwin Park since October 15, 1990. He submitted a workers compensation claim on or about July 9, 2019. After consultation with Adminsure’s worker’s compensation attorney, Brian Riley, both the City and Adminsure agreed that Mr. Bartolotti was permanently disabled at the time of his retirement. The medical information reviewed by the City’s third party administrator, Adminsure, was a key factor in the City’s decision to recommend approval of the IDR. Given the unfortunate passing of Mr. Bartolotti which occurred on June 17, 2021, the Industrial Disability Retirement (IDR) benefits will go to his beneficiaries.
LEGAL REVIEW
Legal Review is not required for this item.
ALTERNATIVES
The alternative is to deny Mr. Bartolotti’s IDR.
ATTACHMENTS
1. Resolution No. 2022-003
RESOLUTION NO. 2022-003
A RESOLUTION OF CITY COUNCIL OF THE CITY OF BALDWIN PARK
APPROVING THE INDUSTRIAL DISABILITY RETIREMENT (IDR) CLAIM FOR JOSEPH D. BARTOLOTTI
WHEREAS, the City of Baldwin Park, (hereinafter, referred to as “Agency”) is a contracting agency of the California Public Employees’ Retirement System (CalPERS); and WHEREAS, the California Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency, in employment in which he was classified as a local safety member, was disabled for purposes of the California Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such law; and
WHEREAS, an application for industrial disability retirement of cardiovascular (high blood pressure, heart) condition from Joseph D. Bartolotti employed by the Agency in the position of Police Captain had been filed with CalPERS; and WHEREAS, the City Council of The City of Baldwin Park has reviewed the medical and other evidence relevant to such alleged disability.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY RESOLVES AS FOLLOWS:
(1) Pursuant to the authority delegated to me by action of City Council of The City of Baldwin Park (hereinafter referred to as Agency) February 16, 2022 and pursuant to the authority under Government Code section 21173, after review of medical and other evidence relevant thereto, I hereby determine that Joseph D. Bartolotti, a local safety member of the California Public Employees’ Retirement System (CalPERS) employed by the Agency, was incapacitated within the meaning of the California Public Employees’ Retirement Law for performance of his duties in the position of Police Captain.
I hereby certify under penalty of perjury that this determination was made on the basis of competent medical opinion and was not used as a substitute for the disciplinary process. If the disciplinary process occurred before the member’s separation from employment, all relevant personnel documents were forwarded to CalPERS for determination of the member’s eligibility for disability retirement and CalPERS’ determination that the member was eligible to apply for disability retirement was obtained prior to starting the process of determination.
PASSED, APPROVED, and ADOPTED this 16th day of February 2022. _______________________________
EMMANUEL J. ESTRADA
MAYOR
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, MARLEN GARCIA, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-003 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on February 16, 2022, and that the same was adopted by the following vote to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MARLEN GARCIA
CITY CLERK
________ _________
STAFF REPORT
ITEM NO. 6
TO: Honorable Mayor and Members of the City Council
FROM: Enrique Zaldivar, Chief Executive Officer
Laura J. Thomas, Human Resources/Risk Manager
DATE: February 16, 2022
SUBJECT: Approve an Industrial Disability Retirement (IDR) claim for Darryl R. Kosaka
SUMMARY
This report requests City Council’s consideration and direction on the Determination of Disability for Darryl R. Kosaka as he has filed for an Industrial Disability Retirement (IDR).
RECOMMENDATION
Staff recommends that the City Council approve the IDR and Resolution No. 2022-004 effectuating the approval.
FISCAL IMPARK
There is no immediate fiscal impact with the approval of this IDR.
BACKGROUND
Mr. Kosaka retired from his employment effective August 4, 2020, and subsequently submitted a request for an IDR with CalPERS. Mr. Kosaka was a Police Sergeant who had been employed by the City of Baldwin Park since July 27, 1987. He submitted a workers compensation claim on or about June 7, 2018. After consultation with the City’s Worker’s Compensation attorney, Brian Riley, both the City and Adminsure agreed that Mr. Kosaka was permanently disabled at the time of his retirement. The medical information reviewed by the City’s Worker’s Compensation attorney and Adminsure, was a key factor in the City’s decision to recommend approval of the IDR.
LEGAL REVIEW
Legal Review is not required for this item.
ALTERNATIVES
The alternative is to deny Mr. Kosaka’s IDR.
ATTACHMENTS
1. Resolution 2022-004
RESOLUTION NO. 2022-004
A RESOLUTION OF CITY COUNCIL OF THE CITY OF BALDWIN PARK
APPROVING THE INDUSTRIAL DISABILITY RETIREMENT (IDR) CLAIM FOR DARRYL R. KOSAKA
WHEREAS, the City of Baldwin Park, (hereinafter, referred to as “Agency”) is a contracting agency of the California Public Employees’ Retirement System (CalPERS); and WHEREAS, the California Public Employees’ Retirement Law requires that a contracting agency determine whether an employee of such agency, in employment in which he is classified as a local safety member, is disabled for purposes of the California Public Employees’ Retirement Law and whether such disability is “industrial” within the meaning of such law; and
WHEREAS, an application for industrial disability retirement of his right knee, right foot, and hearing loss condition from Darryl R. Kosaka employed by the Agency in the position of Police Sergeant has been filed with CalPERS; and WHEREAS, the City Council of The City of Baldwin Park has reviewed the medical and other evidence relevant to such alleged disability.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY RESOLVES AS FOLLOWS:
(1) Pursuant to the authority delegated to me by action of City Council of The City of Baldwin Park (hereinafter referred to as Agency) February 16, 2022 and pursuant to the authority under Government Code section 21173, after review of medical and other evidence relevant thereto, I hereby determine that Darryl R. Kosaka, a local safety member of the California Public Employees’ Retirement System (CalPERS) employed by the Agency, is not incapacitated within the meaning of the California Public Employees’ Retirement Law for performance of his duties in the position of Police Sergeant.
I hereby certify under penalty of perjury that this determination was made on the basis of competent medical opinion and was not used as a substitute for the disciplinary process. If the disciplinary process occurred before the member’s separation from employment, all relevant personnel documents were forwarded to CalPERS for determination of the member’s eligibility for disability retirement and CalPERS’ determination that the member is eligible to apply for disability retirement was obtained prior to starting the process of determination.
PASSED, APPROVED, and ADOPTED this 16th day of February 2022. _______________________________
EMMANUEL J. ESTRADA
MAYOR
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, MARLEN GARCIA, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-004 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on February 16, 2022, and that the same was adopted by the following vote to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MARLEN GARCIA
CITY CLERK
_________ ________
STAFF REPORT
ITEM NO. 7
TO: Honorable Mayor and Members of the City Council
FROM: Enrique Zaldivar, Chief Executive Officer
Laura J. Thomas, Human Resources/Risk Manager
DATE: February 16, 2022
SUBJECT: Ratify and Adopt a Resolution to Approve Updates to the City of Baldwin Park Job Classification Plan to include revisions to the Class Specifications of Police Captain, Police Lieutenant and Police Sergeant
SUMMARY
This report requests City Council approval of a Resolution to revise the minimum requirements of the class specifications of Police Captain, Police Lieutenant and Police Sergeant to be in alignment with industry standards.
RECOMMENDATION
Staff recommends that the City Council approve Resolution No. 2022-005 to update the class specifications for Police Captain, Police Lieutenant and Police Sergeant, respectively.
FISCAL IMPACT
There is no fiscal impact to the General Fund.
BACKGROUND
The minimum qualifications for Police Captain, Police Lieutenant and Police Sergeant were revised to reflect industry standards for law enforcement agencies comparable in size to Baldwin Park. Research indicates that the proposed requirement changes for Captain, Lieutenant and Sergeant are similarly structured to position requirements of many law enforcement agencies throughout the State of California, including neighboring agencies such as Montebello, Vernon, West Covina, Irwindale, San Gabriel, Huntington Park and Manhattan Beach.
Additionally, the minimum requirements for the higher police ranks were modified to ensure candidates in the promotional process have had an opportunity to gain the appropriate type and years of experience and education to successfully perform at the higher level. Essentially, years of service, post certifications, and educational backgrounds of promotional candidates become important considerations to ensure law enforcement officers are highly competent to supervise and manage complex public safety operations. Modifying the requirements of all of these important job classifications is a step in the right direction to make sure police officers are well prepared to serve the Baldwin Park Community.
The Police Officer’s Association (POA) and the Police Management Employees Association (PMEA) labor organizations were notified regarding the proposed requirement changes. Both POA and PMEA concurred with the proposed changes.
ALTERNATIVES
The City Council can decide to reassess requirement changes and bring back for future discussion.
LEGAL REVIEW
Legal Review is not required for this item.
ATTACHMENTS
1. Resolution No. 2022-005
2. Class Specifications for Police Captain.
3. Class Specifications for Police Lieutenant.
4. Class Specifications for Police Sergeant.
RESOLUTION NO. 2022-005
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK, APPROVING A RESOLUTION TO ADOPT A NEW JOB
CLASSIFICATION PLAN IN ACCORDANCE WITH APPLICABLE
RULES AND REGULATIONS
WHEREAS, the minimum qualifications for the class specifications for Police Captain, Police Lieutenant and Police Sergeant were revised to reflect the essential knowledge, skills and abilities (ska’s) needed to successfully perform the job; and WHEREAS, the revised minimum qualifications are in alignment with law enforcement industry standards in the State of California; and WHEREAS, the requirements as modified are designed to produce candidates who are highly competent to serve at the higher ranks and well prepared to serve the Baldwin Park community.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. That this City Council does hereby approve the revisions to the class specifications for Police Captain, Police Lieutenant and Police Sergeant.
PASSED, APPROVED, and ADOPTED this 16th day of February 2022. _______________________________
EMMANUEL J. ESTRADA
MAYOR
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, Marlen Garcia, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-005 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on February 16th, 2022 and that the same was adopted by the following vote to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MARLEN GARCIA
CITY CLERK
City of Baldwin Park
POLICE CAPTAIN
Class Specification
2/16/22
DEFINITION
To plan, organize, direct and supervise a division of the Police Department and to provide highly responsible administrative and technical staff assistance to the Chief of Police.
The Police Captain coordinates assigned activities with other city departments and outside agencies and conducts a variety of organizational and operational studies.
SUPERVISION RECEIVED AND EXERCISED
General direction is provided by the Chief of Police.
Responsibilities include direct and indirect supervision of sworn and non-sworn personnel. Assignments may also require functional and technical supervision of sworn and non-sworn personnel.
ESSENTIAL FUNCTIONS
Essential functions, as defined under the Americans with Disabilities Act, may include the following tasks, knowledge, skills and other characteristics. This list of tasks is ILLUSTRATIVE ONLY, not a comprehensive listing of all functions and tasks performed by positions in this class. Incumbents in this class may not be required to perform all duties listed and may be required to perform additional similar or related duties.
(Depending upon assignment, duties may include:)
Assist in the development and implementation of goals, objectives, policies and priorities for the Police Department.
Plan, supervise, and coordinate either the Support Services or Operations Divisions of the Police Department; submit thorough staff reports, develop staffing plans, study crime and other reports to determine trends and make recommendations for changes in organization and operating procedures. Supervise the Support Services Division; plan, organize and supervise departmental activities involving personnel management, records, property and custody, dispatching, vehicle purchase and maintenance services, internal affairs, and budget administration and research assistance.
Supervise the Operations Division, including patrol, traffic safety, investigations and crime prevention and related activities.
Manage a variety of departmental activities including crime prevention, internal affairs, planning and research; manage and participate in the development and administration of the annual budget; participate in the forecast of funds needed for staffing, equipment, materials, and supplies; monitor and approve expenditures; and implement adjustments.
Assist the Police Chief in the development, implementation, and administration of department goals, objectives, policies, and procedures which include community based policing methods and protocols in accordance with applicable state and federal legislation. Continuously monitor and evaluate the short and long-term efficiency and effectiveness of service delivery methods in the department. Develop and review staff reports related to assigned activities and services; may present information to the City Council and various commissions, committees, and boards; perform a variety of public relations and outreach work related to assigned activity.
Review operating procedures and make recommendations for improvement. Assist the Chief of Police in overall departmental budget development and administration.
Respond to the most difficult citizen complaints and requests for information. Coordinate police activities with other City departments and divisions, and with outside agencies.
Supervise, train, mentor and evaluate assigned staff. May serve as Acting Chief of Police as assigned.
Perform related duties as assigned.
QUALIFICATIONS
Knowledge of :
Modern police principles, methods, practices, and techniques with particular emphasis in activities of the assigned divisions.
Pertinent Federal, State and local laws and ordinances, particularly with reference to arrest, search and seizure, and evidence.
Departmental rules and regulations.
Methods and practices of police administration.
Functions and objectives of Federal, State, and local law enforcement agencies. Principles and practices of organization, administration, budget and personnel management, as well as community-based policing philosophies and strategies.
Ability to:
Plan, organize, and coordinate the work of subordinate personnel. Analyze complex police problems.
Prepare clear and concise technical and administrative reports including accurate tables, schedules, summaries, and other materials in narrative form; establish and maintain various data collection, record keeping, tracking, filing, and reporting systems; and maintain office and specialized files.
Communicate clearly and concisely, orally and in writing. Develop and implement goals, objectives, practices, policies, procedures, and work standards.
Properly interpret and make decisions in accordance with laws, regulations, and policies.
Research, analyze, and evaluate new service delivery methods, procedures and techniques.
Supervise, train, mentor and evaluate assigned staff. Meet the physical requirements established by the Department.
MINIMUM REQUIREMENTS
Experience and Education
Fifteen years of increasingly responsible law enforcement experience with a governmental general law enforcement agency, including at least five years in a responsible supervisory capacity with at least two of those years at the rank of Police Lieutenant or higher and successful completion of probationary period And completion of a Bachelor’s degree with major work in police science, business or public administration, or related field including possession of POST Advanced and Management Certificates is required.
DESIRABLE QUALIFICATIONS
A Master's Degree in Public or Business Administration, Police Science, one of the Behavioral Sciences, or related fields is desirable. Completion of the FBI National Academy, POST Command College, or other executive development program is desirable.
Note: Class specifications are intended to be descriptive, explanatory, and not restrictive. It is intended to declare what the duties, and responsibilities and the required qualifications of any position shall be.
City Council Approval Date:
City of Baldwin Park
POLICE LIEUTENANT
Class Specification
2/16/22
DEFINITION
To perform responsible supervisory and technical police work in commanding an assigned shift, in directing police investigative work and performing administrative support work activities.
SUPERVISION RECEIVED AND EXERCISED
General direction is provided by the Police Captain. Technical or functional supervision may be provided by higher level police personnel.
Responsibilities include direct supervision of sworn and non-sworn personnel.
Assignments may also require functional and technical supervision of sworn and non- sworn personnel.
ESSENTIAL FUNCTIONS
Essential functions, as defined under the Americans with Disabilities Act, may include the following tasks, knowledge, skills and other characteristics. This list of tasks is ILLUSTRATIVE ONLY, not a comprehensive listing of all functions and tasks performed by positions in this class. Incumbents in this class may not be required to perform all duties listed and may be required to perform additional, similar or related duties.
(Depending upon assignment, duties may include :)
Assist in administrative responsibilities involving the Department's budgeting, purchasing, personnel, and community relations’ functions, conduct special studies of department functions assigned.
Provide responsible staff assistance to the Captain and Chief of Police; conduct a variety of organizational studies, investigations, and operational studies; recommend modifications to programs, policies, and procedures as appropriate; develop and prepares new and revised City ordinances pertaining to the law enforcement services and activities; prepare and present staff reports and other necessary correspondence.
Ensure high operative effectiveness, consistent application of policies, lawful operations which include community based policing methods and protocols in accordance with applicable state and federal legislation, and proper flow of reports and records through briefings, audits, regular and random inspections, review of individual and shift activity reports, investigation of complaints and maintenance of discipline.
Plan, organize, assign, supervise, and review the work of sworn and non-sworn staff on an assigned shift within a unit of the Police Department; train staff in work procedures; evaluate employee performance, counsel employees, and effectively recommend initial disciplinary action; assist in selection and promotion; maintain the operations readiness of the police facility, personnel and resources needed to complete their mission.
Assume responsibility for coordinating the organization, staffing, and operational activities of an assigned Bureau within the Police Department. Receive complaints or reports of emergencies and determine need for police action.
Review the work of subordinates to ensure compliance with departmental policies and procedures.
Correct, supervise, and participate in the preparation and maintenance of reports and records.
Provide overall technical and administrative direction and counseling to personnel on an assigned shift.
Develop and conduct training programs in the various phases of police activities. Coordinate police activities with other City departments and divisions, and with outside agencies.
Respond to difficult citizen complaints and requests for information. Assist in budget preparation and administration.
Supervise, train, and evaluate assigned staff.
Serve as acting Police Captain as assigned.
Perform related duties as assigned.
QUALIFICATIONS
Knowledge of:
Principles and practices of organization, administration, budget, and personnel management.
Modern police practices, techniques, and methods.
Pertinent Federal, State and local laws and ordinances, particularly with reference to apprehension, arrest, search and seizure, traffic, and evidence. Departmental rules and regulations.
Functions and objectives of Federal, State, and other local law enforcement agencies.
Community-based policing philosophies and strategies.
Ability to:
Supervise, train, and evaluate assigned staff.
Obtain information through interview and interrogation. Analyze situations quickly and objectively and determine proper course of action. Establish smooth working relationships and resolve interpersonal conflicts. Understand and interpret provisions of the City's Municipal Code, MOU’s, Departmental Policies, City Personnel Rules and other rules and regulations related to their respective job duties.
Use and care for firearms.
Effectively manage workplace diversity issues in a diverse organization. Communicate clearly and concisely, orally and in writing. Properly interpret and make decisions in accordance with laws, regulations and policies.
Recommend improvements in departmental operation and in the rules, regulations, and policies governing the Department.
Meet the physical requirements established by the Department.
MINIMUM REQUIREMENTS
Experience and Education
Ten years of experience in law enforcement with a government agency including at least four years of experience in a responsible supervisory capacity at the level of Police Sergeant or higher with successful completion of probationary period, And completion of an Associate's Degree with major work in police science, business or public administration, or related field, And Possession of POST Intermediate and Supervisory Certificates is required.
DESIRABLE QUALIFICATIONS
A Bachelor’s Degree in Public or Business Administration, Police Science, one of the Behavioral Sciences, or related fields is desirable.
Note: Class specifications are intended to be descriptive, explanatory, and not restrictive. It is intended to declare what the duties, and responsibilities and the required qualifications of any position shall be.
City Council Approval Date:
City of Baldwin Park
POLICE SERGEANT
Class Specification
2/16/22
DEFINITION
Under direction, schedules, assigns, reviews and supervises police field or office operations on an assigned shift; supervises and personally performs investigation, patrol, jail, and administrative duties; and related work as required.
SUPERVISION RECEIVED AND EXERCISED
General supervision is provided by a Police Lieutenant. Technical or functional supervision may be provided by higher level police personnel.
Responsibilities include direct supervision of other sworn and non-sworn personnel.
Assignments may also required indirect supervision of other sworn and non-sworn personnel.
EXAMPLES OF DUTIES
Essential functions, as defined under the Americans with Disabilities Act, may include the following tasks, knowledge, skills and other characteristics. This list of tasks is ILLUSTRATIVE ONLY, not a comprehensive listing of all functions and tasks performed by positions in this class. Incumbents in this class may not be required to perform all duties listed and may be required to perform additional, similar or related duties.
(Depending upon assignment, duties may include:)
As a Patrol Sergeant, to supervise law enforcement activities during an assigned shift.
As a Detective Sergeant, supervise and personally conduct complete and detailed investigations of general and specialized crimes; review all investigation reports and make recommendations and suggestions to officers; coordinate investigations involving several officers, including narcotics investigations. Evaluate employee performance, counsel employees, prepare yearly appraisal reports.
Maintain discipline and insure that Department rules and policies are followed. Assist officers in follow-up investigations and personally participate in investigations including the routine gathering of evidence, questioning of witnesses, and apprehension of suspects.
Obtain and process evidence; take written statements; prepare required reports and maintain investigative records; serve warrants and subpoenas; testify effectively in court proceedings; counsel and educate the community; provide information and referrals in non-criminal situations; and contact and cooperate with other law enforcement agencies as warranted.
Conduct staff briefings, give special police related training and instructions; monitor the work activities of staff to ensure safe work practices, quality, and accuracy; ensure compliance with and disseminate information regarding department policies and procedures; and provide liaison between shifts and organizational bureaus.
Participate in all normal shift activities as assigned including enforcing local, state and federal laws, which include community based policing methods and protocols, issuing citations, making arrests, administering first aid, and transporting prisoners.
Provide direct supervision and line level coordination to critical incidents while communicating operational progress and/or needs to management. Assist officers in preparing reports in cases for trial and personally appear in court to present evidence and testimony, as required.
Confer with prosecutors and maintain contact with other law enforcement agencies.
Review reports submitted by officers.
Conduct in-service training.
Prepare reports of shift activity.
Interview victims, complainants, witnesses and suspects. Prepare investigation reports.
Testify and present evidence in court.
Contact and cooperate with other law enforcement agencies in matters relating to the investigation of crimes and the apprehension of offenders. May perform booking procedures and record keeping regarding jail prisoners. Respond to citizen complaints and requests for information. Analyze and synthesize a variety of data concerning Departmental activities and prepare reports and statistics.
Assist in budget preparation and administration.
Supervise, train, and evaluate assigned staff.
Serve as acting Police Lieutenant, Watch Commander, as assigned. Perform related duties as assigned.
QUALIFICATIONS
Knowledge of:
Police methods and procedures, including patrol, crime prevention, traffic control, investigation and identification techniques, and equipment, jail operations, police records and reports, and first aid techniques.
Departmental rules and regulations.
Criminal law with particular reference to the apprehension, arrest, and custody of persons committing misdemeanors and felonies, including rules of evidence pertaining to the search and seizures and the preservation of evidence in traffic and criminal cases.
Principles and practices of supervision and training.
Ability to:
Supervise, organize, train, mentor, schedule, and manage the work of assigned subordinates.
Resolve grievances, complaints, and interpersonal conflicts. Establish and maintain effective working relationships with fellow employees, staff, and members of the public
Gather, assemble, analyze, evaluate, and use facts and evidence. Analyze situations and adopt effective courses of action. Interpret and apply laws and regulations.
Communicate clearly and concisely, orally and in writing. Use and care for firearms.
Administer first aid.
Demonstrate keen powers of observation and memory.
Meet the physical requirements of the Department.
MINIMUM REQUIREMENTS
Experience and Education
Five years of experience in law enforcement with a governmental general law enforcement agency with successful completion of probationary period, And High school diploma or equivalent, supplemented by specialized courses and training in supervisory practices, And possession of POST Basic Certificate is required.
DESIRABLE QUALIFICATIONS
Completion of an Associate of Arts Degree in Police Science or a related field is desirable. Possession of POST Intermediate Certificate is desirable. Variety of assignments within different bureaus is desirable.
Note: Class specifications are intended to be descriptive, explanatory, and not restrictive. It is intended to declare what the duties, and responsibilities and the required qualifications of any position shall be.
City Council Approval Date:
________ _________
STAFF REPORT
ITEM NO. 8
TO: Honorable Mayor and Members of the City Council
FROM: Manuel Carrillo Jr., Director of Recreation & Community Services
DATE: February 16, 2022
SUBJECT: Award of Contract with Shaw integrated Solutions for CIP22- 029 Replacement of Carpet for Teen Center
SUMMARY
The purpose of this staff report is for City Council to authorize the award of contract with Shaw Integrated Solutions for the replacement of carpet for Teen Center as it would be uneconomical to follow purchasing procedures since the supplies are available through an existing award contract and previously completed the bidding process and (ii) the welfare of the public therefore would be promoted by dispensing with the purchasing procedures as allowed in the City’s Purchasing Ordinance Chapter 34 section 37 (A).
RECOMMENDATION
Staff recommends that the City Council:
1. Waive formal bid procedures per the City’s Purchasing Ordinance No. 1101 and Baldwin Park Municipal Code Chapter 34 section 37 (A); and
2. Authorize Director of Recreation & Community Services to Execute the Contract with Shaw Integrated Solutions.
FISCAL IMPACT
The total project amount is $28,456.19. The total approved CIP budget amount is $85,000 from the Quimby Fees (CIP22-029, Acct# 234-60-620-58100-56000-$33,506.55). The project has no fiscal impact to the General Fund budget.
BACKGROUND
At their September 1, 2021 City Council Meeting, City Council approved Fiscal Year (FY) 2021-2022 CIP budget, which included a line item under Cost Center 620 for the replacement carpet for the Teen Center. Carpet has reached its life and is showing considerable wear. The project includes moist testing, removal and disposal of existing carpet, and baseboards. The proposed carpet tiles are commercial grade and can withhold high traffic use. The installation of the new baseboards and carpet tiles to match the existing décor at the Center. The carpet is one of the various floor treatments scheduled to be replaced as part of CIP22-029. The product may be purchased under the Sourcewell (formerly National Joint Powers Alliance) Contract Agreement #080819-S11. Sourcewell is a joint powers association for public agencies with legal authority to serve as a contracting agency for municipalities. Staff is requesting to waive the formal bid process to allow staff to procure with a State authorized supplier as per the City Purchasing Ordinance Chapter 34 section 37 (A) that reads as follows:
Whenever the Council finds that the public interest and convenience require, the City may purchase City supplies and equipment utilizing purchasing agreements maintained by the County, State, or other public agencies, without complying with the requirements of this chapter.
The purchasing ordinance authorizes to “piggyback” since the contract was issued and already went through a bidding process at the time they were selected and made an authorized contractor.
ALTERNATIVES
The alternative is not to approve the agreement.
LEGAL REVIEW
This City Attorney has reviewed and approved it as to form.
ATTACHMENTS
1. Contract Service Agreement
Fax: ( ) -
( ) -Phone:
Mail Drop - 999 P O Box 208408
Dallas, TX 75320-8408
A Berkshire Hathaway Company
DateProposal Submitted To Attention Phone Fax
City of Baldwin Park Maria Moreno
Proposal Name Job Name Job #
Teen Center - City of Baldwin Park
Street Job Street Proposal ID
We hereby submit specifications and estimates for:
City, State and Zip Job City, State and Zip Customer PO Baldwin Park, CA 91706 Baldwin Park, CA 91706--422
4100 Baldwin Park Boulevard
Add #Date of Plans
Sourcewell
Architect Customer Job #
69730
14403 Pacific Ave
Teen Center - City of Baldwin Park 142384
02/03/22
160337
None
( ) -(626) 813-5245
Extended Price Unit PriceColorItem Description Qty UOM
$9,316.74$25.6900710/PurposePatcraft - Possible Tile / I0490 / 68 Cartons 362.66 SY $363.48$90.87Patcraft - 5100 Pressure Sensitive Adhesive 4.00 4 Gal $719.95$102.8500001/CarbonPatcraft - Rubber Cove Base - 4" (120LF per carton)
7.00 LF
$82.91$82.9100001/CarbonPatcraft - Transition Vinyl to Loop Pile 12 ft/S136V
1.00 Carton
$81.65$81.65Patcraft - Cove Base Adhesive 30oz Tube 1.00 Carton $3,049.20$8.47Carpet Tile Installation 360.00 SY
$1,386.00$3.85Carpet Removal 360.00 SY
$435.60$1.21Carpet Disposal 360.00 SY
$1,117.50$1.49Base - Install 4" 750.00 LF
$79.42$2.09Transitions - Install 38.00 LF
$3,575.00$71.50Floor Prep 50.00 Hour
$735.90$24.53Open Market - Floor Patch 30.00 Each
$2,502.50$71.50Furniture Remove & Replace 35.00 Hour
$1,200.00$200.00Moisture Testing 6.00 Each
$1,858.69$1,858.69Project Management-Project Management Fee (initiating, planning, executing, controlling, and
closing the project) Including, but not limited to
take off/measuring, trip fees, receiving and
overall management.
1.00 Each
$1,041.47$1,041.47Accrual and remittance of Use tax improsed; see Comment, below.
1.00 Each
$783.25$783.25Estimated Freight 1.00 Each
$126.93California Carpet Assessment as required by AB
2398
$28,456.19Base Bid Total:
Proposal Inclusions and Exclusions:
1. Sourcewell Contract# 080819-SII
2. Local Contact: Shaun Tait (714) 322-5483 [email protected]
3. Installation Vendor: Moore United Construction
4. Per California sales and use tax regulations section 1521(b)(1)(a), either sales or use tax applies with respect to sales of tangible personal property...for the construction or improvements on or to real property in the state of California. For this turnkey transaction, Use tax is accrued and paid to the state by Shaw Industries.
5. Proposal does not include removal of any materials containing asbestos.
6. Price is based on a consecutive installation period without delays and is based on the customer allowing installation crews access to work a minimum of 8 consecutive hours a day until completion. Delays other than "acts of God" will result in charges for down-time.
Fax: ( ) -
( ) -Phone:
Mail Drop - 999 P O Box 208408
Dallas, TX 75320-8408
Proposal ID: 160337
A Berkshire Hathaway Company
Proposal Inclusions and Exclusions:
7. Exclusions: attic stock, major floor prep, furniture moving unless specified in proposal, disconnecting and moving of computers and electronic equipment, vacuuming and protection of finished products, and any plumbing work (removal of commodes, etc)..
8. Extensive floor prep is not included in the price but may be necessary due to unforeseen conditions of the sub-floor. This work may include, but is not limited to, leveling or grinding, encapsulation or sealing, or extensive scraping of the sub-floor. Should extensive floor prep be required, you will be notified and a price estimate for the completion of the additional work will be prepared.
9. Price includes work as specifically stated in the above description for the quantities stated. Any circumstances that require additional labor will be handled through the change order process.
10. SII License Numbers: AL 50787, AK 40319, AZ ROC300955/ROC300956, CA 1007317, ID RCE-39577/022829-AA-4, MT 216017, NV 0080544/0080545/0080546/0080547, NC 75663, NM 385848, ND 53106, NY 58-2240471C, OR 205839, RI 38919, TN 69109, UT 9531877-5501, VA 2705157974, WA SHAWIII853DO, WV WV054222
11. Material title and risk of loss passes to the purchaser at the time of material delivery to the job site.
12. Please send your PO to Melanie Taylor @ [email protected] OR fax your Purchase Order to Shaw Integrated Solutions at fax # 706-428-3293 to initiate the order process. A purchase order is required before materials can be shipped.
13. A 2% fee will be assessed on the total bid amount at time of payment if utilizing a credit card.
14. Remit to Address: SHAW INTEGRATED SOLUTIONS, MAIL DROP 999, PO BOX 208408, DALLAS, TEXAS 75320-8408 Melanie Taylor $28,456.19
We PROPOSE to perform the work complete in accordance with the specifications and as described above for the SUM of:
Signature:
Conditions of Proposal:
Melanie Taylor
Email: [email protected]
1. This Proposal may be withdrawn, if not accepted, within 30 days of its issuance. Shaw Industries Group, Inc. will consider reasonable requests to engage in negotiations for revisions to this Proposal, including signing a subcontract that includes the terms of this Proposal. A proposal not accepted within 30 days will be subject to price escalation of materials, labor, freight and fuel costs.
2. This proposal is subject to credit review and approval. Payment terms are net 30 days. A convenience fee of 2% will be added if paying via credit card. Past due invoices are subject to service charges of 1.5% per month (18% per annum). In the case of any default, Customer shall pay Shaw Industries Group, Inc.'s reasonable attorney fees and costs, including those on any appeal, even if no suit or action is filed.
3. All work shall be performed in a workmanlike manner according to industry standards. Areas to receive flooring shall be free and clear of debris. Any changes to the work shall be performed only after execution of a written change order.
4. Prior to commencement of Shaw Industries Group, Inc.'s work: (a) Customer shall test all concrete sub floors receiving flooring for vapor emission levels and alkalinity per manufacturers' recommendations utilizing ASTM F2170 and provide written results to Shaw Industries Group, Inc., including a list of any sealers applied to the concrete sub floor; (b) If Customer does not provide such reports at least 10 days prior to commencement of Shaw Industries Group, Inc.'s work, then Customer shall provide Shaw Industries Group, Inc. with access to all concrete sub floors for appropriate testing and Customer shall be responsible for the costs of such testing; and (c) Any concrete sub floors not meeting manufacturers' requirements for installation will require correction or the execution of a separate waiver agreement.
5. All work is contingent upon strikes, accidents or delays beyond Shaw Industries Group, Inc.'s control. Customer shall carry insurance for all hazards, including fire. Shaw Industries Group, Inc.'s workers are fully covered by Worker's Compensation and Liability Insurance.
6. Customer represents and warrants that: (a) the project site contains no hazardous or other dangerous substances, either exposed or concealed; or (b) Customer has given written notice to Shaw Industries Group, Inc. of all such substances and their location(s). To the fullest extent permitted by law, Customer shall indemnify, defend and hold Shaw Industries Group, Inc. harmless from any damage, claim, loss, expense and attorney fees related to Shaw Industries Group, Inc.'s liability, if any, including any federal or state statute related to hazardous or other dangerous substances.
7. Shaw Industries Group, Inc. is fully licensed, bonded, and insured. This proposal does not include participation in any OCIP/CCIP or related programs. Requests for Shaw Industries Group, Inc. to participate in such programs may result in additional costs.
ACCEPTANCE OF PROPOSAL: The above prices, specifications, and conditions are satisfactory and are hereby ACCEPTED.
City of Baldwin Park Signed:Customer: Date:
You are authorized to do the work as specified.
________ _________
STAFF REPORT
ITEM NO. 9
TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer
Benjamin Martinez, Community Development Director
DATE: February 16, 2022
SUBJECT: Approving the Form of the Agreements to be used with the San Gabriel Valley Habitat for Humanity, Inc. to Implement an Acquisition and Rehabilitation Housing Program using HOME Investment Partnership Act Program Funds to Create
Homeownership Opportunities
SUMMARY
The City Council is requested to approve the form of the agreements to be used with the San Gabriel Valley Habitat for Humanity, Inc. (hereinafter “Habitat”) to implement an acquisition and rehabilitation housing program (“Program”) to create homeownership opportunities for low-income families utilizing HOME Investment Partnership Program (“HOME”) Funds.
RECOMMENDATION
Staff is recommending that the City Council:
1. Approve the form of the attached Agreements for use in the Program; and
2. Authorize the Chief Executive Officer (“CEO”) and City Attorney to carry out all subsequent and needed actions to proceed with the Program, including approving real estate purchase transactions, and executing agreements.
FISCAL IMPACT
There is no fiscal impact to the General Fund. The use of HOME funds for this program were authorized by the City Council on October 6, 2021 with approval of an Affordable Homeownership Expansion Agreement with Habitat.
BACKGROUND
On October 6, 2021 an Affordable Homeownership Expansion Agreement (“AHEA”) with Habitat was approved for the purpose of expanding homeownership projects in the city to low-income families. Low- income families are defined as families that earn 80% or less of the Area Median Income or $94,600 for a family four. The AHEA identified four funding sources to establish five housing programs. The purpose of this staff report is to discuss one of the funding sources, HOME funds, and one of the approved programs which is the acquisition and rehabilitation program. Through the program HOME funds would be used to acquire existing homes and rehabilitate them for sale to low-income families.
The attached agreements (Loan Agreement, Declaration of Covenant Conditions and Restrictions, Deed of Trust, and Promissory Note) outline the financial commitment from each individual funding source, income restrictions, term of transactions for new homeowners, required HOME regulations and delegation of authority to the CEO to approve real estate purchases and execute agreements. This delegation was included to allow Habitat to compete for transactions in a very competitive seller’s market. However, if Habitat can negotiate sufficient time, purchase transactions will be brought before the City Council for approval.
ALTERNATIVES
The City Council may decide to approve agreements; (2) not to approve the agreements; (3) choose to analyze the Program further.
LEGAL REVIEW
The agreements have been reviewed and approved by Special Legal Counsel (Christensen & Spath, LLP) and the City Attorney as to legal form and content.
ATTACHMENTS
1. Draft Loan Agreement
2. Declaration of Covenant Conditions and Restrictions
3. Deed of Trust
4. Promissory Note documents.
1 ACQUISITION REHABILITATION LOAN AGREEMENT
(Habitat-________property address)
________
___________________
THIS ACQUISITION REHABILITATION LOAN AGREEMENT (“Agreement”) is dated as of the __ day of ______, 2022, by and between (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Borrower”), and the City of Baldwin Park (“Lender”) as follows:
RECITALS
A. Borrower intends to acquire that certain residential real property generally located at _____________ in Baldwin Park, California (“Property”). Borrower’s acquisition of the Property will be financed by Borrower in part using a loan from the Lender in the original principal amount of and No/100 Dollars ($_________.00) (“Loan”).
B. Borrower shall rehabilitate the residential dwelling unit (“Affordable Unit”) on the Property by performing all of the Rehabilitation, as defined below. The Affordable Unit shall be restricted under the HOME program for a period of fifteen (15) years as referenced in the Declaration. All development of the Property shall be subject to the review and approval of the Lender. The Affordable Unit shall be sold to, and at a price which is affordable to, persons whose incomes are at or below eighty percent (80%) of the Area Median Income, as defined below.
C. Borrower acknowledges that Lender is funding the Loan entirely using U.S.
Department of Housing and Urban Development HOME funds. The Loan shall be governed by all HUD HOME Program regulations, including HUD HOME Program regulations, whether or not specifically referenced in this Agreement. The Loan shall fund acquisition and other project costs as set forth in 24 C.F.R. 92.206, including, without limitation eligible soft costs as set forth in 24 C.F.R. 92.206(d). Notwithstanding the foregoing, $__________ (__% of the Loan) may be used by the Borrower to pay for or reimburse the Borrower for eligible administrative costs as set forth in 24 C.F.R. 92.207. In the event the Borrower has delivered to the Lender, evidence satisfactory to the Lender that Borrower is a Community Housing Development Organization (“CHDO”) (as defined in 24 CFR Section 92.2) and the Loan is funded with U.S. Department of Housing and Urban Development HOME-CHDO funds, then the Loan and the Property shall be governed by all applicable HUD HOME-CHDO regulations whether or not specifically referenced in this Agreement and the Loan shall fund only HUD HOME-CHDO eligible project costs as set forth in 24 C.F.R. Part 92.
D. The Loan shall be evidenced by the Note. The Note shall bear interest at the rate of 3% per annum. Upon completion the Rehabilitation, the Loan shall be assumed by the purchaser of the Affordable Unit. This Agreement, the Declaration and the Note shall be secured by the Deed of Trust.
NOW, THEREFORE, in furtherance of the recitals stated above, the mutual covenants set forth below, the parties agree, promise and declare as follows:
2 1. Definitions. The following terms shall have the meanings set forth below:
_
“Affordable Unit” means the dwelling unit that shall be rehabilitated by Borrower on the Property. The Borrower shall provide a preference for sale of the Affordable Unit to households with at least one member who resides within the City of Baldwin Park, as that person’s primary place of residence, to the maximum extent allowed by law. ________
_______________
“Agreement” means this Acquisition Rehabilitation Loan Agreement. “Area Median Income” means the median income for the Los Angeles-Long Beach- Glendale Metropolitan Statistical Area, as adjusted for family size, as said median income is determined by HUD.
“Borrower”means ____ (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.). “Closing” means the close of escrow for Borrower’s acquisition of the Property and the Borrower’s closing on the Loan, which shall occur concurrently. “Lender” means the City of Baldwin Park.
“Loan” means the acquisition loan from Lender to Borrower in the original principal amount of and No/100 Dollars ($_________.00).
“Note” means a promissory note, in a form and format approved by Lender in the Lender’s sole discretion, evidencing the Loan, executed by Borrower in favor of the Lender at Closing. The Note is hereby incorporated herein by reference.
“Declaration” means a declaration of covenants, conditions and restrictions, in a form and format approved by Lender in the Lender’s sole discretion, which shall restrict the sale and occupancy of the Affordable Unit as set forth in the Declaration. “Deed of Trust” means the deed of trust securing the Note, Declaration and this Agreement, in a form and format approved by Lender in the Lender’s sole discretion, which shall be recorded as an encumbrance against the Property at Closing.
“Escrow” means the escrow depository and disbursement services to be performed by the Escrow Agent pursuant to the provisions of this Agreement. “Escrow Agent”means ____________.
“Escrow Instructions” means the Escrow Instructions being delivered by the Lender to Escrow Agent concurrently with the delivery of this Agreement to Escrow Agent. 3 “Hazardous Materials” means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United State Government. Provided, however, the term “Hazardous Materials” shall not include substances typically used in the ordinary course of developing, operating and maintaining residential projects in California or small amounts of chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar properties, provided that such substances are used in compliance with applicable laws. ________
________
“Property” has the meaning set forth in Recital A, above. “Rehabilitation” shall mean the rehabilitation work to be performed by Borrower at the Property, the scope of which rehabilitation work shall be agreed to by Borrower and Lender.
2. Acquisition Rehabilitation Loan. Lender will fund the Loan to Borrower according to and upon the terms and conditions set forth in this Agreement. The proceeds of the Loan shall be used by Borrower solely for the purposes of acquiring the Property and completing the Rehabilitation, in accordance with all applicable HUD HOME regulations. (a) Loan Amount. The amount of the Loan shall be and No/100 Dollars ($_________.00).
(b) Promissory Note.
(1) The Loan shall be evidenced by the Note executed by Borrower, in favor of Lender, in the original principal amount of and No/100 Dollars ($_________.00). Prior to the timely completion of Rehabilitation, the Loan and the Note shall be fully recourse to Borrower. Upon timely completion of Rehabilitation, the Loan and Note shall be non-recourse to Borrower.
(2) The Note shall bear simple interest at three percent (3%) per annum from the date or dates of disbursement. Except as otherwise set forth in this Agreement (i.e., the transfer of the Affordable Unit to a qualified purchaser), the Note shall be due and payable in full prior to or concurrently with any sale, conveyance, transfer or further encumbrance of all or any portion of the Property without the consent of the Lender. The Note may be prepaid in whole or in part at any time and from time to time, without notice, premium or penalty. The obligations of Borrower under the Declaration shall be independent of, and in addition to, Borrower’s obligations under this Agreement. Repayment of the Note shall not terminate or otherwise affect the Declaration. (3) Except as otherwise set forth in this Agreement (i.e., the transfer of the Affordable Unit to a qualified purchaser), should Borrower agree to or actually sell, convey, transfer, further encumber or dispose of the Property or any interest in the same, without first obtaining the written consent of the holder of the Note (i.e., the Lender), which consent shall be granted or withheld at the sole discretion of the holder of the Note, then all obligations secured by the Note may be declared due and payable at the option of the holder of the Note. The consent to 4 one transaction of this type will not constitute a waiver of the right to require consent to future or successive transactions. The Declaration shall remain in place whether or not Lender approves or disapproves a successor-in-interest.
(4) Upon completion of Rehabilitation, the purchaser of the Affordable Unit shall assume all of the Borrower’s interests, right and obligations under the Note and Deed of Trust. The Note and Deed of Trust assumption shall be pursuant to a form approved by the CEO of the Lender. Notwithstanding the foregoing, in the event of a transfer of the Property where the amount of the Note (“Original Note Amount”) would violate the first position lender’s underwriting requirements or otherwise impede the transfer of the Property to an Eligible Owner, as defined in the Declaration, then the amount of the Note shall be reduced to the extent allowed by 24 CFR Section 92.254(a)(5)(ii)(A)(5) (“Reduced Note Amount”). In such event, the difference between the Original Note Amount and the Reduced Note Amount (“Deemed Paid Amount”) shall be deemed repaid in full to the Lender and the purchaser of the Affordable Unit shall have no further obligation with respect to the Deemed Paid Amount.
3. Deed of Trust. Upon the close of Escrow, as security for the Loan and the Declaration, Borrower shall execute, acknowledge, deliver and cause the Deed of Trust to be recorded against the Property. A copy of this Agreement shall not be attached to and recorded as part of the Deed of Trust, but any breach of or misrepresentation under this Agreement shall, upon the expiration of any applicable notice and cure period(s), constitute an event of default under the Deed of Trust.
At Closing the Deed of Trust shall be recorded in a position subordinate to the Declaration and to all monetary liens on the Property.
4. Subsequent Financing. No further loan, deed of trust, or encumbrance, shall be placed by Borrower upon any portion of the Property without first obtaining the express written consent of Lender. As and whenever requested by Borrower, such approval will not be unreasonably delayed or withheld by Lender. Any such unconsented to financing shall constitute a material breach of this Agreement. Further, during any Lender approved refinancing or subsequent encumbrance, Lender shall be provided ALTA title insurance or endorsements acceptable to Lender, at the cost and expense of Borrower. Said written consent shall be at Lender’s sole discretion. Without the express written consent of Lender such subsequent financing is void. As used in this Agreement, the approval of the Lender shall mean the approval of the CEO of the Lender.
5. Funding. Lender’s obligation to fund the Loan shall be and is specifically conditioned upon the Lender approving all documents with respect to Borrower’s acquisition of the Property, the Lender approving the preliminary title reports concerning the Property, payment of all taxes due and payable on the Property, issuance of an ALTA Lender’s policy insuring the Loan satisfactory to the Lender, satisfaction of all conditions precedent to Lender’s obligation to fund the Loan contained in this Agreement, and satisfaction of those conditions set forth in Section 15 of this Agreement.
6. Affordability Restrictions. The obligation of Lender to make and fund the Loan hereunder is subject to the execution, and recordation of the Declaration against the Property. At Closing, the Declaration shall be recorded subordinate to all monetary liens on the Property. The 5 Declaration shall be binding and enforceable against all heirs, successors and assigns of Borrower.
Borrower acknowledges that Lender is funding the Loan entirely using U.S. Department of Housing and Urban Development HOME funds. The Loan shall be governed by all HUD HOME Program regulations, including HUD HOME Program regulations, whether or not specifically referenced in this Agreement. Borrower agrees that all of the Loan shall be used for purposes that are eligible under the applicable HUD HOME Program regulations. Any default under the Declaration, which continues uncured after any applicable notice and cure period provided in the Declaration, shall be a default under this Agreement, the Note and the Deed of Trust.
7. No Partnership or Joint Venture. The relationship between Lender and Borrower created by this Agreement shall not be one of partnership or joint venture, but rather shall be one of secured lender and borrower.
8. Insurance. Borrower shall take out and maintain during the term of the Declaration, and shall cause its contractors and subcontractors to take out and maintain until completion of the Rehabilitation, a comprehensive general liability policy in the amount of not less than $2,000,000 combined single limit policy for the contractor and not less than $1,000,000 combined single limit policy for subcontractors, and a comprehensive automobile liability policy in the amount of $2,000,000 combined single limit for the contractor and not less than $1,000,000 combined single limit policy for subcontractors, or such other policy limits as the Lender may approve at its discretion, including contractual liability, as shall protect Borrower, Lender from claims for such damages. Such policy or policies shall be written on an occurrence form. Borrower shall also furnish or cause to be furnished to Lender evidence satisfactory to Lender that Borrower, and any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement, carries workers’ compensation insurance as required by law.
Borrower shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form approved by Lender setting forth the general provisions of the insurance coverage. This countersigned certificate shall name Lender and its councilmembers, officers, agents, and employees as additionally insured parties under the policy, and the certificate shall be accompanied by a duly executed endorsement evidencing such additional insured status.
Coverage provided hereunder by Borrower shall be primary insurance and not be contributing with any insurance maintained by Lender, and the policy shall contain such an endorsement. The insurance policy or the endorsement shall contain a waiver of subrogation for the benefit of the Lender.
9. Assignability.
(a) Borrower shall not assign any interest in this Agreement and shall not transfer any interest in the same (whether by assignment or novation) without the prior written approval of the Lender. Any assignment without the prior written consent of the Lender shall be voidable, at the election of the Lender.
(b) Borrower shall not revoke or rescind its Articles of Incorporation or convert to any other type of entity without the prior written consent of Lender. 6 10. Borrower Liability. The Borrower shall be responsible for all injuries to persons and/or all damages to real or personal property of the Lender or others, caused by or resulting from the negligence and/or breach of this Agreement, by Borrower, Borrower’s employees, contractors, subcontractors and/or Borrower’s agents during the course of the Rehabilitation and/or the breach of this Agreement, except those arising from the sole active negligence or sole willful misconduct of the Lender. Borrower shall defend and hold harmless and indemnify the Lender and all of its councilmembers, agents, officers, representatives, directors and employees from all liabilities, causes of action, demands costs, damages, judgments, expenses and claims (collectively “Claims”) by any person resulting from the negligence and/or breach of this Agreement, by Borrower, Borrower’s employees, contractors, subcontractors and/or Borrower’s agents, arising out of the Rehabilitation and/or the breach of this Agreement. Borrower shall defend any Claims, at the sole cost and expense of Borrower, with counsel of the indemnified party’s choosing, provided that Borrower’s obligation with respect to fees of indemnified party’s counsel shall be limited to reasonable fees.
11. Ownership of Materials and Documents. Any and all sketches, drawings, tracings, field survey notes, computations, plans, details and other materials and documents prepared by or on behalf of Borrower pertaining to the Property shall be the property of Lender upon a default by Borrower. Borrower shall deliver such materials and documents to Lender whenever requested to do so by Lender. Notwithstanding the foregoing, the Lender’s rights to the materials delineated in the immediately preceding sentence shall be subordinate to the rights of any senior institutional lender with respect to the same. Lender shall have the right to have duplicate copies of such materials and documents for their file, at the cost and expense of Lender, upon written request even if Borrower is not in default under the terms of this Agreement.
12. Indemnification.
(a) Environmental Indemnity. Borrower agrees to indemnify, defend and hold the Lender and all of its councilmembers, agents, officers, representatives, directors and employees (“Indemnified Parties”) harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, reasonable attorneys’ fees), resulting from, arising out of, or based upon any of the following: (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property, or (ii) the violation, or alleged violation, of any applicable statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Property. The indemnification of the Indemnified Parties by Borrower set forth in this Section 12 shall apply regardless of when the Hazardous Materials came to be on, under, in or about the Property, including without limitation whether the Hazardous Materials came to be on, under, in or about the Property prior to Borrower’s acquisition of an interest in the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, or parallel indemnity arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the 7 environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. The indemnity provided in this Section 12 does not include any condition arising solely as a result of the gross negligence or affirmative acts of the Indemnified Parties.
Notwithstanding anything contained in this Agreement to the contrary, Borrower’s duty to indemnify the Indemnified Parties as set forth in this Section 12 shall survive and remain an outstanding obligation of Borrower after termination of this Agreement. (b) General Indemnity.
(1) Definitions.
(A) Claims. “Claims” means any Claims as set forth in Section 10, above, or any and all threatened, pending or completed claims, actions, suits, proceedings, arbitrations, grand jury proceedings or investigations, damages, liabilities, injunctive relief, injuries to person or property, fines, penalties, causes of action, losses, costs, expenses and judgments whether civil, criminal, administrative or investigative, and any one or more appeals therefrom.
(B) Expenses. “Expenses” means reasonable attorneys’ fees, retainers, court costs, staff time, transcripts, reasonable fees of experts, reasonable witness fees, arbitration fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all and all other direct or indirect costs and disbursements associated with any Claims, including without limitation expenses of establishing a right to indemnification under this Section 12. (C) Indemnified Parties. “Indemnified Parties” means the Lender and all of its councilmembers, agents, officers, representatives, directors and employees (individually an “Indemnified Party”).
(D) Liabilities. “Liabilities” means the obligations (including an obligation incurred by way of settlement) to pay any judgment, settlement, penalty, interest, assessment, Claim, cost, expert witness fee and award of attorneys’ fees. (2) Indemnification. Borrower hereby agrees to indemnify, protect and hold harmless the Indemnified Parties from and against any and all Claims incurred by or asserted against any Indemnified Party, which arise directly or indirectly, in whole, in part or in any way, from the Loan, the Property, the Rehabilitation, the Affordable Unit or from any other approval or action whatsoever in connection with the Property or the Rehabilitation, except to the extent of the gross negligence or willful misconduct of an Indemnified Party. (3) Payment of Liabilities and Expenses. Borrower further agrees to pay any and all Liabilities and Expenses incurred by any and all Indemnified Parties with respect to any Claims which arise directly or indirectly, in whole, in part or in any way from the Loan, the Property, the Rehabilitation, the Affordable Unit or from any other approval or action whatsoever 8 in connection with the Property, except to the extent of the gross negligence or willful misconduct of an Indemnified Party.
(4) Separate Rights of Action. A separate right of action hereunder shall arise each time an Indemnified Party acquires knowledge of any matters described herein. Separate and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and from time to time. No action hereunder shall preclude any subsequent action. (5) Right to Defend. Each Indemnified Party shall have the right, but not the obligation, to conduct its own defense with respect to any Claims and to retain legal counsel of its own choosing. Borrower shall pay for or reimburse any such Indemnified Party for any and all Expenses and Liabilities incurred by such Indemnified Party, as such Expenses and Liabilities are incurred. An Indemnified Party’s election to defend itself as provided in this Section, shall not in any way limit the Borrower’s obligation to reimburse and pay for any and all Liabilities and Expenses incurred by the Indemnified Parties with respect to any Claims; provided, however, any Indemnified Party may elect in its sole discretion to demand that the Borrower defend and pay all Expenses with respect to any Claims, provided the Claims if determined adversely to such Indemnified Party, would be covered by the foregoing indemnification provisions. Upon any such demand by any Indemnified Party, Borrower shall defend and pay all Expenses and Liabilities with respect to such Claims; such defense shall be at the Borrower’s sole cost and expense and by counsel reasonably approved by such Indemnified Party.
(6) Survival. Borrower’s duty to indemnify shall survive and remain an outstanding obligation of Borrower upon the termination of this Agreement.
13. Termination. This Agreement and the relationship created herein shall terminate upon full satisfaction of all of Borrower’s obligations, and those of Borrower’s successors, if approved by the Lender, under this Agreement. The obligations of Borrower include, but are not limited to, those obligations arising under the Declaration, the provisions of which shall survive repayment of the Loan.
14. Default by Borrower.
(a) Notwithstanding anything to the contrary set forth herein, in the event of a material default by Borrower in the performance of any of the terms, covenants and conditions contained in this Agreement, the Note, the Deed of Trust or the Declaration after expiration of the cure period set forth in Section 14(b) or 14(c) hereof, or as a result of a default past any applicable notice and cure period under any prior or junior note secured by an encumbrance on the Property or any portion of it, or any note or deed of trust given in conjunction herewith, or in the event of the filing of a bankruptcy proceeding by or against Borrower which is not dismissed within one hundred twenty (120) days, all sums disbursed or advanced by Lender, plus interest, shall at the option of Lender immediately become due and payable and Lender shall have no obligation to disburse any further funds, or otherwise, and Lender shall be released from any and all obligations to Borrower under the terms of this Agreement. These remedies shall be in addition to any and all other rights and remedies available to Lender, either at law or in equity. 9 (b) If a non-monetary event of default occurs under the terms of this Agreement, the Note, the Deed of Trust or the Declaration, prior to exercising any remedies hereunder or thereunder, the Lender shall give Borrower written notice of such default indicating in reasonable detail the nature of the default. If the default is capable of being cured within ninety (90) calendar days after such notice is received or deemed received, Borrower shall have such period to effect a cure prior to exercise of remedies by the Lender. If the default is such that it is not capable of being cured within ninety (90) days in the Lender’s reasonable discretion and Borrower (i) initiates corrective action within said period, and (ii) diligently and in good faith works to effect a cure as soon as possible, then Borrower shall have such additional time as the Lender determines, in its reasonable discretion, is necessary to cure the default prior to exercise of any remedies by the Lender. If such default is not timely cured, then the Lender may proceed with all or any of its rights and remedies as set forth herein, in the Declaration and/or the Deed of Trust. (c) In the event of any monetary default by the Borrower under the terms of this Agreement, the Note, the Deed of Trust or the Declaration, the Lender shall give Borrower a thirty (30) day written notice of default, during which time the Borrower shall have the ability to cure the monetary default. If the default is not timely cured, the Lender may proceed with all rights and remedies under the terms of the Loan or at law.
15. Conditions to Lender Obligations. The obligation of Lender to make and fund the Loan is subject to satisfaction of all of the conditions set forth in this Section 15, which may be satisfied concurrently with Closing.
(a) Closing on the Property. The Borrower shall have acquired, or will concurrently with the Closing acquire, the Property.
(b) Execution of Documents. This Agreement, the Note, Deed of Trust and Declaration, fully executed by the Borrower, shall have been delivered to the Escrow Agent along with all other fully executed security documents and instruments provided for herein and/or as required by Lender.
(c) Commitment to Issue Title Policy. The Escrow Agent shall be irrevocably committed to issue and deliver to the Lender a standard form ALTA Lender’s Policy of Title Insurance, insuring Lender’s security interest in the Property under the Deed of Trust in an amount equal to the original principal amount of the Loan. Which ALTA Lender’s Policy of Title Insurance shall be paid for by Borrower.
(d) Compliance with Obligations. Borrower shall have strictly complied with, and performed, all terms and conditions of the documents executed by Borrower in connection with this Agreement and the Loan.
(e) Insurance Certificates. Borrower shall have delivered all certificates of insurance and additional insured endorsements.
10 (f) Agreement on Scope of the Rehabilitation. The Borrower and Lender shall have agreed to the scope of the Rehabilitation.
(g) Additional Conditions. Such other conditions as Lender shall reasonably request.
16. Borrower’s Representations and Warranties. Borrower represents and warrants to the _________
Lender that:
(a) Borrower is a validly and lawfully formed corporation, is in good standing under California law and will remain such for the term of this Agreement. (b) Execution of this Agreement, the Deed of Trust, Declaration and all other documents executed in conjunction herewith have been duly authorized by resolution of the Borrower, and such execution shall not result with the passage of time or the giving of notice or both in breach of or in acceleration of performance under any contract or document to which Borrower may be a party.
(c) All required approvals have been obtained in connection with Borrower’s execution of this Agreement, and all related instruments, agreements and documents to the effect that no breach of or acceleration of performance under any agreement or document to which Borrower is a party will result from such execution.
(d) Funds advanced by Lender pursuant to the Loan: (i) are advanced wholly for the benefit of Borrower; (ii) shall be used solely to fund acquisition and other project costs as set forth in 24 C.F.R. 92.206, including, without limitation eligible soft costs as set forth in 24 C.F.R.
92.206(d), except that $_ (__% of the Loan) may be used by the Borrower to pay for or reimburse the Borrower for eligible administrative costs as set forth in 24 C.F.R. 92.207. (e) Any default by Borrower under the terms of this Agreement shall not relieve Borrower from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to Lender, when such inaccuracies, defects and incomplete work are due to Borrower’s fault, including the fault of Borrower’s subcontractors, agents, partners, joint venturers and employees. (f) Borrower shall comply with the Declaration at all times during the term of the Declaration.
17. Performance Milestones. Subject to force majeure, Borrower shall satisfy all of the requirements set forth in this Section 17 on or before the dates set forth below, failure to do so shall be a default under this Agreement. Any of the foregoing deadlines shall be extended during the duration of any force majeure events and in addition may be extended by mutual agreement of the Borrower and the CEO of the Lender or his/her designee and any approval by the Lender set forth in this Section means the approval of the CEO of the Lender or his/her designee, and at no point shall Lender’s approval be unreasonably withheld or delayed. Force majeure shall include, but shall not be limited to, acts of God, labor strikes, war, riots, insurrection, lock-outs, floods, earthquakes, fires, casualties, acts of the public enemy, epidemics, quarantine restrictions, supply 11 chain disruptions, freight embargoes, lack of transportation, unusually severe weather, inability to secure necessary labor, material or tools, delays of any contractor, sub-contractor or supplier, or any causes beyond the control and without the fault of the Borrower. (a) Acquisition. Borrower shall close the Escrow and acquire the Property on or before _________.
(b) Building Permits. Borrower shall obtain building permits for the Rehabilitation on or before _________. The execution of this Agreement does not constitute the granting by the City of Baldwin Park of any required building permits, land use permits, entitlements or approvals.
___
(c) Rehabilitation Commencement. Borrower shall commence the Rehabilitation on or before _________. All costs of the Rehabilitation whatsoever shall be borne by Borrower, including without limitation the cost of planning, designing, developing and completing the Rehabilitation, as well as site preparation and grading. (d) Completion of Rehabilitation. Borrower shall complete the Rehabilitation (evidenced by upon completion of the final inspection approval of the Affordable Unit by the building official of the City of Baldwin Park) on or before _____. (e) Sales of Affordable Unit. Borrower shall sell the Affordable Unit at a price which is affordable to, persons whose income is at or below eighty percent (80%) of the Area Median Income on or before _______.
18. Remedies.
(a) Contract Governed by Laws of the State of California. This Agreement, the performance of this Agreement, and all suits and special proceedings under this Agreement, shall be constituted in accordance with the laws of the State of California. In any action, special proceeding, or other proceeding that may be brought arising out of, under or because of this Agreement, the laws of the State of California and the United States, to the extent applicable, shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction in which the action or special proceeding may be instituted.
(b) Standing, Equitable Remedies; Cumulative Remedies. Borrower expressly agrees and declares that Lender or any successor or public agency shall be the proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity, including but not limited to foreclosure under any security instrument securing performance hereunder, to enforce the provisions hereof and/or to recover damages for any default hereunder, which default continues uncured after any applicable notice and cure period, notwithstanding the fact that such damages or the detriment arising from such a default may have actually been suffered by some other person or by the public at large. Further, Borrower expressly agrees that receivership, injunctive relief and specific performance are proper pre-trial and/or post-trial remedies hereunder, and that, upon any default, which default continues uncured after any applicable notice and cure 12 period, a receiver may be appointed by the court to take control of the Property and to assure compliance with this Agreement. Nothing in this subparagraph, and no recovery to Lender, shall restrict or limit the rights or remedies of persons or entities other than Lender, against Borrower in connection with the same or related acts by Borrower. The remedies set forth in this Section are cumulative and not mutually exclusive, except the extent that their award is specifically determined to be duplicative by final order of a court of competent jurisdiction. (c) Remedies at Law for Breach of Restrictions. In the event of any default under the Declaration, Lender shall be entitled to, in addition to any and all other remedies available at law or in equity: (i) declare the Loan to be all due and payable; and (ii) recover compensatory damages.
Interest shall accrue on the amount of such damages from the date of the breach in question at the rate of ten percent (10%) per annum or the maximum rate then allowed by law, whichever is less.
Nothing in this section shall preclude the award of exemplary damages as allowed by law. (d) Expert Witness, Attorneys’ Fees, and Costs. The parties agree that the prevailing party in litigation for the breach and/or interpretation and/or enforcement of the terms of this Agreement shall be entitled to their reasonable expert witness fees, if any, as part of their costs of suit, and reasonable attorneys’ fees as may be awarded by the court, pursuant to California Code of Civil Procedure (“CCP”) Section 1033.5 and any other applicable provisions of California law, including, without limitation, the provisions of CCP Section 998.
19. Monitoring of Activities. Borrower agrees to allow Lender upon prior written notice and during regular business hours, such reasonable access to review and inspect Borrower’s activities under this Agreement as Lender shall require. Lender shall monitor Borrower’s activities without liability for said inspection and review.
20. Compliance With Laws.
(a) Limitation of Use of Funds for Religious Purposes. Borrower represents and warrants that Borrower will fully comply with any and all requirements and limitations contained in 24 C.F.R. Section 92.257, as amended, from time to time. Borrower further represents, warrants and agrees that no funds will be used for any purpose proscribed in 24 C.F.R. Section 92.257, as amended.
(b) Administrative Requirements. Borrower shall strictly comply with the administrative requirements that are applicable to Borrower contained within 24 C.F.R. Section
92.505, including, but not limited to, the requirements of OMB Circular No. A-87 and the applicable requirements of 2 C.F.R. Part 200. Further, Borrower covenants (if it is a nonprofit organization) to comply with the OMB Circular No. A-122 and the applicable provisions of OMB Circular No. A-110. Copies of said OMB Circulars are on file in the offices of the Lender and are available for inspection and copying by Borrower. Borrower further agrees that should the administrative requirements contained in 24 C.F.R. Section 92.505 be amended and/or changed from time to time by HUD, that Borrower will comply with the terms and conditions of such changed and/or amended administrative requirements. The HOME funds shall be closed out in accordance with 2 C.F.R. Part 200, Subpart D, as required by 24 C.F.R. Section 92.507. 13 (c) Federal and State Requirements. Borrower represents, warrants and agrees that Borrower will fully comply, during the term of this Agreement, with any and all HOME requirements including, but not limited to the requirements of 24 C.F.R. Part 92, 24 C.F.R.
Sections 92.351 (Affirmative Marketing), 92.352 (Environmental Review), 92.353 (Displacement, Relocation and Acquisition Residential, Antidisplacement and Relocation Plan), 92.354 (Labor),
92.356 (Conflict of Interest) and 92.358 (Flood Insurance). If the Borrower is a CHDO and the Loan is funded with HOME-CHDO funds, then Borrower shall additionally comply with the applicable provisions of 24 C.F.R. Section 92.300, et seq. Borrower further warrants, represents and agrees that should said program requirements be changed by HUD, from time to time, that Borrower will comply with said changed and amended regulations. (d) Equal Opportunity and Fair Housing Programs. During the term of this Agreement, Borrower agrees as follows:
(1) Borrower will not discriminate against any employee, person, or applicant for employment and/or housing because of race, age (except as allowed by law), sexual orientation, marital status, color, religion, sex, handicap, or national origin. Borrower will take affirmative action to ensure that applicants are employed and/or are housed, and that employees or applicants are treated during employment and/or housing, without regard to their race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin. Such action shall include, but is not limited to the following: employment, upgrading, demotion, or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Borrower agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Lender setting forth the provisions of this nondiscrimination clause. (2) Borrower will, in all solicitations or advertisements for employees and housing placed by on or behalf of Borrower, state that all qualified applicants will receive consideration for employment without regard to race, age, sexual orientation, marital status, color, religion, sex, handicap, or national origin.
(3) Borrower will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement so that such provisions will be binding upon each subcontractor, provided that the foregoing provision shall not apply to contracts or subcontracts for standard commercial supplies of raw materials. (4) Borrower hereby agrees to comply with the Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations. The Lender will provide technical assistance and copies of the referenced programs upon request. 24 C.F.R. Section 92.350. (5) All activities carried out by Borrower and/or agents of Borrower shall be in accordance with the requirements of the Federal Fair Housing Act. The Fair Housing Amendments Act of 1988 became effective on March 12, 1989. The Fair Housing Amendments Act of 1988 and Title VIII of the Civil Rights Act of 1968, taken together, constitute The Fair Housing Act. 14 The Act provides protection against the following discriminatory housing practices if they are based on race, sex, religion, color, handicap, familial status, or national origin: denying or refusing to rent housing, denying or refusing to sell housing, treating differently applicants for housing, treating residents differently in connection with terms and conditions, advertising a discriminatory housing preference or limitation, providing false information about the availability of housing, harassing, coercing or intimidating people from enjoying or exercising their rights under the Act, blockbusting for profit, persuading owner to sell or rent housing by telling them that people of a particular race, religion, etc. are moving into the neighborhood, imposing different terms for loans for purchasing, constructing, improving, repairing, or maintaining a home, or loans secured by housing; denying use or participation in real estate services, e.g., brokers’ organizations, multiple listing services, etc. The Fair Housing Act gives HUD the authority to hold administrative hearings unless one of the parties elects to have the case heard in U.S. District Court and to issue subpoenas.
Both civil and criminal penalties are provided. The Act also provides protection for people with disabilities. The following State of California Laws also govern housing discrimination: Fair Employment and Housing Act, Unruh Civil Rights Act of 1959, Ralph Civil Rights Act of 1976, and Civil Code Section 54.1.
(e) Labor Requirements. Borrower represents and warrants that, with respect to rehabilitation of the Project, Borrower will comply with each and every provision and requirement contained within 24 C.F.R. §92.354, as amended from time to time, and will pay not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis- Bacon Act (40 U.S.C. §§276a-276a-5), to all laborers and mechanics employed in the development of any part of the Project in accordance with the terms and provisions of 24 C.F.R. §92.354 and will comply with the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. §§327-332). Prevailing wages need not be paid to “Volunteers” or for “Sweat Equity” as defined in 24 C.F.R. §92.354(b) and (c). Furthermore, Borrower, the general contractor, and any and all subcontractors, shall pay prevailing wages for all work done with respect to the Project as required by Federal and California law. (f) Lead Based Paint. Borrower represents and warrants that during the term of the Agreement that Borrower will comply with each and every provision and requirement contained within 24 C.F.R. 92.355, as amended from time to time, to the extent applicable. (g) Flood Insurance. Borrower represents, warrants, and certifies, pursuant to 24 C.F.R. Section 92.358, that no real property which is the subject of this Agreement, is located within a Flood Plain or Flood Hazard Zone or Area, as indicated on a FEMA Map; or that the Property is located within a community participating in the National Flood Insurance Program and Borrower agrees to purchase and maintain flood insurance for the duration of the term of this Agreement.
(h) Fire Protection and Safety. Borrower represents and warrants that Borrower will comply with all requirements and regulations of the Fire Administration Act of 1992 and the Federal Fire and Prevention Control Act. Borrower will use and install all fire and safety related equipment pursuant to the National Fire Protection Association standards. 15 (i) Accessibility Standards; Section 504 Compliance. Borrower represents and warrants that Borrower will comply with all federal, state and local requirements and regulations that are applicable to the Property concerning access to the unit by the disabled and handicapped persons, including, but not limited to, Section 504 of the Rehabilitation Act of 1973 and the requirements of the HOME Program.
(j) Section 3 Requirements. To the extent any of the following requirements are applicable under State or Federal law, then in such event Borrower shall comply with the following requirements during the term of the Loan:
(i) Rehabilitation of the Project is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. §1701u (Section 3).
The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.
(ii) The parties to this Agreement agree to comply with HUD’s regulations in 24 C.F.R. part 135, which implement Section 3. As evidenced by their execution of this Agreement, the parties to this Agreement certify that they are under no contractual or other impediment that would prevent them from complying with the 24 C.F.R. Part 135 regulations. (iii) Borrower agrees to submit a “Utilization Plan” which outlines efforts/activities to undertake to comply with 24 C.F.R. Part 135. The Utilization Plan shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, and qualifications for each; and the name and contact information of the person(s) responsible for monitoring borrower’s compliance efforts; and the anticipated date the work shall begin.
(iv) Borrower agrees to send to each labor organization or representative of workers with which Borrower has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of Borrower’s commitments under this Section 3 clause, and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, and qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.
(v) Borrower agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 C.F.R. Part 135, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 C.F.R. Part 135. Borrower will not subcontract with any subcontractor where Borrower has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 C.F.R. Part 135. 16 (vi) Borrower will certify that any vacant employment positions, including training positions, that are filled (1) after Borrower is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 C.F.R. part 135 require employment opportunities to be directed, were not filled to circumvent Borrower’s obligations under 24 C.F.R. Part 135.
(vii) Noncompliance with HUD’s regulations in 24 C.F.R. Part 135 may result in sanctions, termination of this Agreement for default, and debarment or suspension from future HUD assisted contracts.
(k) Lobbying Prohibition. Borrower hereby certifies to the Lender, under penalty of perjury, under the terms of applicable federal law, that at all applicable times before, during and after the term of the Agreement, that:
(i) No Federal appropriated funds have been paid or will be paid, by or on behalf of Borrower, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan or cooperative agreement; (ii) If any funds other than Federal appropriated funds have been paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan or cooperative agreement, Borrower will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;
(iii) Borrower will require that the above stated language be included in the award documents for all subawards at all tiers, including subcontracts, subgrants, loans, contracts, and cooperative agreements concerning the subject matter of this Agreement; and (iv) Further, Borrower and all subrecipients, at all times, shall certify compliance with the provisions of 31 U.S.C. §1352 and any and all terms and conditions of the Byrd Anti-Lobbying Amendment, as amended from time to time. (l) Taxes and Assessments. Borrower shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property. Borrower shall remove or have removed any levy or attachment on any of the Property or any part thereof, or assure the satisfaction thereof within a reasonable time.
(m) Liens and Stop Notices. Borrower shall not allow to be placed on the Property or any part thereof any lien or stop notice. If a claim of a lien or stop notice is given or recorded affecting the Property, Borrower shall, within thirty (30) days of such recording or service or 17 within ten (10) days of Lender’s demand, whichever last occurs:
(1) pay and discharge the same;
(2) effect the release thereof by recording and delivering to Lender a surety bond in sufficient form and amount as approved by Lender in its sole discretion; or (3) provide Lender with other assurance which Lender deems, in its sole discretion, to be satisfactory for the payment of such lien or bonded stop notice and for the full and continuous protection of Lender from the effect of such lien or bonded stop notice.
21. General Provisions.
(a) Involvement of Lender in Legal Proceedings. Lender shall have the right to commence, to appear in, or to defend any action or proceeding purporting to affect the rights or duties of the parties hereunder or the payment of any funds in connection with this Loan and to pay out of funds not yet disbursed, necessary expenses, employ counsel and pay its fees, all of which the undersigned, jointly and severally, agree to repay to Lender upon demand. Provided, however, such costs and expenses shall not be due and owing to Lender, if they are incurred as a result of the breach of this Agreement by Lender or the Lender’s negligence or willful misconduct. (b) Books and Records. Borrower shall require that the general contractor maintain complete and accurate books and records showing all of the income and disbursements made in connection with the Rehabilitation, and such books and records shall be available for inspection and copy by Lender upon request and during regular business hours. (c) Governmental Requirements Superior. All provisions of this Agreement and all the other documents relating to the Loan shall be subject and subordinate to any and all applicable federal, state and local statutes, regulations and ordinances and shall be subject to modification to comply therewith.
(d) Notices. All notices under this Agreement shall be in writing and sent (i) by certified or registered U.S. mail, return receipt requested, (ii) overnight by a nationally recognized overnight courier such as UPS Overnight or FedEx, (iii) by personal delivery or (iv) via email. All notices shall be effective upon receipt (or refusal to accept delivery). All notices shall be delivered to the following addresses or such other addresses as changed by any party from time to time by written notice to the other parties hereto:
Lender: City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
Email: [email protected]
Copy to: Christensen & Spath LLP
18 401 West A Street, Suite 2250
San Diego, CA 92101
____________
Email: [email protected]
Borrower: c/o San Gabriel Valley Habitat for Humanity, Inc.
Attn: ______________
724 East Huntington Drive
Monrovia, CA 91016
Email:
(e) Severability. If any provision of this Agreement is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Agreement and the remaining provisions shall continue in full force and effect. (f) Nonwaiver of Lender’s Rights. No right, remedy, or power of Lender in this Agreement shall be deemed to have been waived by any act or conduct on the part of Lender or by any failure to exercise or delay in exercising such right, remedy, or power. Every such right, remedy or power of Lender shall continue in full force and effect until specifically waived or released by an instrument in writing executed by Lender. (g) Entire Agreement. This Agreement and the other loan documents contain the entire understanding between the parties concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed and/or referred to herein.
(h) Recitals Incorporated. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference.
(i) Construction of Agreement. The provisions contained in this Agreement shall not be construed in favor of or against either party but shall be construed as if both parties contributed equally to its preparation. This Agreement shall be construed in accordance with the laws of the State of California.
(j) Lender Not Liable for Acts of Omissions of Borrower or Others. Lender shall in no way be liable for any acts or omissions of Borrower, any agent or contractor employed by Borrower, or any person furnishing labor and/or materials used in or related to the Rehabilitation. (k) Time of the Essence. Time is of the essence of this Agreement and of each and every provision hereof. The waiver by Lender or Borrower of any breach or breaches hereof shall not be deemed, nor shall the same constitute, a waiver of any subsequent breach or breaches. (l) Assignment. Borrower shall not assign Borrower’s rights nor delegate Borrower’s duties under this Agreement without the prior written consent of Lender. Any attempt at the assignment or delegation in violation of this section shall be void. 19 (m) Participation. Borrower shall cause the fact that Lender has provided funds to the Property to be referenced in all project designation placards placed on the Property or other sites, as approved in advance, by Lender. The design, content and format of the project placards are subject to the written approval of the CEO of Lender or his/her designee. Lender, at the Lender’s sole option, reserves the right to request, in writing, that the references to the participation of Lender not be included in any, or all, advertisements, press releases, brochures, information sheets, and/or project designation placards.
(n) Counterparts. This Agreement may be executed in any number of counterparts and, __________________________________
___________________________
as so executed, the counterparts shall constitute one and the same Agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. (o) Waiver and Amendment. No provision of this Agreement, or breach of any provision, can be waived except in writing. Waiver of any provision or breach shall not be deemed to be a waiver of any other provision, or of any subsequent breach of the same or other provision.
Except as otherwise provided herein, this Agreement may be amended, modified or rescinded only in writing signed by Borrower and the CEO of Lender.
(p) Capacity and Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the Lender that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing.
IN WITNESS WHEREOF, the parties have executed this Agreement on the date first set forth above.
BORROWER:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) By:__________________________________
Print Name:
Its:
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
20 LENDER:
City of Baldwin Park
By:__________________________________
Enrique C. Zaldivar
Chief Executive Officer
1 NO CHARGE ON THIS DOCUMENT
FOR THE BENEFIT OF THE CITY OF
BALDWIN PARK
Recording Requested By:
When Recorded Mail To:
City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
___________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE
DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS
(HUD HOME)
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (“Declaration”) is made as of this __ day of __________, 202__, by (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Borrower”), in connection with that certain parcel of real property (“Property”) located in the City of Baldwin Park, County of Los Angeles, California, described in Exhibit “A” attached hereto and incorporated herein by reference.
RECITALS
A. Concurrently with the recordation of this Declaration, the City of Baldwin Park (“Lender”) is funding a loan (“HUD HOME Loan”) to Borrower evidenced by a promissory note (“HOME Note”). The HUD HOME Loan is secured by a deed of trust (“Deed of Trust”) made by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is making the HUD HOME Loan to aid Borrower in acquiring and rehabilitating the Property, which Property shall be resold to a first-time homebuyer as set forth herein.
B. The Deed of Trust and HUD HOME Loan and were conditioned in part upon the recordation of this Declaration against the Property.
NOW, THEREFORE, Borrower hereby declares that the Property shall be subject to the covenants, conditions and restrictions set forth below:
1. Representations and Warranties of Borrower. Borrower declares, represents and warrants to the Lender and Borrower agrees that not later than one (1) year after the date this Declaration is recorded in the Office of County Recorder of Los Angeles, California, the Property shall be conveyed by Borrower to one or more persons which persons shall collectively meet the following 2 requirements (and which persons shall be referred to herein as, individually or collectively as the “Eligible Owner”):
(a) Annual Gross Income. The Eligible Owner’s annual gross income, including the income of any co-purchasers, at the time of the execution of this Declaration does not exceed eighty percent (80%) of the Area Median Income. “Area Median Income” means the median income for the Los Angeles-Long Beach-Glendale Metropolitan Statistical Area, as adjusted for family size, as said median income is determined by HUD. (b) Principal Place of Residence. During the 15-year term of this Declaration (which 15-year term shall commence upon acquisition of the Property by the first Eligible Owner), Property shall be occupied as the principal place of residence of the Eligible Owner. The Eligible Owner shall be considered as occupying the Property as a principal place of residence if the Eligible Owner is living in the Property for at least ten (10) months out of each calendar year.
Each Eligible Owner agrees not to neglect, sublet, lease or rent out all or any portion of the Property during such period.
(c) Liquid Assets. At the time of the acquisition of the Property by the first Eligible Owner, such Eligible Owner, including any co-purchasers, shall not hold, directly or indirectly, “liquid assets,” as defined below, whose aggregate value exceeds $10,000 for the first household member. As used herein, the term “liquid assets” refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term “liquid assets” shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer without the buyer incurring a penalty.
(d) Not a Full-Time Student. The Eligible Owner shall not be, and none of the co- purchasers of the Eligible Owner shall be, a full-time student, or a household comprised exclusively of persons who are full-time students. The term “full-time student” shall be defined as any person who will be or has been a full-time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students.
(e) Not a Student Dependent. The Eligible Owner shall not be, and none of the co- purchasers of the Eligible Owner shall be, a student dependent as defined in the U.S. Internal Revenue Code.
(f) Not an Owner of Real Property. The Eligible Owner shall not, and none of the co- purchasers of Borrower shall, own any real property at the time of acquisition of the Property by the first Eligible Owner.
(g) Preference for Baldwin Park Residents. Upon each sale of the Property by an Eligible Owner, a preference shall be provided to households with at least one member who resides within the City of Baldwin Park, as that person’s primary place of residence, to the maximum extent allowed by law
3 2. Assumption of Note: Repayment of HOME Note. During the 15-year term of this Declaration, the Property may only be acquired by and the HOME Note may only be assumed by an Eligible Owner. Notwithstanding the foregoing, in the event that after the Property is conveyed by the Borrower to an Eligible Owner, such Eligible Owner (or any subsequent Eligible Owner) may convey the Property to the Borrower. In such event, the Borrower shall within a reasonable time thereafter convey the Property to a subsequent Eligible Owner and this Declaration shall continue to apply for the remaining duration of the term of this Declaration. It is expressly acknowledged that the covenants and restrictions set forth in this Declaration shall survive any repayment of the HOME Note.
3. Breach.
(a) Curable Breach. Notwithstanding Lender’s acceleration of the sums secured by the Deed of Trust due to the Eligible Owner’s or Borrower’s breach, the Eligible Owner or Borrower shall have the right to have any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in the Deed of Trust or at any time prior to entry of a judgment enforcing the Deed of Trust if:
(A) the Eligible Owner or Borrower pays Lender all sums which would be then due under the HOME Note and the Deed of Trust had no acceleration occurred; (B) the Eligible Owner or Borrower cures all breaches of any other covenants or agreements of the Eligible Owner or Borrower, as applicable, contained in the Deed of Trust;
(C) the Eligible Owner or Borrower pays all reasonable expenses incurred by Lender and the trustee in enforcing the covenants and agreements of the Eligible Owner or Borrower, as applicable, contained in the Deed of Trust, including, but not limited to, reasonable attorneys’ fees; and
(D) the Eligible Owner or Borrower takes such action as Lender may reasonably require to assure that the lien of the Deed of Trust, Lender’s interest in the Property and the Eligible Owner’s or Borrower’s, as applicable, obligation to pay the sums secured by the Deed of Trust shall continue unimpaired.
Upon such payment and cure by the Eligible Owner or Borrower as set forth in this Section 3(a), the Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.
(b) Non-Curable Breach. In the event of any conflict between any provision of Section 3(a), above, and this Section 3(b), the provision set forth in this Section 3(b) shall apply. (1) Failure to Occupy/Renting Out the Property is a Violation of Law. The Eligible Owner hereby acknowledges that the loan evidenced by the HOME Note and secured by the Deed of Trust was funded by Lender using U.S. Department of Housing and Urban Development (“HUD”) Home Investments Partnership Act (“HOME”) funds. Section 215 of the 4 HOME Investment Partnerships Act (42 U.S.C. §12745) and the HOME program regulations (24 C.F.R. §92.254) require the Eligible Owner to occupy the Property as the Eligible Owner’s principal residence. Renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence is a violation of State of California and Federal law (in addition to being a violation of this Declaration). Lender is obligated by Federal law to enforce the provisions of the HOME program, Lender’s failure to do so would jeopardize Lender’s ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing.
(B) Failure to Occupy/Renting Out the Property Materially Impairs Lender’s Security. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, materially impairs Lender’s security for the loan and Lender’s ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. The Eligible Owner further acknowledges that if the Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence, then during any such period the Property will not qualify as “affordable housing” and Lender may be in breach of its obligations to HUD and therefore the Lender’s security for the loan will be materially impaired.
(C) Failure to Occupy/Renting Out the Property is a Non-Curable Breach. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, will be a non-curable breach and Lender shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Declaration, the Eligible Owner agrees that in the event the Eligible Owner rents out the Property and/or fails to occupy the Property as the Eligible Owner’s principal residence, the Eligible Owner shall not have the right to cure the breach and reinstate the loan, the Deed of Trust or the obligations secured thereby.
(D) Borrower’s Waiver. The Eligible Owner hereby knowingly waives and relinquishes any and all legal and/or contractual rights the Eligible Owner may have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the event that Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence.
(E) Representation of Comprehension. The Eligible Owner acknowledges and agrees that Lender has advised the Eligible Owner (and each of them if there is more than one Eligible Owner) to retain an attorney to represent the Eligible Owner with respect to this Declaration. By acquiring the Property, the Eligible Owner (and each of them if there is more than one Eligible Owner) represents that: (i) the Eligible Owner fully understands and accepts the terms of this Declaration, the HOME Note and Deed of Trust; (ii) the Eligible Owner has relied upon the legal advice of the Eligible Owner’s attorneys or that the Eligible Owner has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents the Eligible Owner; (iv) that the Eligible Owner has had a full and ample opportunity to consult with any other professionals of the Eligible Owner’s choice in connection with the rights and liabilities created by this Declaration, the HOME Note and Deed of 5 Trust; (v) that the Eligible Owner does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Declaration, the HOME Note and Deed of Trust, or any of the foregoing documents in their entireties; and (vi) the Eligible Owner accepts the terms of this Declaration, the HOME Note and Deed of Trust as written.
4. Term. The loan evidenced by the HOME Note and secured by the Deed of Trust was ___________________
funded by Lender using U.S. Department of Housing and Urban Development (“HUD”) Home Investments Partnership Act (“HOME”) funds. The HOME program regulations (24 C.F.R. Part 92) apply from the date of recordation of the Deed of Trust and shall terminate 15 years from the date of acquisition of the Property by the first Eligible Owner.
5. Covenant Against Discrimination. The Borrower and each Eligible Owner covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, not to discriminate against any prospective purchaser of the Property on the basis of race, color, religion, sex, sexual orientation, sexual identity, disability, medical condition, familial status, source of income, marital status, national origin or ancestry.
6. Enforcement. The Borrower and each Eligible Owner expressly agrees and declares that Lender or any successor public agency is a proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity to enforce the provisions hereof and/or to recover damages for any default hereunder and/or to enforce the terms of this Declaration.
Further, Lender or any successor public agency shall be the proper party to waive, relinquish, release or modify the rights, covenants, obligations or restrictions contained in or arising under this Declaration. Concurrently with the recordation of this Declaration, the Borrower is causing separate security instruments and restrictions (collectively the “Habitat Restrictions”) in favor of (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) to be recorded against the Property. In the event of a conflict between any provisions of this Declaration or the Deed of Trust and any provisions of the Habitat Restrictions, the provisions of this this Declaration and the Deed of Trust shall apply.
7. Attorneys’ Fees.Upon the breach of the terms of this Declaration, the HOME Note or Deed of Trust, the Borrower or Eligible Owner, as applicable, agrees to pay Lender any and all attorneys’ fees, court costs, trustee fees, and any and all other fees and costs incurred by Lender as a result of said breach and/or default.
8. Severability. In the event that any provision or covenant of this Declaration is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Declaration and the remaining provisions shall continue in full force and effect.
9. Covenants Run With The Land. The covenants contained herein shall constitute “covenants running with the land” pursuant to Civil Code Sections 1460, 1462, 1463, 1464, 1465, 1467 and 1468, to the extent applicable, and shall bind the Property and every person having an interest therein during the term of this Declaration, including Borrower, each Eligible Owner, and their successors, heirs and assigns. Borrower and each Eligible Owner agrees for itself and its successors that, in the event that, for any reason whatsoever, a court of competent jurisdiction determines that the foregoing covenants do not run with the land, such covenants shall be enforced 6 as equitable servitudes against the Property. This Declaration shall inure to the benefit of and be binding upon the successors and assigns of Borrower, each Eligible Owner and the heirs, personal representatives, grantees, tenants, successors-in-interest or assigns of the owners.
10. Recordation. This Declaration shall be recorded in the Office of County Recorder of Los Angeles, California.
11. Remedies Cumulative. Lender shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions at law or suit in equity or other proper proceedings to redress the breach of agreement or covenant.
12. Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration.
13. Liberal Construction. The provisions of this Declaration shall be liberally construed to __________________________________
effectuate its purpose. Failure to enforce any provision of this Declaration shall not constitute a waiver of the right to enforce the provision later.
___________________________
14. Number; Gender. The singular shall include the plural and the plural the singular, unless the context requires the contrary; and the masculine, feminine and neuter shall include the masculine, feminine or neuter, as the context requires.
15. Exhibits. Any exhibits referenced herein and attached to this Declaration are hereby incorporated by reference.
DECLARANT:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation By:__________________________________
Print Name:
Its:
7 ACKNOWLEDGMENT
______________________
______________________________________________
_ ________________
State of California )
)
County of Los Angeles )
On _, 2022, 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.
Signature ___________ (Seal)
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.
8 EXHIBIT “A”
Legal Description of the Property
That certain real property located in the City of Baldwin Park, County of Los Angeles, State of California more particularly described as follows:
1 NO CHARGE ON THIS DOCUMENT
FOR THE BENEFIT OF THE CITY OF
BALDWIN PARK
Recording Requested By:
When Recorded Mail To:
City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
___________________
DEED OF TRUST
(HUD HOME)
THIS DEED OF TRUST (“Deed of Trust”) is dated as of the __ day of ____, 202__, by (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Trustor”), whose address is 724 East Huntington Drive, Monrovia, California 91016, Chicago Title Company (“Trustee”) and the City of Baldwin Park (“Beneficiary”), whose address is 14403 East Pacific Avenue, Baldwin Park, California 91706.
TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, that certain real property (“Property”) in the City of Baldwin Park, County of Los Angeles, State of California, described as:
(See Legal Description - Exhibit “A”)
FOR THE PURPOSE OF SECURING:
(a) Payment of the indebtedness evidenced by that certain Promissory Note of even date herewith executed by Trustor, in the principal sum of _______ and No/100 Dollars ($_________.00), and any renewal, extension, or modification of the promissory note (“Note”); (b) Any additional sums and interest that may hereafter be loaned to the then record owner of the Property by Beneficiary, when evidenced by another note or notes reciting that it or they are so secured;
(c) The performance of each agreement contained in this Deed of Trust; (d) The performance of each agreement of Trustor under that certain Acquisition Rehabilitation Loan Agreement by and between Trustor and Beneficiary on file in the Office of Beneficiary (“Loan Agreement”); and
2 (e) The performance of each agreement and covenant of Trustor under that certain Declaration of Covenants, Conditions and Restrictions of even date herewith and recorded concurrently herewith affecting the Property (“Declaration”).
A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. Maintenance and Repair. To keep the Property in good condition and repair, normal wear and tear excepted; not to remove or demolish any buildings on the Property; to complete or restore promptly and in good and workmanlike manner any building that may be constructed, damaged, or destroyed on the Property; to pay when due all claims for labor performed and materials furnished for the Property; to comply with all laws affecting the Property or requiring any alterations or improvements to be made on the Property; not to commit or permit waste of the Property; not to commit, suffer, or permit any act upon the Property in violation of law; and to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of the Property may be reasonably necessary.
2. Fire Insurance. To provide, maintain, and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary as its interest may appear. Subject to the rights of any senior lenders, the amount collected under any fire or other insurance policy may be applied by Beneficiary to any amounts secured by this Deed of Trust and in any order determined by Beneficiary, or at the option of Beneficiary the entire amount so collected or any part of that amount may be released to Trustor. This application or release shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice.
Notwithstanding the foregoing, in the event of any fire or other casualty to the Property, Trustor shall have the right to rebuild the Property, and to use all available insurance proceeds therefor, provided that (a) such proceeds are sufficient to rebuild the Property in a manner that provides adequate security to Beneficiary for repayment of the indebtedness secured hereby or if such proceeds are insufficient then Trustor shall have funded any deficiency, (b) Beneficiary shall have the right to approve (which shall not be unreasonably withheld or delayed) plans and specifications for any major rebuilding and the right to approve (which shall not be unreasonably withheld or delayed) disbursements of insurance proceeds for rebuilding under a construction escrow or similar arrangement, and (c) no material default then exists hereunder or under the Loan Agreement, Declaration or Note. If the casualty affects only part of the Property and total rebuilding is not feasible, then proceeds may be used for partial rebuilding and partial repayment of the indebtedness secured hereby in a manner that provides adequate security to Beneficiary for repayment of the remaining indebtedness secured hereby.
3. Defense of Security. To appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary, or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorneys’ fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
4. Payment of Liens and Taxes. To pay all taxes and assessments affecting the Property prior to such payments becoming delinquent, including assessments on appurtenant water stock, all 3 encumbrances, charges, and liens, with interest, on the Property or any part of the Property, which appear to be prior or superior to this Deed of Trust; and all costs, fees, and expenses of this Deed of Trust. If Trustor fails to make any payment or to do any act as provided in this Deed of Trust, then Beneficiary or Trustee may (but is not obligated to) make the payment or do the act in the required manner and to the extent deemed necessary by Beneficiary or Trustee to protect the security of this Deed of Trust. The performance by Beneficiary or Trustee of such an act shall not require notice to or demand upon Trustor and shall not release Trustor from any obligation under this Deed of Trust. Beneficiary or Trustee shall also have the following related rights and powers:
to enter upon the Property for the foregoing purposes; to appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of either appears to be prior or superior to this Deed of Trust; to employ counsel; and to pay necessary expenses and costs, including reasonable attorneys’ fees.
5. Reimbursement of Costs. To pay immediately and without demand all sums expended by Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at the amount allowed by law in effect at the date of this Deed of Trust, and to pay any amount demanded by Beneficiary (up to the maximum allowed by law at the time of the demand) for any statement regarding the obligation secured by this Deed of Trust.
6. Use. That Trustor will not permit or suffer the use of any of the Property for any purpose other than the use set forth in the Loan Agreement and Declaration.
7. Incorporation of Agreements. The Loan Agreement, Note and Declaration are incorporated herein by reference and made a part of this Deed of Trust, although not attached.
Copies are on file in the office of the Beneficiary.
8. Performance of Other Obligations. To perform, in a timely manner, the obligations of Trustor under the Loan Agreement, Note, Declaration and each other agreement and covenant by and between Trustor on any and all notes, loans and deeds of trust that are senior and/or junior to this Deed of Trust. A default in any of these obligations after the expiration of any applicable notice or cure period pursuant to the Loan Agreement, Note or Declaration shall constitute a default under this Deed of Trust.
B. THE PARTIES AGREE THAT:
9. Condemnation Award. Any award of damages in connection with any taking or condemnation, or for injury to the Property by reason of public use, or for damages for private trespass or injury to the Property, is hereby assigned and shall be paid to Beneficiary ( subject to the rights of any senior lenders ), as its interest may appear as further security for all obligations secured by this Deed of Trust. Upon receipt of such proceeds, Beneficiary may hold the proceeds as further security, but shall apply or release them in the same manner and with the same effect as provided in Section 2 of this Deed of Trust for the disposition of proceeds of fire or other insurance.
10. Waiver of Late Payments. By accepting payment of any sum secured by this Deed of Trust after its due date, Beneficiary does not waive its right either to require prompt payment when due 4 of all other sums so secured or to declare default for failure to pay any amounts secured by this Deed of Trust.
11. Trustee’s Powers. Upon written request of Beneficiary, Trustee may (a) reconvey all or any part of the Property; (b) consent to the making and recording, or either, of any map or plat of all or any part of the Property; (c) join in granting any easement on the Property; or (d) join in or consent to any extension agreement or any agreement subordinating the lien, encumbrance, or charge of this Deed of Trust. Trustee need not provide Trustor with notice before taking any of the foregoing actions, and shall not be liable for the proper performance of the act. The exercise by Trustee of any of the foregoing powers shall not affect the personal liability of any person with respect to the obligations secured by this Deed of Trust, or the lien of this Deed of Trust on the remaining property as security for the repayment of the full amount secured by this Deed of Trust.
12. Reconveyance. Upon expiration of the terms of the Declaration and Deed of Trust and written request of Beneficiary, and payment of Trustee’s fees and charges, Trustee shall reconvey, without warranty, the Property then subject to this Deed of Trust. The recitals in the reconveyance shall be conclusive proof of the truthfulness of the recitals. The grantee in the reconveyance may be described as “the person or persons legally entitled thereto.”
13. Assignment of Rents. As additional security, Trustor hereby gives to and confers upon Beneficiary the right, power, and authority during the continuance of this Deed of Trust, to collect the rents, issues, and profits of the Property, but reserves the right, prior to any default, which continues beyond any applicable notice and cure periods, by Trustor in payment of any amounts secured by this Deed of Trust or in the performance of any agreement under this Deed of Trust, to collect and retain these rents, issues, and profits as they become due and payable. Upon any such uncured default, Beneficiary may, without notice and without regard to the adequacy of the security for the amounts secured by this Deed of Trust, either personally or by agent or court- appointed receiver, do the following: enter upon and take possession of the Property or any part of the Property; sue for or otherwise collect all rents, issues, and profits, including those past due and unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and collection (including reasonable attorneys’ fees), upon any amounts secured by this Deed of Trust, in any order determined by Beneficiary. The exercise of the foregoing rights by Beneficiary shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice.
14. Default; Foreclosure. Upon material default by Trustor in the payment of any amounts secured by this Deed of Trust or in the performance of any obligation under the Loan Agreement, Note, Declaration or this Deed of Trust, after the expiration of any and all applicable notice or cure periods, Beneficiary may declare all sums secured by this Deed of Trust immediately due and payable by delivering to Trustee a written declaration of default and demand for sale and a written notice of default and election to sell the Property. Trustee shall cause the notice of default and election to sell to be recorded. After the required time period has lapsed following the recordation of the notice of default, and after notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place specified in the notice of sale, either as a whole or in separate parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale. 5 Trustee may postpone sale of all or any portion of the Property by public announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser at the auction its deed conveying the Property sold, but without any covenant or warranty, express or implied. The recital in the deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any person, including Trustor, Trustee, or Beneficiary, may purchase at the sale.
After deducting all costs, fees, and expenses of Trustee and Beneficiary under this section, including costs of procuring evidence of title incurred in connection with the sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms of this Deed of Trust, not then repaid, with accrued interest at the amount allowed by law in effect at the date of this Deed of Trust; all other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons legally entitled to the remaining proceeds.
15. Obligation to Sell and Assumption on Sale. Trustor declares, represents and warrants to the Beneficiary and Trustor agrees that not later than one (1) year after the date this Deed of Trust is recorded in the Office of County Recorder of Los Angeles, California, the Property shall be conveyed by Trustor to one or more persons which meet the definition of “Eligible Owner,” as set forth in the Declaration. During the terms of the Loan Agreement, Note and Declaration, this Deed of Trust shall be assumed by each Eligible Owner that acquires the Property.
16. General Provisions. This Deed of Trust applies to, inures to the benefit of, and binds all parties to this Deed of Trust and their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term “Beneficiary” shall mean the holder and owner, including pledgee, of the Note, whether or not named as a beneficiary in this Deed of Trust, and the heirs, legatees, devisees, administrators, executors, and assigns of any such person. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.
17. Acceptance by Trustee. Trustee accepts this Deed of Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party to this Deed of Trust of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
18. Substitution of Trustees. Beneficiary, or any successor in ownership of any obligations secured by this Deed of Trust, may from time to time, by written instrument, substitute a successor or successors to any Trustee named in or acting under this Deed of Trust. The substitution instrument shall contain the name of the original Trustor, Trustee, and Beneficiary under this Deed of Trust, the book and page where this Deed is recorded, and the name and address of the new Trustee. When executed by Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where the Property is situated, the substitution instrument shall be conclusive proof of proper substitution of the successor Trustee or Trustees. Any successor Trustee or Trustees shall, without conveyance from the predecessor Trustee, succeed to all its title, estate, rights, powers, terms, obligations and duties.
6 19. Cumulative Powers and Remedies. The powers and remedies conferred in this Deed of Trust are concurrent and cumulative to all other rights and remedies provided in this Deed of Trust or given by law. These powers and remedies may be exercised singly, successively, or together, and as often as deemed necessary.
20. Conclusiveness of Recitals. The recitals contained in any reconveyance, trustee’s deed, or any other instrument executed by Trustee from time to time under the authority of this Deed of Trust or in the exercise of its powers or the performance of its duties under this Deed of Trust, shall be conclusive evidence of their truth, whether stated as specific and particular facts, or in general statements or conclusions. Further, the recitals shall be binding and conclusive upon Trustor, its heirs, executors, administrators, successors, and assigns, and all other persons.
21. Attorneys’ Fees. If any action is brought for the foreclosure of this Deed of Trust or for the enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor agrees to pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys’ fees; and these sums shall be secured by this Deed of Trust.
22. Co-Trustees. If two or more persons are designated as Trustee in this Deed of Trust, any, or all, power granted in this Deed of Trust to Trustee may be exercised by any of those persons, if the other person or persons are unable, for any reason, to act. Any recital of this inability in any instrument executed by any of those persons shall be conclusive against Trustor and Trustor’s heirs and assigns.
23. Request for Notices of Default and Sale. In accordance with Section 2924b of the California Civil Code, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under any deeds of trust executed by Trustor concerning the Property be mailed to:
c/o City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.
24. Inspections. Trustor shall permit Beneficiary and its agents or representatives, to inspect the Property, subject to the rights of purchaser(s), at any and all reasonable times during business hours and upon reasonable advance notice. Inspections shall be conducted so as not to interfere with the owner(s)’ use and enjoyment of the Property or the general operation of the Property.
25. Hazardous Materials Defined. For purposes of this Deed of Trust, “Hazardous Materials” mean and include any hazardous, toxic or dangerous waste, substance or material including, without limitation, flammable explosives, radioactive materials, asbestos, hazardous wastes, toxic substances and any materials or substances defined as hazardous materials, hazardous substances 7 or toxic substances in (or for purposes of) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as amended (42 U.S.C. §9601,et seq.), the Hazardous Materials Transportation Act (49 U.S.C. §1801,et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §6901, et seq.), and those substances defined as hazardous wastes in §25117 of the California Health and Safety Code or as hazardous substances in §25316 of the California Health and Safety Code or in any regulations promulgated under either such law, any so-called “Superfund” or “Superlien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect.
26. Trustor’s Hazardous Materials Representations and Warranties and Indemnity. In addition to the general and specific representations, covenants and warranties set forth in the Deed of Trust or otherwise, Trustor represents, covenants and warrants, with respect to Hazardous Materials, as follows:
(a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever caused or permitted any Hazardous Materials to be manufactured, placed, held, located or disposed of on, under or at the Property or any part thereof, and neither the Property nor any part thereof, or any property adjacent thereto, has ever been used (whether by Trustor or, to the best knowledge of Trustor, by any other person) as a manufacturing site, dump site or storage site (whether permanent or temporary) for any Hazardous Materials. “Hazardous Materials” for purposes of this Section 26 shall not include substances typically used in the ordinary course of developing, operating and maintaining apartment complexes in California or small amounts of chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar residential properties, provided that such substances are used in accordance with all applicable laws.
(b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees, contractors and agents, and hold Beneficiary, its officers, employees, contractors and agents harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against Beneficiary, its officers, employees, contractors or agents for, with respect to, or as a direct or indirect result of, the presence or use, generation, storage, release, threatened release or disposal of Hazardous Materials on or under the Property or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials from the Property (including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under CERCLA, any so-called “Superfund” or “Superlien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials) regardless of whether or not caused by or within the control of Trustor. The foregoing indemnification shall not apply to any liability resulting from (i) an event that occurs after a transfer of the Property due to any foreclosure sale (judicial or nonjudicial) or a deed in lieu of foreclosure, or (ii) acts or omissions of Beneficiary or its agents. (c) Trustor has not received any notice of (i) the happening of any event involving the use, spillage, discharge, or cleanup of any Hazardous Materials (“Hazardous Discharge”) affecting 8 Trustor or the Property or (ii) any complaint, order, citation or notice with regard to air emissions, water discharges, noise emissions or any other environmental, health or safety matter affecting Trustor or the Property (“Environmental Complaint”) from any person or entity, including, without limitation, the United States Environmental Protection Agency (“EPA”). If Trustor receives any such notice after the date hereof, then Trustor will give, within seven (7) business days thereafter, oral or written notice of same to Beneficiary.
__________________________________
___________________________
(d) Without limitation of Beneficiary’s rights under this Deed of Trust, Beneficiary shall have the right, but not the obligation, to enter onto the Property or to take such other actions as it deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or otherwise deal with, any such Hazardous Materials or Environmental Complaint upon its receipt of any notice from any person or entity, including without limitation, the EPA, asserting the existence of any Hazardous Materials or an Environmental Complaint on or pertaining to the Property which, if true, could result in an order, suit or other action against Trustor affecting any part of the Property by any governmental agency or otherwise which, in the sole opinion of Beneficiary, could jeopardize its security under this Deed of Trust. All reasonable costs and expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed of Trust and shall be payable by Trustor upon demand together with interest thereon at a rate equal to the highest rate payable under the Note.
(e) The foregoing representation, covenants, indemnities and warranties shall be continuing and shall be true and correct for the period from the date hereof to the release of this Deed of Trust (whether by satisfaction of the obligations secured hereby or foreclosure or action in lieu thereof), and these representations, covenants, indemnities and warranties shall survive such release.
27. Authority to Sign. All individuals signing this Deed of Trust for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the Beneficiary that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing.
TRUSTOR:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) By:__________________________________
Print Name:
Its:
9 ACKNOWLEDGMENT
__________________________________________
_
State of California )
)
County of Los Angeles )
On ____________________, 202__, 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.
Signature (Seal)
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.
10 Exhibit “A”
Property Description
That certain real property situated in the City of Baldwin Park, County of Los Angeles, State of California, described as follows:
_______________
1 PROMISSORY NOTE
(“HOME Note”)
, 202__
Property Address: , Baldwin Park, California (“Property”)
1. Borrower’s Promise to Pay. In return for a loan (“HOME Loan”) that the undersigned ___________________ (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Borrower,” which term shall also mean any successor in interest to the Borrower’s interest in the Property) has received, Borrower promises to pay U.S. Dollars ($ ) to the order of the lender, City of Baldwin Park (“Lender”). Borrower acknowledges and agrees that Lender may transfer this HOME Note. Lender or anyone who takes this HOME Note by transfer and who is entitled to receive payments under this HOME Note will be called the “Note Holder.” In addition to the protection given to the Note Holder under this HOME Note, this HOME Note shall be secured by a deed of trust (“Deed of Trust”) made by Borrower in favor of the Lender and recorded as an encumbrance against the Property.
2. Compliance with HOME Requirements. Borrower acknowledges and agrees that the Home Loan is subject to the terms, conditions, and restrictions of the HOME Investment Partnerships Act (42 U.S.C. §12745) and the HOME program regulations (24 C.F.R. Part 92), all of which are hereby incorporated by reference.
3. 3% Deferred Interest. This HOME Note shall accrue simple interest at the rate of 3% per annum. Provided, however, in the event Borrower defaults under the terms of this HOME Note, the Deed of Trust, the Declaration of Covenants, Conditions and Restrictions (“Declaration”) of even date herewith and recorded concurrently herewith affecting the Property, or any other document secured by the Declaration, Deed of Trust and/or the Property, then Borrower shall owe Lender the “Default Interest.” “Default Interest” means interest accrued from the date of this HOME Note, in an amount equal to ten percent (10%) simple interest per annum.
4. Payments; Deemed Satisfaction. No payments shall be due hereunder, except in the event of a Breach of this HOME Note (as set forth in Section 5, below). In the event of an uncured Breach, Borrower shall pay all principal and all accrued interest (including default interest), in one lump sum to Lender at Lender’s offices located at 14403 East Pacific Avenue, Baldwin Park, California 91706, or such other place as designated by Lender. If no uncured Breach has occurred during the period commencing on acquisition of the Property by the first Eligible Owner (as defined in the Declaration) and ending fifteen (15) years thereafter (“Term”), then all of the Borrower’s obligations under this HOME Note shall be deemed satisfied.
5. Breach.
(a) Acceleration, Remedies. Upon Borrower’s breach this HOME Note, the Deed of Trust, Declaration or any other document secured by the Declaration, Deed of Trust and/or the 2 Property (each a “Breach”), Lender shall give notice to Borrower prior to acceleration, such notice shall include:
(1) a description of the Breach;
(2) the action required to cure such Breach (if any);
(3) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and
(4) a statement that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by the Deed of Trust and sale of the Property.
The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the Breach is not cured on or before the date specified in the notice, Lender, at Lender’s option, may declare all of the sums secured by the Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law, as provided in and pursuant to the procedure set forth in the Deed of Trust. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 6, including, but not limited to, reasonable attorneys’ fees.
(b) Reinstatement.
(1) Curable Breach. Notwithstanding Lender’s acceleration of the sums secured by the Deed of Trust due to a Breach, Borrower shall have the right to have any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in the Deed of Trust or at any time prior to entry of a judgment enforcing the Deed of Trust if:
(A) Borrower pays Lender all sums which would be then due under this HOME Note and the Deed of Trust had no acceleration occurred; (B) Borrower cures all Breaches of any other covenants or agreements of Borrower contained in the Deed of Trust;
(C) Borrower pays all reasonable expenses incurred by Lender and the trustee in enforcing the covenants and agreements of Borrower contained in the Deed of Trust, including, but not limited to, reasonable attorneys’ fees; and (D) Borrower takes such action as Lender may reasonably require to assure that the lien of the Deed of Trust, Lender’s interest in the Property and Borrower’s obligation to pay the sums secured by the Deed of Trust shall continue unimpaired. 3 Upon such payment and cure by Borrower as set forth in this Section 5(b)(1), the Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.
(2) Non-Curable Breach. In the event of any conflict between any provision of Section 5(b)(1), above, and this Section 5(b)(2), the provision set forth in this Section 5(b)(2) shall apply.
(A) Failure to Occupy/Renting Out the Property is a Violation of Law.
Each Eligible Owner (as defined in the Declaration) hereby acknowledges that the loan evidenced by this HOME Note and secured by the Deed of Trust was funded by Lender using U.S.
Department of Housing and Urban Development (“HUD”) Home Investments Partnership Act (“HOME”) funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. §12745) and the HOME program regulations (24 C.F.R. §92.254) require the Eligible Owner to occupy the Property as the Eligible Owner’s principal residence. Renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence is a violation of State of California and Federal law (in addition to being a violation of this HOME Note). Lender is obligated by Federal law to enforce the provisions of the HOME program, Lender’s failure to do so would jeopardize Lender’s ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. (B) Failure to Occupy/Renting Out the Property Materially Impairs Lender’s Security. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, materially impairs Lender’s security for the loan and Lender’s ability to obtain additional HOME funds from HUD and help other low-income families to obtain affordable housing. The Eligible Owner further acknowledges that if the Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence, then during any such period the Property will not qualify as “affordable housing” and Lender may be in breach of its obligations to HUD and therefore the Lender’s security for the loan will be materially impaired.
(C) Failure to Occupy/Renting Out the Property is a Non-Curable Breach. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, will be a non-curable breach and Lender shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this HOME Note, the Eligible Owner agrees that in the event the Eligible Owner rents out the Property and/or fails to occupy the Property as the Eligible Owner’s principal residence, the Eligible Owner shall not have the right to cure the breach and reinstate the loan, the Deed of Trust or the obligations secured thereby.
(D) Waiver. The Eligible Owner hereby knowingly waives and relinquishes any and all legal and/or contractual rights the Eligible Owner may have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the event that Property 4 is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence.
(E) Representation of Comprehension. The Eligible Owner acknowledges and agrees that Lender has advised the Eligible Owner (and each of them if there is more than one Eligible Owner) to retain an attorney to represent the Eligible Owner with respect to the loan evidenced by this HOME Note. By executing this HOME Note, the Eligible Owner (and each of them if there is more than one Eligible Owner) represents that: (i) the Eligible Owner fully understands and accepts the terms of this HOME Note, the Deed of Trust and Declaration; (ii) the Eligible Owner has relied upon the legal advice of the Eligible Owner’s attorneys or that the Eligible Owner has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents the Eligible Owner; (iv) that the Eligible Owner has had a full and ample opportunity to consult with any other professionals of the Eligible Owner’s choice in connection with the rights and liabilities created by this HOME Note, the Deed of Trust and Declaration; (v) that the Eligible Owner does not have any questions with regard to the legal import of any term, word, phrase, or portion of this HOME Note, the Deed of Trust or Declaration, or any of the foregoing documents in their entireties; and (vi) the Eligible Owner accepts the terms of this HOME Note, the Deed of Trust and Declaration as written.
6. Assumption. During the 15-year Term of this HOME Note each Eligible Owner of the Property shall assume this HOME Note. Notwithstanding the foregoing, in the event of a transfer of the Property where the amount of this Note (“Original Note Amount”) would violate the first position lender’s underwriting requirements or otherwise impede the transfer of the Property to an Eligible Owner, as defined in the Declaration, then the amount of the Note shall be reduced to the extent allowed by 24 CFR Section 92.254(a)(5)(ii)(A)(5) (“Reduced Note Amount”). In such event, the difference between the Original Note Amount and the Reduced Note Amount (“Deemed Paid Amount”) shall be deemed repaid in full to the Lender and the purchaser of the Affordable Unit shall have no further obligation with respect to the Deemed Paid Amount.
7. Borrower’s Payments Before They Are Due. Borrower has the right to make payments of principal at any time before they are due. Borrower may make a full prepayment or a partial prepayment. It is expressly acknowledged that the covenants and restrictions set forth in the Declaration shall survive any repayment of this HOME Note.
8. Borrower’s Waiver. Borrower hereby waives the rights to require the Note Holder to do certain things if Borrower does not keep the promises made in this HOME Note, the Deed of Trust or the Declaration. Those things are:
(a) to demand payment of amounts due (known as “presentment”); (b) to give notice that amounts due have not been paid (known as “notice of dishonor”); and
(c) to obtain any official certification of nonpayment (known as “protest”). 5 9. Giving of Notices. Any notice that must be given to Borrower under this HOME Note will be given by delivering it or by mailing it by certified mail addressed to Borrower at the Property address. Any notice that must be given to the Note Holder under this HOME Note will be given by mailing it by certified mail to Lender’s offices located at 14403 East Pacific Avenue, Baldwin Park, California 91706 or such other address as Lender may designate in writing.
10. Responsibility of Persons Under This Note. If more than one person becomes obligated under this HOME Note, each of them is fully and personally obligated to pay the full amount owed and to keep all promises made in this HOME Note. The Note Holder may enforce its rights under this HOME Note against each person obligated under this HOME Note individually or against all of them together. This means that any one of the persons obligated under this HOME Note may be required to pay all of the amounts owed under this HOME Note. Any person who takes over the rights or obligations under this HOME Note will have all of the rights of the persons that sign this HOME Note and must keep all of the promises made in this HOME Note. __________________________________
___________________________
11. Attorneys’ Fees. Upon the breach of the terms of this HOME Note, the Deed of Trust or Declaration, the Borrower agrees to pay Lender any and all attorneys’ fees, court costs, trustee fees, and any and all other fees and costs incurred by Lender as a result of said breach and/or default.
12. Severability. If any provision of this HOME Note is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this HOME Note and the remaining provisions shall continue in full force and effect.
13. Governing Law. This HOME Note shall be construed in accordance with and be governed by the laws of the State of California.
14. No Waiver by the Lender. No waiver of any breach, default or failure of condition under the terms of this HOME Note or the Deed of Trust shall thereby be implied from any failure of the Lender to take, or any delay by the Lender in taking action with respect to such breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure; and a waiver of any term of this HOME Note, Deed of Trust, or any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver.
15. Usury. If a court of competent jurisdiction determines, by way of final unappealable order or judgment that the interest rate charged under this HOME Note is usurious, then such rate shall automatically and retroactively be reduced to the maximum rate allowed under applicable law.
BORROWER:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) By:__________________________________
Print Name:
Its:
________ _________
STAFF REPORT
ITEM NO. 10
TO: Honorable Mayor and Members of the City Council
FROM: Enrique C. Zaldivar, Chief Executive Officer
Benjamin Martinez, Director of Community Development
Sam Gutierrez, Director of Public Works
DATE: February 16, 2022
SUBJECT: Consideration of an Agreement between the City of Baldwin Park and the San Gabriel Valley Regional Housing Trust to Provide Homeless Housing and Related Services for Homeless Families at 13167 Garvey Avenue
SUMMARY
The purpose of this report is to request that the City Council consider approving an Agreement between the City of Baldwin Park and the San Gabriel Valley Regional Housing Trust (SGVRHT) to provide homeless housing and related services for homeless families at the City-owned property of 13167 Garvey Avenue. The total grant award for the Homeless Housing Pilot Program (HHPP) is $1,125,000.
RECOMMENDATION
Staff recommends the City Council:
1. Approve the Resolution No. 2022-006 directing the Chief Executive Officer (CEO) to execute the Agreement between the City of Baldwin Park and the SGVRHT; and
2. Direct the Director of Community Development to prepare and invoice the SGVRHT for 25% of the HHPP grant award or $312,500 within 30 days; and
3. Direct the Director of Community Development to prepare a site plan and schematic design for the housing development and, when ready, return to the City Council for review, discussion and direction thereof; and
4. Authorize the Director of Finance to make the necessary appropriations and budget adjustments for the HHPP grant funds.
FISCAL IMPACT
There is no impact to the City’s General Fund. This project will be developed and operated with SGVRHT HHPP funds and other homeless housing funding from other agencies, to be determined.
The total for the HHPP grant is $1,125,000 and will be recorded and tracked under Grant Fund No. 270. Twenty five percent (25%) or $312,500 will be invoiced by the city within 30 days of the approval of this agreement; another 25% at construction start; 25% at construction completion and the final 25% when a notice of completion is filed.
BACKGROUND
In the Summer of 2021, the SGVRHT received a State Budget Earmark of $20 million to address the affordable housing shortage and homeless crisis in the San Gabriel Valley. Last Fall, the SGVRHT solicited interested cities to submit a Letter of Intent and Application for funding under the HHPP. The City Council directed staff to apply for the HHPP grant and Baldwin Park was awarded $1,125,000 to develop and operate housing for homeless families at 13167 Garvey Avenue. This amount is equal to $25,000 per bed of housing that per the agreement must be operated for a minimum of 2 years. The City had recently purchased the property at 13167 Garvey Avenue a short time before the HHPP guidelines were established. The city-owned property consists of .63 acres or 27,622 square feet with 5,212 square feet of usable building space in three (3) buildings. The site layout is conducive to providing shelter to homeless families as it is very private, contains no residential neighbors and abuts the City’s Public Works Yard. The City Council has already authorized a safe parking program to be operated at the site on a temporary basis over the several months but this program will not impact site development or construction.
The City will need to support this effort through staff time to manage the project and through other resources as feasible including HOME Investment Partnership Act American Rescue Act (HOME ARP) Funds up to the awarded amount of $1,128,365 from the Department of Housing and Urban Development (“HUD”). These HOME ARP Funds were specifically rewarded to assist special needs (i.e. homeless) populations in Baldwin Park. HHPP funds will mostly be used for capital expenses to provide beds in the form of modular units during the pilot program period. The HOME funds can be used for both capital and operational expenditures. If there are any remaining HHPP funds after all capital expenditures are done, they can also be used to support operations. Additionally, other funding sources to help operate the project are being pursued through LAHSA (Los Angeles Homeless Services Authority) and County Supervisor Solis’ Office.
DISCUSSION
The planning process has already begun and the Public Works Department is ordering a topographical survey and will begin further site planning work with the architectural and planning firm provide by the SGVFHT at no cost to the City. The goal is to construct the site in two phases and make phase one operational in approximately six months. In general, phase one will consist of the installation of modular units in the parking lot area of the site, along with bathrooms and buildings for laundry use. Phase two would involve the rehabilitation of the existing residential structures and garages into homeless housing units and open space/recreational areas. As this phased developed scheme is planned and designed, City staff will bring the concept plans to the City Council for review, discussion and direction thereof.
The City and SGVRHT also plan to work collaboratively to issue a solicitation to request bids from homeless service providers. The results of this solicitation when ready will be brought back to the City Council for consideration.
ENVIRONMENTAL IMPACT
There is no environmental impact.
LEGAL REVIEW
The City Attorney has reviewed and approved to form the attached agreement.
ALTERNATIVE
City Council may direct staff with a desired alternative.
ATTACHMENTS
1. Resolution No. 2022-006
2. Homeless Housing Agreement between SGVRHT and the City of Baldwin Park RESOLUTION NO. 2022-006
A RESOLUTION OF THE CITY OF BALDWIN PARK, CALIFORNIA,
APPROVING AN AGREEMENT BETWEEN THE CITY OF BALDWIN
PARK AND THE SAN GABRIEL VALLEY REGIONAL HOUSING
TRUST TO PROVIDE HOMELESS HOUSING AND RELATED
SERVICES TO HOMELESS FAMILIES AT 13167 GARVEY AVENUE
WHEREAS, in 2018 the City of Baldwin Park (“City”) adopted Emergency Shelter Resolution 2018-298 declaring an emergency shelter crisis in the City of Baldwin Park; and
WHEREAS, on October 20, 2021 the City Council directed staff to submit a Letter of Interest to the San Gabriel Valley Regional Housing Trust (SGVRHT) to identify a City- owned site located at 13167 Garvey Avenue for the SGVRHT’s Homeless Housing Pilot Program or HHPP; and
WHEREAS, the Emergency Shelter Resolution allows the City to use the site for this use; and
WHEREAS, the SGVRHT hired a consultant to develop a site plan for the site; and WHEREAS, the site will provide a minimum of 50 beds for homeless families for a two-year period under the Agreement; and
WHEREAS, the site will provide case management services, meals, and 24/7 security; and
WHEREAS, the site will provide shower, laundry, and restroom facilities and other amenities; and
WHEREAS, the SGVRHT will provide capital funding to develop the site and, if any funding remains, said funds will be used for operational expenses.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVES AS FOLLOWS:
The City Council of the City of Baldwin Park does hereby approve and authorize Chief Executive Officer of the City of Baldwin Park to execute the Agreement between the City of Baldwin Park and the San Gabriel Valley Regional Housing Trust (SGVRHT) to provide homeless housing and related services for homeless families at 13167 Garvey Avenue, Baldwin Park 91703 for a two-year period, attached hereto as Exhibit A.
PASSED, APPROVED, and ADOPTED this 16th day of February 2022. _______________________________
EMMANUEL J. ESTRADA
MAYOR
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, MARLEN GARCIA, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-006 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on February 16, 2022, and that the same was adopted by the following vote to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MARLEN GARCIA
CITY CLERK
1654508.1
AGREEMENT BETWEEN THE SAN GABRIEL VALLEY
REGIONAL HOUSING TRUST AND THE CITY OF BALDWIN PARK TO
PROVIDE HOMELESS HOUSING AND RELATED SERVICES FOR
HOMELESS FAMILIES AT 13167 GARVEY AVENUE
This agreement (“Agreement”) is entered into by and between the City of Baldwin Park, a municipal corporation (“City”), and the San Gabriel Valley Regional Housing Trust, a California joint powers authority (“SGVRHT”) as ofFebruary 16, 2022 (“Effective Date”). City and SGVRHT may be referred to herein collectively as the “Parties” or individually as a “Party.” RECITALS:
A. SGVRHT was formed pursuant to Government Code § 6539.6 to fund the planning and construction of housing of all types to serve homeless and low-income populations within the San Gabriel Valley.
B. The SGVRHT members are cities within the San Gabriel Valley, which members include the City.
C. The SGVRHT has developed a homeless housing pilot program (the “Program”) that provides funding assistance toward projects that serve the Homeless population within the San Gabriel Valley.
D. City is now proposing to redevelop, convert existing structures and install new modular structures on the City-owned property located at 13167 Garvey Ave. Baldwin Park, CA (“Site”) to provide homeless housing and related services for homeless families at the Site under the Program.
G. The SGVRHT and the City desire to set forth the terms of a collaborate effort to provide homeless housing and associated services for families experiencing homelessness.
AGREEMENT
The recitals are made a substantive part of this Agreement and the Parties further agree as follows:
I. TERM.
The term of this Agreement shall commence on the Effective Date and shall continue for 2 years from the date the first housing unit is occupied on the Site. The term of this Agreement may be extended by mutual written agreement of the Parties. 1654508.1
II. RESPONSIBILITIES OF THE PARTIES:
A. SGVRHT.
SGVRHT shall:
1. Designate a point-of-contact with name, title, and contact information who will serve as the SGVRHT’s representative during the term of this Agreement.
If the point-of-contact is reassigned or no longer with the SGVRHT, a new point-of-contact will be designated in writing within 14 calendar days.
2. Provide funding assistance in an amount not to exceed $25,000 per homeless housing unit (hereafter, “Unit or Units”) at the Site. The maximum funding amount to be provided by SGVRHT under this Agreement shall be $25,000 per Unit, up to a maximum of 50 Units, for a total of up to $1,125,000 (“Maximum Funding Amount”). It is understood that the exact number of units is unknown at this time and will not be known until such time as final construction plans are developed.
3. To the extent SGVRHT determines, in its sole discretion, and upon City’s request, make available its contractor, SRK Architect’s Inc., for technical assistance in connection with the City’s proposed development of the Site.
This assistance will be in addition to and not in lieu of or inclusive of the funding assistance provided under Section II.A.2 above.
4. To the extent invoices are approved and otherwise submitted in accordance with this Agreement, pay approved City invoices within 35 days of submittal.
To the extent an invoice is not approved, SGVRHT shall notify the City within this 35-day period as to the reasons the invoice is not approved whether in whole or part. Upon rectification of the invoice, SGVRHT shall pay within 35 days of re-submittal.
B. City.
City shall:
1. Designate a point-of-contact with name, title, and contact information who will serve as the City’s representative during the term of this Agreement. If the point-of-contact is reassigned or no longer with the City, a new point-of- contact will be designated in writing within 14 calendar days.
2. Be responsible for all aspects of developing the Site to provide up to 50 Units, including, but not limited to, Site preparation, construction, permitting, compliance with the California Environmental Quality Act, etc.
3. Operate the Site for homeless housing in accordance with the terms of this Agreement for a minimum of two years from the date a housing unit is first occupied by a homeless person admitted to the Site by the City. The length of the Site operation may be extended by mutual written agreement of the Parties.
4. Maintain the Site in a clean, safe and well-maintained condition and make all necessary repairs in a reasonably prompt manner.
5. Pay the cost for all utilities at the Site including water, electricity, gas, sewer, 1654508.1
trash, and internet.
6. Provide homeless services to the Site, which services shall, at a minimum include: housing navigation and connections to offsite services to meet occupant needs.
7. Coordinate with SGVRHT and other applicable agencies to identify additional third-party funding for on-going operational expenses.
8. Participate in check-in calls and/or meetings with SGVRHT and other agencies, as necessary and keep SGVRHT apprised of the Site’s development progress and operations, including responding in writing to reasonable requests from SGVRHT as to construction status, date of occupancy, level of occupancy, information regarding persons who have been successfully exited to permanent housing or other acceptable exits , any significant safety events and other requests for information from SGVRHT from time to time. City also agrees to provide an oral and/or written report to the SGVRHT Board concerning Site development and operations upon request by SGVRHT.
9. Submit invoices for progress payments as follows:
i. Within 30 days of the Effective Date, an invoice in the amount of $312,500, which amount is 25% of the Maximum Funding Amount (or $1,125,000) and is based upon the Parties estimate as of the Effective Date that the Site will be developed with 50 Units.
ii. Within 30 days of the City’s issuance of a notice to proceed on Site construction, 25% of the Maximum Funding Amount. A copy of the notice to proceed shall be provided with the invoice. To the extent that the Site will be developed with less than 50 Units, the City’s invoice shall not, when aggregated with the first invoice, exceed 50% of the Maximum Funding Amount. In the event less than 50 Units will be developed, the City’s invoice shall detail how the invoice was calculated.
iii. Within 30 days of 50% construction completion of the Site, 25% of the Maximum Funding Amount. Along with this invoice City shall submit in writing a certification from its designated representative that the Site is 50% complete.
iv. Within 30 days of the City’s filing of a notice of completion for the Site, the remaining 25% of the Maximum Funding Amount. A copy of the notice of completion shall be provided along with the invoice.
III. PROGRAM MANAGEMENT:
A. Program Managers.
1. For the purposes of this AGREEMENT, SGVRHT designates the following individual as its Program Manager:
Brielle Acevedo
Housing Trust Administrator
[email protected]
1654508.1
2. For the purposes of this AGREEMENT, the City designates the following individual as its representative:
Benjamin Martinez
Community Development Director
[email protected]
Either Party may change the designations set forth herein upon written notice to the other Party.
B. Site Operation.
It is agreed by the Parties that there will be no occupants of the Site until such time as a service provider is under contract with the City to oversee operation of the Site or the City determines to operate the Site with its own forces. The Parties will work collaboratively to develop a contract, including a scope of services, and rules regarding occupant conduct, under which the service provider and/or the City will operate the Site.
IV. DEFAULT; REMEDIES:
A. Default. A “Default” under this Agreement is defined as any one or more of the following: (i) failure of either Party to comply with the terms and conditions contained in this Agreement; and/or (ii) failure of either Party to perform its obligations set forth herein satisfactorily or make sufficient progress towards completion of the Program.
B. Remedies. In the event of a Default by either Party, the non-defaulting Party will provide a written notice of such Default and thirty (30) days to cure the Default. In the event that the defaulting Party fails to cure the Default or commit to cure the Default and commence the same within such 30-day period and to the satisfaction of the non-defaulting Party, the non-defaulting Party may terminate this Agreement. Such termination shall be effective immediately upon the provision of written notice by the non-defaulting Party to the defaulting Party.
In the event of a Default by either Party, the non-defaulting Party shall have the right to seek any and all remedies available at law or in equity.
In the event that the City does not operate the Site in accordance with this Agreement for the two-year period described in Section II.b.3. above, the City will return funding to the SGVRHT in proportion to the length of time the Site was operated for less than two years. For every 30 days that the Site is operated for less than two years, the City shall reimburse SGVRHT 4.2% of the amount SGVRHT has paid pursuant to this Agreement. Should no homeless persons every occupy the Site, SGVRHT shall be reimbursed in full. Payment shall be made within 35 days of SGVRHT’s demand and any late payments shall accrue 1654508.1
interest at the rate of 7% annually.
V. INDEMNIFICATION:
A. City agrees to defend, indemnify, and hold free and harmless the SGVRHT and the San Gabriel Valley Council of Governments, and their elected and appointed boards, officials, officers, agents, employees, members, and volunteers (the “Indemnitees”), at City’s sole expense, from and against any and all claims, actions, suits, or other legal proceedings (“Claims”) brought against the Indemnitees arising out of or relating to the acts or omissions of City in connection with this Agreement. This duty to defend, indemnify and hold harmless shall also apply to any Claims arising out of the City’s construction of the site, operation of the Site, housing of homeless individuals at the Site, including, but not limited to construction contract disputes, any claimed dangerous condition of public property at the Site, and/or any violations of any applicable local, State or federal law to the construction or operation of the Site.
B. SGVRHT agrees to defend, indemnify, and hold free and harmless the City, its elected officials, officers, agents, employees, and volunteers, at SGVRHT’s sole expense, from and against any and all claims, actions, suits, or other legal proceedings brought against the City, its elected officials, officers, agents, employees, and volunteers arising out of or relating to the acts or omissions of SGVRHT in connection with this Agreement.
VI. INSURANCE:
A. City and SGVRHT shall maintain and keep in full force and effect during the term of this Agreement insurance or a program of self-insurance against claims for injuries to persons or damages to property which may arise in connection with City’s or SGVRHT’s performance of its obligations hereunder.
VII. OTHER TERMS AND CONDITIONS:
A. Notices. All notices required or permitted to be given under this Agreement shall be in writing and shall be personally delivered, or sent by electronic mail or certified mail, postage prepaid and return receipt requested, addressed as follows:
To SGVRHT: Marisa Creter
Executive Director
1000 S. Fremont Avenue, Unit 42
Building A-10N, Suite 10-210
Alhambra, CA 91803
(626) 457-1800
[email protected]
with a copy to: Brielle Acevedo,
Housing Trust Administrator
1654508.1
1000 S. Fremont Avenue, Unit 42
Building A-10N, Suite 10-210
Alhambra, CA 91803
(626) 457-18000
[email protected]
To City: Enrique C. Zaldivar
Chief Executive Officer
14403 E. Pacific Avenue
626-960-4011
Email: [email protected]
with a copy to: Benjamin Martinez
Community Development Director
626-960-4011 Ext. 477
Email: [email protected]
B. No Partnership. This Agreement is not intended to be, and shall not be construed as, an agreement to form a partnership, agency relationship, or a joint venture between the Parties. Except as otherwise specifically provided in the Agreement, neither Party shall be authorized to act as an agent of or otherwise to represent the other Party.
C. Entire Agreement. This Agreement constitutes the entire understanding between the Parties with respect to the subject matter herein and supersedes any and all other prior writings and oral negotiations. This Agreement may be modified only in writing and signed by the Parties in interest at the time of such modification.
D. Governing Law. This Agreement shall be governed by and construed under California law and any applicable federal law without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this Agreement, the Parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California.
E. Attorneys’ Fees. In the event that there is any litigation or other legal proceeding between the Parties in connection with this Agreement, each Party shall bear its own costs and expenses, including attorneys’ fees.
F. Excusable Delays. Neither Party shall be considered in default in the performance of its obligations hereunder to the extent that the performance of any such obligation is prevented or delayed by unforeseen causes including acts of God, floods, earthquakes, fires, acts of a public enemy, pandemic, epidemic, and government acts beyond the control and without fault or negligence of the affected Party. Each Party hereto shall give notice promptly to the other of the nature and extent of any such circumstances claimed to delay, hinder, or prevent performance of any obligations under this Agreement.
1654508.1
G. Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought.
H. Headings. The section headings contained in this Agreement are for convenience and identification only and shall not be deemed to limit or define the contents to which they relate.
I. Assignment. Neither Party may assign its interest in this Agreement, or any part thereof, without the prior written consent of the other Party. Any assignment without consent shall be void and unenforceable.
J. Severability. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
K. Authority to Execute. The person executing this Agreement on behalf of a Party warrant that they are duly authorized to execute this Agreement on behalf of said Party, and that by doing so said Party is formally bound to the provisions of this Agreement.
L. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.
M. Electronic Signatures. This Agreement may be executed with electronic signatures in accordance with Government Code Section 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature. (Signature page to follow)
1654508.1
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written.
________________________________
FOR THE CITY OF BALDWIN PARK
By:___________________________
Enrique C. Zaldivar
Chief Executive Officer
___________________________
Date:
ATTEST:
______________________________
Marlen Garcia
City Clerk
______________________________
APPROVED AS TO FORM:
__________________________
Robert N. Tafoya
City Attorney
FOR THE SAN GABRIEL VALLEY
REGIONAL HOUSING TRUST
By: ____________________________
Marisa Creter
Executive Director
Date:
APPROVED AS TO FORM:
David DeBerry
General Counsel
________ _________
STAFF REPORT
ITEM NO. 11
TO: Honorable Mayor and Members of the City Council
FROM: Lourdes Morales, Chief Deputy City Clerk
DATE: February 16, 2022
SUBJECT: Second Reading of Ordinance No. 1467 Entitled: “An Ordinance of the City Council of the City of Baldwin Park, California, Amending Chapter 50 of the Baldwin Park Municipal Code and Enacting a New Section in Chapter 50 Establishing Mandatory Organic Waste Disposal Reduction Requirements Under Senate Bill (SB) 1383 Related to Short-Lived Climate Pollutants (SLCP)”
SUMMARY
This report requests City Council’s consideration to approve the Second Reading of Ordinance No. 1467 to amend Chapter 50 of the BPMC establishing mandatory organic waste disposal reduction requirements under Senate Bill (SB) 1383 Related to short-lived climate pollutants (SLCP). Ordinance No. 1464 was introduced for first reading during a regular meeting of the City Council on February 2, 2022.
RECOMMENDATION
Staff recommends that the City Council waive second reading and adopt Ordinance No. 1467, entitled:
“An Ordinance of the City Council of the City of Baldwin Park, California, Amending Chapter 50 of the Baldwin Park Municipal Code and Enacting a New Section in Chapter 50 Establishing Mandatory Organic Waste Disposal Reduction Requirements Under Senate Bill (SB) 1383 Related to Short-Lived Climate Pollutants (SLCP)”.
FISCAL IMPACT
Not Applicable
BACKGROUND
Ordinance No. 1467 was introduced for first reading during a regular meeting of the City Council held on February 2, 2022.
ALTERNATIVES
Not Applicable
LEGAL REVIEW
This ordinance has been reviewed by the City Attorney
ATTACHMENTS
1. Ordinance No. 1467
ORDINANCE NO. 1467
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA, AMENDING CHAPTER 50 OF THE BALDWIN
PARK MUNICIPAL CODE AND ENACTING A NEW SECTION IN
CHAPTER 50 TO ADD MANDATORY ORGANIC WASTE DISPOSAL
REDUCTION REQUIREMENTS UNDER SENATE BILL (SB) 1383
RELATED TO SHORT-LIVED CLIMATE POLLUTANTS (SLCP)
WHEREAS, in 1989, the California Integrated Waste Management Act (AB 939) passed, requiring all California cities and counties to divert 50 percent of solid waste generated by the year 2000; and
WHEREAS, in 2011 the State’s Mandatory Commercial Recycling Law (AB 341) passed, requiring all business and multifamily dwelling of five units or more to arrange for recycling services; and
WHEREAS, in 2016 the State’s Mandatory Commercial Organics Recycling Law (AB 1826) passed, which imposed organic waste recycling requirements; and WHEREAS, in 2016 the State’s Short-Lived Climate Pollutants Law (SB 1383) established methane emissions reduction targets in a statewide effort to reduce emissions of short-lived pollutants and also granted CalRecycle the regulatory authority required to achieve the reduction targets; and
WHEREAS, the SB 1383 Regulations require the City to adopt and enforce an ordinance or other enforceable mechanism to implement relevant provisions of SB 1383 Regulations; and
WHEREAS, each year the City of Baldwin Park is required to demonstrate compliance with state law and must report the progress achieved through submittal of the Electronic Annual Report to CalRecycle.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The City Council hereby adds in its entirety Chapter 50.18 to the Baldwin Park Municipal Code entitled “Mandatory Organic Waste Disposal Regulations” with the following:
Chapter 50.18 MANDATORY ORGANIC WASTE DISPOSAL REGULATIONS
50.18.010 Declaration of Policy
The City and its residents and its businesses must comply with SB 1383, the Short-lived Climate Pollutant Reduction Act of 2106, which requires Jurisdictions to adopt and enforce an ordinance or enforceable mechanism to implement relevant provision of SB 1383 Regulations. This ordinance will also help reduce food insecurity by requiring Commercial Edible Food Generators to arrange to have the maximum amount of their Edible Food, that would otherwise be disposed, by recovered for human consumption.
50.18.020 Effective Date and Preemption
This Chapter 50.18 and all of the regulations contained herein, shall become effective on March 18, 2022, and shall remain effective until otherwise repealed by the City Council.
Any current terms or regulations which are in conflict with provisions of Chapter 50.18 shall be preempted by this Chapter as of the effective date.
50.18.030 Definitions
“AB 341” means the Assembly Bill approved by the Governor of the State of California on October 5, 2011, which amended Section 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded and replaced from time to time and which places requirements on Commercial Businesses and Multi-Family property owners that generate a specified threshold amount of Solid Waste to arrange for recycling services and requires cities to implement a mandatory Commercial recycling program. “AB 939” means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000, et seq), as amended, supplemented, superseded, and replaced from time to time which requires cities and counties to reduce, reuse, and recycle (including Composting) Solid Waste generated in their cities to the maximum extend feasible before any incineration or landfill disposal of waste, to conserve water, energy, and other natural resources, and to protect the environment. “AB 1826, means the Assembly Bill approved by the Governor of the State of California on September 28, 2014, which added Chapter 12.9 (commencing with Section 42649.8) to Part 3 of Division 30 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time and requires Commercial Businesses and Multi-Family Property Owners that generate specified threshold amount of Solid Waste, Recyclable Materials, and Organic Materials per week to arrange for recycling services for that waste, requires cities to implement a recycling program to divert Organic Waste for Commercial Businesses subject to the law, and requires cities to implement a mandatory Commercial Organic Material recycling program.
“Blue Container” has the same meaning as in 14 CCR Section 18982.2(a)(5) and shall be used for the purpose of storage and Collection of Recyclable Materials. “CalRecycle” means California’s Department of Resources Recycling and Recovery, which is the Department designated with responsibility for developing, implementing, and enforcing SB 1383 Regulations.
“California Code of Regulations” or “CCR” means the State of California Code of Regulations, CCR reference in this Chapter are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR). “Collect” or “Collection” (or any variation thereof) means the act of taking possession of Recyclable Materials, Organic Materials, Solid Waste, bulky items and other material at the place of generation in City.
“Commercial Business” or “Commercial” means a firm, partnership proprietorship, joint- stock company, corporation or association, whether for-profit or nonprofit, strip mall, industrial facility, or a Multi-Family Residential Dwelling, or as otherwise defined in 14 CCR Section 18982(a)(6). A Multi-Family Residential Dwelling that consists of fewer than five (5) units is not a Commercial Businesses for purposes of implementing this Chapter. “Commercial Edible Food Generator” includes a Tier One or a Tier Two Commercial Edible Food Generator as defined herein below of this Section 50.18.030 or as otherwise defined in 14 CCR Section 18982(a)(73). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators pursuant to 14 CCR Section 18982(a)(7).
“Compliance Review” means a review of records by the City to determine compliance with this Chapter.
“Community Composting” means any activity that Composts green material, agricultural material, food material, and vegetative food material, alone or in combination, and the total amount of feedstock and Compost on-site at any one time does not exceed one hundred (100 cubic yards and seven hundred fifty (750) square feet, as specified in 14 CCR Section 17855(a)(4); or, as otherwise defined by 14 CCR Section 18982(a)(8). “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the effective date of this Chapter, that “Compost” means the product resulting from the controlled biological decomposition of Organic Waste that is Source Separated from the municipal Solid Waste stream, or that is separated at centralized facility. “Composting” includes a controlled biological decomposition of Organic Materials yielding as safe and nuisance free Compost product.
“Contamination” or “Contaminated Container” means a container, regardless of color, that contains Prohibited Container Contaminants, or as otherwise defined in 14 CCR Section 18982(a)(55).
“Contractor” means a person who is a party to an existing written agreement with the City providing for the exclusive or non-exclusive right to Collect Discarded Materials from Generators within the City.
“C&D” means construction and demolition debris.
“Designee” means an entity that a City contracts with or otherwise arranges to carry out any of the City’s responsibilities of this Chapter as authorized in 14 CCR Section 18981.2.
A Designee may be a government entity, a Contractor, a private entity, or a combination of those entities.
“Discarded Materials” means Recyclable Materials, Organic Materials, and Solid Waste placed by a Generator in a Blue, Green or Grey container and/or at a location for the purpose of Collection by the City’s Collection Program, excluding Excluded Waste. “Edible Food” means food intended for human consumption, or as otherwise defined in 14 CCR Section 18982(a)(18). For the purposes of this Chapter or as otherwise defined in 14 CCR Section 18982(a)(18). “Edible Food” is not Solid Waste if it is recovered and not discarded. Nothing in this Chapter or in 14 CCR, Division 7, Chapter 12 requires or authorizes the Recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code.
“Enforcement Action” means an action of the City to address non-compliance with this Chapter including, but not limited to, issuing administrative citations, fines, penalties, or using other remedies.
“Excluded Waste” means Hazardous Substance, Hazardous Waste, infectious waste (as defined in 14 CCR Section 17225.36), designated waste, volatile, corrosive, medical waste, infectious, regulated radioactive waste, and toxic substances or material that facility operators(s), which receive materials from the City and its Generators, reasonably believe(s) would, as a result of or upon acceptance, transfer, processing, or disposal be a violation of local, State, or Federal law, regulations, or ordinance, including without limitation: land use restrictions or conditions, waste that cannot be disposed of in Class III landfills or accepted at the facility by permit conditions, waste that, in City’s or its Designee’s reasonable opinion, would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose City, or its Designee, to potential liability; but not including de minimis volumes or concentrations of waste of a type an amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe Collection, processing, recycling, treatment, and disposal of batteries and paint in compliance with Section 41500 and 41802 of the California Public Records Code. Excluded Waste does not include used motor oil and filers, household batteries, universal wastes, and/or latex paint when such materials are defined as allowable materials for Collection through the City’s Collection Programs and the Generator or customer has properly placed the materials for Collection pursuant to instructions provided by the City or its Designee for Collection services. “Food Distributor” means a company that distribute food to entities including, but not limited to, Supermarkets and Grocery Stores, or as otherwise defined in 14 CCR Section 18982(a)(22).
“Food Facility” has the same meaning as in Section 113789 of the Health and Safety Code.
“Food Recovery” means actions to Collect and distribute food for human consumption that otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24).
“Food Recovery Organization” means an entity that engages in the Collection or receipt of Edible Food from Commercial Edible Food Generators and distributes that Edible Food to the public for Food Recovery either directly or through other entities or as otherwise defined in 14 CCR Section 18982(a)(25), including, but not limited to:
1. A food bank as defined in Section 113783 of the Health and Safety Code;
2. A nonprofit chartable temporary food facility as defined in Section 113842 of the Health and Safety Code; and
3. A Food Recovery Organization is not a Commercial Edible Food Generator for the purpose of this Chapter and implementation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organizations differs from this definition, the definition in 14 CCR Section18982(a)(25) shall apply to this Chapter.
“Food Recovery Services” means a person or entity that Collects and transports Edible Food from a Commercial Food Generator to a Food Recovery Organization or other entities for Food Recovery, or as otherwise defined in 14 CCR Section 18982(a)(26). A Food Recovery Service is not a Commercial Edible Food Generator for the purpose of this Chapter and implantation of 14 CCR, Division 7, Chapter 12 pursuant to 14 CCR Section 18982(a)(7).
“Food Scraps” means all food such as, but not limited to fruits, vegetables, meat, poultry, seafood, shellfish, bones rice, beans, pasta, bread, cheese, and eggshells. Food Scarps excluded fats, oils, and grease when such materials are Source Separated from other Food Scraps.
“Food Service Provider” means an entity primarily engaged in providing food services to institutional, governmental, Commercial or industrial locations of others based on contractual arrangements with these types of organizations, or as otherwise defined in 14 CCR Section 18982(a)(27).
“Food-Solid Paper” is paper material that has come in contact with food or liquid, such as, but not limited to, paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. Food-Solid Paper does not include Non-Compostable Paper. “Food Waste” mean Food Scarpe and Food-Soiled Paper.
“Generator” means any person or entity whose act or process produces Discarded Materials as defined in the Public Resources Code, or whose act first causes Discarded Materials to become subject to regulations.
“Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Solid Waste. Per the definition provided in 14 CCR Section 18982(a)(28), the Gray Containers may actually be black, or black with gray lid.
“Green Container” has the same meaning as in 14 CCR Section 18982.2(a)(29) and shall be used for the purpose of storage and Collection of Organic Materials. “Grocery Store” means a store primarily engaged in the retail sale of canned food; dry goods, fresh fruits and vegetables; fresh meats, fish, and poultry; and any area that is not separately owned within the store where the food is prepared and served, including without limitation a bakery, deli, and meat and seafood departments, or as otherwise defined in 14 CCR Section 18982(a)(30).
“Hauler Route” means the designated itinerary or sequence of stops for each segment of the City’s Collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5).
“Hazardous Substance” means any of the following: (a) any substances defined, regulated or listed (directly or by reference) as “Hazardous Substance”, “hazardous materials”, “Hazardous Wastes”, toxic waste”, “pollutant”, or “toxic substance”, or similarly identified as hazardous to human health or the environment, in or pursuant to: (i) the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) of 1980, 42 USC §9601 et seq. (CERCLA); (ii) Hazardous Materials Transpiration Act, 49 USC §1802, et seq; (iii) the Resource Conservation and Recovery Act, 42 USC §6901 et seq.; (iv) the Clean Water Act, 33 USC §1251 et seq,; (v) California Heath and Safety Code §25115-2517, 25249.8, 25281, and 25316; (vi) the Clean Air Act, 42 USC§7901 et seq,; and, (vii) California Water Code §13050; (b) any amendments, rules or regulations promulgated thereunder to such enumerated status or acts currently existing or hereafter enacted; and, (c) any other hazardous or toxic substance, material, chemical, waste or pollutant identified as hazardous or toxic or regulated under any other Applicable Law currently existing or hereinafter enacted, including, without limitation, friable asbestos, polychlorinated biphenyl’s (PCBs), petroleum, natural gas, and synthetic fuel products, and by-products.
“Hazardous Waste” means all substance defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by the State in Health and Safety Code §25110.02, §25115, and §25117, State Public Resources Code Section 40141, or in the future amendments to or recodifications of such statues or identified and listed as solar panels form Residential Premises, and Hazardous Waste by the U.S. Environmental Protection Agency (EPA), pursuant to the Federal Resources Conservation and Recovery Act (42 USC §6901 et seq.) all future amendments thereto, and all rules and regulations promulgated thereunder.
“High Diversion Organic Waste Processing Facility” means a facility that is in compliance with the reporting requirements of 14 CCR Section 18815.5(d) and meets or exceeds an annual average mixed waste organic content Recovery rate of fifty percent (50%) between January 1, 2022 and December 31, 2024, and seventy-five percent (75%) after January 1, 2025, as calculated pursuant to 14 CCR Section 18815.5 € of Organic Waste received from the “mixed waste organic collection stream” as defined in 14 CCR Section 17402(a)(11.5), or as otherwise defined in 14 CCR Section 18982(a)(33). “Inspection” means a site visit where a City or its Designee reviews records, containers, and an entity’s Collection, handling, recycling, or landfill disposal of Discarded Materials or Edible Food handling to determine if the entity is complying with requirements set forth in this Chapter, or as otherwise defined in 14 CCR Section 18982(a0)(35). “Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than two thousand (2,000) individuals per day of operation of the event, at a location that includes, but not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event.
If the definition in 14 CCR Section 18982(a)(38) differs from this definition in 14 CCR Section 18982(a)(38) shall apply to this Chapter.
“Large Venue” means a permanent venue facility that annually seats or serves an average of more than two thousand (2,000) individuals within the grounds of the facility per day of operation of the venue facility. For purposes of this Chapter and implementation of 14 CCR, Division 7, Chapter 12, a venue facility includes, but is not limited to, a public, nonprofit, or privately owned or operated stadium, amphitheater, area, hall, amusement park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performing arts center, fairground, museum, theater, or other public attraction facility. For purposes of this Chapter and implantation of 14 CCR, Division 7, Chapter 12, a site under common ownership or control that includes mor than one (1) Large Venue that is contiguous with other Large Venues in the site, is a single Large Venue. If the definition in 14 CCR Section 18982(a)(39) differs from this definition the definition in 14 CCR Section 18982(a)(39) shall apply to this Chapter.
“Local Education Agency” means a school district, charter school, or county office of education that is not subject to the control of City or county regulation related to Recyclable Materials, Organic Materials, or Solid Waste, or as otherwise defined in 14 CCR Section 18982(a)(40).
“Multi-Family Residential Dwelling” or “Multi-Family” means of, from, or pertaining to residential premises with five (5) or more dwelling units. Multi-Family premises do not include hotels, motels, or other transient occupancy facilities, which are considered Commercial Businesses.
”MWELO” refer to the Model Water Efficient Landscape Ordinance, 23 CCR, Division 2, Chapter 2.7.
“Non-Compostable Paper” includes but is not limited to paper that is coated in a plastic material that will not breakdown in the Composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).
“Notice of Violation” or “NOV” means a notice that a violation has occurred that includes a compliance date to avoid an action to seek penalties, or as otherwise defined in 14 CCR Section 18982(a)(45) or further explained in 14 CCR Section 18995.4. “Organic Materials” means Source Separated Organic Waste that can be placed in a Green Container specifically intended for the separate Collection of Organic Waste by the Generator, excluding Non-Compostable Paper, Paper Products, Printing and Writing Paper, and any other Organic Waste that an Organic Waste faciality may reject to maintain any organics-related Composting certifications including but not limited to organic carpets and textiles, contaminate wood or lumber, manure, digestate, biosolids, and sludges.
“Organic Waste” means wastes containing material originating from living organisms and their metabolic waste products, including but not limited to food, green material, landscape and pruning waste, organic textiles and carpets, lumber, wood, Paper Products, Printing and Writing Paper, manure, biosolids, digestate, and sludges or as otherwise defined in 14 CCR Section 18982(a)(46). Biosolids and digestate are as defined by 14 CCR Section 18982(a).
“Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, handing files, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51). “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, not pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54). “Prohibited Container Contaminants” means the following: (i) Decarded materials placed in the Blue Container that are not identified as acceptable Recyclable Materials for the City’s Blue Container; (ii) Discarded Materials placed in the Green Container that are not identified as acceptable Organic Materials for the City’s Green Container, (iii) Discarded Materials placed in the Gray Container that are acceptable Recyclable Materials and/or Organic Materials to be placed in City’s Green Container and/or Blue Container; and (iv) Excluded Waste placed in any container.
“Property Owner” means the owner of real property, or as otherwise defined in 14 CCR Section 18982(a)(57).
“Recovered Organic Wase Products” means products made from California, landfill diverted recovered Organic Waste Processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60). “Recovery” means any activity or process described in 14 CCR Section 18983.1(b), or as otherwise defined in 14 CCR Section 18982(a)(49).
“Recyclable Material” shall mean any material generated on or emanating from residential or Commercial/Industrial premises that is no longer wanted and is Collected, transported, and reused or processed into a form suitable for reuse through reprocessing or remanufacture, consistent with the requirements of AB 939. No Discarded Materials shall be considered Recyclable Materials unless such material is separated from Organic Materials and Solid Waste and offered for Collection through the City’s Collection program.
“Recycled-Content Paper” means Paper Products and Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).
“Restaurant” means an establishment primarily engaged inter tail sale of food and drinks for on-premises or immediate consumption, or as otherwise defined in 14 CCR Section 18982(a)(64).
“Route Review” means a visual inspection of containers along a Hauler Route for the purpose of determining Contaminated Containers and my include mechanical inspection methods such as the use of cameras, or as otherwise defined in 14 CCR Section 18982(a)(65).
“SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets and placing requirements on multiple entities including cities, residential households, Commercial Businesses and Commercial Business owners, Commercial Edible Food Generators, Contractors, Self-Haulers, Food Recovery Organizations, and Food Recovery Services in Statewide effort to reduce emissions of short-live climate pollutants as amended, supplemented, superseded, and replace from time to time. “SB 1383 Regulation” or “SB 1383 Regulatory” means or refers to, for the purposes of this Chapter, the Short-Lived Climate Pollutants: Organic Waste Reduction regulations developed by CalRecycle and adopted in 2020 that crafted 14 CCR, Division 7, Chapter 12 and amended portions of regulations of 14 CCR and 27 CCR. “Self-Hauler” means a person, who hauls Solid Waste, Organic Materials, or Recyclable material he or she has generated to another person. Self-Hauler also includes a person who back-hauls waste, or as otherwise defined in 14 CCR Section 18982(a)(66). Back- haul means generating and transporting Discarded Materials to a destination owned and operated by the Generator using the Generator’s own employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A).
“Single-Family” means of, form or pertaining to any residential premises with fewer than five (5) units.
“Solid Waste” has the same meaning as defined in State Public Resources Code Section 40191, which defines Solid Waste as all putrescible and non-putrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, paper, rubbish, ashes, industrial wastes, demolition and construction wastes, abandoned vehicle and parts hereof, discarded home and industrial appliances, dewatered, treated, or chemically fixed sewage sludge that is not Hazardous Waste, manure, vegetable or animal solid and semisolid wastes, and other discarded solid and semisolid wastes, with the exception that Solid Waste does not include any of the following wastes:
1. Hazardous Waste.
2. Radioactive waste regulated pursuant to the State Radiation Control Law Chapter 8 (commencing with Section 114960) of Part 9 of Division 104 of the State Health and Safety Code.
3. Medical waste regulated pursuant to the State Medical Waste Management Act (Part 14 (commencing with Section 117600) of Division 104 of the Sate Health and Safety Code). Untreated medical waste shall not be disposed of in a Solid Waste landfill, as defined in State Public Resources Code Section 40195.1 Medical waste that has been a treated and deemed to be Solid Waste shall be regulated pursuant to Division 30 of the State Public Resource Code.
4. Recyclable Materials, C&D, Organic Waste, or other salvageable material only when such materials are Source Separated from Solid Waste at the site of generation.
“Source Separated” means materials, including commingled Recyclable Materials and Organic Material, that have been separated or kept separate from the Solid Waste stream, at the point of generation for the purpose of additional sorting or processing those material for recycling or reuse in order to return them to the economic mainstream in the form of raw material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4). For the purposes of the ordinance, Source Separated shall include separation of materials by the Generator, property owner, property owner’s employee, property manager, or property manager’s employee into different containers for the purpose of Collection such that Sources Separated material are separated from Solid Waste for the purposes of Collection and processing.
“State” means the State of California.
“Supermarket” means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more that sells a line of dry grocery, canned goods, or nonfood items and some perishable items, or as otherwise defined in 14 CCR Section 18982(a)(71).
“Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following:
1. Supermarket.
2. Grocery Store with a total facility size equal to or greater than ten thousand (10,000) square feet.
3. Food Service Provider.
4. Food Distributor.
5. Wholesale Food Vendor.
If the definition in 14 CCR Section 18982(a)(73) of Tier One Commercial Edible Food Generator differs from this definition, the definition in 14 CCR Section 18982(a)(73) shall apply to this Chapter.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following:
1. Restaurant with two hundred fifty (250) or more seats, or a total facility size equal to or greater than five thousand (5,000) square feet.
2. Hotel with on-site Food Facility and two hundred (200) or more rooms.
3. Health facility with an on-site Food Facility and one hundred (100) or more beds.
4. Large Venue.
5. Large Event.
6. A State agency with a cafeteria with tow hundred fifty (250) or more seats or total cafeteria facility size equal to or greater than five thousand (5,000) square feet.
7. A Local Education Agency facility with an on-site Food Facility.
If the definition in 14 CCR Section 18982(a)(74) of Tier Two Commercial Edible Food Generator differs from this definition the definition in 14 CCR Section 18982(a)(74) shall apply to this Chapter.
“Wholesale Food Vendor” means a Commercial Business or establishment engaged in the merchanted wholesale distribution of food, where food (including fruits and vegetables) is received, shipped, stored, prepared for distribution to a retailer, warehouse, distributor, or other destination, or as otherwise defined in 14 CCR Section 189852(a)(76).
50.18.040 Requirements for Single-Family Generators
Generators shall subscribe to a three (3) container Collection service that includes a Blue Container, Green Container, and Gray Container. Generators shall comply with the following requirements except Single-Family Generators that meet the Self-Hauler requirements in Section 50.18.100 of the Baldwin Park Municipal Code.
A. Shall subscribe to City’s Collection services for all Discarded Materials generated as described in this Section. City or its Designee shall have the right to review the number and size of a Generator’s containers to evaluate adequacy of capacity provided for each type of Collection service for proper separation of materials and containment of materials, and Single-Family Generators shall adjust their service level for Collection services as requested by the City or its Designee. Generators may additionally manage their Discarded Materials by preventing or reducing their Discarded Materials, managing Organic Waste on site, and/or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).
B. Shall participate in the City’s Collection service(s) by placing designated materials in designated containers as described below and shall not place Prohibited Container Contaminants in Collection containers.
1. Generator shall place Organic Materials, including Food Waste, in the Green Container, Source Separated Recyclable Materials in the Blue Container, and Solid Waste in the Gray Container. Generators shall not place materials designated for the Gray Container into the Green Container or Blue Container, or material designated for the Green or Blue Container into the Gray Container.
2. Green, Blue, and Gray Containers to be Collected by the Contractor shall be placed, by the owner or occupant of any premises, along the street or alley frontage of such premises, or such other locations as may be mutually agreeable to such persons and the Contractor.
3. No person shall interfere in any manner with any Green, Blue, or Gray Containers or the contents thereof, or remove any Blue, Green, or Gray Container or the contents thereof from the location where the same was placed by the owner or occupants of the premises for Collection.
50.18.050 Requirements for Commercial Businesses
Generators that are Commercial Businesses, including Multi-Family Residential Dwellings, shall:
A. Subscribe to City’s three (3) container Collection services and shall be solely responsible to the Contractor for the payment of the fees set forth in any such agreement the City has entered with Contractor for Collection service. The City shall not be responsible for payment of any such fees to any Contractor. Commercial Generators shall comply with requirements of those services as described below in this Section, except Commercial Businesses that meet all Self-Hauler requirements set forth in Section 50.18.100 of the Baldwin Park Municipal Code. City or its Designee shall have the right to review the number and size of a Generator’s Containers and frequency of Collection to evaluate adequacy of capacity provided for each type of Collection service for proper separation of material and containment of materials; and Commercial Businesses shall adjust their service level for their Collection service as requested by the City or its Designee.
B. Except Commercial Businesses that meet the Self-Hauler requirements in this Chapter, participate in the City’s Collection service(s) by placing designated materials in designated containers as described below:
1. Generator shall place and/or direct its Generators to place Organic Materials, including Food Waste, in the Green Container, Source Separated Recyclable Materials in the Blue Container, and Solid Waste in the Gray Container.
Generator shall not place, and direct tis Generators not to place, Prohibited Container Contaminants in Collection containers and not place materials designated for the Gray Container into the Green Container or Blue Container or materials designated for the Green or Blue Container into the Gray Container.
2. Supply and allow access to adequate number, size, and location of Collection containers with sufficient labels and colors (conforming with Subsections 3(a) and 3(b) below for employees, contractors, tenants, and customers, consistent with City’s Blue Container, Green Container, and Gray Container Collection service or, if self-hauling, per the Commercial Businesses’ instructions to support its compliance with its self-haul program, in accordance with Section
50.18.100.
3. Excluding Multi-Family Residential Dwellings, provide containers for the Collection of Organic Materials and Source Separated Recyclable Materials in all indoor and outdoor areas where disposal containers are provided for customers, for materials generated by that Commercial Business. Such containers do not need to be provided in restrooms. If a Commercial Business does not generate any of the materials that would be collected in one type of container, then the business does not have to provide that particular container in all areas where disposal containers are provided for customers. Pursuant to 14 CCR Section 18984.9(b), the containers provided by the Commercial Business shall have either:
a) A body or lid that conforms with the container colors provided through the collection service provided by The City, with either lids conforming to the color requirements or bodies conforming to the color requirements or both lids and bodies conforming to color requirements. A Commercial Business is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the requirements of the subsection prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first. b) Container labels that include language or graphic images, or both, indicating the primary material accepted and the primary materials prohibited in that container, or containers with imprinted text or graphic images that indicate the primary materials accepted and primary materials prohibited in the container. Pursuant 14 CCR Section 18984.8, the container labeling requirements are required on new containers commencing January 1, 2022.
4. Multi-Family Residential Dwellings are not required to comply with container placement requirements or labeling requirements in Section 6(d) pursuant to 14 CCR Section 18984.9(b).
5. To the extent practical through education, training, Inspection, and/or other measures, excluding Multi-Family Residential Dwellings, prohibit employees from placing materials in a container not designated for those materials per the City’s Blue Container, Green Container, and Gray Container collection service or, if self-hauling, per the Commercial Businesses’ instructions to support its compliance with its self-haul program, in accordance with Section 50.18.100.
6. Excluding Multi-Family Residential Dwellings, periodically inspect Blue Containers, Green Containers, and Gray Containers for contamination and inform employees if containers are contaminated and of the requirements to keep contaminants out of those containers pursuant to 14 CCR Section 18984.9(b)(3).
7. Annually provide information to employees, contractors, tenants, and customers about Organic Waste Recovery requirements and about proper sorting of Source Separated Green Container Organic Waste and Source Separated Recyclable Materials.
8. Provide education information before or within fourteen (14) days of occupation of the premises to new tenants that describes requirements to keep Source Separated Green Container Organic Waste and Source Separated Recyclable Materials separate from Gray Container Waste (when applicable) and the location of containers and the rules governing their use at each property.
9. Provide or arrange access for the City or its agent to their properties during all Inspections conducted in accordance with Section 50.18.140 of this Chapter to confirm compliance with the requirements of this ordinance.
10. Accommodate and cooperate with City’s Remote Monitoring program for Inspection of the contents of containers for Prohibited Container Contaminants, which may be implemented by the City at a later date, to evaluate generator’s compliance with Section.
11. At Commercial Business’s option and subject to any approval required from the City, implement a Remote Monitoring program for Inspection of the contents of its Blue Containers, Green Containers, and Gray Containers for the purpose of monitoring the contents of containers to determine appropriate levels of service and to identify Prohibited Container Contaminants.
12. If a Commercial Business wants to self-haul, meet the Self-Hauler requirements in Section 50.18.100 of this Chapter.
13. Nothing in this Section prohibits a generator from preventing or reducing waste generation, managing Organic Waste on site, or using a Community Composting site pursuant to 14 CCR Section 18984.9(c).
14. Commercial Businesses that are Tier One or Tier Two Commercial Edible Food Generators shall comply with Food Recovery requirements, pursuant to Section 9.
50.18.060 Waivers for Generators
A. De Minimis Waivers – The City may waive a Commercial Business’ obligation (including Multi-Family Residential Dwellings) to comply with some or all of the Organic Waste requirements of this ordinance if the Commercial Business provides documentation that the business generates below a certain amount of Organic Waste material as described in Section 50.18.060(A)(2) below. Commercial Businesses requesting a de minimis waiver shall:
1. Submit an application specifying the services that they are requesting a waiver from and provide documentation as noted in Section 50.18.060(A)(2) below.
2. Provide documentation that either:
a) The Commercial Business’ total Solid Waste collection service is two cubic yards or more per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 20 gallons per week per applicable container of the business’ total waste; or,
b) The Commercial Business’ total Solid Waste collection service is less than two cubic yards per week and Organic Waste subject to collection in a Blue Container or Green Container comprises less than 10 gallons per week per applicable container of the business’ total waste.
3. Notify The City if circumstances change such that Commercial Business’s Organic Waste exceeds threshold required for waiver, in which case waiver will be rescinded.
4. Provide written verification of eligibility for de minimis waiver every 5 years, if City has approved de minimis waiver.
B. Physical Space Waivers – The City may waive a Commercial Business’ or property owner’s obligations (including Multi-Family Residential Dwellings) to comply with some or all of the recyclable materials and/or Organic Waste collection service requirements if the City has evidence from its own staff, a hauler, licensed architect, or licensed engineer demonstrating that the premises lacks adequate space for the collection containers required for compliance with the Organic Waste collection requirements of Section 50.18.050. A Commercial Business or property owner may request a physical space waiver through the following process:
1. Submit an application form specifying the type(s) of collection services for which they are requesting a compliance waiver.
2. Provide documentation that the premises lacks adequate space for Blue Containers and/or Green Containers including documentation from its hauler, licensed architect, or licensed engineer.
3. Provide written verification to the City Manager or his/her designee that it is still eligible for physical space waiver every five years, if The City has approved application for a physical space waiver.
50.18.070 Requirements for Commercial Edible Food Generators A. Tier One Commercial Edible Food Generators must comply with the requirements of this Section 9 commencing January 1, 2022, and Tier Two Commercial Edible Food Generators must comply commencing January 1, 2024, pursuant to 14 CCR Section 18991.3.
B. Large Venue or Large Event operators not providing food services, but allowing for food to be provided by others, shall require Food Facilities operating at the Large Venue or Large Event to comply with the requirements of this Section, commencing January 1, 2024.
C. Commercial Edible Food Generators shall comply with the following requirements:
1. Arrange to recover the maximum amount of Edible Food that would otherwise be disposed.
2. Contract with, or enter into a written agreement with Food Recovery Organizations or Food Recovery Services for: (i) the collection of Edible Food for Food Recovery; or, (ii) acceptance of the Edible Food that the Commercial Edible Food Generator self-hauls to the Food Recovery Organization for Food Recovery.
3. Shall not intentionally spoil Edible Food that is capable of being recovered by a Food Recovery Organization or a Food Recovery Service.
4. Allow City’s designated enforcement entity or designated third party enforcement entity to access the premises and review records pursuant to 14 CCR Section 18991.4.
5. Keep records that include the following information, or as otherwise specified in 14 CCR Section 18991.4:
a. A list of each Food Recovery Service or organization that collects or receives its Edible Food pursuant to a contract or written agreement established under 14 CCR Section 18991.3(b).
b. A copy of all contracts or written agreements established under 14 CCR Section 18991.3(b).
c. A record of the following information for each of those Food Recovery Services or Food Recovery Organizations:
i. The name, address and contact information of the Food Recovery Service or Food Recovery Organization.
ii. The types of food that will be collected by or self-hauled to the Food Recovery Service or Food Recovery Organization.
iii. The established frequency that food will be collected or self-hauled. iv. The quantity of food, measured in pounds recovered per month, collected or self-hauled to a Food Recovery Service or Food Recovery Organization for Food Recovery.
6. No later than June 1 of each year commencing no later than June 1, 2022, for Tier One Commercial Edible Food Generators and June 1, 2024 for Tier Two Commercial Edible Food Generators, provide an annual Food Recovery report to the City that includes the records listed in Section 50.18.070(C)(5)(c).
D. Nothing in this ordinance shall be construed to limit or conflict with the protections provided by the California Good Samaritan Food Donation Act of 2017, the Federal Good Samaritan Act, or share table and school food donation guidance pursuant to Senate Bill 557 of 2017 (approved by the Governor of the State of California on September 25, 2017, which added Article 13 [commencing with Section 49580] to Chapter 9 of Part 27 of Division 4 of Title 2 of the Education Code, and to amend Section 114079 of the Health and Safety Code, relating to food safety, as amended, supplemented, superseded and replaced from time to time).
50.18.080 Requirements for Food Recovery and Organizations and Services A. Food Recovery Services collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(1):
1. The name, address, and contact information for each Commercial Edible Food Generator from which the service collects Edible Food.
2. The quantity in pounds of Edible Food collected from each Commercial Edible Food Generator per month.
3. The quantity in pounds of Edible Food transported to each Food Recovery Organization per month.
4. The name, address, and contact information for each Food Recovery Organization that the Food Recovery Service transports Edible Food to for Food Recovery.
B. Food Recovery Organizations collecting or receiving Edible Food directly from Commercial Edible Food Generators, via a contract or written agreement established under 14 CCR Section 18991.3(b), shall maintain the following records, or as otherwise specified by 14 CCR Section 18991.5(a)(2):
1. The name, address, and contact information for each Commercial Edible Food Generator from which the organization receives Edible Food.
2. The quantity in pounds of Edible Food received from each Commercial Edible Food Generator per month.
3. The name, address, and contact information for each Food Recovery Service that the organization receives Edible Food from for Food Recovery.
C. Food Recovery Organizations and Food Recovery Services shall inform generators about California and Federal Good Samaritan Food Donation Act protection in written communications, such as in their contract or agreement established under 14 CCR Section 18991.3(b).
D. Food Recovery Organizations and Food Recovery Services that have their primary address physically located in the City and contract with or have written agreements with one or more Commercial Edible Food Generators pursuant to 14 CCR Section 18991.3(b) shall report to the City it is located in the total pounds of Edible Food recovered in the previous calendar year from the Tier One and Tier Two Commercial Edible Food Generators they have established a contract or written agreement with pursuant to 14 CCR Section 18991.3(b) no later than June 1 of each calendar year.
E. In order to support Edible Food Recovery capacity planning assessments or other studies conducted by the County, City, special district that provides solid waste collection services, or its designated entity, Food Recovery Services and Food Recovery Organizations operating in the City shall provide information and consultation to the City, upon request, regarding existing, or proposed new or expanded, Food Recovery capacity that could be accessed by the City and its Commercial Edible Food Generators. A Food Recovery Service or Food Recovery Organization contacted by the City shall respond to such request for information within sixty (60) days, unless a shorter timeframe is otherwise specified by the City.
50.18.090 Requirements for Contractors and Facility Operators A. If the City finds that the public interest, convenience, and necessity so require, it may contract with any one (1) or more qualified persons, on an exclusive or nonexclusive basis, for the Collection and disposal of residential, Commercial, or industrial Discarded Materials from Generators within the City’s boundaries. In such event, such agreement shall refer to this Chapter, insofar as the manner of Collection is concerned, as it now exists or as it may hereafter be amended. Such agreement shall, in addition, provide for such Contractor to Collect, process, and/or dispose of all Discarded Materials from Generators within the City, and such Contractor shall have the exclusive right, privilege, and duty to Collect, process, and/or dispose of all such Discarded Materials for the period and times specified in such agreement, upon such compensation as may be therein agreed upon between the City and such Contractor.
Each Contractor shall meet the following requirements as a condition of approval of a contract, agreement, or similar contractual authorization with the City to Collect Discarded Materials.
1. All Discarded Materials generated within the City, with the exception of Hazardous Waste and Hazardous Substances, shall remain the property of the City until it is picked up by the Contractor. Through written notice to the City annually on or before July 1, 2022, Contractor shall identify the facilities to which they will transport Recyclable Materials, Organic Materials, and Solid Waste and shall not deliver the Discarded Materials to any waste-to-energy conversion facility unless specifically approved in advance by the City Manager or their Designee.
2. Transport Source Separated Recyclable Materials to a facility that recovers those materials; transport Source Separated Green Container Organic Waste to a facility, operation, activity, or property that recovers Organic Waste as defined in 14 CCR Division 7, Chapter 12, Article 2; and transport Solid Waste to a disposal facility or transfer facility or operation that processes or disposes of Solid Waste.
Notwithstanding the foregoing, Contractor shall not be required to transport any containers with Prohibited Container contaminants to a facility, operation, activity, or property that recovers Organic Waste.
3. Obtain approval from the City to haul Discarded Materials, unless it is transporting Sources Separated Organic Waste to a Community Composting site or lawfully transporting C&D in a manner that complies with 14 CCR Section 18989.1 and Section 50.18.110 hereof.
4. The authorization of exclusive or non-exclusive Contractor(s), as applicable, to Collect Discarded Materials shall comply with any education, equipment, signage, container labeling, container color, Contamination, monitoring, and reporting requirements relating to the Collection of Discarded Materials contained within its franchise agreement with the City.
5. Maintain a fixed place of business in or adjacent to the City and maintain a telephone services at such a place of business.
6. Maintain an accurate list of all customers served by the Contractor within the City.
Such records shall be open and available for reasonable inspection by the City Manager or their Designee.
7. Ensure all vehicular equipment used by Contractor is maintained in a clean and sanitary condition, and shall have prominently displayed thereon, the name, address, and telephone number of the Contractor. (Prior code 24A-4).
8. Place and maintain on the outside of Green, Blue, and Gay Containers, or other equipment, in legible letters and numerals not less than one (1) inch in height, such Contractor’s name or firm name and telephone number.
9. At all times keep in good repair and maintain in a clean and sanitary condition all Green, Blue, and Gray Containers or other equipment to the satisfaction of the health officer. (Prior code 24-5)
B. Requirements for Facility Operators and Community Composting Operations:
1. No person shall maintain or operate any dump, waste disposal facility, or site for the disposal, transfer, or salvage of Recyclable Materials Organic Waste, or Solid Waste within the City; provided, that nothing contained in this section shall be construed to prohibit the disposal of agricultural or horticultural waste materials such as dead trees, bushes, and similar material at a Community Composting site. (Prior code 24-4).
2. Owners of facilities, operations and activities that recover Organic Waste, including, but not limited to, Compost facilities, in-vessel digestion facilities, and publicly owned treatment works shall, upon City request, provide information regarding available and potential new or expanded capacity at their facilities, operations, and activities, including information about throughout and permitted capacity necessary for planning purposes. Entities contacted by the City shall respond within sixty (60) days.
3. Community Composting operators, upon City requests hall provide information to the City to support Organic Waste capacity planning, including but not limited to, an estimate of the amount of Organic Waste anticipated to be handled at the Community Composting operation. Entities contacted by the City shall respond within sixty (60) days.
4. Owners of facilities, operations, and activities located in the City’s boundaries that receive Recyclable Materials, Organic Materials, and/or Solid Waste shall provide to the city on a quarterly basis copy of all resorts that the owners are required to report to CalRecycle, including at minimum, those required by AB 901 and SB 1383.
C. Any Contractor operating within the City shall comply with the following Collection rules:
1. Hours of Collection. Collection from commercial/industrial premises may occur Monday through Saturday. Residential collection shall not begin prior to 6:00am, and commercial/industrial collection will not begin prior to 5:30am where the commercial/industrial premises is within five hundred (500) feet of an occupied residential premises, except by approval of City Manager of his/her designee.
2. Schedules. Each Contractor shall establish and thereafter maintain an area schedule of their Collection times and places. Such schedules shall be filed with the City Manager and any changes therein shall be filed with the City Manager.
50.18.100 Requirements for Self-Haulers
A. Self-Haulers shall source separate all Recyclable Materials and Organic Waste (materials that City otherwise requires generators to separate for collection in the City’s organics and recycling collection program) generated on-site from Solid Waste in a manner consistent with 14 CCR Sections 18984.1 and 18984.2, and shall deliver their materials to facilities described in subsection (B) below, or shall haul Solid Waste, including Recyclable Materials and Organic Waste, to a High Diversion Organic Waste Processing Facility as specified in 14 CCR Section 18984.3.
B. Self-Haulers shall haul their Source Separated Recyclable Materials to a facility that recovers those materials; and haul their Organic Waste to a Solid Waste facility, operation, activity, or property that processes or recovers Source Separated Organic Waste. Alternatively, Self-Haulers may haul Organic Waste to a High Diversion Organic Waste Processing Facility.
C. Self-Haulers that are Commercial Businesses (including Multi-Family Residential Dwellings) shall keep a record of the amount of Organic Waste delivered to each Solid Waste facility, operation, activity, or property that processes or recovers Organic Waste; this record shall be subject to Inspection by the City. The records shall include the following information:
1. Delivery receipts and weight tickets from the entity accepting the waste.
2. The amount of material in cubic yards or tons transported by the generator to each entity.
3. If the material is transported to an entity that does not have scales on-site, or employs scales incapable of weighing the Self-Hauler’s vehicle in a manner that allows it to determine the weight of materials received, the Self-Hauler is not required to record the weight of material but shall keep a record of the entities that received the Organic Waste.
D. Self-Haulers that are Commercial Businesses (including Multi-Family Self-Haulers) shall provide information collected in Section 50.18.100 to the City if requested and within ten (10) days of such request.
E. A residential Organic Waste Generator that self-hauls Organic Waste is not required to record or report information in Section 50.18.100.
50.18.110 Compliance with CALGreen Recycling Requirements A. Persons applying for a permit from the City for new construction and building additions and alternations shall comply with the requirements of this Section and the California Green Building Standards Code, 24 CCR, Part 11, known as CALGreen, as amended, if its project is covered by the scope of CALGreen or more stringent requirements of the City. If the requirements of CALGreen are more stringent then the requirements of this Section, the CALGreen requirements shall apply. Project applicants shall refer to the City’s building and/or planning code for complete CALGreen requirements.
B. For projects covered by CALGreen or more stringent requirements of the City, the applicants must, as a condition of the City’s permit approval, comply with the following:
1. Where five (5) or more Multi-Family dwelling units are constructed on a building site, provide readily accessible areas that serve occupants of all buildings on the site and are identified for the storage and collection of Blue Container and Green Container materials, consistent with the three (3) container collection program offered by the City, or comply with provision of adequate space for recycling for Multi-Family and Commercial premises pursuant to Sections 4.408.1, 4.410.2,
5.408.1, and 5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as amended provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020.
2. New Commercial construction or additions resulting in more than 30% of the floor area shall provide readily accessible areas identified for the storage and collection of Blue Container and Green Container materials, consistent with the three (3) container collection program offered by the City, or shall comply with provision of adequate space for recycling for Multi-Family and Commercial premises pursuant to Sections 4.408.1, 4.410.2, 5.408.1, and 5.410.1 of the California Green Building Standards Code, 24 CCR, Part 11 as amended provided amended requirements are more stringent than the CALGreen requirements for adequate recycling space effective January 1, 2020.
3. Comply with CALGreen requirements and applicable law related to management of C&D, including diversion of Organic Waste in C&D from disposal. Comply with all written and published City policies and/or administrative guidelines regarding the collection, recycling, diversion, tracking, and/or reporting of C&D.
50.18.120 Model Water Efficient Landscaping Ordinance Requirements A. Property owners or their building or landscape designers, including anyone requiring a building or planning permit, plan check, or landscape design review from the City, who are constructing a new (Single-Family, Multi-Family, public, institutional, or Commercial) project with a landscape area greater than 500 square feet, or rehabilitating an existing landscape with a total landscape area greater than 2,500 square feet, shall comply with Sections 492.6(a)(3)(B) (C), (D), and (G) of the MWELO, including sections related to use of Compost and mulch as delineated in this Section 50.18.120.
B. The following Compost and mulch use requirements that are part of the MWELO are now also included as requirements of this Chapter. Other requirements of the MWELO are in effect and can be found in 23 CCR, Division 2, Chapter 2.7.
C. Property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined in Section 50.18.120(A) above shall:
1. Comply with Sections 492.6 (a)(3)(B)(C)(D) and (G) of the MWELO, which requires the submittal of a landscape design plan with a soil preparation, mulch, and amendments section to include the following:
a. For landscape installations, Compost at a rate of a minimum of four (4) cubic yards per one thousand (1,000) square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling.
b. For landscape installations, a minimum three (3) inch layer of mulch shall be applied on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife up to five percent (5%) of the landscape area may be left without mulch.
Designated insect habitat must be included in the landscape design plan as such.
c. Organic mulch materials made from recycled or post-consumer materials shall take precedence over inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local fuel modification plan guidelines or other applicable local ordinances.
2. The MWELO compliance items listed in this Section are not an inclusive list of MWELO requirements; therefore, property owners or their building or landscape designers that meet the threshold for MWELO compliance outlined in Section
50.18.120(A) shall consult the full MWELO for all requirements.
D. If, after the adoption of this ordinance, the California Department of Water Resources, or its successor agency, amends 23 CCR, Division 2, Chapter 2.7, Sections 492.6(a)(3)(B) (C), (D), and (G) of the MWELO September 15, 2015 requirements in a manner that requires Jurisdictions to incorporate the requirements of an updated MWELO in a local ordinance, and the amended requirements include provisions more stringent than those required in this Section, the revised requirements of 23 CCR, Division 2, Chapter 2.7 shall be enforced.
50.18.130 Procurement Requirements for City Departments, Direct Service Providers and Vendors
A. City departments, and direct service providers to the City, as applicable, must comply with City’ adopted procurement policy for Recovered Organic Waste Product and Recycled-Content Paper.
B. All vendors providing Paper Products and Printing and Writing Paper to the City shall:
1. If fitness and quality are equal, provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least 30 percent, by fiber weight, postconsumer fiber instead of non-recycled products whenever recycled Paper Products and Printing and Writing Paper are available at the same or lesser total cost than non-recycled items.
2. Provide Paper Products and Printing and Writing Paper that meet Federal Trade Commission recyclability standard as defined in 16 Code of Federal Regulations (CFR) Section 260.12.
3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website.
4. Certify in writing, on invoices or receipts provided, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section 260.12 (2013).
5. Provide records to the City’s Recovered Organic Waste Product procurement recordkeeping Designee, in accordance with the City’s Recycled-Content Paper procurement policy(ies) of all Paper Products and Printing and Writing Paper purchases within thirty (30) days of the purchase (both recycled-content and non- recycled content, if any is purchased) made by any division or department or employee of the City. Records shall include a copy (electronic or paper) of the invoice or other documentation of purchase, written certifications as required in Sections 50.18.130(B)(3) and (B)(4) of this Chapter for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content Paper Products or Printing and Writing Papers are provided, include a description of why Recycled-Content Paper Products or Printing and Writing Papers were not provided.
50.18.140 Inspections and Investigations by City
A. City representatives and/or its designated entity, including Designees are authorized to conduct Inspections and investigations, at random or otherwise, of any collection container, collection vehicle loads, or transfer, processing, or disposal facility for materials collected from generators, or Source Separated materials to confirm compliance with this Chapter by Organic Waste Generators, Commercial Businesses (including Multi-Family Residential Dwellings), property owners, Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Services, and Food Recovery Organizations, subject to applicable laws. This Section does not allow The City to enter the interior of a private residential property for Inspection.
B. Generators, Commercial Businesses (including Multi-Family Residential Dwellings), property owners, Commercial Edible Food Generators, haulers, Self-Haulers, Food Recovery Services, and Food Recovery Organizations shall provide or arrange for access during all Inspections (except for residential property interiors) and shall cooperate with the City’s employee or its designated entity/Designee during such Inspections and investigations. Such Inspections and investigations may include confirmation of proper placement of materials in containers, Edible Food Recovery activities, records, or any other requirement of this ordinance described herein.
Failure to provide or arrange for: (i) access to an entity’s premises; (ii) installation and operation of Remote Monitoring equipment (optional); or (ii) access to records for any Inspection or investigation is a violation of this ordinance and may result in penalties described.
C. Any records obtained by the City during its Inspections and other reviews shall be subject to the requirements and applicable disclosure exemptions of the Public Records Act as set forth in Government Code Section 6250 et seq.
D. City representatives, its designated entity, and/or Designee are authorized to conduct any Inspections, other investigations as reasonably necessary to further the goals of this ordinance, subject to applicable laws.
E. City shall receive written complaints from persons regarding an entity that may be potentially non-compliant with SB 1383 Regulations, including receipt of anonymous complaints.
50.18.150 Enforcement
A. Violation of any provision of this Chapter shall constitute grounds for issuance of a Notice of Violation and assessment of a fine by the City Manager or their designee.
Enforcement Actions under this Chapter include, but are not limited to, issuance of an administrative citation and assessment of a fine. In addition to the procedures in this Section 50.18.150, the City may enforce this Chapter consistent with the procedures in Baldwin Park Municipal Code.
B. Other remedies allowed by law may be used for enforcement, including but not limited to civil action or prosecution as misdemeanor or infraction. The City may pursue civil actions in the California courts to seek recovery of unpaid administrative citations.
The City may choose to delay court action until such time as sufficiently large number of violations or cumulative size of violations exist such that court action is a reasonable use of City staff and resources.
C. Responsible Entity for Enforcement
1. Enforcement pursuant to this Chapter may be undertaken by the City Manager or their designee authorized and legally able to undertake such action. a. The City Manager or their designee will interpret this Chapter, determine the applicability of waivers, if violation(s) have occurred, implement Enforcement Actions, and determine if compliance stands are met. b. The City Enforcement Manage or their designee may issue Notice of Violations(s).
D. Process for Enforcement
1. The City Manager or their designee will monitor compliance with this Chapter randomly and through Compliance Reviews, Route Reviews, investigation of complaints, and an inspection program. Section 50.18.140 established City’s right to conduct inspections and investigations.
2. City may issue an official notification to notify regulated entities of its obligations under the ordinance.
3. Contamination Prevention
a. For incidences of Prohibited Container Contaminants found by City or its Designee in containers, City will issue a Notice of Violation to any Generator found have Prohibited Container Contaminants in a container. Prior to issuance of a Notice of Violation, City’s Designee may provide an informal warning(s) or notice(s) of Prohibited Container Contaminants via cart tag.
Thereafter, any Notice of Violation shall be provided by the City via mail within two (2) days after City determines a violation has occurred with respect to Prohibited Container Contaminants. If the City or its Designee observes Prohibited Container Contaminants in a Generator’s Container on more than two (2) occasion(s) in any calendar year staring January 1, the City May assesses and administrative fine or penalty on the Generator in accordance the Section 50.18.150.
b. In addition to 50.18.150(D)(3)(a), Designee may implement through Designee’s service rate structure a Contamination service charge for customers committing incidents of Prohibited Container Contaminants.
Designee shall provide such customers with written notice and/or cart tags, or such other procedures required under any contract, agreement, or similar contractual authorization between the City and its Designee, prior to levying any Contamination service charge. Designee shall inform City of each customer committing incidents of Prohibited Container Contaminants in a manner consistent with the agreement, or similar contractual authorization between the City and its Designee prior to issuing a Contaminating service charge. The foregoing Contamination service charge shall not be considered an administrative fine or penalty. Any disputes arising from the assessment of a Contamination service charge shall be adjudicated pursuant to the customer complaint resolution process provided under the terms of any contract, agreement, or similar contractual authorization between the City and its Designee assigned to Collect Discarded Materials.
4. Except for violations of Generator Contaminated Containers addressed under Section 50.18150(D)(3), City shall issue a Notice of Violation requiring compliance with sixty (6) days of issuance of the notice.
5. Absent compliance by the respondent within the deadline set forth in the Notice of Violation, City shall commence an Enforcement Action to impose penalties, via an administrative citation and fine.
Notices shall be sent to “owner” at the official address of the owner maintained by the tax collector for the City or if no such address is available, to the owner at the address of the dwelling or Commercial property, or to the party responsible for paying for the Collection services, depending upon available information.
E. Penalty Amounts for Types of Violations. Administrative fine levels shall be as stated in Section 15.01 of Baldwin Park Municipal Code, except that should the penalties levels in Section 15.01 either (i) fall below the minimum amounts stated in 14 CCR Section 18997.2, then the administrative fine level shall be that which is closest to a level stated in 14 CCR Section 18997.2.
F. Compliance Deadline Extension Considerations. The City may extend the compliance deadlines set forth in a Notice of Violation issued in accordance with this Section 50.18.150 if it finds that there are extenuating circumstances beyond the control of the respondent that make compliance within the deadline impracticable, including the following:
1. Acts of God such as earthquakes, wildfires, flooding, pandemics, and other emergencies or natural disasters.
2. Delays in obtaining discretionary permits or other government agency approvals, or.
3. Deficiencies in Organic Waste recycling infrastructure or Edible Food Recovery capacity and the City is under corrective action plan with CalRecycle pursuant to 14 CCR Section 18996.2 due to those deficiencies.
G. Appeals Process. Persons receiving an administrative citation containing a penalty for an uncorrected violation may request a hearing to appeal the citation pursuant to the appeal procedure in Baldwin Park Municipal Code Section.
H. Education Period for Non-Compliance, Beginning January 1, 2022, and through December 31, 2023, City will conduct inspections, Route Review or waste evaluations, and Compliance Reviews, depending upon the type of regulated entity, to determine compliance with this Chapter, and if City determines that a Generator, Self-Hauler, Contractor. Tier One Commercial Edible Food Generator, Food Recovery Organization Food Recovery Service, or other entity is not in compliance, it shall provide educational materials to the entity describing its obligations under this Chapter and a notice that compliances required by January 1, 2022, and that violations may be subject to administrative civil penalties starting on January 1, 2024.
I. Civil Penalties for Non-Compliance. Beginning January 1, 2024, if the City determines that a Generator, Self-Hauler, Contract, Tier One or Tier Two Commercial Edible Food Generator, Food Recovery Organization, Food Recovery Service, or other entity is not compliance with this Chapter, it shall document the non-compliance or violation, issue a Notice of Violation, and take Enforcement Action pursuant to this Section, as needed.
SECTION 2. The City Council HEREBY FINDS and DETERMINES that adoption of Ordinance XXXX is categorically exempt from environmental review under Section 15308 of the California Environmental Quality Act and the City of Baldwin Park environmental guidelines.
SECTION 3. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional.
SECTION 4. To the extent the provisions of the Baldwin Park Municipal Code as amended by this Ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this Ordinance, then those provisions shall be construed as continuations of the earlier provisions and not as new enactments.
SECTION 5. This ordinance shall be effective and be in full force and operation from and after thirty (30) days after its final reading and adoption.
First read at a regular meeting of the City Council of the City of Baldwin Park held on the 2nd day of February, 2022, and adopted and ordered published at a regular meeting of said Council on the ____day of _____, 2022.
_________________________________________
_________________
_________________
_________________________________
PASSED AND APPROVED ON THE DAY OF , 2022 ______ ___________ EMMANUEL J. ESTRADA, MAYOR
ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss:
CITY OF BALDWIN PARK )
I, Marlen Garcia, City Clerk of the City of Baldwin Park, do hereby certify that the foregoing ordinance was regularly introduced and placed upon its first reading at a regular meeting of the City Council on , 2022. Thereafter, said Ordinance No.1467 was duly approved and adopted at a regular meeting of the City Council on , 2022 by the following vote:
AYES: COUNCILMEMBER:
NOES: COUNCILMEMBER:
ABSENT : COUNCILMEMBER:
ABSTAIN: COUNCILMEMBER:
MARLEN GARCIA
CITY CLERK
________ _________
STAFF REPORT
ITEM NO. 12
TO: Honorable Mayor and Members of the City Council
FROM: Sam Gutierrez, Director of Public Works
DATE: February 16, 2022
SUBJECT: Adopt Resoultion No. 2022-007 Entitiled “A Resolution of the City Council of the City of Baldwin Park Authorizing Submittal of Applications for all CalRecycle Grant and Payment Programs”
SUMMARY
This item adopts Resolution No. 2022-007 authorizing the Director of Public Works and/or his designee to execute all documents necessary to implement and secure payment for all CalRecycle Grant and Payment Programs for which the City is eligible.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 2022-007 entitled, “A Resolution of the City Council of the City of Baldwin Park Authorizing Submittal of Applications for all CalRecycle Grant and Payment Programs”.
FISCAL IMPACT
There is no impact on the General Fund.
BACKGROUND
CalRecycle, through their SB 1383 Local Assistance Grant Program opened up a non-competitive grant program for local jurisdictions to assist with the implementation of regulation requirements associated with SB 1383. Under this program, cities, counties, and joint powers authorities can submit individual or joint applications to request funding for collection, education, outreach, food recovery, capacity planning, procurement, recordkeeping, enforcement, inspection, and program evaluation projects.
The available funding will be distributed to eligible cities and counties based on per capita calculations released by the California Department of Finance’s January 2021 population statistics, with a base amount of $20,000 per jurisdiction. The City of Baldwin Park’s available allocation is $100,616.
As part of the grant application process, CalRecyle requires that the City adopt a resolution authorizing the Director of Public Works and/or his designee to sign and submit applications for payments under this and other CalRecycle grant programs. Authorizations provided under Resolution No. 2022-007 will remain in effect for 5 years from the date of adoption.
LEGAL REVIEW
None required.
ATTACHMENT
1. Resolution No. 2022-007
RESOLUTION NO. 2022-007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK TO AUTHORIZING SUBMITTAL OF APPLICATIONS FOR ALL
CALRECYCLE GRANT AND PAYMENT PROGRAMS FOR WHICH THE
CITY IS ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq., 14581, and 42023.1(g), authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant and payment programs in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS, in furtherance of this authority, CalRecycle is required to establish procedures governing the administration of the payment programs; and administration of the application, awarding, and management of the grant programs; and WHEREAS, CalRecycle’s procedures for administering payment and grant programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment and grant program.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK HEREBY RESOLVES AS FOLLOWS:
The City Council of the City of Baldwin Park, California:
Section 1. The Director of Public Works is authorized to submit an application to CalRecycle for any and all grant and payment programs offered; and Section 2. The Director of Public Works or his/her designee is hereby authorized and empowered to execute all documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure funds and implement the approved grant or payment project; and
Section 3. This authorization is effective for 5 years from the date of adoption unless rescinded by the Signature Authority or the City Council.
PASSED, APPROVED, AND ADOPTED this 16th day of February 2022. _______________________________
EMMANUEL J. ESTRADA
MAYOR
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, Marlen Garcia, City Clerk of the City of Baldwin Park do hereby certify that the foregoing Resolution No. 2022-007 was duly adopted by the City Council of the City of Baldwin Park at a regular meeting thereof held on February 16, 2022, and that the same was adopted by the following vote to wit:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
MARLEN GARCIA
CITY CLERK
________ _________
STAFF REPORT
ITEM NO. 14
TO: Honorable Mayor and Members of the City Council
FROM: Enrique Zaldivar, Chief Executive Officer
Laura J. Thomas, Human Resources/Risk Manager
DATE: February 16, 2022
SUBJECT: Approval of Employment Agreement with Veronica Alvarez for the Position of Accounting Manager
SUMMARY
The attached Agreement for Accounting Manager (“Agreement”) with Veronica Alvarez is presented for approval by the City Council.
RECOMMENDATION
Staff recommends that the City Council approve the Agreement with Veronica Alvarez for the position of Accounting Manager and direct the Mayor and City Clerk to execute it.
FISCAL IMPACT
There is no fiscal impact as the previous Accounting Manager vacated the position on or about December 31, 2021.
BACKGROUND
After going through a competitive selection process, the Chief Executive Officer was authorized to negotiate a contract with Ms. Alvarez and bring it back to open session for final action. Ms. Alvarez has the qualifications and experience for this position. If approved, the Agreement will be effective February 22, 2022.
The Agreement sets the monthly base pay compensation for the Accounting Manager at $9,337.52 which is step 4 of the salary range as per the City of Baldwin Park Comprehensive Pay Schedule. The Accounting Manager is expressely an “At-Will” employee and serves at the pleasure of the Chief Executive Officer and Finance Director.
ALTERNATIVES
The City Council may choose to go back into closed session for additional negotiations.
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENT
1. Accounting Manager Employment Agreement
1 AGREEMENT
This agreement (hereinafter “Agreement”) is made and entered into by and between the City of Baldwin Park, a general law City (hereinafter “City”) and Veronica Alvarez, an individual (hereinafter “Employee”).
Section 1. Duties
a. City agrees to employ Employee as the Accounting Manager with the responsibility of supervising and managing the day-to-day operation of the Finance Department under the direction of the Director of Finance. b. The Employee shall perform other related and necessary duties as required by law and designated by the Director of Finance and Chief Executive Officer. c. The Director of Finance and Chief Executive Officer shall establish performance goals and objectives to be met by the Employee as Accounting Manager for each year of this Agreement. Said objectives shall be established as part of the evaluation process. The Director of Finance and Chief Executive Officer agrees to conduct a performance evaluation after twelve (12) months from the date of employment, and also upon each annual anniversary date of employment. The evaluation shall be conducted in accordance with specific criteria jointly developed and finalized by the Director of Finance, Chief Executive Officer and Employee. The Chief Executive Officer, based upon said evaluation, may award a salary step increase to Employee. Salary increases may be by amendment to this contract or by Resolution of the City Council.
d. Employee shall satisfactorily perform the duties of Accounting Manager with a high degree of professionalism and shall work the schedule necessary to ensure completion of performance. Employee shall generally report to work during normal business hours except during approved leave. Employee shall not conduct any outside business, or consulting business, except that employee may engage in occasional professional teaching or related duties subject to approval of the Chief Executive Officer, which approval shall not be unreasonably withheld.
e. Employee hereby agrees to perform faithfully and to the best of their abilities all the duties pertaining to Accounting Manager as may be required by the laws of the City of Baldwin Park and the State of California relating to municipal corporations, and the rules and regulations of the City of Baldwin Park, which are now in force or which may be put in force during the term herein stated, and further shall perform such other tasks and duties as may be designated by the Director of Finance and Chief Executive Officer and that the parties hereto agree that said position as Accounting Manager shall be deemed and construed to be a full-time position.
2 Section 2. Terms of Employment
a. The Employee's start date and anniversary date of employment is February 22, 2022, and the terms of this Agreement shall commence on that date and shall continue until terminated as set forth in this Agreement. b. Employee understands and agrees that Employee is an “AT WILL” (EXEMPT) Employee and serves at the will of the Chief Executive Officer.
There is no length of employment associated with this Agreement because it is an “AT WILL” Agreement. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the Chief Executive Officer to terminate the service of the Employee as an "AT WILL" Employee.
c. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the Employee to resign at any time from this position with City provided Employee gives to City Two Weeks (14 days) written notice prior to the effective date of Employee's resignation, unless the parties otherwise agree.
Section 3. Compensation/Benefits
a. Commencing February 22, 2022, the Accounting Manager’s salary shall be Step 4, or $9,337.52 per month as per the salary schedule most recently adopted by the City Council. Said salary may be modified from time to time by an amendment to this Agreement or amended salary resolution approved and adopted by the City Council.
b. Benefits: The City shall provide to Employee all fringe benefits as are in the most recent Unclassified Manager's Benefits Matrix as approved by the City Council.
Section 4. Termination, Waiver and Severance Pay
In the event the Chief Executive Officer terminates Employee's employment as Accounting Manager pursuant to this Agreement, and if Employee is not otherwise in breach of the terms of this Agreement, and if Employee executes a written waiver of any and all claims the Employee may have against the City, including but not limited to, a Civil Code Section 1542 waiver, then and only then the City shall pay a lump sum cash payment equal to three (3) months base salary only, with no benefits included in the severance calculation ("Severance Pay") to Employee. Only base salary will be used to calculate the three months’ severance and it need only be paid if Employee executes a waiver of all of her claims against the City as described above.
Section 5. General Provisions
1. The text herein shall constitute the entire Agreement between the parties. 3 2. This Agreement shall be effective February 22, 2022.
3. This Agreement shall only be modified in writing by the parties, except as salary may be modified by time to time by City Council Resolution.
Section 6. Arbitration
a. Employee and City expressly agree to waive any right they may have to file a claim, complaint and/or lawsuit in any California court. Except as expressly set forth in this section, all disputes, claims, complaints, or controversies (“Claims”) that Employee may have against the City and/or any of its officers, directors, employees, and/or agents, including contract claims; tort claims; discrimination and/or harassment claims; retaliation claims, claims for wages, compensation, penalties or restitution; and any other claim under any federal state or local statute, constitution, regulation, rule, ordinance, or common law, arising out of and/or directly or indirectly related to this Agreement and/or termination of this Agreement are subject to arbitration pursuant to the terms of this Agreement and will be resolved by Arbitration and NOT by a Court or jury. The parties hereby forever waive and give up the right to have a judge or jury decide any claims. The City will pay all costs of the arbitration as applicable and consistent with California law. b. The parties will use Judicial Arbitration and Mediation Services (“JAMS”) subject to its then-current employment arbitration rules and procedures (and the then-existing emergency relief procedures contained in the JAMS comprehensive arbitration rules and procedures if either party seek emergency relief prior to the appointment of an Arbitrator), available at www.jamsadr.com, unless those rules and/or procedures conflict with any express term of this Agreement, in which case this Agreement is controlling. c. No arbitration under this Agreement shall be subject to the JAMS Class Action Procedures.
d. The arbitration will be heard by a single Arbitrator in the State or Territory where Contractor worked at the time the claim arose. The parties will attempt to mutually agree to an arbitrator. If that is not possible, JAMS rules will apply to select an arbitrator.
e. The Arbitrator will have the authority to decide a motion to dismiss and/or a motion for summary judgment by any party and shall apply the Civil Rules of Civil Procedure governing such motions.
f. The following claims are not covered by this Agreement:
a. Worker’s compensation benefits, unemployment compensation benefits, claims for benefits under a plan that is governed by the Employment Retirement Income Security Act of 1974 (“ERISA”), and claims which are subject to the exclusive jurisdiction of the NLRB; and
4 b. Any claim that is expressly excluded from arbitration by a governing federal law or by a state law that is not preempted by the Federal Arbitration Act (“FAA”) or other federal law.
_______________________
Section 7. Attorneys’ Fees and Enforcement
_____________________________
It is understood and agreed that if, at any time, a violation of any term of this Agreement is asserted by any party hereto, and an arbitration is commenced, the prevailing party to any arbitration shall be entitled to recover its/his/her reasonable costs and attorneys’ fees.
_________________________________________________________ CITY OF BALDWIN PARK: EMPLOYEE:
Emmanuel J. Estrada Veronica Alvarez
Mayor Accounting Manager
ATTEST: APPROVED AS TO FORM:
Marlen Garcia Robert N. Tafoya
City Clerk City Attorney
_________________
STAFF REPORT
ITEM NO.
TO: Honorable Chair and Board Members of the Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park
FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: Treasurer’s Report – December 2021
SUMMARY
Attached is the Treasurer’s Report for the month of December 2021. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDATION
Staff recommends that the Board receive and file the Treasurer’s Report for December 2021.
FISCAL IMPACT
None
BACKGROUND
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Exhibit “A”, Treasurer’s Report
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STAFF REPORT
ITEM NO.
TO: Honorable Chair and Board Members of the Successor Agency to the Dissolved Community Development Commission of The City of Baldwin Park
FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: Successor Agency To The Dissolved Community
Development Commission of The City of Baldwin
Park Warrants and Demands
SUMMARY
Attached is the Warrants and Demands Register for the Successor Agency to the Dissolved Community Development Commission of the City of Baldwin Park to be ratified by the City Council.
RECOMMENDATION
Staff recommends that the Board ratify the attached Warrants and Demands Register.
FISCAL IMPACT
The total of the attached Warrants Register for Successor Agency of the City of Baldwin Park was $4,368.50.
BACKGROUND
The attached Claims and Demands report format meets the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous meeting and the following is a summary of the payment released:
1. The January 11 to February 3, 2022, Successor Agency Warrant with check number 13574 in total amount of $ 4,368.50 was made on behalf of Successor Agency of the City of Baldwin Park constituting of claim and demand against the Successor Agency of the City of Baldwin Park, are herewith presented to the City Council as required by law, and hereby ratified.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Check Register
________ _________
STAFF REPORT
ITEM NO. SA-3
TO: Honorable Mayor/Chair, and Members of the City Council, and Successor Agency to the Community Development
Commission
FROM: Enrique C. Zaldivar, Chief Executive Officer
Benjamin Martinez, Director of Community Development
DATE: February 16, 2022
SUBJECT: Approving the Form of the Agreements to be used with the San Gabriel Valley Habitat for Humanity, Inc. to implement an Acquisition and Rehabilitation Housing Program using Low- and Moderate-Income Housing Funds to Create
Homeownership Opportunities
SUMMARY:
The Successor Agency to the City of Baldwin Park Community Development Commission (the “Successor Agency”) is requested to approve the form of the agreements to be used with the San Gabriel Valley Habitat for Humanity, Inc. (hereinafter “Habitat”) to implement an acquisition and rehabilitation housing program (“Program”) to create homeownership opportunities utilizing Low- and Moderate-Income Housing Funds.
RECOMMENDATION:
Staff recommends that the Successor Agency:
1. Approve the form of the attached Agreements for use in the Program; and
2. Authorize the Chief Executive Officer (“CEO”) and City Attorney to carry out all subsequent and needed actions to proceed with the Program, including approving real estate purchase transactions, and executing agreements.
FISCAL IMPACT:
There is no fiscal impact to the General Fund. The use of Low- and Moderate-Income Housing Funds were authorized by the City Council on October 6, 2021 with approval of an Affordable Homeownership Expansion Agreement with Habitat.
BACKGROUND:
On October 6, 2021 an Affordable Homeownership Expansion Agreement (“AHEA”) with Habitat was approved for the purpose of expanding homeownership projects in the city to low-income families. Low- income families are defined as families that earn 80% or less of the Area Median Income (AMI) or $94,600 for a family of four (moderate-income families earn a maximum of 120% of AMI or $96,000). The AHEA identified four funding sources to establish five housing programs. The purpose of this staff report is to discuss one of the funding sources, Low- and Moderate-Income Housing Funds, and one of the approved programs which is the acquisition and rehabilitation program. Through the program these funds would be used to acquire existing homes in Baldwin Park and rehabilitate them for sale to low-income families.
The attached agreements (Loan Agreement, Declaration of Covenant Conditions and Restrictions, Deed of Trust, and Promissory Note) outline the financial commitment from each individual funding source, income restrictions, term of transactions for new homeowners, required Low- and Moderate-Income Housing Fund regulations and delegation of authority to the CEO to approve real estate purchases and execute agreements. This delegation was included to allow Habitat to compete for transactions in a very competitive seller’s market. However, if Habitat can negotiate sufficient time, purchase transactions will be brought before the City Council for approval.
ALTERNATIVES:
The City Council may decide to approve agreements; (2) not to approve the agreements; (3) choose to analyze the Program further.
LEGAL REVIEW:
The agreements have been reviewed and approved by Special Legal Counsel (Christensen & Spath, LLP) and the City Attorney as to legal form and content.
ATTACHMENTS:
1. Draft Loan Agreement
2. Declaration of Covenant Conditions and Restrictions
3. Deed of Trust
4. Promissory Note documents.
1 ACQUISITION REHABILITATION LOAN AGREEMENT
________
___________________
_____(Habitat-Low Mod-___ property address)
THIS ACQUISITION REHABILITATION LOAN AGREEMENT (“Agreement”) is dated as of the __ day of ______, 2022, by and between (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Borrower”), and the City of Baldwin Park acting solely in its capacity as the designated successor housing agency to the former Community Development Commission of the City of Baldwin Park (“Lender”) as follows:
RECITALS
A. Borrower intends to acquire that certain residential real property generally located at _____________ in Baldwin Park, California (“Property”). Borrower’s acquisition of the Property will be financed by Borrower in part using a loan from the Lender in the original principal amount of and No/100 Dollars ($_________.00) (“Loan”).
B. Borrower shall rehabilitate the residential dwelling unit (“Affordable Unit”) on the Property by performing all of the Rehabilitation, as defined below. The Affordable Unit shall be restricted in compliance with the California Community Redevelopment Law (Health & Safety Code Section 33000, et seq.) program for a period of fifteen (15) years as referenced in the Declaration. All development of the Property shall be subject to the review and approval of the Lender. The Affordable Unit shall be sold to, and at a price which is affordable to, persons whose incomes are at or below eighty percent (80%) of the Area Median Income, as defined below.
C. Borrower acknowledges that Lender is funding the Loan entirely from Lender’s Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the California Health and Safety Code. Borrower agrees that all of the Loan shall be used for purposes that are eligible under the applicable provisions of the California Health and Safety Code. The Loan shall fund acquisition and other project costs as approved by the Lender. . Unless otherwise prohibited by any applicable law, the Borrower shall be entitled to receive fees in the amount set forth on Exhibit A, attached hereto.
D. The Loan shall be evidenced by the Note. The Note shall bear interest at the rate of 3% per annum. Upon completion the Rehabilitation, the Loan shall be assumed by the purchaser of the Affordable Unit. This Agreement, the Declaration and the Note shall be secured by the Deed of Trust.
NOW, THEREFORE, in furtherance of the recitals stated above, the mutual covenants set forth below, the parties agree, promise and declare as follows:
1. Definitions. The following terms shall have the meanings set forth below:
2 “Affordable Unit” means the dwelling unit that shall be rehabilitated by Borrower on the Property. The Borrower shall provide a preference for sale of the Affordable Unit to households with at least one member who resides within the City of Baldwin Park, as that person’s primary place of residence, to the maximum extent allowed by law. _
________
_______________
“Agreement” means this Acquisition Rehabilitation Loan Agreement. “Area Median Income” means the median income for the Los Angeles-Long Beach- Glendale Metropolitan Statistical Area, as adjusted for family size, as said median income is determined by HUD.
“Borrower”means ____ (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.). “Closing” means the close of escrow for Borrower’s acquisition of the Property and the Borrower’s closing on the Loan, which shall occur concurrently. “Lender” means the City of Baldwin Park acting solely in its capacity as the designated successor housing agency to the former Community Development Commission of the City of Baldwin Park.
“Loan” means the acquisition loan from Lender to Borrower in the original principal amount of and No/100 Dollars ($_________.00).
“Note” means a promissory note, in a form and format approved by Lender in the Lender’s sole discretion, evidencing the Loan, executed by Borrower in favor of the Lender at Closing. The Note is hereby incorporated herein by reference.
“Declaration” means a declaration of covenants, conditions and restrictions, in a form and format approved by Lender in the Lender’s sole discretion, which shall restrict the sale and occupancy of the Affordable Unit as set forth in the Declaration. “Deed of Trust” means the deed of trust securing the Note, Declaration and this Agreement, in a form and format approved by Lender in the Lender’s sole discretion, which shall be recorded as an encumbrance against the Property at Closing.
“Escrow” means the escrow depository and disbursement services to be performed by the Escrow Agent pursuant to the provisions of this Agreement. “Escrow Agent”means ____________.
“Escrow Instructions” means the Escrow Instructions being delivered by the Lender to Escrow Agent concurrently with the delivery of this Agreement to Escrow Agent. 3 “Hazardous Materials” means any hazardous or toxic substance, material or waste which is or becomes regulated by any local governmental authority, the State of California or the United State Government. Provided, however, the term “Hazardous Materials” shall not include substances typically used in the ordinary course of developing, operating and maintaining residential projects in California or small amounts of chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar properties, provided that such substances are used in compliance with applicable laws. ________
________
“Property” has the meaning set forth in Recital A, above. “Rehabilitation” shall mean the rehabilitation work to be performed by Borrower at the Property, the scope of which rehabilitation work shall be agreed to by Borrower and Lender.
2. Acquisition Rehabilitation Loan. Lender will fund the Loan to Borrower according to and upon the terms and conditions set forth in this Agreement. The proceeds of the Loan shall be used by Borrower solely for the purposes of acquiring the Property and completing the Rehabilitation, in accordance with all applicable the California Community Redevelopment Law requirements. (a) Loan Amount. The amount of the Loan shall be and No/100 Dollars ($_________.00).
(b) Promissory Note.
(1) The Loan shall be evidenced by the Note executed by Borrower, in favor of Lender, in the original principal amount of and No/100 Dollars ($_________.00). Prior to the timely completion of Rehabilitation, the Loan and the Note shall be fully recourse to Borrower. Upon timely completion of Rehabilitation, the Loan and Note shall be non-recourse to Borrower.
(2) The Note shall bear simple interest at three percent (3%) per annum from the date or dates of disbursement. Except as otherwise set forth in this Agreement (i.e., the transfer of the Affordable Unit to a qualified purchaser), the Note shall be due and payable in full prior to or concurrently with any sale, conveyance, transfer or further encumbrance of all or any portion of the Property without the consent of the Lender. The Note may be prepaid in whole or in part at any time and from time to time, without notice, premium or penalty. The obligations of Borrower under the Declaration shall be independent of, and in addition to, Borrower’s obligations under this Agreement. Repayment of the Note shall not terminate or otherwise affect the Declaration. (3) Except as otherwise set forth in this Agreement (i.e., the transfer of the Affordable Unit to a qualified purchaser), should Borrower agree to or actually sell, convey, transfer, further encumber or dispose of the Property or any interest in the same, without first obtaining the written consent of the holder of the Note (i.e., the Lender), which consent shall be granted or withheld at the sole discretion of the holder of the Note, then all obligations secured by the Note may be declared due and payable at the option of the holder of the Note. The consent to one transaction of this type will not constitute a waiver of the right to require consent to future or 4 successive transactions. The Declaration shall remain in place whether or not Lender approves or disapproves a successor-in-interest.
(4) Upon completion of Rehabilitation, the purchaser of the Affordable Unit shall assume all of the Borrower’s interests, right and obligations under the Note and Deed of Trust. The Note and Deed of Trust assumption shall be pursuant to a form approved by the CEO of the Lender. Notwithstanding the foregoing, in the event of a transfer of the Property where the amount of the Note (“Original Note Amount”) would violate the first position lender’s underwriting requirements or otherwise impede the transfer of the Property to an Eligible Owner, as defined in the Declaration, then the amount of the Note shall be reduced to the maximum amount (“Reduced Note Amount”) which will enable the transaction to comply with the first position lender’s underwriting requirements or otherwise allow the transfer of the Property to an Eligible Owner. In such event, the difference between the Original Note Amount and the Reduced Note Amount (“Deemed Paid Amount”) shall be deemed repaid in full to the Lender and the purchaser of the Affordable Unit shall have no further obligation with respect to the Deemed Paid Amount.
3. Deed of Trust. Upon the close of Escrow, as security for the Loan and the Declaration, Borrower shall execute, acknowledge, deliver and cause the Deed of Trust to be recorded against the Property. A copy of this Agreement shall not be attached to and recorded as part of the Deed of Trust, but any breach of or misrepresentation under this Agreement shall, upon the expiration of any applicable notice and cure period(s), constitute an event of default under the Deed of Trust.
At Closing the Deed of Trust shall be recorded in a position subordinate to the Declaration and to all monetary liens on the Property.
4. Subsequent Financing. No further loan, deed of trust, or encumbrance, shall be placed by Borrower upon any portion of the Property without first obtaining the express written consent of Lender. As and whenever requested by Borrower, such approval will not be unreasonably delayed or withheld by Lender. Any such unconsented to financing shall constitute a material breach of this Agreement. Further, during any Lender approved refinancing or subsequent encumbrance, Lender shall be provided ALTA title insurance or endorsements acceptable to Lender, at the cost and expense of Borrower. Said written consent shall be at Lender’s sole discretion. Without the express written consent of Lender such subsequent financing is void. As used in this Agreement, the approval of the Lender shall mean the approval of the CEO of the Lender.
5. Funding. Lender’s obligation to fund the Loan shall be and is specifically conditioned upon the Lender approving all documents with respect to Borrower’s acquisition of the Property, the Lender approving the preliminary title reports concerning the Property, payment of all taxes due and payable on the Property, issuance of an ALTA Lender’s policy insuring the Loan satisfactory to the Lender, satisfaction of all conditions precedent to Lender’s obligation to fund the Loan contained in this Agreement, and satisfaction of those conditions set forth in Section 15 of this Agreement.
6. Affordability Restrictions. The obligation of Lender to make and fund the Loan hereunder is subject to the execution, and recordation of the Declaration against the Property. At Closing, the Declaration shall be recorded subordinate to all monetary liens on the Property. The 5 Declaration shall be binding and enforceable against all heirs, successors and assigns of Borrower.
Borrower acknowledges that Lender is funding the Loan entirely from Lender’s Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the California Health and Safety Code. Borrower agrees that all of the Loan shall be used for purposes that are eligible under the applicable provisions of the California Health and Safety Code, whether or not specifically referenced in this Agreement. Borrower agrees that all of the Loan shall be used for purposes that are eligible under the applicable provisions of the California Community Redevelopment Law.
Any default under the Declaration, which continues uncured after any applicable notice and cure period provided in the Declaration, shall be a default under this Agreement, the Note and the Deed of Trust.
7. No Partnership or Joint Venture. The relationship between Lender and Borrower created by this Agreement shall not be one of partnership or joint venture, but rather shall be one of secured lender and borrower.
8. Insurance. Borrower shall take out and maintain during the term of the Declaration, and shall cause its contractors and subcontractors to take out and maintain until completion of the Rehabilitation, a comprehensive general liability policy in the amount of not less than $2,000,000 combined single limit policy for the contractor and not less than $1,000,000 combined single limit policy for subcontractors, and a comprehensive automobile liability policy in the amount of $2,000,000 combined single limit for the contractor and not less than $1,000,000 combined single limit policy for subcontractors, or such other policy limits as the Lender may approve at its discretion, including contractual liability, as shall protect Borrower, Lender from claims for such damages. Such policy or policies shall be written on an occurrence form. Borrower shall also furnish or cause to be furnished to Lender evidence satisfactory to Lender that Borrower, and any contractor with whom it has contracted for the performance of work on the Property or otherwise pursuant to this Agreement, carries workers’ compensation insurance as required by law.
Borrower shall furnish a certificate of insurance countersigned by an authorized agent of the insurance carrier on a form approved by Lender setting forth the general provisions of the insurance coverage. This countersigned certificate shall name Lender and its councilmembers, officers, agents, and employees as additionally insured parties under the policy, and the certificate shall be accompanied by a duly executed endorsement evidencing such additional insured status.
Coverage provided hereunder by Borrower shall be primary insurance and not be contributing with any insurance maintained by Lender, and the policy shall contain such an endorsement. The insurance policy or the endorsement shall contain a waiver of subrogation for the benefit of the Lender.
9. Assignability.
(a) Borrower shall not assign any interest in this Agreement and shall not transfer any interest in the same (whether by assignment or novation) without the prior written approval of the Lender. Any assignment without the prior written consent of the Lender shall be voidable, at the election of the Lender.
6 (b) Borrower shall not revoke or rescind its Articles of Incorporation or convert to any other type of entity without the prior written consent of Lender.
10. Borrower Liability. The Borrower shall be responsible for all injuries to persons and/or all damages to real or personal property of the Lender or others, caused by or resulting from the negligence and/or breach of this Agreement, by Borrower, Borrower’s employees, contractors, subcontractors and/or Borrower’s agents during the course of the Rehabilitation and/or the breach of this Agreement, except those arising from the sole active negligence or sole willful misconduct of the Lender. Borrower shall defend and hold harmless and indemnify the Lender and all of its councilmembers, agents, officers, representatives, directors and employees from all liabilities, causes of action, demands costs, damages, judgments, expenses and claims (collectively “Claims”) by any person resulting from the negligence and/or breach of this Agreement, by Borrower, Borrower’s employees, contractors, subcontractors and/or Borrower’s agents, arising out of the Rehabilitation and/or the breach of this Agreement. Borrower shall defend any Claims, at the sole cost and expense of Borrower, with counsel of the indemnified party’s choosing, provided that Borrower’s obligation with respect to fees of indemnified party’s counsel shall be limited to reasonable fees.
11. Ownership of Materials and Documents. Any and all sketches, drawings, tracings, field survey notes, computations, plans, details and other materials and documents prepared by or on behalf of Borrower pertaining to the Property shall be the property of Lender upon a default by Borrower. Borrower shall deliver such materials and documents to Lender whenever requested to do so by Lender. Notwithstanding the foregoing, the Lender’s rights to the materials delineated in the immediately preceding sentence shall be subordinate to the rights of any senior institutional lender with respect to the same. Lender shall have the right to have duplicate copies of such materials and documents for their file, at the cost and expense of Lender, upon written request even if Borrower is not in default under the terms of this Agreement.
12. Indemnification.
(a) Environmental Indemnity. Borrower agrees to indemnify, defend and hold the Lender and all of its councilmembers, agents, officers, representatives, directors and employees (“Indemnified Parties”) harmless from and against any claim, action, suit, proceeding, loss, cost, damage, liability, deficiency, fine, penalty, punitive damage, or expense (including, without limitation, reasonable attorneys’ fees), resulting from, arising out of, or based upon any of the following: (i) the presence, release, use, generation, discharge, storage or disposal of any Hazardous Materials on, under, in or about, or the transportation of any such Hazardous Materials to or from, the Property, or (ii) the violation, or alleged violation, of any applicable statute, ordinance, order, rule, regulation, permit, judgment or license relating to the use, generation, release, discharge, storage, disposal or transportation of Hazardous Materials on, under, in or about, to or from, the Property. The indemnification of the Indemnified Parties by Borrower set forth in this Section 12 shall apply regardless of when the Hazardous Materials came to be on, under, in or about the Property, including without limitation whether the Hazardous Materials came to be on, under, in or about the Property prior to Borrower’s acquisition of an interest in the Property. This indemnity shall include, without limitation, any damage, liability, fine, penalty, or 7 parallel indemnity arising from or out of any claim, action, suit or proceeding for personal injury (including sickness, disease or death), tangible or intangible property damage, compensation for lost wages, business income, profits or other economic loss, damage to the natural resource or the environment, nuisance, contamination, leak, spill, release or other adverse effect on the environment. The indemnity provided in this Section 12 does not include any condition arising solely as a result of the gross negligence or affirmative acts of the Indemnified Parties.
Notwithstanding anything contained in this Agreement to the contrary, Borrower’s duty to indemnify the Indemnified Parties as set forth in this Section 12 shall survive and remain an outstanding obligation of Borrower after termination of this Agreement. (b) General Indemnity.
(1) Definitions.
(A) Claims. “Claims” means any Claims as set forth in Section 10, above, or any and all threatened, pending or completed claims, actions, suits, proceedings, arbitrations, grand jury proceedings or investigations, damages, liabilities, injunctive relief, injuries to person or property, fines, penalties, causes of action, losses, costs, expenses and judgments whether civil, criminal, administrative or investigative, and any one or more appeals therefrom.
(B) Expenses. “Expenses” means reasonable attorneys’ fees, retainers, court costs, staff time, transcripts, reasonable fees of experts, reasonable witness fees, arbitration fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all and all other direct or indirect costs and disbursements associated with any Claims, including without limitation expenses of establishing a right to indemnification under this Section 12. (C) Indemnified Parties. “Indemnified Parties” means the Lender and all of its councilmembers, agents, officers, representatives, directors and employees (individually an “Indemnified Party”).
(D) Liabilities. “Liabilities” means the obligations (including an obligation incurred by way of settlement) to pay any judgment, settlement, penalty, interest, assessment, Claim, cost, expert witness fee and award of attorneys’ fees. (2) Indemnification. Borrower hereby agrees to indemnify, protect and hold harmless the Indemnified Parties from and against any and all Claims incurred by or asserted against any Indemnified Party, which arise directly or indirectly, in whole, in part or in any way, from the Loan, the Property, the Rehabilitation, the Affordable Unit or from any other approval or action whatsoever in connection with the Property or the Rehabilitation, except to the extent of the gross negligence or willful misconduct of an Indemnified Party. (3) Payment of Liabilities and Expenses. Borrower further agrees to pay any and all Liabilities and Expenses incurred by any and all Indemnified Parties with respect to any 8 Claims which arise directly or indirectly, in whole, in part or in any way from the Loan, the Property, the Rehabilitation, the Affordable Unit or from any other approval or action whatsoever in connection with the Property, except to the extent of the gross negligence or willful misconduct of an Indemnified Party.
(4) Separate Rights of Action. A separate right of action hereunder shall arise each time an Indemnified Party acquires knowledge of any matters described herein. Separate and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and from time to time. No action hereunder shall preclude any subsequent action. (5) Right to Defend. Each Indemnified Party shall have the right, but not the obligation, to conduct its own defense with respect to any Claims and to retain legal counsel of its own choosing. Borrower shall pay for or reimburse any such Indemnified Party for any and all Expenses and Liabilities incurred by such Indemnified Party, as such Expenses and Liabilities are incurred. An Indemnified Party’s election to defend itself as provided in this Section, shall not in any way limit the Borrower’s obligation to reimburse and pay for any and all Liabilities and Expenses incurred by the Indemnified Parties with respect to any Claims; provided, however, any Indemnified Party may elect in its sole discretion to demand that the Borrower defend and pay all Expenses with respect to any Claims, provided the Claims if determined adversely to such Indemnified Party, would be covered by the foregoing indemnification provisions. Upon any such demand by any Indemnified Party, Borrower shall defend and pay all Expenses and Liabilities with respect to such Claims; such defense shall be at the Borrower’s sole cost and expense and by counsel reasonably approved by such Indemnified Party.
(6) Survival. Borrower’s duty to indemnify shall survive and remain an outstanding obligation of Borrower upon the termination of this Agreement.
13. Termination. This Agreement and the relationship created herein shall terminate upon full satisfaction of all of Borrower’s obligations, and those of Borrower’s successors, if approved by the Lender, under this Agreement. The obligations of Borrower include, but are not limited to, those obligations arising under the Declaration, the provisions of which shall survive repayment of the Loan.
14. Default by Borrower.
(a) Notwithstanding anything to the contrary set forth herein, in the event of a material default by Borrower in the performance of any of the terms, covenants and conditions contained in this Agreement, the Note, the Deed of Trust or the Declaration after expiration of the cure period set forth in Section 14(b) or 14(c) hereof, or as a result of a default past any applicable notice and cure period under any prior or junior note secured by an encumbrance on the Property or any portion of it, or any note or deed of trust given in conjunction herewith, or in the event of the filing of a bankruptcy proceeding by or against Borrower which is not dismissed within one hundred twenty (120) days, all sums disbursed or advanced by Lender, plus interest, shall at the option of Lender immediately become due and payable and Lender shall have no obligation to disburse any further funds, or otherwise, and Lender shall be released from any and all obligations to Borrower 9 under the terms of this Agreement. These remedies shall be in addition to any and all other rights and remedies available to Lender, either at law or in equity. (b) If a non-monetary event of default occurs under the terms of this Agreement, the Note, the Deed of Trust or the Declaration, prior to exercising any remedies hereunder or thereunder, the Lender shall give Borrower written notice of such default indicating in reasonable detail the nature of the default. If the default is capable of being cured within ninety (90) calendar days after such notice is received or deemed received, Borrower shall have such period to effect a cure prior to exercise of remedies by the Lender. If the default is such that it is not capable of being cured within ninety (90) days in the Lender’s reasonable discretion and Borrower (i) initiates corrective action within said period, and (ii) diligently and in good faith works to effect a cure as soon as possible, then Borrower shall have such additional time as the Lender determines, in its reasonable discretion, is necessary to cure the default prior to exercise of any remedies by the Lender. If such default is not timely cured, then the Lender may proceed with all or any of its rights and remedies as set forth herein, in the Declaration and/or the Deed of Trust. (c) In the event of any monetary default by the Borrower under the terms of this Agreement, the Note, the Deed of Trust or the Declaration, the Lender shall give Borrower a thirty (30) day written notice of default, during which time the Borrower shall have the ability to cure the monetary default. If the default is not timely cured, the Lender may proceed with all rights and remedies under the terms of the Loan or at law.
15. Conditions to Lender Obligations. The obligation of Lender to make and fund the Loan is subject to satisfaction of all of the conditions set forth in this Section 15, which may be satisfied concurrently with Closing.
(a) Closing on the Property. The Borrower shall have acquired, or will concurrently with the Closing acquire, the Property.
(b) Execution of Documents. This Agreement, the Note, Deed of Trust and Declaration, fully executed by the Borrower, shall have been delivered to the Escrow Agent along with all other fully executed security documents and instruments provided for herein and/or as required by Lender.
(c) Commitment to Issue Title Policy. The Escrow Agent shall be irrevocably committed to issue and deliver to the Lender a standard form ALTA Lender’s Policy of Title Insurance, insuring Lender’s security interest in the Property under the Deed of Trust in an amount equal to the original principal amount of the Loan. Which ALTA Lender’s Policy of Title Insurance shall be paid for by Borrower.
(d) Compliance with Obligations. Borrower shall have strictly complied with, and performed, all terms and conditions of the documents executed by Borrower in connection with this Agreement and the Loan.
10 (e) Insurance Certificates. Borrower shall have delivered all certificates of insurance and additional insured endorsements.
(f) Agreement on Scope of the Rehabilitation. The Borrower and Lender shall have agreed to the scope of the Rehabilitation.
(g) Additional Conditions. Such other conditions as Lender shall reasonably request.
16. Borrower’s Representations and Warranties. Borrower represents and warrants to the Lender that:
(a) Borrower is a validly and lawfully formed corporation, is in good standing under California law and will remain such for the term of this Agreement. (b) Execution of this Agreement, the Deed of Trust, Declaration and all other documents executed in conjunction herewith have been duly authorized by resolution of the Borrower, and such execution shall not result with the passage of time or the giving of notice or both in breach of or in acceleration of performance under any contract or document to which Borrower may be a party.
(c) All required approvals have been obtained in connection with Borrower’s execution of this Agreement, and all related instruments, agreements and documents to the effect that no breach of or acceleration of performance under any agreement or document to which Borrower is a party will result from such execution.
(d) Funds advanced by Lender pursuant to the Loan: (i) are advanced wholly for the benefit of Borrower; (ii) shall be used solely to fund acquisition and other project costs as approved by the Lender. Unless otherwise prohibited by any applicable law, the Borrower shall be entitled to receive fees in the amount set forth on Exhibit A, attached hereto. (e) Any default by Borrower under the terms of this Agreement shall not relieve Borrower from any obligation to correct any incomplete, inaccurate, or defective work at no further cost to Lender, when such inaccuracies, defects and incomplete work are due to Borrower’s fault, including the fault of Borrower’s subcontractors, agents, partners, joint venturers and employees. (f) Borrower shall comply with the Declaration at all times during the term of the Declaration.
17. Performance Milestones. Subject to force majeure, Borrower shall satisfy all of the requirements set forth in this Section 17 on or before the dates set forth below, failure to do so shall be a default under this Agreement. Any of the foregoing deadlines shall be extended during the duration of any force majeure events and in addition may be extended by mutual agreement of the Borrower and the CEO of the Lender or his/her designee and any approval by the Lender set forth in this Section means the approval of the CEO of the Lender or his/her designee, and at no point shall Lender’s approval be unreasonably withheld or delayed. Force majeure shall include, 11 but shall not be limited to, acts of God, labor strikes, war, riots, insurrection, lock-outs, floods, earthquakes, fires, casualties, acts of the public enemy, epidemics, quarantine restrictions, supply chain disruptions, freight embargoes, lack of transportation, unusually severe weather, inability to secure necessary labor, material or tools, delays of any contractor, sub-contractor or supplier, or any causes beyond the control and without the fault of the Borrower. (a) Acquisition. Borrower shall close the Escrow and acquire the Property on or before ___
_________.
(b) Building Permits. Borrower shall obtain building permits for the Rehabilitation on or before _________. The execution of this Agreement does not constitute the granting by the City of Baldwin Park of any required building permits, land use permits, entitlements or approvals.
(c) Rehabilitation Commencement. Borrower shall commence the Rehabilitation on or before _________. All costs of the Rehabilitation whatsoever shall be borne by Borrower, including without limitation the cost of planning, designing, developing and completing the Rehabilitation, as well as site preparation and grading. (d) Completion of Rehabilitation. Borrower shall complete the Rehabilitation (evidenced by upon completion of the final inspection approval of the Affordable Unit by the building official of the City of Baldwin Park) on or before _____. (e) Sales of Affordable Unit. Borrower shall sell the Affordable Unit at a price which is affordable to, persons whose income is at or below eighty percent (80%) of the Area Median Income on or before _______.
18. Remedies.
(a) Contract Governed by Laws of the State of California. This Agreement, the performance of this Agreement, and all suits and special proceedings under this Agreement, shall be constituted in accordance with the laws of the State of California. In any action, special proceeding, or other proceeding that may be brought arising out of, under or because of this Agreement, the laws of the State of California and the United States, to the extent applicable, shall govern to the exclusion of the law of any other forum, without regard to the jurisdiction in which the action or special proceeding may be instituted.
(b) Standing, Equitable Remedies; Cumulative Remedies. Borrower expressly agrees and declares that Lender or any successor or public agency shall be the proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity, including but not limited to foreclosure under any security instrument securing performance hereunder, to enforce the provisions hereof and/or to recover damages for any default hereunder, which default continues uncured after any applicable notice and cure period, notwithstanding the fact that such damages or the detriment arising from such a default may have actually been suffered by some other person or by the public at large. Further, Borrower expressly agrees that receivership, 12 injunctive relief and specific performance are proper pre-trial and/or post-trial remedies hereunder, and that, upon any default, which default continues uncured after any applicable notice and cure period, a receiver may be appointed by the court to take control of the Property and to assure compliance with this Agreement. Nothing in this subparagraph, and no recovery to Lender, shall restrict or limit the rights or remedies of persons or entities other than Lender, against Borrower in connection with the same or related acts by Borrower. The remedies set forth in this Section are cumulative and not mutually exclusive, except the extent that their award is specifically determined to be duplicative by final order of a court of competent jurisdiction. (c) Remedies at Law for Breach of Restrictions. In the event of any default under the Declaration, Lender shall be entitled to, in addition to any and all other remedies available at law or in equity: (i) declare the Loan to be all due and payable; and (ii) recover compensatory damages.
Interest shall accrue on the amount of such damages from the date of the breach in question at the rate of ten percent (10%) per annum or the maximum rate then allowed by law, whichever is less.
Nothing in this section shall preclude the award of exemplary damages as allowed by law. (d) Expert Witness, Attorneys’ Fees, and Costs. The parties agree that the prevailing party in litigation for the breach and/or interpretation and/or enforcement of the terms of this Agreement shall be entitled to their reasonable expert witness fees, if any, as part of their costs of suit, and reasonable attorneys’ fees as may be awarded by the court, pursuant to California Code of Civil Procedure (“CCP”) Section 1033.5 and any other applicable provisions of California law, including, without limitation, the provisions of CCP Section 998.
19. Monitoring of Activities. Borrower agrees to allow Lender upon prior written notice and during regular business hours, such reasonable access to review and inspect Borrower’s activities under this Agreement as Lender shall require. Lender shall monitor Borrower’s activities without liability for said inspection and review.
20. Compliance With Laws.
(a) Labor Requirements. Borrower, the general contractor, and any and all subcontractors, shall pay prevailing wages for all work done with respect to the Project to the extent required by California law.
(b) Taxes and Assessments. Borrower shall pay prior to delinquency all ad valorem real estate taxes and assessments on the Property. Borrower shall remove or have removed any levy or attachment on any of the Property or any part thereof, or assure the satisfaction thereof within a reasonable time.
(c) Liens and Stop Notices. Borrower shall not allow to be placed on the Property or any part thereof any lien or stop notice. If a claim of a lien or stop notice is given or recorded affecting the Property, Borrower shall, within thirty (30) days of such recording or service or within ten (10) days of Lender’s demand, whichever last occurs:
13 (1) pay and discharge the same;
(2) effect the release thereof by recording and delivering to Lender a surety bond in sufficient form and amount as approved by Lender in its sole discretion; or (3) provide Lender with other assurance which Lender deems, in its sole discretion, to be satisfactory for the payment of such lien or bonded stop notice and for the full and continuous protection of Lender from the effect of such lien or bonded stop notice. (d) Nondiscrimination in Employment. Borrower certifies and agrees that all persons employed or applying for employment by it, its affiliates, subsidiaries, or holding companies, and all subcontractors, bidders and vendors, are and will be treated equally by it without regard to, or because of race, color, religion, ancestry, national origin, sex, age, pregnancy, childbirth or related medical condition, medical condition (cancer related) or physical or mental disability, and in compliance with Title VII of the Civil Rights Act of 1964, 42 U.S.C. Section 2000, et seq., the Federal Equal Pay Act of 1963, 29 U.S.C. Section 206(d), the Age Discrimination in Employment Act of 1967, 29 U.S.C. Section 621, et seq., the Immigration Reform and Control Act of 1986, 8 U.S.C. Section 1324b, et seq., 42 U.S.C. Section 1981, the California Fair Employment and Housing Act, Cal. Government Code Section 12900, et seq., the California Equal Pay Law, Cal.
Labor Code Section 1197.5, Cal. Government Code Section 11135, the Americans with Disabilities Act, 42 U.S.C. Section 12101, et seq., and all other anti-discrimination laws and regulations of the United States and the State of California as they now exist or may hereafter be amended. Borrower shall allow representatives of Lender access to its employment records related to this Agreement during regular business hours to verify compliance with these provisions when so requested by Lender.
21. Obligation to Refrain from Discrimination.
(a) State and Federal Requirements. Borrower shall, at all times during the term of this Agreement, comply with all of the affirmative marketing procedures adopted by Lender. Borrower shall maintain records to verify compliance with the applicable affirmative marketing procedures and compliance. Such records are subject to inspection by Lender during regular business hours upon five (5) days written notice. Borrower covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Borrower or any person claiming under or through it establish or permit any such practice or practices of discrimination 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, with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property or the rental, lease, sale of the Property. The foregoing covenants shall run with the Property. 14 (b) Additional Requirements. Borrower hereby agrees to comply with the Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other applicable Federal and State laws and regulations. (c) Fair Housing Laws. All activities carried out by Borrower and/or agents of Borrower shall be in accordance with the requirements of the Federal Fair Housing Act. The Fair Housing Amendments Act of 1988 became effective on March 12, 1989. The Fair Housing Amendments Act of 1988 and Title VIII of the Civil Rights Act of 1968, taken together, constitute the Fair Housing Act. The Fair Housing Act provides protection against the following discriminatory housing practices if they are based on race, sex, religion, color, handicap, familial status, or national origin: denying or refusing to rent housing, denying or refusing to sell housing, treating differently applicants for housing, treating residents differently in connection with terms and conditions, advertising a discriminatory housing preference or limitation, providing false information about the availability of housing, harassing, coercing or intimidating people from enjoying or exercising their rights under the Fair Housing Act, blockbusting for profit, persuading owner to sell or rent housing by telling them that people of a particular race, religion, etc., are moving into the neighborhood, imposing different terms for loans for purchasing, constructing, improving, repairing, or maintaining a home, or loans secured by housing; denying use or participation in real estate services, e.g., brokers’ organizations, multiple listing services, etc., The Fair Housing Act gives HUD the authority to hold administrative hearings unless one of the parties elects to have the case heard in U.S. District Court and to issue subpoenas. Both civil and criminal penalties are provided. The Fair Housing Act also provides protection for people with disabilities and proscribes those conditions under which senior citizen housing is exempt from the prohibitions based on familial status. The following State of California Laws also govern housing discrimination and shall be complied with by Borrower: Fair Employment and Housing Act, Unruh Civil Rights Act of 1959, Ralph Civil Rights Act of 1976, and Civil Code Section 54.1. (d) Nondiscrimination Covenants. Borrower covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability of any person in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Borrower or any person claiming under or through it establish or permit any such practice or practices of discrimination 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, with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(1) Deeds. In deeds “The grantee herein covenants by and for itself, its successors 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 race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, 15 national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself 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, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”
(2) Leases. In leases “The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, 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 race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit 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 land herein leased.”
(3) Contracts. In contracts for the rental, lease or sale of the Property or any dwelling unit “There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee itself 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, subtenants, sublessees or vendees of the land.”
22. General Provisions.
(a) Involvement of Lender in Legal Proceedings. Lender shall have the right to commence, to appear in, or to defend any action or proceeding purporting to affect the rights or duties of the parties hereunder or the payment of any funds in connection with this Loan and to pay out of funds not yet disbursed, necessary expenses, employ counsel and pay its fees, all of which the undersigned, jointly and severally, agree to repay to Lender upon demand. Provided, however, such costs and expenses shall not be due and owing to Lender, if they are incurred as a result of the breach of this Agreement by Lender or the Lender’s negligence or willful misconduct. (b) Books and Records. Borrower shall require that the general contractor maintain complete and accurate books and records showing all of the income and disbursements made in connection with the Rehabilitation, and such books and records shall be available for inspection and copy by Lender upon request and during regular business hours. 16 (c) Governmental Requirements Superior. All provisions of this Agreement and all the other documents relating to the Loan shall be subject and subordinate to any and all applicable federal, state and local statutes, regulations and ordinances and shall be subject to modification to comply therewith.
(d) Notices. All notices under this Agreement shall be in writing and sent (i) by ____________
certified or registered U.S. mail, return receipt requested, (ii) overnight by a nationally recognized overnight courier such as UPS Overnight or FedEx, (iii) by personal delivery or (iv) via email. All notices shall be effective upon receipt (or refusal to accept delivery). All notices shall be delivered to the following addresses or such other addresses as changed by any party from time to time by written notice to the other parties hereto:
Lender: c/o City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
Email: [email protected]
Copy to: Christensen & Spath LLP
401 West A Street, Suite 2250
San Diego, CA 92101
Email: [email protected]
Borrower: c/o San Gabriel Valley Habitat for Humanity, Inc.
Attn: ______________
724 East Huntington Drive
Monrovia, CA 91016
Email:
(e) Severability. If any provision of this Agreement is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Agreement and the remaining provisions shall continue in full force and effect. (f) Nonwaiver of Lender’s Rights. No right, remedy, or power of Lender in this Agreement shall be deemed to have been waived by any act or conduct on the part of Lender or by any failure to exercise or delay in exercising such right, remedy, or power. Every such right, remedy or power of Lender shall continue in full force and effect until specifically waived or released by an instrument in writing executed by Lender. (g) Entire Agreement. This Agreement and the other loan documents contain the entire understanding between the parties concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, between or among the parties hereto, relating to the subject matter of this Agreement, which are not fully expressed and/or referred to herein.
17 (h) Recitals Incorporated. The Recitals to this Agreement are hereby incorporated in this Agreement by this reference.
(i) Construction of Agreement. The provisions contained in this Agreement shall not be construed in favor of or against either party but shall be construed as if both parties contributed equally to its preparation. This Agreement shall be construed in accordance with the laws of the State of California.
(j) Lender Not Liable for Acts of Omissions of Borrower or Others. Lender shall in no way be liable for any acts or omissions of Borrower, any agent or contractor employed by Borrower, or any person furnishing labor and/or materials used in or related to the Rehabilitation. (k) Time of the Essence. Time is of the essence of this Agreement and of each and every provision hereof. The waiver by Lender or Borrower of any breach or breaches hereof shall not be deemed, nor shall the same constitute, a waiver of any subsequent breach or breaches. (l) Assignment. Borrower shall not assign Borrower’s rights nor delegate Borrower’s duties under this Agreement without the prior written consent of Lender. Any attempt at the assignment or delegation in violation of this section shall be void. (m) Participation. Borrower shall cause the fact that Lender has provided funds to the Property to be referenced in all project designation placards placed on the Property or other sites, as approved in advance, by Lender. The design, content and format of the project placards are subject to the written approval of the CEO of Lender or his/her designee. Lender, at the Lender’s sole option, reserves the right to request, in writing, that the references to the participation of Lender not be included in any, or all, advertisements, press releases, brochures, information sheets, and/or project designation placards.
(n) Counterparts. This Agreement may be executed in any number of counterparts and, as so executed, the counterparts shall constitute one and the same Agreement. The parties agree that each such counterpart is an original and shall be binding upon all the parties, even though all of the parties are not signatories to the same counterpart. (o) Waiver and Amendment. No provision of this Agreement, or breach of any provision, can be waived except in writing. Waiver of any provision or breach shall not be deemed to be a waiver of any other provision, or of any subsequent breach of the same or other provision.
Except as otherwise provided herein, this Agreement may be amended, modified or rescinded only in writing signed by Borrower and the CEO of Lender.
(p) Capacity and Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the Lender that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. 18 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first set forth above.
__________________________________
___________________________
BORROWER:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) By:__________________________________
Print Name:
Its:
[SIGNATURES CONTINUED ON FOLLOWING PAGE]
19 LENDER:
City of Baldwin Park acting solely in its capacity as the designated successor housing agency to the former Community Development Commission of the City of Baldwin Park By:__________________________________
Enrique C. Zaldivar
Chief Executive Officer
20 Exhibit A
Notice of Fees Charged by Borrower for Project Development/Rehabilitation San Gabriel Valley Habitat for Humanity (“Borrower”) customarily builds the following fees into any new-construction or acquisition-rehabilitation project:
1. A Developer Fee, calculated at 6% of total development cost per project (for HOME- funded projects), or 5% of total development cost per project (for projects funded by sources other than HOME); and
2. An Administration Fee, calculated at 5% of City’s funding allocationfor a specific project, regardless of funding source.
These fees are a routine element of Borrower’s business model and are in line with industry standards for nonprofit affordable housing developers. The fees are included in Borrower’spro forma for any individual project and are integral to Borrower’s determination of a project’s financial viability.
Borrower plans to include these fees in each project to be developed under this Agreement.
Below are examples of how Borrower’s fees are determined for projects of different (hypothetical) costs and types.
Project Type (single
unit)
New-Build Acq-
Rehab
New-Build Acq-
Rehab
House Size 3BD 2BA 3BD 2BA 2BD 1BA 2BD 2BA
SGV Habitat Funds 374,950 376,250 250,000 300,000
HOME/Other
Public Funds
275,000 275,000 206,000 206,000
Total Sources 649,950 651,250 456,000 500,000
Acquisition Cost 120,000 550,000 120,000 500,000
Construction Cost 480,000 50,000 450,000 40,000
Project Cost Before
Fees
600,000 600,000 570,000 540,000
DEVELOPER FEE 36,000 37,500 34,200 32,400
ADMIN FEE 13,750 13,750 10,300 10,300
Total Project Cost 649,950 651,250 614,500 582,700
Combined Fees as %
of Total Project Cost
7.65% 7.87% 7.24% 7.33%
1 NO CHARGE ON THIS DOCUMENT
FOR THE BENEFIT OF THE CITY OF
BALDWIN PARK
Recording Requested By:
When Recorded Mail To:
City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
___________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE
DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS
(Low Mod)
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (“Declaration”) is made as of this __ day of __________, 202__, by (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Borrower”), in connection with that certain parcel of real property (“Property”) located in the City of Baldwin Park, County of Los Angeles, California, described in Exhibit “A” attached hereto and incorporated herein by reference.
RECITALS
A. Concurrently with the recordation of this Declaration, the City of Baldwin Park acting solely in its capacity as the designated successor housing agency to the former Community Development Commission of the City of Baldwin Park (“Lender”) is funding a loan (“Low Mod Loan”) to Borrower evidenced by a promissory note (“Low Mod Note”). The Low Mod Loan is secured by a deed of trust (“Deed of Trust”) made by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is making the Low Mod Loan to aid Borrower in acquiring and rehabilitating the Property, which Property shall be resold to a first-time homebuyer as set forth herein.
B. The Deed of Trust and Low Mod Loan and were conditioned in part upon the recordation of this Declaration against the Property.
NOW, THEREFORE, Borrower hereby declares that the Property shall be subject to the covenants, conditions and restrictions set forth below:
1. Representations and Warranties of Borrower. Borrower declares, represents and warrants to the Lender and Borrower agrees that not later than one (1) year after the date this Declaration is recorded in the Office of County Recorder of Los Angeles, California, the Property shall be 2 conveyed by Borrower to one or more persons which persons shall collectively meet the following requirements (and which persons shall be referred to herein as, individually or collectively as the “Eligible Owner”):
(a) Annual Gross Income. The Eligible Owner’s annual gross income, including the income of any co-purchasers, at the time of the execution of this Declaration does not exceed eighty percent (80%) of the Area Median Income. “Area Median Income” means the median income for the Los Angeles-Long Beach-Glendale Metropolitan Statistical Area, as adjusted for family size, as said median income is determined by HUD. (b) Principal Place of Residence. During the 15-year term of this Declaration (which 15-year term shall commence upon acquisition of the Property by the first Eligible Owner), Property shall be occupied as the principal place of residence of the Eligible Owner. The Eligible Owner shall be considered as occupying the Property as a principal place of residence if the Eligible Owner is living in the Property for at least ten (10) months out of each calendar year.
Each Eligible Owner agrees not to neglect, sublet, lease or rent out all or any portion of the Property during such period.
(c) Liquid Assets. At the time of the acquisition of the Property by the first Eligible Owner, such Eligible Owner, including any co-purchasers, shall not hold, directly or indirectly, “liquid assets,” as defined below, whose aggregate value exceeds $10,000 for the first household member. As used herein, the term “liquid assets” refers to cash and assets which are readily convertible to cash within a reasonable period, including but not limited to savings and checking accounts, certificates of deposit of any term, marketable securities, money market and similar accounts, mutual fund shares, and insurance policy cash values. The term “liquid assets” shall not include retirement funds which are not readily accessible or which cannot be accessed by the buyer without the buyer incurring a penalty.
(d) Not a Full-Time Student. The Eligible Owner shall not be, and none of the co- purchasers of the Eligible Owner shall be, a full-time student, or a household comprised exclusively of persons who are full-time students. The term “full-time student” shall be defined as any person who will be or has been a full-time student during five calendar months of the calendar year in question at an educational institution (other than a correspondence school) with regular faculty and students.
(e) Not a Student Dependent. The Eligible Owner shall not be, and none of the co- purchasers of the Eligible Owner shall be, a student dependent as defined in the U.S. Internal Revenue Code.
(f) Not an Owner of Real Property. The Eligible Owner shall not, and none of the co- purchasers of Borrower shall, own any real property at the time of acquisition of the Property by the first Eligible Owner.
(g) Preference for Baldwin Park Residents. Upon each sale of the Property by an Eligible Owner, a preference shall be provided to households with at least one member who resides within the City of Baldwin Park, as that person’s primary place of residence, to the maximum extent allowed by law
3 2. Assumption of Note: Repayment of Low Mod Note. During the 15-year term of this Declaration, the Property may only be acquired by and the Low Mod Note may only be assumed by an Eligible Owner. Notwithstanding the foregoing, in the event that after the Property is conveyed by the Borrower to an Eligible Owner, such Eligible Owner (or any subsequent Eligible Owner) may convey the Property to the Borrower. In such event, the Borrower shall within a reasonable time thereafter convey the Property to a subsequent Eligible Owner and this Declaration shall continue to apply for the remaining duration of the term of this Declaration. It is expressly acknowledged that the covenants and restrictions set forth in this Declaration shall survive any repayment of the Low Mod Note.
3. Breach.
(a) Curable Breach. Notwithstanding Lender’s acceleration of the sums secured by the Deed of Trust due to the Eligible Owner’s or Borrower’s breach, the Eligible Owner or Borrower shall have the right to have any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in the Deed of Trust or at any time prior to entry of a judgment enforcing the Deed of Trust if:
(A) the Eligible Owner or Borrower pays Lender all sums which would be then due under the Low Mod Note and the Deed of Trust had no acceleration occurred; (B) the Eligible Owner or Borrower cures all breaches of any other covenants or agreements of the Eligible Owner or Borrower, as applicable, contained in the Deed of Trust;
(C) the Eligible Owner or Borrower pays all reasonable expenses incurred by Lender and the trustee in enforcing the covenants and agreements of the Eligible Owner or Borrower, as applicable, contained in the Deed of Trust, including, but not limited to, reasonable attorneys’ fees; and
(D) the Eligible Owner or Borrower takes such action as Lender may reasonably require to assure that the lien of the Deed of Trust, Lender’s interest in the Property and the Eligible Owner’s or Borrower’s, as applicable, obligation to pay the sums secured by the Deed of Trust shall continue unimpaired.
Upon such payment and cure by the Eligible Owner or Borrower as set forth in this Section 3(a), the Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.
(b) Non-Curable Breach. In the event of any conflict between any provision of Section 3(a), above, and this Section 3(b), the provision set forth in this Section 3(b) shall apply. (1) Failure to Occupy/Renting Out the Property is a Violation of Law. The Eligible Owner hereby acknowledges that the loan evidenced by the Low Mod Note and secured by the Deed of Trust was funded by Lender using funds from the Low and Moderate Income 4 Housing Fund established by Lender pursuant to Section 33334.3 of the California Health and Safety Code. The California Community Redevelopment Law (California Health and Safety Code §33000, et seq.) requires the Eligible Owner to occupy the Property as the Eligible Owner’s principal residence. Renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence is a violation of State of California law (in addition to being a violation of this Declaration). Lender is obligated by Federal law to enforce the provisions of the California Community Redevelopment Law, Lender’s failure to do so would jeopardize Lender’s ability to obtain additional funds and help other low-income families to obtain affordable housing.
(B) Failure to Occupy/Renting Out the Property Materially Impairs Lender’s Security. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, materially impairs Lender’s security for the loan and Lender’s ability to obtain additional funds and help other low-income families to obtain affordable housing. The Eligible Owner further acknowledges that if the Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence, then during any such period the Property will not qualify as “affordable housing” and Lender may be in breach of its obligations under the California Community Redevelopment Law and therefore the Lender’s security for the loan will be materially impaired.
(C) Failure to Occupy/Renting Out the Property is a Non-Curable Breach. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, will be a non-curable breach and Lender shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Declaration, the Eligible Owner agrees that in the event the Eligible Owner rents out the Property and/or fails to occupy the Property as the Eligible Owner’s principal residence, the Eligible Owner shall not have the right to cure the breach and reinstate the loan, the Deed of Trust or the obligations secured thereby.
(D) Borrower’s Waiver. The Eligible Owner hereby knowingly waives and relinquishes any and all legal and/or contractual rights the Eligible Owner may have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the event that Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence.
(E) Representation of Comprehension. The Eligible Owner acknowledges and agrees that Lender has advised the Eligible Owner (and each of them if there is more than one Eligible Owner) to retain an attorney to represent the Eligible Owner with respect to this Declaration. By acquiring the Property, the Eligible Owner (and each of them if there is more than one Eligible Owner) represents that: (i) the Eligible Owner fully understands and accepts the terms of this Declaration, the Low Mod Note and Deed of Trust; (ii) the Eligible Owner has relied upon the legal advice of the Eligible Owner’s attorneys or that the Eligible Owner has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents the Eligible Owner; (iv) that the Eligible Owner has had a full and ample opportunity to consult with any other professionals of the Eligible Owner’s choice in 5 connection with the rights and liabilities created by this Declaration, the Low Mod Note and Deed of Trust; (v) that the Eligible Owner does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Declaration, the Low Mod Note and Deed of Trust, or any of the foregoing documents in their entireties; and (vi) the Eligible Owner accepts the terms of this Declaration, the Low Mod Note and Deed of Trust as written.
4. Term. The loan evidenced by the Low Mod Note and secured by the Deed of Trust was funded by Lender using funds from the Low and Moderate Income Housing Fund established by Lender pursuant to Section 33334.3 of the California Health and Safety Code. The California Community Redevelopment Law (California Health and Safety Code §33000, et seq.) requirements apply from the date of recordation of the Deed of Trust and shall terminate 15 years from the date of acquisition of the Property by the first Eligible Owner.
5. Covenant Against Discrimination.
(a) Basic Requirements. The Borrower and each Eligible Owner covenants on behalf of itself and its successors and assigns, and each successor in interest to the Property, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Borrower or any person claiming under or through it establish or permit any such practice or practices of discrimination 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, with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property or the rental, lease, sale of the Property. The foregoing covenants shall run with the Property.
(b) Nondiscrimination Covenants. Borrower covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, creed, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability of any person in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall Borrower or any person claiming under or through it establish or permit any such practice or practices of discrimination 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, with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Property. The foregoing covenants shall run with the land. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses:
(1) Deeds. In deeds “The grantee herein covenants by and for itself, its successors 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 race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, 6 national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee itself 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, subtenants, sublessees or vendees in the land herein conveyed. The foregoing covenants shall run with the land.”
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(2) Leases. In leases “The lessee herein covenants by and for itself, its successors and assigns, and all persons claiming under or through them, 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 race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the leasing, subleasing, renting, transferring, use, occupancy, tenure or enjoyment of the land herein leased, nor shall lessee itself, or any person claiming under or through it, establish or permit 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 land herein leased.”
(3) Contracts. In contracts for the rental, lease or sale of the Property or any dwelling unit “There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, sexual orientation, disability, medical condition, familial status, source of income, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the transferee itself 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, subtenants, sublessees or vendees of the land.”
6. Enforcement. The Borrower and each Eligible Owner expressly agrees and declares that Lender or any successor public agency is a proper party and shall have standing to initiate and pursue any and all actions or proceedings, at law or in equity to enforce the provisions hereof and/or to recover damages for any default hereunder and/or to enforce the terms of this Declaration.
Further, Lender or any successor public agency shall be the proper party to waive, relinquish, release or modify the rights, covenants, obligations or restrictions contained in or arising under this Declaration. Concurrently with the recordation of this Declaration, the Borrower is causing separate security instruments and restrictions (collectively the “Habitat Restrictions”) in favor of (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) to be recorded against the Property. In the event of a conflict between any provisions of this Declaration or the Deed of Trust and any provisions of the Habitat Restrictions, the provisions of this this Declaration and the Deed of Trust shall apply.
7. Attorneys’ Fees.Upon the breach of the terms of this Declaration, the Low Mod Note or Deed of Trust, the Borrower or Eligible Owner, as applicable, agrees to pay Lender any and all 7 attorneys’ fees, court costs, trustee fees, and any and all other fees and costs incurred by Lender as a result of said breach and/or default.
8. Severability. In the event that any provision or covenant of this Declaration is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Declaration and the remaining provisions shall continue in full force and effect.
9. Covenants Run With The Land. The covenants contained herein shall constitute “covenants running with the land” pursuant to Civil Code Sections 1460, 1462, 1463, 1464, 1465, 1467 and 1468, to the extent applicable, and shall bind the Property and every person having an interest therein during the term of this Declaration, including Borrower, each Eligible Owner, and their successors, heirs and assigns. Borrower and each Eligible Owner agrees for itself and its successors that, in the event that, for any reason whatsoever, a court of competent jurisdiction determines that the foregoing covenants do not run with the land, such covenants shall be enforced as equitable servitudes against the Property. This Declaration shall inure to the benefit of and be binding upon the successors and assigns of Borrower, each Eligible Owner and the heirs, personal representatives, grantees, tenants, successors-in-interest or assigns of the owners. __________________________________
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10. Recordation. This Declaration shall be recorded in the Office of County Recorder of Los Angeles, California.
11. Remedies Cumulative. Lender shall have the right, in the event of any breach of any such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions at law or suit in equity or other proper proceedings to redress the breach of agreement or covenant.
12. Headings. The headings used in this Declaration are for convenience only and are not to be used to interpret the meaning of any of the provisions of this Declaration.
13. Liberal Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose. Failure to enforce any provision of this Declaration shall not constitute a waiver of the right to enforce the provision later.
14. Number; Gender. The singular shall include the plural and the plural the singular, unless the context requires the contrary; and the masculine, feminine and neuter shall include the masculine, feminine or neuter, as the context requires.
15. Exhibits. Any exhibits referenced herein and attached to this Declaration are hereby incorporated by reference.
DECLARANT:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation By:__________________________________
Print Name:
Its:
8 ACKNOWLEDGMENT
______________________
______________________________________________
_ ________________
State of California )
)
County of Los Angeles )
On _, 2022, 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.
Signature ___________ (Seal)
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.
9 EXHIBIT “A”
Legal Description of the Property
That certain real property located in the City of Baldwin Park, County of Los Angeles, State of California more particularly described as follows:
1 NO CHARGE ON THIS DOCUMENT
FOR THE BENEFIT OF THE CITY OF
BALDWIN PARK
Recording Requested By:
When Recorded Mail To:
City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
___________________
DEED OF TRUST
(Low Mod)
THIS DEED OF TRUST (“Deed of Trust”) is dated as of the __ day of ____, 202__, by (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Trustor”), whose address is 724 East Huntington Drive, Monrovia, California 91016, Chicago Title Company (“Trustee”) and the City of Baldwin Park acting solely in its capacity as the designated successor housing agency to the former Community Development Commission of the City of Baldwin Park (“Beneficiary”), whose address is 14403 East Pacific Avenue, Baldwin Park, California 91706.
TRUSTOR HEREBY irrevocably grants, transfers, and assigns to Trustee, in trust, with power of sale, that certain real property (“Property”) in the City of Baldwin Park, County of Los Angeles, State of California, described as:
(See Legal Description - Exhibit “A”)
FOR THE PURPOSE OF SECURING:
(a) Payment of the indebtedness evidenced by that certain Promissory Note of even date herewith executed by Trustor, in the principal sum of _______ and No/100 Dollars ($_________.00), and any renewal, extension, or modification of the promissory note (“Note”); (b) Any additional sums and interest that may hereafter be loaned to the then record owner of the Property by Beneficiary, when evidenced by another note or notes reciting that it or they are so secured;
(c) The performance of each agreement contained in this Deed of Trust; (d) The performance of each agreement of Trustor under that certain Acquisition Rehabilitation Loan Agreement by and between Trustor and Beneficiary on file in the Office of Beneficiary (“Loan Agreement”); and
2 (e) The performance of each agreement and covenant of Trustor under that certain Declaration of Covenants, Conditions and Restrictions of even date herewith and recorded concurrently herewith affecting the Property (“Declaration”).
A. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. Maintenance and Repair. To keep the Property in good condition and repair, normal wear and tear excepted; not to remove or demolish any buildings on the Property; to complete or restore promptly and in good and workmanlike manner any building that may be constructed, damaged, or destroyed on the Property; to pay when due all claims for labor performed and materials furnished for the Property; to comply with all laws affecting the Property or requiring any alterations or improvements to be made on the Property; not to commit or permit waste of the Property; not to commit, suffer, or permit any act upon the Property in violation of law; and to cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of the Property may be reasonably necessary.
2. Fire Insurance. To provide, maintain, and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary as its interest may appear. Subject to the rights of any senior lenders, the amount collected under any fire or other insurance policy may be applied by Beneficiary to any amounts secured by this Deed of Trust and in any order determined by Beneficiary, or at the option of Beneficiary the entire amount so collected or any part of that amount may be released to Trustor. This application or release shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice.
Notwithstanding the foregoing, in the event of any fire or other casualty to the Property, Trustor shall have the right to rebuild the Property, and to use all available insurance proceeds therefor, provided that (a) such proceeds are sufficient to rebuild the Property in a manner that provides adequate security to Beneficiary for repayment of the indebtedness secured hereby or if such proceeds are insufficient then Trustor shall have funded any deficiency, (b) Beneficiary shall have the right to approve (which shall not be unreasonably withheld or delayed) plans and specifications for any major rebuilding and the right to approve (which shall not be unreasonably withheld or delayed) disbursements of insurance proceeds for rebuilding under a construction escrow or similar arrangement, and (c) no material default then exists hereunder or under the Loan Agreement, Declaration or Note. If the casualty affects only part of the Property and total rebuilding is not feasible, then proceeds may be used for partial rebuilding and partial repayment of the indebtedness secured hereby in a manner that provides adequate security to Beneficiary for repayment of the remaining indebtedness secured hereby.
3. Defense of Security. To appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary, or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorneys’ fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
3 4. Payment of Liens and Taxes. To pay all taxes and assessments affecting the Property prior to such payments becoming delinquent, including assessments on appurtenant water stock, all encumbrances, charges, and liens, with interest, on the Property or any part of the Property, which appear to be prior or superior to this Deed of Trust; and all costs, fees, and expenses of this Deed of Trust. If Trustor fails to make any payment or to do any act as provided in this Deed of Trust, then Beneficiary or Trustee may (but is not obligated to) make the payment or do the act in the required manner and to the extent deemed necessary by Beneficiary or Trustee to protect the security of this Deed of Trust. The performance by Beneficiary or Trustee of such an act shall not require notice to or demand upon Trustor and shall not release Trustor from any obligation under this Deed of Trust. Beneficiary or Trustee shall also have the following related rights and powers:
to enter upon the Property for the foregoing purposes; to appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee; to pay, purchase, contest, or compromise any encumbrance, charge, or lien that in the judgment of either appears to be prior or superior to this Deed of Trust; to employ counsel; and to pay necessary expenses and costs, including reasonable attorneys’ fees.
5. Reimbursement of Costs. To pay immediately and without demand all sums expended by Beneficiary or Trustee pursuant to this Deed of Trust, with interest from date of expenditure at the amount allowed by law in effect at the date of this Deed of Trust, and to pay any amount demanded by Beneficiary (up to the maximum allowed by law at the time of the demand) for any statement regarding the obligation secured by this Deed of Trust.
6. Use. That Trustor will not permit or suffer the use of any of the Property for any purpose other than the use set forth in the Loan Agreement and Declaration.
7. Incorporation of Agreements. The Loan Agreement, Note and Declaration are incorporated herein by reference and made a part of this Deed of Trust, although not attached.
Copies are on file in the office of the Beneficiary.
8. Performance of Other Obligations. To perform, in a timely manner, the obligations of Trustor under the Loan Agreement, Note, Declaration and each other agreement and covenant by and between Trustor on any and all notes, loans and deeds of trust that are senior and/or junior to this Deed of Trust. A default in any of these obligations after the expiration of any applicable notice or cure period pursuant to the Loan Agreement, Note or Declaration shall constitute a default under this Deed of Trust.
B. THE PARTIES AGREE THAT:
9. Condemnation Award. Any award of damages in connection with any taking or condemnation, or for injury to the Property by reason of public use, or for damages for private trespass or injury to the Property, is hereby assigned and shall be paid to Beneficiary ( subject to the rights of any senior lenders ), as its interest may appear as further security for all obligations secured by this Deed of Trust. Upon receipt of such proceeds, Beneficiary may hold the proceeds as further security, but shall apply or release them in the same manner and with the same effect as provided in Section 2 of this Deed of Trust for the disposition of proceeds of fire or other insurance. 4 10. Waiver of Late Payments. By accepting payment of any sum secured by this Deed of Trust after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure to pay any amounts secured by this Deed of Trust.
11. Trustee’s Powers. Upon written request of Beneficiary, Trustee may (a) reconvey all or any part of the Property; (b) consent to the making and recording, or either, of any map or plat of all or any part of the Property; (c) join in granting any easement on the Property; or (d) join in or consent to any extension agreement or any agreement subordinating the lien, encumbrance, or charge of this Deed of Trust. Trustee need not provide Trustor with notice before taking any of the foregoing actions, and shall not be liable for the proper performance of the act. The exercise by Trustee of any of the foregoing powers shall not affect the personal liability of any person with respect to the obligations secured by this Deed of Trust, or the lien of this Deed of Trust on the remaining property as security for the repayment of the full amount secured by this Deed of Trust.
12. Reconveyance. Upon expiration of the terms of the Declaration and Deed of Trust and written request of Beneficiary, and payment of Trustee’s fees and charges, Trustee shall reconvey, without warranty, the Property then subject to this Deed of Trust. The recitals in the reconveyance shall be conclusive proof of the truthfulness of the recitals. The grantee in the reconveyance may be described as “the person or persons legally entitled thereto.”
13. Assignment of Rents. As additional security, Trustor hereby gives to and confers upon Beneficiary the right, power, and authority during the continuance of this Deed of Trust, to collect the rents, issues, and profits of the Property, but reserves the right, prior to any default, which continues beyond any applicable notice and cure periods, by Trustor in payment of any amounts secured by this Deed of Trust or in the performance of any agreement under this Deed of Trust, to collect and retain these rents, issues, and profits as they become due and payable. Upon any such uncured default, Beneficiary may, without notice and without regard to the adequacy of the security for the amounts secured by this Deed of Trust, either personally or by agent or court- appointed receiver, do the following: enter upon and take possession of the Property or any part of the Property; sue for or otherwise collect all rents, issues, and profits, including those past due and unpaid; and apply these rents, issues, and profits, less costs and expenses of operation and collection (including reasonable attorneys’ fees), upon any amounts secured by this Deed of Trust, in any order determined by Beneficiary. The exercise of the foregoing rights by Beneficiary shall not cure or waive any default or notice of default under this Deed of Trust or invalidate any act done pursuant to such a notice.
14. Default; Foreclosure. Upon material default by Trustor in the payment of any amounts secured by this Deed of Trust or in the performance of any obligation under the Loan Agreement, Note, Declaration or this Deed of Trust, after the expiration of any and all applicable notice or cure periods, Beneficiary may declare all sums secured by this Deed of Trust immediately due and payable by delivering to Trustee a written declaration of default and demand for sale and a written notice of default and election to sell the Property. Trustee shall cause the notice of default and election to sell to be recorded. After the required time period has lapsed following the recordation of the notice of default, and after notice of sale has been given as required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place specified in the notice of sale, 5 either as a whole or in separate parcels, and in any order determined by Trustee, at public auction to the highest bidder for cash in lawful money of the United States, payable at the time of sale.
Trustee may postpone sale of all or any portion of the Property by public announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser at the auction its deed conveying the Property sold, but without any covenant or warranty, express or implied. The recital in the deed of any matter or fact shall be conclusive proof of the truthfulness of the recital. Any person, including Trustor, Trustee, or Beneficiary, may purchase at the sale.
After deducting all costs, fees, and expenses of Trustee and Beneficiary under this section, including costs of procuring evidence of title incurred in connection with the sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms of this Deed of Trust, not then repaid, with accrued interest at the amount allowed by law in effect at the date of this Deed of Trust; all other sums then secured by this Deed of Trust; and the remainder, if any, to the person or persons legally entitled to the remaining proceeds.
15. Obligation to Sell and Assumption on Sale. Trustor declares, represents and warrants to the Beneficiary and Trustor agrees that not later than one (1) year after the date this Deed of Trust is recorded in the Office of County Recorder of Los Angeles, California, the Property shall be conveyed by Trustor to one or more persons which meet the definition of “Eligible Owner,” as set forth in the Declaration. During the terms of the Loan Agreement, Note and Declaration, this Deed of Trust shall be assumed by each Eligible Owner that acquires the Property.
16. General Provisions. This Deed of Trust applies to, inures to the benefit of, and binds all parties to this Deed of Trust and their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term “Beneficiary” shall mean the holder and owner, including pledgee, of the Note, whether or not named as a beneficiary in this Deed of Trust, and the heirs, legatees, devisees, administrators, executors, and assigns of any such person. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural.
17. Acceptance by Trustee. Trustee accepts this Deed of Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party to this Deed of Trust of pending sale under any other deed of trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
18. Substitution of Trustees. Beneficiary, or any successor in ownership of any obligations secured by this Deed of Trust, may from time to time, by written instrument, substitute a successor or successors to any Trustee named in or acting under this Deed of Trust. The substitution instrument shall contain the name of the original Trustor, Trustee, and Beneficiary under this Deed of Trust, the book and page where this Deed is recorded, and the name and address of the new Trustee. When executed by Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where the Property is situated, the substitution instrument shall be conclusive proof of proper substitution of the successor Trustee or Trustees. Any successor Trustee or Trustees shall, without conveyance from the predecessor Trustee, succeed to all its title, estate, rights, powers, terms, obligations and duties.
6 19. Cumulative Powers and Remedies. The powers and remedies conferred in this Deed of Trust are concurrent and cumulative to all other rights and remedies provided in this Deed of Trust or given by law. These powers and remedies may be exercised singly, successively, or together, and as often as deemed necessary.
20. Conclusiveness of Recitals. The recitals contained in any reconveyance, trustee’s deed, or any other instrument executed by Trustee from time to time under the authority of this Deed of Trust or in the exercise of its powers or the performance of its duties under this Deed of Trust, shall be conclusive evidence of their truth, whether stated as specific and particular facts, or in general statements or conclusions. Further, the recitals shall be binding and conclusive upon Trustor, its heirs, executors, administrators, successors, and assigns, and all other persons.
21. Attorneys’ Fees. If any action is brought for the foreclosure of this Deed of Trust or for the enforcement of any provision of this Deed of Trust (whether or not suit is filed), Trustor agrees to pay all costs and expenses of Beneficiary and Trustee, including reasonable attorneys’ fees; and these sums shall be secured by this Deed of Trust.
22. Co-Trustees. If two or more persons are designated as Trustee in this Deed of Trust, any, or all, power granted in this Deed of Trust to Trustee may be exercised by any of those persons, if the other person or persons are unable, for any reason, to act. Any recital of this inability in any instrument executed by any of those persons shall be conclusive against Trustor and Trustor’s heirs and assigns.
23. Request for Notices of Default and Sale. In accordance with Section 2924b of the California Civil Code, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under any deeds of trust executed by Trustor concerning the Property be mailed to:
c/o City of Baldwin Park
Attn: Benjamin Martinez
14403 East Pacific Avenue
Baldwin Park, CA 91706
NOTICE: A copy of any notice of default and of any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded.
24. Inspections. Trustor shall permit Beneficiary and its agents or representatives, to inspect the Property, subject to the rights of purchaser(s), at any and all reasonable times during business hours and upon reasonable advance notice. Inspections shall be conducted so as not to interfere with the owner(s)’ use and enjoyment of the Property or the general operation of the Property.
25. Hazardous Materials Defined. For purposes of this Deed of Trust, “Hazardous Materials” mean and include any hazardous, toxic or dangerous waste, substance or material including, without limitation, flammable explosives, radioactive materials, asbestos, hazardous wastes, toxic 7 substances and any materials or substances defined as hazardous materials, hazardous substances or toxic substances in (or for purposes of) the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as amended (42 U.S.C. §9601,et seq.), the Hazardous Materials Transportation Act (49 U.S.C. §1801,et seq.), the Resource Conservation and Recovery Act (42 U.S.C. §6901, et seq.), and those substances defined as hazardous wastes in §25117 of the California Health and Safety Code or as hazardous substances in §25316 of the California Health and Safety Code or in any regulations promulgated under either such law, any so-called “Superfund” or “Superlien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any hazardous, toxic or dangerous waste, substance or material, as now or at any time hereafter in effect.
26. Trustor’s Hazardous Materials Representations and Warranties and Indemnity. In addition to the general and specific representations, covenants and warranties set forth in the Deed of Trust or otherwise, Trustor represents, covenants and warrants, with respect to Hazardous Materials, as follows:
(a) Neither Trustor nor, to the best knowledge of Trustor, any other person, has ever caused or permitted any Hazardous Materials to be manufactured, placed, held, located or disposed of on, under or at the Property or any part thereof, and neither the Property nor any part thereof, or any property adjacent thereto, has ever been used (whether by Trustor or, to the best knowledge of Trustor, by any other person) as a manufacturing site, dump site or storage site (whether permanent or temporary) for any Hazardous Materials. “Hazardous Materials” for purposes of this Section 26 shall not include substances typically used in the ordinary course of developing, operating and maintaining apartment complexes in California or small amounts of chemicals, cleaning agents and the like commonly employed in routine household uses in a manner typical of occupants in other similar residential properties, provided that such substances are used in accordance with all applicable laws.
(b) Trustor hereby agrees to indemnify Beneficiary, its officers, employees, contractors and agents, and hold Beneficiary, its officers, employees, contractors and agents harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses and claims of any and every kind whatsoever paid, incurred or suffered by, or asserted against Beneficiary, its officers, employees, contractors or agents for, with respect to, or as a direct or indirect result of, the presence or use, generation, storage, release, threatened release or disposal of Hazardous Materials on or under the Property or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials from the Property (including, without limitation, any losses, liabilities, damages, injuries, costs, expenses or claims asserted or arising under CERCLA, any so-called “Superfund” or “Superlien” law, or any other federal, state or local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Materials) regardless of whether or not caused by or within the control of Trustor. The foregoing indemnification shall not apply to any liability resulting from (i) an event that occurs after a transfer of the Property due to any foreclosure sale (judicial or nonjudicial) or a deed in lieu of foreclosure, or (ii) acts or omissions of Beneficiary or its agents. 8 (c) Trustor has not received any notice of (i) the happening of any event involving the use, spillage, discharge, or cleanup of any Hazardous Materials (“Hazardous Discharge”) affecting Trustor or the Property or (ii) any complaint, order, citation or notice with regard to air emissions, water discharges, noise emissions or any other environmental, health or safety matter affecting Trustor or the Property (“Environmental Complaint”) from any person or entity, including, without limitation, the United States Environmental Protection Agency (“EPA”). If Trustor receives any such notice after the date hereof, then Trustor will give, within seven (7) business days thereafter, oral or written notice of same to Beneficiary.
__________________________________
___________________________
(d) Without limitation of Beneficiary’s rights under this Deed of Trust, Beneficiary shall have the right, but not the obligation, to enter onto the Property or to take such other actions as it deems necessary or advisable to clean up, remove, resolve or minimize the impact of, or otherwise deal with, any such Hazardous Materials or Environmental Complaint upon its receipt of any notice from any person or entity, including without limitation, the EPA, asserting the existence of any Hazardous Materials or an Environmental Complaint on or pertaining to the Property which, if true, could result in an order, suit or other action against Trustor affecting any part of the Property by any governmental agency or otherwise which, in the sole opinion of Beneficiary, could jeopardize its security under this Deed of Trust. All reasonable costs and expenses incurred by Beneficiary in the exercise of any such rights shall be secured by this Deed of Trust and shall be payable by Trustor upon demand together with interest thereon at a rate equal to the highest rate payable under the Note.
(e) The foregoing representation, covenants, indemnities and warranties shall be continuing and shall be true and correct for the period from the date hereof to the release of this Deed of Trust (whether by satisfaction of the obligations secured hereby or foreclosure or action in lieu thereof), and these representations, covenants, indemnities and warranties shall survive such release.
27. Authority to Sign. All individuals signing this Deed of Trust for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the Beneficiary that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing.
TRUSTOR:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) By:__________________________________
Print Name:
Its:
9 ACKNOWLEDGMENT
__________________________________________
_
State of California )
)
County of Los Angeles )
On ____________________, 202__, 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.
Signature (Seal)
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.
10 Exhibit “A”
Property Description
That certain real property situated in the City of Baldwin Park, County of Los Angeles, State of California, described as follows:
_______________
1 PROMISSORY NOTE
(“Low Mod Note”)
, 202__
Property Address: , Baldwin Park, California (“Property”)
1. Borrower’s Promise to Pay. In return for a loan (“Low Mod Loan”) that the undersigned ___________________ (insert name of entity - San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) (“Borrower,” which term shall also mean any successor in interest to the Borrower’s interest in the Property) has received, Borrower promises to pay U.S. Dollars ($ ) to the order of the lender, City of Baldwin Park acting solely in its capacity as the designated successor housing agency to the former Community Development Commission of the City of Baldwin Park (“Lender”). Borrower acknowledges and agrees that Lender may transfer this Low Mod Note. Lender or anyone who takes this Low Mod Note by transfer and who is entitled to receive payments under this Low Mod Note will be called the “Note Holder.” In addition to the protection given to the Note Holder under this Low Mod Note, this Low Mod Note shall be secured by a deed of trust (“Deed of Trust”) made by Borrower in favor of the Lender and recorded as an encumbrance against the Property.
2. Compliance with Health and Safety Code Requirements. Borrower acknowledges that Lender is funding the Loan entirely from Lender’s Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the California Health and Safety Code. Borrower agrees that all of the Loan shall be used for purposes that are eligible under the applicable provisions of the California Health and Safety Code. The Borrower shall comply with all applicable requirements of the California Community Redevelopment Law (Health & Safety Code Section 33000, et seq.).
3. 3% Deferred Interest. This Low Mod Note shall accrue simple interest at the rate of 3% per annum. Provided, however, in the event Borrower defaults under the terms of this Low Mod Note, the Deed of Trust, the Declaration of Covenants, Conditions and Restrictions (“Declaration”) of even date herewith and recorded concurrently herewith affecting the Property, or any other document secured by the Declaration, Deed of Trust and/or the Property, then Borrower shall owe Lender the “Default Interest.” “Default Interest” means interest accrued from the date of this Low Mod Note, in an amount equal to ten percent (10%) simple interest per annum.
4. Payments; Deemed Satisfaction. No payments shall be due hereunder, except in the event of a Breach of this Low Mod Note (as set forth in Section 5, below). In the event of an uncured Breach, Borrower shall pay all principal and all accrued interest (including default interest), in one lump sum to Lender at Lender’s offices located at 14403 East Pacific Avenue, Baldwin Park, California 91706, or such other place as designated by Lender. If no uncured Breach has occurred during the period commencing on acquisition of the Property by the first Eligible Owner (as defined in the Declaration) and ending fifteen (15) years thereafter (“Term”), then all of the Borrower’s obligations under this Low Mod Note shall be deemed satisfied. 2 5. Breach.
(a) Acceleration, Remedies. Upon Borrower’s breach this Low Mod Note, the Deed of Trust, Declaration or any other document secured by the Declaration, Deed of Trust and/or the Property (each a “Breach”), Lender shall give notice to Borrower prior to acceleration, such notice shall include:
(1) a description of the Breach;
(2) the action required to cure such Breach (if any);
(3) a date, not less than ten (10) days from the date the notice is mailed to Borrower, by which such breach must be cured; and
(4) a statement that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by the Deed of Trust and sale of the Property.
The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the Breach is not cured on or before the date specified in the notice, Lender, at Lender’s option, may declare all of the sums secured by the Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law, as provided in and pursuant to the procedure set forth in the Deed of Trust. Lender shall be entitled to collect all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 6, including, but not limited to, reasonable attorneys’ fees.
(b) Reinstatement.
(1) Curable Breach. Notwithstanding Lender’s acceleration of the sums secured by the Deed of Trust due to a Breach, Borrower shall have the right to have any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to five (5) days before the sale of the Property pursuant to the power of sale contained in the Deed of Trust or at any time prior to entry of a judgment enforcing the Deed of Trust if:
(A) Borrower pays Lender all sums which would be then due under this Low Mod Note and the Deed of Trust had no acceleration occurred; (B) Borrower cures all Breaches of any other covenants or agreements of Borrower contained in the Deed of Trust;
(C) Borrower pays all reasonable expenses incurred by Lender and the trustee in enforcing the covenants and agreements of Borrower contained in the Deed of Trust, including, but not limited to, reasonable attorneys’ fees; and 3 (D) Borrower takes such action as Lender may reasonably require to assure that the lien of the Deed of Trust, Lender’s interest in the Property and Borrower’s obligation to pay the sums secured by the Deed of Trust shall continue unimpaired.
Upon such payment and cure by Borrower as set forth in this Section 5(b)(1), the Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred.
(2) Non-Curable Breach. In the event of any conflict between any provision of Section 5(b)(1), above, and this Section 5(b)(2), the provision set forth in this Section 5(b)(2) shall apply.
(A) Failure to Occupy/Renting Out the Property is a Violation of Law.
Each Eligible Owner (as defined in the Declaration) hereby acknowledges that the loan evidenced by this Low Mod Note and secured by the Deed of Trust was funded by Lender using funds from the Low and Moderate Income Housing Fund established by Lender pursuant to Section 33334.3 of the California Health and Safety Code. The California Community Redevelopment Law (California Health and Safety Code §33000, et seq.) requires the Eligible Owner to occupy the Property as the Eligible Owner’s principal residence. Renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence is a violation of State of California law (in addition to being a violation of this Low Mod Note). Lender is obligated by Federal law to enforce the provisions of the California Community Redevelopment Law, Lender’s failure to do so would jeopardize Lender’s ability to obtain additional funds and help other low-income families to obtain affordable housing. (B) Failure to Occupy/Renting Out the Property Materially Impairs Lender’s Security. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, materially impairs Lender’s security for the loan and Lender’s ability to obtain additional funds and help other low-income families to obtain affordable housing. The Eligible Owner further acknowledges that if the Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence, then during any such period the Property will not qualify as “affordable housing” and Lender may be in breach of its obligations under the California Community Redevelopment Law and therefore the Lender’s security for the loan will be materially impaired.
(C) Failure to Occupy/Renting Out the Property is a Non-Curable Breach. The Eligible Owner hereby acknowledges and agrees that renting out the Property and/or the Eligible Owner’s failure to occupy the Property as the Eligible Owner’s principal residence, will be a non-curable breach and Lender shall have the right to accelerate the loan and foreclose on the Property as provided herein. Notwithstanding anything to the contrary set forth in this Low Mod Note, the Eligible Owner agrees that in the event the Eligible Owner rents out the Property and/or fails to occupy the Property as the Eligible Owner’s principal residence, the Eligible Owner shall not have the right to cure the breach and reinstate the loan, the Deed of Trust or the obligations secured thereby.
4 (D) Waiver. The Eligible Owner hereby knowingly waives and relinquishes any and all legal and/or contractual rights the Eligible Owner may have to cure or otherwise reinstate the Deed of Trust and the obligations secured thereby, in the event that Property is rented out and/or the Eligible Owner fails to occupy the Property as the Eligible Owner’s principal residence.
(E) Representation of Comprehension. The Eligible Owner acknowledges and agrees that Lender has advised the Eligible Owner (and each of them if there is more than one Eligible Owner) to retain an attorney to represent the Eligible Owner with respect to the loan evidenced by this Low Mod Note. By executing this Low Mod Note, the Eligible Owner (and each of them if there is more than one Eligible Owner) represents that: (i) the Eligible Owner fully understands and accepts the terms of this Low Mod Note, the Deed of Trust and Declaration; (ii) the Eligible Owner has relied upon the legal advice of the Eligible Owner’s attorneys or that the Eligible Owner has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the Lender nor its attorneys represents the Eligible Owner; (iv) that the Eligible Owner has had a full and ample opportunity to consult with any other professionals of the Eligible Owner’s choice in connection with the rights and liabilities created by this Low Mod Note, the Deed of Trust and Declaration; (v) that the Eligible Owner does not have any questions with regard to the legal import of any term, word, phrase, or portion of this Low Mod Note, the Deed of Trust or Declaration, or any of the foregoing documents in their entireties; and (vi) the Eligible Owner accepts the terms of this Low Mod Note, the Deed of Trust and Declaration as written.
6. Assumption. During the 15-year Term of this Low Mod Note each Eligible Owner of the Property shall assume this Low Mod Note. Notwithstanding the foregoing, in the event of a transfer of the Property where the amount of this Note (“Original Note Amount”) would violate the first position lender’s underwriting requirements or otherwise impede the transfer of the Property to an Eligible Owner, as defined in the Declaration, then the amount of the Note shall be reduced to the maximum amount (“Reduced Note Amount”) which will enable the transaction to comply with the first position lender’s underwriting requirements or otherwise allow the transfer of the Property to an Eligible Owner. In such event, the difference between the Original Note Amount and the Reduced Note Amount (“Deemed Paid Amount”) shall be deemed repaid in full to the Lender and the purchaser of the Affordable Unit shall have no further obligation with respect to the Deemed Paid Amount.
7. Borrower’s Payments Before They Are Due. Borrower has the right to make payments of principal at any time before they are due. Borrower may make a full prepayment or a partial prepayment. It is expressly acknowledged that the covenants and restrictions set forth in the Declaration shall survive any repayment of this Low Mod Note.
8. Borrower’s Waiver. Borrower hereby waives the rights to require the Note Holder to do certain things if Borrower does not keep the promises made in this Low Mod Note, the Deed of Trust or the Declaration. Those things are:
(a) to demand payment of amounts due (known as “presentment”); 5 (b) to give notice that amounts due have not been paid (known as “notice of dishonor”); and
(c) to obtain any official certification of nonpayment (known as “protest”).
9. Giving of Notices. Any notice that must be given to Borrower under this Low Mod Note will be given by delivering it or by mailing it by certified mail addressed to Borrower at the Property address. Any notice that must be given to the Note Holder under this Low Mod Note will be given by mailing it by certified mail to Lender’s offices located at 14403 East Pacific Avenue, Baldwin Park, California 91706 or such other address as Lender may designate in writing.
10. Responsibility of Persons Under This Note. If more than one person becomes obligated under this Low Mod Note, each of them is fully and personally obligated to pay the full amount owed and to keep all promises made in this Low Mod Note. The Note Holder may enforce its rights under this Low Mod Note against each person obligated under this Low Mod Note individually or against all of them together. This means that any one of the persons obligated under this Low Mod Note may be required to pay all of the amounts owed under this Low Mod Note. Any person who takes over the rights or obligations under this Low Mod Note will have all of the rights of the persons that sign this Low Mod Note and must keep all of the promises made in this Low Mod Note.
11. Attorneys’ Fees. Upon the breach of the terms of this Low Mod Note, the Deed of Trust or Declaration, the Borrower agrees to pay Lender any and all attorneys’ fees, court costs, trustee fees, and any and all other fees and costs incurred by Lender as a result of said breach and/or default.
12. Severability. If any provision of this Low Mod Note is deemed to be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed from the rest of this Low Mod Note and the remaining provisions shall continue in full force and effect.
13. Governing Law. This Low Mod Note shall be construed in accordance with and be governed by the laws of the State of California.
14. No Waiver by the Lender. No waiver of any breach, default or failure of condition under the terms of this Low Mod Note or the Deed of Trust shall thereby be implied from any failure of the Lender to take, or any delay by the Lender in taking action with respect to such breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure; and a waiver of any term of this Low Mod Note, Deed of Trust, or any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver.
15. Usury. If a court of competent jurisdiction determines, by way of final unappealable order or judgment that the interest rate charged under this Low Mod Note is usurious, then such rate shall automatically and retroactively be reduced to the maximum rate allowed under applicable law.
6 BORROWER:
San Gabriel Valley Habitat for Humanity, Inc., a California nonprofit public benefit corporation (or any entity controlled by or affiliated with San Gabriel Valley Habitat for Humanity, Inc.) __________________________________
By:__________________________________
Print Name: ___________________________
Its:
________ _________
STAFF REPORT
ITEM NO. 15
TO: Honorable Mayor and Members of the City Council
FROM: Benjamin Martinez, Director of Community Development PREPARED BY: Carol Averell, Housing Manager
DATE: February 16, 2022
SUBJECT: FY 2022-23 Annual Action Plan Housing and Community Development Needs and Priorities Public Hearing
SUMMARY
For the City Council to hold the first of two required public hearings to receive public input regarding the FY 2022-23 Annual Action Plan.
RECOMMENDATION
Staff recommends that the Mayor and City Council:
1. Conduct a public hearing to consider the city’s housing and non-housing community development needs for the preparation of the FY 2022-23 Annual Action Plan; and
2. Following the public hearing, receive and file this report, any comments made by the Mayor, City Council, and/or residents during the public hearing, for inclusion in the Fiscal Year 2022- 23 Annual Action Plan.
FISCAL IMPACT
There is no fiscal impact to the General Fund as the City Council is only being requested to open the public hearing to receive comments from the community and other interested parties or persons on housing and community development needs for Fiscal Year 2022-23.
BACKGROUND
Each year, the City prepares an Annual Action Plan (Plan), which describes how the City will spend its federal Community Development Block Grant (CDBG) and HOME Investment Partnerships Act (HOME) funds that it expects to receive from the U.S. Department of Housing and Urban Development (HUD). Part of the Plan is an assessment of housing and community development needs. These needs were first identified in the City’s Five-Year Consolidated Plan (2020-24), which is a strategic framework for the City’s housing and community development goals over a five-year period. The Consolidated Plan sets the vision for allocating federal resources to housing, homelessness, community development, and special needs in the community. In establishing five-year priorities for assistance with CDBG and HOME funds, the City of Baldwin Park took several factors into consideration: 1) those households most in need of housing and community development assistance, as determined through the Consolidated Plan needs assessment, consultation, and public participation process; 2) which activities would best meet the needs of those identified households; and 3) the extent of other non- federal resources and programs available to address those needs.
In accordance with federal regulations, tonight’s public hearing serves to solicit further public comment on the use of CDBG and HOME funds and is the first of two public hearings slated during the 2022-23 Annual Action Plan process. Residents are encouraged tonight to offer their views on Baldwin Park’s housing and community development needs. Specifically, the public hearing serves to obtain the opinions of residents in connection with housing and homeless housing needs, as well as public services, public facilities, infrastructure and economic development needs. The Mayor and City Council are also asked to make their comments on these needs.
It is important to remember that during preparation of the 2020-24 Consolidated Plan, staff conducted a series of workshops and community surveys between December 2018 and September 2019, to identify the community’s priorities for the investment of CDBG and HOME programs. The results of the City’s 2020-2024 Consolidated Plan Needs Assessment Survey, housing and community development data elements from the 2011-2015 American Community Survey (ACS) five-year estimates, the Comprehensive Housing Affordability Strategy (CHAS) covering the same time period, ESRI Economic Data, and the 2019 Point-in-Time Count were taken into consideration in the preparation of the 2020- 2024 Consolidated Plan. HUD requires cities to hold a public hearing to ascertain whether the public feels the needs or priorities of how CDBG and HOME money are being spent, needs to be changed.
This public hearing achieves that goal.
Community Development and Housing Priorities, Goals, and Implementing Programs Established in 2020-2024 Consolidated Plan
The City’s 2020-2024 Consolidated Plan identified the following community development and housing priorities, goals, and implementing programs which serve as the basis for future project development and funding:
Priority 1. Expand the supply of affordable housing
Goal: Affordable Housing Development
Implementing Programs:
Acquisition/Rehabilitation/New Construction of Affordable Housing Priority 2. Preserve the supply of affordable housing
Goal: Housing Preservation
Implementing Programs:
Home Improvement Grant Program
Home Improvement Loan Program
Priority 3. Ensure equal access to housing opportunities Goal: Fair Housing Services
Implementing Programs:
Fair Housing Services Program
Priority 4. Provide neighborhood services, community facilities and infrastructure improvements Goal: Neighborhood Services
Implementing Programs:
Code Enforcement
Public Facility Improvements
Infrastructure Improvements
Priority 5. Provide public services for low-income residents Goal: Public Services for Low- and Moderate-Income Residents Implementing Programs:
Church of the Redeemer Food Bank
Family Service Center
Baldwin Park Police Department Pride Platoon
Recreation/Sports Scholarship Program
St. John’s Church Social Services
Youth Employment Program
Graffiti Removal
Priority 6: Provide public services for residents with special needs Goal: Special Needs Services
Implementing Programs:
Domestic Violence Advocate
YWCA of San Gabriel Valley
Priority 7: Prevent and eliminate homelessness
Goal: Homeless Prevention
Implementing Programs:
East San Gabriel Valley Coalition for the Homeless
Priority 8: Section 108 Loan Repayment
Goal: Community Facilities, Infrastructure, and Section 108 Debt Service Implementing Programs:
Section 108 Loan Repayment
Priority 9: Special Needs Non-Homeless Facilities and Infrastructure Improvements Goal: Special Needs Non-Homeless Public Facilities
Implementing Programs:
TBD Non-Homeless Special Needs Public Facility Improvement Projects Community Development Block Grant (CDBG) Funding
The CDBG program provides annual grants on a formula basis to local governments to implement a wide variety of community development and housing activities set forth under 24 CFR Part 570. The overriding purpose of the CDBG program is to support “bricks and mortar” activities e.g., acquisition, rehabilitation and preservation, and public improvements and facilities. For fiscal year 2022-23, the City of Baldwin Park estimates that it will have just over $1.16 million in federal CDBG funds, including unallocated prior year funds carried forward.
HOME Investment Partnership Act (HOME) Funding
The HOME Program is the largest Federal block grant to State and local governments designed exclusively to create affordable housing for low-income households. HOME funds are provided as formula grants to be used for home purchase, repairing rental or ownership properties, site acquisition, demolition of dilapidated housing to make way for HOME-assisted development, and payment of relocation expenses. In FY 2022-23, the City of Baldwin Park estimates that it will have $2.78 million in federal HOME funds, including unallocated prior year funds carried forward.
FY 2022-23 Annual Action Plan Schedule
The distribution of CDBG and HOME funds to city departments and non-profit organizations, occurs each year starting in February as a three-step process, shown below.
Step 1: Needs and Priorities Public Hearing (February 16, 2022) Step 2: 30-Day Public Review Period of the Draft FY 2022-23 Annual Action Plan (March 16, 2022 – May 4, 2022)
Step 3: Close 30-Day Public Review Period, Council adoption of Annual Action Plan and all CDBG Funding Requests (May 4, 2022)
LEGAL REVIEW
No Legal Review is necessary at this time.
ALTERNATIVES
No alternatives are required. This public hearing is conducted solely to collect comments from Baldwin Park residents and the City Council on housing and community development needs for the development of the FY 2022-23 Annual Action Plan.
ATTACHMENTS
1. Proof of Publication
_________ ________
STAFF REPORT
ITEM NO. 16
TO: Honorable Mayor and Members of the City Council
FROM: Robert N. Tafoya, City Attorney
DATE: February 16, 2022
SUBJECT: Consideration of Ordinance of the City of Baldwin Park to Establish Campaign Contribution Limits and Penalties in Baldwin Park
SUMMARY
Assembly Bill No. 571 (“AB 571) imposes a default campaign contribution limit upon cities and counties without campaign contribution limits. The default contribution limit amount is set at the same amount as the limit for State elected officials, subject to adjustment by the Fair Political Practices Commission (“FPPC”). The default limit is $4,900 per person or entity.
Government Code Section 85702.5 permits the City to establish its own campaign contribution limits that are different from what is established by Government Code Sections 85301 and 83124, and the FPPC. Currently, the FPPC has imposed a campaign contribution limit for State elected officials of $4,900 per election. To recognize the unique aspects of the City, the City Council desires to establish a campaign contribution limit different from that imposed by the FPPC.
It is the purpose and the intent of the City Council through this Ordinance is to establish an orderly political forum in which individuals and groups may express themselves effectively; to place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns for City offices; to provide a full and fair playing field for incumbents and new candidates seeking to be elected to City Council and to provide for the full and fair enforcement of all the provisions of this Ordinance.
RECOMMENDATION
Staff recommends that the City Council consider the new ordinance and, if acceptable, introduce for first reading, by title only, Ordinance entitled: “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK ESTABLISHING CAMPAIGN CONTRIBUTION LIMITS AND PENALTIES”, and direct staff to bring back for second reading and adoption at the next regularly scheduled City Council Meeting.
BACKGROUND
The Political Reform Act of 1974 prohibits a person from making campaign contributions to a candidate for elective state office and prohibits those candidates from accepting a contribution totaling more than a specified amount per election. Formerly, state law authorized a county, city, or district to limit campaign contributions in local elections. In 2019, a bill was introduced which took effect on January 1, 2021, that would add contributions candidates to county or city office to the list of those limited by these campaign contribution restrictions.
This bill is known as AB 571. This action by the state Legislature amended, repealed, and added sections of state law, including sections of the Elections Code and the Government Code. It provided FPPC the authority to adjust the amounts as needed pursuant to Government Code Section 85301 and 83124. However, the bill provided that a local government could impose a limitation that is different from the limitation imposed by the bill pursuant to Government Code Section 85702.5 and a resolution or ordinance passed by the local government.
This has created a choice for local governments, either elect to use the default campaign contributions as set by the FPPC under AB 571 or pass an ordinance controlling campaign contributions at the local level.
The FPPC has currently imposed a campaign contribution limit for most state elected officials of $4,900 per election. This amount is the same for local elected officials. It is the purpose and the intent of this ordinance to establish an orderly political forum in which individuals and groups may express themselves effectively within the City of Baldwin Park. To do this, the ordinance seeks to place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns for city offices.
FISCAL IMPACT TO THE CITY
None
ALTERNATIVES
The City Council may also select to continue this item to the next regularly scheduled City Council Meeting and provide further direction to staff on the proposed Campaign Finance Ordinance.
LEGAL REVIEW
This report has been reviewed and approved by the City Attorney as to legal form and content.
ATTACHMENTS
1. Ordinance
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF BALDWIN PARK ESTABLISHING
CAMPAIGN CONTRIBUTION LIMITS AND
PENALTIES
______
WHEREAS, the City of Baldwin Park (“City”) does not currently have campaign contribution limits or regulations; and
WHEREAS, Assembly Bill No. 571 (“AB 571) imposes a default campaign contribution limit upon cities and counties without campaign contribution limits; and WHEREAS, the default contribution limit amount is set at the same amount as the limit for State elected officials, subject to adjustment by the Fair Political Practices Commission (“FPPC”) pursuant to Government Code Section 85301 and 83124; and WHEREAS, Government Code Section 85702.5 permits the City to establish its own campaign contribution limits that are different from what is established by Government Code Sections 85301 and 83124 by resolution or ordinance; and WHEREAS, the FPPC has currently imposed a campaign contribution limit for State elected officials of $4,900 per election; and
WHEREAS, based upon the forgoing, the City Council desires to establish a campaign contribution limit which recognizes the unique aspects of the City; and WHEREAS, it is the purpose and the intent of the City Council in enacting this Ordinance to establish an orderly political forum in which individuals and groups may express themselves effectively; to place realistic and enforceable limits on the amounts of money that may be contributed to political campaigns for City offices; and to provide for the full and fair enforcement of all the provisions of this Ordinance;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 40.01. Campaign Finance Reform.Chapter 40 of the Baldwin Park Municipal Code shall be interpreted in a manner which is consistent with the Political Reform Act of 1974 and the amendments pursuant thereto. Specifically, California Government Code section 85702.5 adopted pursuant to A.B. No. 571 effective January 1, 2020 and thereafter operative on January 1, 2021.
SECTION 40.02. Definitions.
The following words or phrases as used in this Ordinance shall have the following meanings:
Except as herein provided, the definitions set forth in the Political Reform Act of 1974 (Government Code Section 81001 et seq.) shall govern the interpretation of this act. (a) As used in this Ordinance, “person” shall carry the same meaning as Government Code Section 82047. Government Code Section 82047 defines “person” as “an individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, limited liability company, association, committee, and any other organization or group of persons acting in concert.” (b)"Candidate" or “Office Holder” means anyone who is qualified to be listed on a ballot or is listed on a ballot or is qualified to have write-in votes cast on their behalf counted by elections officials for nomination or election to any elective office in the City of Baldwin Park, including anyone who receives a contribution, makes an expenditure, or gives their consent for another person to receive a contribution or make an expenditure, to bring about the person’s nomination or election to an elective office in the City of Baldwin Park. “Candidate” does not include any person seeking nomination or election for elective office outside of the offices of the City of Baldwin Park listed in section “(h)” below.
(c) "Committee" means any person or combination of persons formed for the purpose of promoting or opposing the election or reelection of a person to City elected office who directly or indirectly, (i) receives contributions, or (ii) makes independent expenditures or (iii) makes contributions at the behest of any City candidate within the meaning of California Government Code 82013. A campaign committee includes any "Controlled Committee" within the meaning of California Government Code section 82016, any "General Purpose Committee" within the meaning of California Government Code section 82027.5, any "Primarily Formed Committee" within the meaning of California Government Code section 82047.5, any "Sponsored Committee" within the meaning of California Government Code section 82048.7, or political action committee.
(d)"Contract" means a covenant or agreement, a promise or set of promises, for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. This definition does not include any “Contract” that does not go before the City Council and is not approved by the City Council. (e) "Contractor" shall mean any person or entity that has an existing contract, agreement, or other arrangement to provide the City with goods, services, or other items, or who has an interest in or expectation of obtaining such a contractual arrangement in the future. The term shall include any agent or representative of the Contractor and where the Contractor is a business entity shall include all owners, shareholders, principals, partners, members, officers, directors, and managers.
(f) "Contribution" or “Contribute” means a payment, gifts as defined by the Political Reform Act, a forgiveness of a loan, a payment of a loan by a third party, or an enforceable promise to make a payment, for any elective office in the City of Baldwin Park, except to the extent that full and adequate consideration is received or if it is clear from the surrounding circumstances that the payment is not made for political purposes. “Contribution” shall include the transfer of anything of value by a committee from another committee, unless full and adequate consideration is received. Notwithstanding anything in this Ordinance, a Candidate may transfer up to Five Thousand Dollars ($5,000) of post-election funds to their new campaign for elective office, or new campaign for the same elective office, if applicable. (g)"Developer" shall mean any person or entity who is currently seeking, or who has an interest in or expectation of seeking from the City a specific plan, zone change, development agreement, density bonus, subdivision tract map, conditional use permit, or an industrial or commercial use having a building area of 20,000 square feet or more. The term shall include any agent or representative of the Developer and where the Developer is a business entity shall include all owners, shareholders, principals, partners, members, officers, directors, and managers. (h)"Election" means any election for a City Councilmember for Baldwin Park, any election for Mayor of the City of Baldwin Park, and election for City Clerk of the City of Baldwin Park, and any election for Treasurer of the City of Baldwin Park, including a recall election for any of the above in the City of Baldwin Park. This definition does not include Water Board elections, School Board elections or any other elections not expressly stated herein.
(i) "Independent Expenditure" shall have the same meaning as set forth under California Government Code section 82031.
(j) "Political Action Committee" refers to any committee or organization as defined in California Government Code Section 82048.7 or Section 84222. (k)"Project" means any activity for which a permit from the City is required, including but not limited to, construction, deconstruction, demolition, conversion, and renovation. This definition shall not include permits pulled by the homeowner of a single family home related to home improvement and home repairs. This definition shall also not include “Exempt Projects” as set forth in section 53.14(B) of the Baldwin Park Municipal Code.
(l) "Vendor" means any person or entity that has an existing contract, agreement, or other arrangement to provide the City with goods, services, or other items, or who has an interest in or expectation of obtaining such a contractual arrangement in the future.
The term shall include any agent or representative of the Vendor and where the Vendor is a business entity shall include all owners, shareholders, principals, partners, members, officers, directors, and managers.
SECTION 40.03. Campaign Contribution Limit. A person shall not make to a candidate for elective city office for the City of Baldwin Park, and a candidate for elective city office for the City of Baldwin Park shall not accept from a person, a contribution, totaling more than Seven Hundred and Fifty Dollars ($750) per election cycle where the Candidate or Officer Holder who is the beneficiary of the Contribution or Independent Expenditure is on the ballot or is a write-in Candidate or seeking nomination/appointment for the officer. In other words, this Contribution limit does not reset after each City election, it only resets after the Office Holder’s election.
Campaign Contributions may only be solicited from October the year before an Election through February of the year following an Election.
In addition, any primarily formed Committee that makes contributions or Independent Expenditures supporting or opposing a candidate or candidates in Baldwin Park Elections shall not accept from any person a contribution or contributions totaling more than seven hundred fifty dollars ($750.00) for each election in which the Candidate or Candidates are on the ballot or are write-in candidates.
Any and all contributions solicited or accepted pursuant to this Ordinance shall be expended only in connection with the candidacy for the office specified in the candidate's declaration of intent to solicit and receive contributions or for any valid purpose as defined in Political Reform Act of 1974, as amended, or the fair political practices commission regulations interpreting the act, unless otherwise expressly noted in this article.
No Candidate or Officeholder, the controlled Committee of such a person, or a primarily formed Committee which will make any contribution and/or Independent Expenditures in a municipal election as defined in 40.02(h), shall accept any Contribution except between eighteen (18) months prior to an election and December 31 immediately following an election as defined in 40.02(h), where the Candidate or Officeholder who is the beneficiary of the Contribution or Independent Expenditure is on the ballot.
A Committee may not change its status from the type of Committee that is reported on its statement of organization to any other type of Committee between the period that is eighteen (18) months prior to an election and December 31 immediately following an election.
SECTION 40.04. Contributions by Developers. A Developer shall not contribute to a Candidate for elective city office for the City of Baldwin Park (40.02(h), and a Candidate for elective city office for the City of Baldwin Park shall not accept from a Developer, a Contribution, while the Developer has a Project pending approval by the City Council for the City of Baldwin Park or is presently in negotiations with the City for entitlements for a Project within the City of Baldwin Park and for six (6) months after the Project or entitlements are approved. If no project is pending before the City Council and no entitlement request is pending before the City Council, Developers are also limited to a Contribution totaling no more than Seven Hundred and Fifty Dollars ($750) per election (40.02(h).
SECTION 40.05. Contributions by Vendors. A Vendor shall not Contribute to a Candidate for elective city office for the City of Baldwin Park (40.02(h)), and a Candidate for elective city office for the City of Baldwin Park shall not accept from a Vendor, a Contribution, while the Vendor has a Contract pending approval, either through an RFP process, RFQ process or otherwise, by the City Council for the City of Baldwin Park or is presently doing business with the City of Baldwin Park. If a Vendor has no Contract pending before the City Council and is not currently doing business for the City, Vendors are also limited to a Contribution totaling no more than Seven Hundred and Fifty Dollars ($750) per election.
SECTION 40.06. Contributions from Personal Funds. The provision of Sections 40.03,
40.04, and 40.05 do not apply to a candidate’s contributions from the candidate’s personal funds to the candidate’s own campaign. Notwithstanding the foregoing, a candidate may not make loans to the candidate’s self or to the candidate’s campaign or any committee in support thereof in excess of ten thousand dollars ($10,000) per election. Nothing in this Section shall prohibit a Candidate from making unlimited contributions from his or personal funds to the Candidate’s campaign as long as it is not a loan and will not be repaid from the Candidate’s campaign fund or account.
SECTION 40.08. Adjustment to Contribution Limit. The contribution limit set forth in Section 40.03 shall be automatically adjusted every two years by the City Council, City Clerk, City Manager, or other authority to reflect the percentage changes in the California Consumer Price Index (“CPI”) beginning January 1, 2023. Any increase or decrease in contribution limit based on the CPI shall be rounded to the nearest ten ($10.00) and no hundredths of a dollar.
SECTION 40.09. Enforcement for Violations. Any person who knowingly or willing violates this Ordinance shall be guilty of a misdemeanor. Any person convicted of a misdemeanor under the provision of this Ordinance shall be punished by a fine of not more than three times the amount of the Contribution or by imprisonment in the county jail for a period not less than one (1) day and not to exceed six months, or by both such fine and imprisonment. Any person convicted under this section must serve at least one day In County jail as a minimum sentence in addition to any fine imposed as described herein.
SECTION 40.09.01 Cure Period for Violations. There will be a fourteen (14) day cure period, from the time a Candidate is notified of the violation, for a Candidate to address the complaint (either by returning excess funds or contesting the complaint) before a determination of guilt is established, sentence imposed and a fine is issued.
SECTION 40.09.02 Enforcement by the FPPC. The City will contract with the FPPC to receive complaints and enforce violations of this Ordinance. If for any reason there is no contract in place with the FPPC to receive complaints and enforce violations, complaints will be received by the City Clerk and enforced by the CEO of the City pursuant to due process procedures identified in the Baldwin Park Municipal Code including, but not limited to, Chapter 15; Administrative Enforcement of Code Violations.
SECTION 40.09.03 Liberal Construction Section. All general provisions, terms, phrases and expressions contained in this Code shall be liberally construed in order that the true intent and meaning of the city council may be fully carried out.
SECTION 40.10. Applicability of AB 571. By this Resolution, the City is adopting a campaign contribution limit in accordance Government Code Section 85702.5. By operation of law, the provisions of the Government Code Sections 85305; 85306; 85307; 85315; 85316; 85317; and 85318 no longer apply within the jurisdiction of the City to candidates for elective office.
SECTION 40.11. Loans:
A. Except as provided in subsections C and D of this section, a loan shall be considered a contribution from the maker and the guarantor of the loan and shall be subject to the contribution limitations of this Ordinance.
B. Every loan to a Candidate or the Candidate's controlled Committee shall be by written agreement and such written agreement shall be filed with the Candidate's or committee's campaign statement on which the loan is first reported.
C. The proceeds of a loan made to a Candidate by a commercial lending institution in the regular course of business on the same terms available to members of the public and which is secured or guaranteed shall not be subject to the contribution limitations of this article.
D. During the election cycle, no candidate shall personally make loans to the candidate's campaign or the candidate's committee which total more than ten thousand dollars ($10,000.00).
E. Extensions of credit ( other than loans pursuant to subsections C and D of this section) for a period of more than thirty (30) days are subject to the contribution limitations of this article.
F. Nothing in this section shall prohibit a Candidate from making unlimited contributions to the candidate's campaign from his or her personal funds.
SECTION 40.12. Aggregation of Payments. For purposes of the contribution limitations in this article the following shall apply:
A. All payments made by a Person, as defined in this Ordinance and/or the Political Reform Act of 1974, as amended, whose Contribution or expenditure activity is financed, maintained or controlled by any corporation, labor organization, association, political party or any other person or committee, including any parent, subsidiary, branch, division, department or local unit of the corporation, labor organization, association, political party or any other person, or by any group of such persons shall be considered to be made by a single person or committee.
B. Two (2) or more entities shall be treated as one person when any of the following circumstances apply: 1. The entities share the majority of members of their boards of directors. 2. The entities share two (2) or more officers. 3. The entities are owned or controlled by the same majority shareholder or shareholders. 4. The entities are in a parent-subsidiary relationship.
C. An individual and any general partnership in which the individual is a partner, or an individual and any corporation in which the individual owns a controlling interest, shall be treated as one person.
SECTION 40.13. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions 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 phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional. _________________________________
SECTION 40.14. Political Action Committee and or Independent Expenditure Identification
________________________________
Any Political Action Committee as defined herein must file documents with the City Clerk identifying the Political Action Committee and identifying the FPPC number of the PAC before any monies may be expended by the PAC in any City of Baldwin Park election as defined in 40.02(h).
______________
Any Person who makes an Independent Expenditure in any City of Baldwin Park Election as defined herein must file documents with the City Clerk identifying the Committee or Person who will make the Independent Expenditure and identifying the FPPC number of the Person or Committee before any monies may be expended by in any City of Baldwin Park election as defined in 40.02(h).
PASSED, APPROVED AND ADOPTED by the City Council of the City of City of Baldwin Park at the regular meeting of this _____th day of , 2022.
Ayes:
Noes:
Absent:
Abstain:
By:
Mayor of the City of Baldwin Park
ATTEST:
By:
City Clerk of the City of Baldwin Park
AGENDA
BALDWIN PARK FINANCE AUTHORITY
VIRTUAL REGULAR MEETING
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 February 16, 2022
7:00 PM
THE COUNCIL CHAMBER WILL BE CLOSED TO THE PUBLIC
Audio Streaming will be available at:
https://www.youtube.com/channel/UCFLZ0_dDFRjy59rhiDZ13Fg/featured?view_as=subscriber http://baldwinpark.granicus.com/ViewPublisher.php?view_id=10 Audio Streaming Simultaneously in Spanish will be available at:
https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA Emmanuel J. Estrada - Chair
Daniel Damian - Vice Chair
Alejandra Avila - Board Member
Monica Garcia - Board Member
Paul C. Hernandez - Board Member
PUBLIC COMMENTS
The public is encouraged to address the
City Council or any of its Agencies listed
on this agenda on any matter posted on
the agenda or on any other matter within
its jurisdiction. In accordance with
Chapter 39 of the Baldwin Park Municipal
Code, Speakers must address the
Council as a whole and refrain from
making impertinent, slanderous, or
profane remarks or disrupt the peace of
the meeting.
COMENTARIOS DEL PÚBLICO
Se invita al público a dirigirse al Concilio o
cualquiera otra de sus Agencias nombradas en
esta agenda, para hablar sobre cualquier asunto
publicado en la agenda o cualquier tema que
esté bajo su jurisdicción. De acuerdo con el
capítulo 39 del Código Muni cipal de la Ciudad
de Baldwin Park, los comentaros deben se
dirigidos al Concilio como una sola entidad, y no
ser impertinentes, difamatorios, o profanos, o
interrumpir la paz de la reunión.
FINANCE AUTHORITY
VIRTUAL REGULAR MEETING – 7:00 PM
CALL TO ORDER
ROLL CALL
Board Members: Alejandra Avila, Monica Garcia, Paul C. Hernandez, Vice Chair Daniel Damian, and Chair Emmanuel J. Estrada
PUBLIC COMMUNICATIONS
THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL
PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist.
The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2]
ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO
FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acción en algún asunto a menos que sea incluido en la agenda, o a menos que exista algúna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o preguntas hechas por personas; o 2) Dirigir personal a investigar y/o fijar asuntos para tomar en consideración en juntas proximas. [Codigo de Gobierno §54954.2]
If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 7:00 PM to 8:00 PM on February 16, 2022 to [email protected]. You will be contacted by a staff member and will be granted 3 (three) m inutes to speak live during the meeting . If you are a non-English Speaker and require translation services in anoth er language other than Spanish, please indicate your request in your communication up to 48 hours prior to the meeting. If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced). A one hour limit may be placed on the time for public communications so that City busin ess can be conducted, after which time, communications can resume.
CONSENT CALENDAR
1. Treasurer’s Report – December 2021
Staff recommends that the Board receive and file the Treasurer’s Report for December 2021.
ADJOURNMENT
PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 2nd Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 960 -4011 ext. 466 or via e -mail at [email protected].
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II)
CERTIFICATION
I, Marlen Garcia, Secretary of the Finance Authority hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 10th day of February, 2022.
Marlen Garcia,
City Clerk
________ _________
STAFF REPORT
ITEM NO. 1
TO: Honorable Chair and Board Members of the Financing
Authority
FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: Treasurer’s Report – December 2021
SUMMARY
Attached is the Treasurer’s Report for the month of December 2021. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDATION
Staff recommends that the Board receive and file the Treasurer’s Report for December 2021.
FISCAL IMPACT
None
BACKGROUND
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Exhibit “A”, Treasurer’s Report
AGENDA
BALDWIN PARK HOUSING AUTHORITY
VIRTUAL REGULAR MEETING
COUNCIL CHAMBER - 14403 E. Pacific Avenue, Baldwin Park, 91706 February 16, 2022
7:00 PM
THE COUNCIL CHAMBER WILL BE CLOSED TO THE PUBLIC.
Audio Streaming will be available at:
https://www.youtube.com/channel/UCFLZ0 dDFRjy59rhiDZ13Fg/featured?view as=subscriber _ _ http://baldwinpark.granicus.com/ViewPublisher.php?view id=10 _ Audio Streaming Simultaneously in Spanish will be available at:
https://www.youtube.com/channel/UC3bPFBIHcoPIks1XqetmGcA Emmanuel J. Estrada - Chair
Daniel Damian - Vice Chair
Alejandra Avila Board Member
Monica Garcia - Board Member
Paul C. Hernandez - Board Member
PUBLIC COMMENTS
The public is encouraged to address the
City Council or any of its Agencies listed
on this agenda on any matter posted on
the agenda or on any other matter within
its jurisdiction. In accordance with
Chapter 39 of the Baldwin Park Municipal
Code, Speakers must address the
Council as a whole and refrain from
making impertinent, slanderous, or
profane remarks or disrupt the peace of
the meeting.
COMENTARIOS DEL PÚBLICO
Se invita al público a dirigirse al Concilio o
cualquiera otra de sus Agencias nombradas en
esta agenda, para hablar sobre cualquier asunto
publicado en la agenda o cualquier tema que
esté bajo su jurisdicción. De acuerdo con el
capítulo 39 del Código Muni cipal de la Ciudad
de Baldwin Park, los comentaros deben se
dirigidos al Concilio como una sola entidad, y no
ser impertinentes, difamatorios, o profanos, o
interrumpir la paz de la reunión.
HOUSING AUTHORITY
VIRTUAL REGULAR MEETING – 7:00 PM
CALL TO ORDER
ROLL CALL
Board Members: Alejandra Avila, Monica Garcia, Paul C. Hernandez, Vice Chair Daniel Damian, and Chair Emmanuel J. Estrada
PUBLIC COMMUNICATIONS
Three (3) minute speaking time limit
Tres (3) minutos será el limite para hablar
THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL
PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER No ac tion m ay be t aken on a m atter un less i t is l isted o n t he agenda, or u nless c ertain em ergency or s pecial circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting. [Government Code §54954.2]
ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO
FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETE No se podra tomar acción en a lgún asunto a menos que s ea incluido en la agenda, o a menos que exista algúna emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a declaraciónes o pr eguntas hec has por per sonas; o 2) D irigir per sonal a i nvestigar y /o f ijar as untos par a tomar e n consideración en juntas proximas. [Codigo de Gobierno §54954.2] If you wish to comment on agenda items, please email your name, City of residence, item number and a phone number where you will be available between the hours of 7:00 PM to 8:00 PM on February 16, 2022 to [email protected]. You will be contacted by a staff member and will be granted 3 (three) minutes to speak live during the meeting. If you are a non-English Speaker and require translation services in anoth er language other than Spanish, please indicate your request in your communication up to 48 hours prior to the meeting . If large numbers of persons wishing to speak are gathered (a reduction of the speaking time allotted for each speaker may be announced).
A one hour limit may be placed on the time for public communications so that City business can be conducted, after which time, communications can resume.
CONSENT CALENDAR
1. Baldwin Park Housing Authority’s Warrants and Demands Staff recommends that the Board ratify the attached Warrants and Demands Register.
2. Treasurer’s Report – December 2021
Staff recommends that the Board receive and file the Treasurer’s Report for December 2021.
ADJOURNMENT
PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for pub lic viewing and inspection at City Hall, 2 nd Floor Lobby Area or at the Los Angeles County Public Library in the City of Baldwin Park. For further information regarding agenda items, please contact the office of the City Clerk at (626) 960 -4011 ext. 466 or via e -mail at [email protected].
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Public Works Department or Risk Management at (626) 960-4011. Notification 48 hours prior to the meeting will enable staff to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE II)
CERTIFICATION
I, Marlen Garcia, Secretary of the Housing Authority hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this 10th day of February, 2022.
Marlen Garcia,
City Clerk
_________ ________
STAFF REPORT
ITEM NO. 1
TO: Honorable Chair and Board Members of the Housing
Authority
FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: Baldwin Park Housing Authority’s Warrants and Demands
SUMMARY
Attached are the Warrants and Demands Registers for the City of Baldwin Park Housing Authority to be ratified by the Board.
RECOMMENDATION
Staff recommends that the Board ratify the attached Warrants and Demands Register.
FISCAL IMPACT
The total of the Warrants and Demands for Housing Authority was $ 518,670.79.
BACKGROUND
The attached Claims and Demands report format meets the required information as set out in the California Government Code. Staff has reviewed the requests for expenditures for the appropriate budgetary approval and for the authorization from the department head or its designee. Pursuant to Section 37208 of the California Government Code, the Chief Executive Officer or his/her designee does hereby certify to the accuracy of the demands hereinafter referred. Payments released since the previous meeting and the following is a summary of the payment released:
1. The January 11 to February 3,2022 Warant check numbers 72522 through 72533 in the amount of 6,579.09 and Automated Clearing House (ACH) In the amount of $512,091.70 were made on behalf of City of Baldwin Park Housing Authority constituting of claims and demands, are herewith presented to the Board as required by law, and hereby ratified.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Happy Check Register
2. Happy Check Register ACH
________ _________
STAFF REPORT
ITEM NO. 2
TO: Honorable Chair and Board Members of the Housing Authority FROM: Rose Tam, Director of Finance
DATE: February 16, 2022
SUBJECT: Treasurer’s Report – December 2021
SUMMARY
Attached is the Treasurer’s Report for the month of December 2021. The Treasurer’s Report lists all cash for the City which includes the Baldwin Park Financing Authority, the Housing Authority, and the Successor Agency to the Community Development Commission (CDC). All investments are in compliance with the City’s Investment Policy and the California Government Code.
RECOMMENDATION
Staff recommends that the Board receive and file the Treasurer’s Report for December 2021.
FISCAL IMPACT
None
BACKGROUND
City of Baldwin Park Investment Policy requires the Treasurer’s Report be submitted to the Mayor and City Council on a monthly basis.
LEGAL REVIEW
Not Applicable
ATTACHMENT
1. Exhibit “A”, Treasurer’s Report