Agenda — Calimesa City Council, February 6, 2023 (part 2 of 3)

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governmental laws, ordinances and regulations applicable to the use of such Lot and its occupancy.
(b) Prohibited Uses.
(i) No portion of the Common Area of a Lot shall be used for outside storage, manufacturing or assembly of materials or equipment. (ii) No Lot shall be used for a business or use which (A) creates strong, unusual or offensive odors, fumes, dust or vapors which are objectionable to the other Owners; (B) is a public or private nuisance; (C) emits noises or sounds which are objectionable to the other Owners due to intermittence, beat, frequency, shrillness or loudness; or (D) creates unusual fire, explosive or other hazards.

Intentionally Omitted.

Signs. There shall be no signs, banners or similar advertising media allowed on the Lots, except directional signs, handicap parking signs and signs on Buildings. All exterior Building signs shall be restricted to identification of the businesses or services located or provided on the applicable Lot and shall conform to (i) all applicable governmental laws, ordinances and regulations and (ii) the Sign Program (if any). Declarant, its successors and assigns, may erect and maintain such signs and other advertising devices or structures as it may deem necessary or proper in connection with the conduct of its operations for the development, improvement, leasing and sale of the Property and Lots therein.

Parking, Drive Areas, and Sidewalks.
(a) The parking area on each Lot shall contain sufficient parking spaces in order to comply with all applicable governmental laws, ordinances and regulations without reliance on parking spaces located on any other Lot. The Owner and its Permittees shall park only in the parking spaces located on such Owner’s Lot. All parking, drive and loading areas shall be paved and striped (including any restriping) in accordance with (i) plans on file with the Community Development Department for the City, (ii) plans approved by the Association, and (iii) all applicable laws, ordinances and regulations, including without limitation the Americans with Disabilities Act of 1990, 42 USC 12111 et seq., as the same may be amended from time to time. (b) There shall be no overnight parking, (excluding overnight employees and contractors of Occupants, provided that (i) any additional lighting required by such Occupants shall be borne solely by the Occupant requesting additional lighting and (ii) the Association may impose any such conditions including without limitation, duration and location restrictions deemed necessary by the Association). (c) No automobile, recreational vehicle or equipment, commercial vehicle, automobile, or any other motorized vehicle may be dismantled, rebuilt, repaired, serviced or repainted on the Property except within a Building, unless authorized by the Association. The foregoing restriction shall not be deemed to prevent temporary parking

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for loading or unloading of vehicles. No motor vehicle may be parked on any public streets abutting or within the Property.
(d) As used in this Section, “recreational vehicle or equipment” shall include without limitation, trailers, boats, motorcycles, personal watercraft, campers, trailer coaches, buses, house cars, camp cars, motor homes (if a size larger than seven (7) feet in height and/or greater than one hundred thirty-eight (138) inches in wheel base length), or any other similar type of equipment or vehicle.
(e) As used in this Section, “commercial vehicle” shall be defined as a truck of greater than three-quarter (3/4) ton capacity and any vehicle with a sign displayed on any part thereof advertising any kind of business or on which racks, materials and/or tools are visible. The type of motor vehicle license plate shall not be material to the foregoing definition.
(f) Each Owner’s parking rights shall also be subject to reservation of a proportionate number of parking spaces throughout the Property for handicap reserved parking as determined by Declarant. The Association shall, in connection with its maintenance of the Common Area Improvements of the Property, paint and cause to be maintained, all handicap stalls designated by the Association as reserved for such purposes. There shall be no parking in any designated loading area or loading zone. No vehicles shall be unattended and unmoved on the Property for more than ten (10) hours.

Any disputes with respect to parking may be referred to the Association, which the Association may (but shall not be obligated to) review and settle, in its sole discretion. (g) All parking for the Property shall be in compliance with the laws and ordinances of the City. The Association has full power (but not the obligation) to enforce the parking within the Property and any parking violations, including, without limitation, the right to call local police to issue citations or tow the vehicles (at the expense of the Owners of such vehicles) which are violating the parking rules of the Association or the laws or ordinances of the City. The Association may include in the Association Rules for the regulation of the admission and parking of vehicles including, without limitation, commercial vehicles and employee and Owner parking within the Property. (h) All private roadways, sidewalks, and open space areas shall be maintained so that they are safe for users. Significant pavement cracks, pavement distress, excessive slab settlement, abrupt vertical variations, and debris on travel ways shall be removed or repaired promptly.

General Construction Requirements.
(a) Manner of Performance. All work performed in the construction, maintenance and repair of any Building, landscape or other improvements located on a Lot shall be effected as expeditiously as possible and in such a manner as not to unreasonably interfere, obstruct or delay (i) access to or from the other Lots, or any part thereof, or to or from any public right-of-way, (ii) construction work being performed on the other Lots, or (iii) the use, enjoyment or occupancy of the other Lots by the other

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Owners or their occupants. Unless otherwise specifically stated herein, the Owner shall, at its sole cost and expense, promptly repair and restore all Buildings and Common Area improvements damaged or destroyed in the performance of such work. (b) Staging. Staging for the construction, maintenance and repair of any Building or other improvements located on any Lot, including, without limitation, the location of any temporary Buildings or construction sheds, the storage of building materials, and the parking of construction vehicles and equipment, shall be limited to and take place only on that Lot. At the request of another Owner, the applicable Owner shall fence off such staging and storage areas.
(c) Standard of Work. All work performed in the construction, maintenance and repair of any Building or other Improvements located on any Lot shall be done in a good and workmanlike manner and in accordance with good engineering standards. (d) Mechanics’ Liens. If any mechanics’, materialman’s, architects’, or other design or construction liens shall be filed against any Lot for any work done or materials furnished in connection with any other Lot (“Improved Lot”), the Owner of the Improved Lot shall cause the lien to be satisfied and released of record. Such Lot Owner shall, within thirty (30) days after the filing of such lien, either (i) cause any such outstanding lien or claim of lien to be released of record or transferred to bond in accordance with applicable law, or (ii) give such assurances as would enable a title insurance company to insure over said outstanding lien or claim of lien, failing both of which the other Owners shall have the right, at such Owner’s expense, to transfer said lien to bond. The Owner of the Improved Lot shall indemnify, defend, protect and hold the other Owners and their respective officers, directors, shareholders, employees and agents harmless for, from and against any and all causes of action, claims, liability, losses, damages, costs, expenses (including reasonable attorneys’ fees and court costs), liens and claims of lien arising out of or in any way connected with the performance of such work. (e) Temporary License. Each Owner hereby grants to the other Owners a temporary license for access and passage over and across the Common Area located on the granting Owner’s Lot, to the extent reasonably necessary for such Owner to construct and/or maintain improvements upon its Lot; provided, however, that such license shall be in effect only during periods when actual construction and/or maintenance is being performed, and provided further that the use of such license shall not unreasonably interfere with the use and operation of the Common Area on the granting Owner’s Lot.

Prior to exercising the rights granted herein, an Owner shall provide each granting Owner with a written statement describing the need for such license. The Owner shall promptly pay all costs and expenses associated with such work, shall complete such work as quickly as possible, and shall promptly clean and restore the affected portion of the Common Area on the granting Owner’s Lot to a condition which is equal to or better than the condition which existed prior to the commencement of such work. Notwithstanding the foregoing, if a dispute exists between the contractors, laborers, suppliers and/or others connected with such construction activities, the granting Owner shall have the right to prohibit the contractors, laborers, suppliers and/or others working for an Owner from using the Common Area on the granting Owner’s Lot.

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(f) Indemnity. In addition to any other indemnification set forth in this Declaration, each Owner shall indemnify, defend, protect and hold the other Owners, and their respective officers, directors, shareholders, employees and agents harmless for, from and against any and all causes of action, claims, liabilities, losses, costs, expenses (including reasonable attorneys’ fees and court costs) and damages, arising out of or related to injury or to death of any person or damage to or destruction of any property (i) arising out of or resulting from any construction activities performed by or at the request of such Owner or its Occupants, or (ii) occurring within such Lot. (g) Debris. During all construction on a Lot, the Owner undertaking such work shall keep the construction site and surrounding areas clean and free of construction materials, trash and debris, and shall take appropriate precautions to protect against personal injury and property damage to the other Owners and their Permittees.

Hazardous Materials.
(a) Restriction on Hazardous Materials. No Hazardous Material (as defined in Section 8.07(c) below) shall be brought upon, kept, used, generated or stored in or around any Lot, except in compliance with all applicable Environmental Regulations (as defined in Section 8.07(c) below), and then only to the extent that such Hazardous Material is necessary in the ordinary course of business conducted on such Lot. Without limiting the foregoing, in the event of a violation of any Environmental Regulation on a Lot, the respective Lot Owner shall promptly take all actions at its sole expense as are necessary to correct such violation to the satisfaction of applicable governmental entities. (b) Indemnity. If an Owner breaches its obligations under Section 8.07(a) above, or if a Hazardous Material is at any time released or found to exist on a Lot (except to the extent caused by the other Owners), then such Owner shall indemnify, defend, protect and hold the Association, Declarant, and the other Owners, and each of them, and their respective officers, directors, shareholders, employees and agents, harmless from and against any and all causes of action, claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys’ fees and court costs) arising out of such breach or the existence of such Hazardous Material. The obligation to indemnify, defend, protect and hold the other Owners harmless as set forth herein shall survive the expiration of this Declaration.
(c) Definitions. As used herein, the term “Hazardous Material” means: (i) any waste, material or substance (whether in the form of a liquid, a solid or a gas and whether or not air-borne), which is deemed to be a pollutant or a contaminant, or to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful or injurious to public health or to the environment, and which is or may become regulated by or under the authority of any applicable local, state or federal laws, judgments, ordinances, orders, rules regulations, codes or other governmental restrictions or requirements, any amendments or successor(s) thereto, replacements thereof or publications promulgated pursuant thereto (collectively “Environmental Regulations” and individually, an “Environmental Regulation”); (ii) petroleum and hydrocarbons, whether crude or refined, and any fraction or mixture thereof; (iii) asbestos; (iv) polychlorinated biphenyls; and (v)

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any radioactive material. The term “Environmental Regulations” means local, state and federal laws, judgments, ordinances, orders, rules, regulations, codes and other governmental restrictions and requirements, any amendments and successors thereto, replacements thereof and publications promulgated pursuant thereto, which deal with or in any manner relate to Hazardous Material.

Rubbish. All rubbish, trash and garbage shall be regularly removed from the Lots and shall not be allowed to accumulate thereon. All exterior refuse containers, woodpiles, storage areas, machinery and equipment shall be prohibited without the prior written approval of the Board.

Landscaping.
(a) Maintenance. All berms and landscaping areas within the Property shall be maintained in first-class condition and repair, said maintenance to include, without limitation, the following: (i) landscaping shall be evenly groomed, evenly edged, free of bare or brown spots, debris, and weeds; (ii) trees and shrubs shall be trimmed so they do not impede vehicular or pedestrian traffic; (iii) trees shall be pruned so they do not intrude into walkways or drive aisles; (iv) trees shall be maintained so they do not have excessive droppings or create other nuisances to neighboring Lots; (v) trees within the vegetative barrier shall be maintained in a healthy state and groomed equally to prevent the occurrence of a vegetative gap; and (vi) trees shall be root pruned to eliminate exposed surface roots and damage to sidewalks, driveways, and Improvements. (b) Recycled Water Irrigation System.
(i) Installation of Irrigation. All landscaping shall be served by an inground recycled water irrigation system that is designed, installed or modified in compliance with the City design standard and procedures and with the YVWD Policies and Standards. YVWD is responsible for the approval of irrigation plans and inspections of all dual plumbed recycled water irrigation and exterior potable water systems within a Lot. Owners must obtain prior approval for all proposed modifications to the in-ground recycled water irrigation system located on their Lot. Changes must be submitted to and approved by the Architectural Committee and YVWD prior to any modifications.
(ii) Recycled Water Irrigation System. The Lots are served by two (2) water supply systems, including a separate recycled water meter and system installed for landscaping irrigation. Each Owner’s installation of an irrigation system serving the Owner’s Lot is also required to be connected to the recycled water system. All landscaping irrigation systems are required to be connected to the recycled water systems; in no case will irrigation be connected to the drinking water systems. The Project is supplied with recycled water for landscape irrigation by YVWD. Owners are required to comply with YVWD Polices and Standards when designing, installing or modifying a recycled water landscape irrigation system, and the work must be approved by YVWD prior to work beginning. Once plans have been approved by YVWD and after initial

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construction of proposed systems, an open trench inspection must be scheduled with YVWD by the Owner prior to covering any water line. In no case shall irrigation or drinking water lines be covered before inspection by YVWD.

YVWD requires that a Declaration of Restrictions Regarding Recycled Water be Recorded over an Owner’s Lot as part of the irrigation system approval process for each such Lot, and YVWD reserves the right to periodically enter each such Lot to inspect recycled water irrigation systems and to test for prohibited crossconnection of irrigation and potable water systems. (iii) Irrigation System Design, Installation or Modification. Before commencing the design, installation or modification of a recycled water irrigation system on a Lot, Owners must obtain from YVWD, the then-current YVWD Policies and Standards for recycled water residential irrigation systems.

Thereafter, Owners must comply with all YVWD Policies and Standards for recycled water irrigation systems. Besides the information about YVWD’s recycled water program in this Declaration, additional information is available directly from YVWD, either by visiting its website at
http://www.yvwd.dst.ca.us/contact-us, or by contacting YVWD at 909-797-5117. (iv) Prevent Overspray, Runoff and Ponding. Irrigation systems should be designed and operated to prevent overspray, runoff and ponding. Irrigation spray nozzles must be installed to prevent overspray onto paved surfaces, as directed by YVWD Policies and Standards. Unless otherwise provided in the YVWD Policies and Standards, a buffer zone around landscaped areas irrigated with recycled water spray nozzles must be designated and installed to prevent overspray and run-off. The buffer zone may be irrigated with a drip system only.

Recycled water shall be applied at a rate that does not exceed the infiltration rate of the soil.
(v) Separation from the Building. Unless otherwise provided in the YVWD Policies and Standards, irrigation systems should be designed and operated to minimize overspray coming in contact with the Building. A five-foot mulch separation is required from the exterior walls of the Building to the irrigation system spray. Irrigation for the five-foot mulch area of separation may be provided by a drip system.
(vi) Separation from Driveways and Sidewalks. Unless otherwise provided in the YVWD Policies and Standards, a two-foot mulch separation is required from the exterior driveway and sidewalks of the Building to the irrigation system spray. This two-foot mulch area of separation is intended to create a buffer zone to prevent runoff and overspray. The irrigation of the two-foot mulch area of separation may be provided by a drip system.
(vii) Protection of Outdoor Eating Areas. Unless otherwise provided in the YVWD Policies and Standards, outdoor eating areas must be separated and protected from overspray from areas irrigated with recycled water.

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(viii) Water Features. Unless otherwise provided in the YVWD Policies and Standards, outdoor water features must be approved, prior to installation by the Architectural Committee and YVWD.
(ix) Hose Bibs. Hose bibs are not allowed to be connected to the recycled water system.
(x) Wi-Fi Weather Controlled Irrigation Controllers. Unless otherwise provided in the YVWD Policies and Standards, each Building will be equipped with internet-connected weather-controlled irrigation control systems. These systems will be connected remotely to internet weather data through the wi-fi serving the Building to prevent irrigation before, during, and 48 hours after a storm event.
(xi) Maintenance. Owners are responsible for the following maintenance of the recycled water irrigation systems on their Lot:
(A) Perform regular inspections of the entire recycled water systems, including sprinkler heads, drip irrigation system emitters, spray patterns, water lines and valves. Immediately repair all broken or faulty sprinkler heads that cause overspray, leakage or ponding, all leaking water lines and valves, and any other conditions that violate the recycled water use requirements. (B) Check all recycled water identification signs, tags stickers and above-grade water line markings for their proper placement and legibility.

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(xiii) Site Supervisor Transfer Due to Owner Transfer. If an Owner’s Lot is transferred to a new Owner or Occupant, the recycled water customer must notify YVWD within 10 days after the transfer to receive a new Recycled Water Use Permit. The Owner of a Lot occupied by an Occupant remains responsible for proper use of recycled water on the Lot and for notifying the Occupant or new Owner of the recycled water requirements.
(xiv) Landscape Companies. Landscape companies hired by Owners to preform landscape and irrigation maintenance must have completed Site Supervisors training offered by YVWD and be on the approved landscape company list provided by the Association.
(xv) Inspection and Testing Requirements. YVWD personnel have the right to visit an Owner’s Lot, after giving the Owner prior written notice, to inspect the recycled water systems and use. YVWD may also enter the Owner’s Lot immediately if an emergency arises related to recycled water. (A) YVWD will inspect the installation of the Owner’s
recycled water irrigation system. A landscape irrigation plan must be submitted and approved before any construction of the recycled water irrigation system may begin. The irrigation system must comply with YVWD’s Policies and Standards.

YVWD’s Policies and Standards are available from the Association and YVWD’s website.
(B) YVWD will inspect the construction of the separate potable and recycled water systems and must be notified two working days in advance of the desired inspection date by the contactor or the Owner. In no case shall the irrigation lines or drinking water lines extending into the Lot be covered before inspection from YVWD. If directed by YVWD, the Owner shall perform all changes or modify the recycled water irrigation system to fully comply with YVWD Policies and Standards. If the irrigation system is installed and covered prior to an open trench inspection, the system must be exposed and corrected as directed by YVWD. Failure to comply may result in termination of service. (C) Inspection and testing of the separate drinking water and recycled water systems will be in accordance with YVWD Policies and Standards and the California Department of Drinking Water policies. (D) Before connection of recycled water service, and annually thereafter, YVWD will inspect the exterior drinking water system and recycled water irrigation systems on a Lot. The Owner shall be responsible for providing access to and cooperating with YVWD and its representatives necessary to the performance of cross-connection inspections and other system inspections required. The Owner will be responsible for correcting any work that violates YVWD’s Policies and Standards at its sole expense.

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(1) Cross Connection and Back Flow Device
Inspections. The primary purpose of a cross-connection program is to protect the drinking water system from possible contamination by prohibiting and preventing cross-connections between the drinking water system and the recycled water system, in accordance with Title 17, Chapter 5 of the California Code of Regulations. Title 22, Section 60316(a) requires that “the recycled water system shall also be tested for possible cross-connections at least once every four years.” (2) Backflow Prevention Devices. For the protection of
the drinking water system, a backflow prevention device is required at drinking water service connections to Lots where recycled water is used.

Inspection of backflow prevention devices shall be done at least once a year, or more often in those instances where successive inspections indicate repeated failures. Replacement of the backflow devices will be at the sole expense of the Owner.
(xvi) Enforcement and Compliance. Failure of an Owner to comply with any or all the YVWD Polices and Standards may subject such Owner to penalties and enforcement actions specified in the YVWD Policies and Standards. (xvii) Water Softeners. No Owner may install, replace, enlarge or use a water softener of any type without the prior written approval of YVWD. Any person installing or operating a water conditioning apparatus of any kind shall make such apparatus accessible to the YVWD staff for inspection at reasonable times.

Water Quality Protection.
(a) Compliance with Law. To protect the quality of our nation’s waters, a number of federal, state and local laws, ordinances, rules, regulations and orders prohibit the discharge of anything other than natural rain water into storm drain systems, including gutters and streets that drain into storm drains. These governmental requirements include the Clean Water Act, the National Pollution Discharge Elimination System, orders and permits of the State Water Resources Control Board and the Regional Water Quality Control Board, the ordinances and regulations of the City and County, any Storm Water Pollution Prevention Plan, and the WQMP covering the Property. Each Owner and the Association shall comply with, and cause its contractors to comply with, all such governmental requirements and the requirements of any other applicable governmental agency regarding the use, storage and disposal of pesticides, fungicides, herbicides, insecticides, fertilizers and other such chemicals, which such compliance shall include the effective establishment, operation, management, use, repair, and maintenance of all of the Common Areas, drainage facilities, and pollution prevention devices set forth in the WQMP. Owners and the Association should consult with the City, County, other governmental authorities, and their refuse hauler regarding the proper disposal of any Hazardous Materials.

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(b) Owner/Association Responsibilities. Most discharges of anything other than natural rain water into storm drain systems are unlawful and may result in significant penalties and fines. Neither an Owner nor the Association shall discharge or permit any of the following to be disposed in the Property or discharged into any street, gutter, storm drain or storm water conveyance system: toxic or hazardous chemicals, hydrocarbon compounds such as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservatives, fertilizers, lawn clippings, yard waste, detergents, pet waste, or other Hazardous Materials. Each Owner and the Association shall indemnify, protect, defend and hold Declarant and its officers and directors harmless from any and all claims, liability, actions, penalties or damages (including attorney’s fees, experts’ fees and costs) arising from or attributable to the Owner’s or Association’s failure to comply with the requirements of this Section 8.10(b).
(c) BMPs. The WQMP for the Property describes Best Management Practices or “BMPs”, which are methods, protocols and procedures for the control, reduction and prevention of storm water and pollutant runoff from the Property into storm drains and waterways. The BMPs applicable to the Property are specified in the WQMP, and they include both “source control” BMPs (which are structural or design requirements), and “non-structural” BMPs (which include maintenance requirements for the Association and practices and procedures that must be followed by the Association and by all the Owners), all of which are discussed in the WQMP. The Association shall operate and maintain the BMPs designated for the Association in accordance with the WQMP. BMPs designated for the Owners are the sole responsibility of the Owner of the affected Lot, provided that if the Owner of the Lot fails or refuses to perform the required BMP, then the Association may after prior written notice to the Owner, perform or maintain the Owner’s BMP at the Owner’s cost. No Owner whose Lot contains any Drainage and Water Quality Improvements shall permit interference with or damage to same, and neither the Association nor any Owner shall do any act which shall contribute to the introduction of pollutants into the Drainage and Water Quality Improvements, including, but not limited to, soil, sand, sediment, oil, gasoline or other hydrocarbons, paint, fertilizers, pool chemicals, and other household chemicals.

ARTICLE IX

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ARTICLE X

INSURANCE AND INDEMNIFICATION
Right and Duty of Association to Insure. The Association shall obtain and continue in effect the following types of insurance:
(a) Liability Insurance. Commercial general liability insurance in an amount not less than three million dollars ($3,000,000.00), combined single-limit coverage per occurrence, or in such greater amount per occurrence or in the aggregate as the Association may from time to time determine, covering all claims for personal injury and property damage on the Common Area;

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(b) Property Insurance. Fire insurance with extended coverage in an amount as near as possible to the full replacement value of all Common Area Improvements, without deduction for depreciation. Such insurance shall be maintained by the Association as named insured for the benefit of the Association, the Owners and all Mortgagees as their interests may appear, subject, however, to loss payment requirements as set forth herein;
(c) Officer and Director Insurance. Fidelity coverage against dishonest acts on the part of directors, officers, employees, volunteers or managers who handle or who are responsible to handle the funds of the Association, and such fidelity bonds shall name the Association as obligee, shall be written in an amount equal to one hundred fifty percent (150%) of the estimated annual operating expenses of the Association, including reserves and shall contain waivers of any defense based on the exclusion of persons who serve without compensation or from any definition of “employee” or similar expression; and
(d) Other Insurance. Such other insurance as the Board deems necessary, including, without limitation, errors and omissions, medical payments, malicious mischief, and vandalism insurance, workers’ compensation and such other risks as shall customarily be covered with respect to planned developments similar in construction, location and use of the Property.

Premiums. The premiums for any and all such insurance maintained by the Association shall constitute a portion of the Common Expenses to be included in the Regular Assessments levied by the Association and collected from the Owner.

Trustee for Policies. The Association, acting through its Board, shall appoint a trustee (“Trustee”) for the interest of all named insureds under policies of insurance purchased and maintained by the Association. Except as provided below, all insurance proceeds payable under Section 10.011 hereof, requiring fire and extended coverage insurance, shall be paid to the Trustee. The Trustee shall hold, distribute and expend such proceeds for the benefit of the Owners, Mortgagees and others, as their respective interests shall appear, pursuant to the provisions of Article XI hereof, entitled “Damage or Loss to Improvements”. The Trustee shall be appointed by the Board and shall be a commercial bank, or branch thereof, or a trust company, or branch thereof, in the County, which has agreed in writing to accept such trust.

When proceeds from a single claim do not exceed ten thousand dollars ($10,000), such proceeds shall be paid to the Association to be used as provided in Article XI, entitled “Damage or Loss to Improvements”. When proceeds from a claim relate to the Improvements insured by the Owners, such proceeds shall be paid to the applicable Owner. Except as otherwise expressly provided above, insurance proceeds shall be disbursed by the Trustee to the Association for use by the Association for the repair or replacement of the Property for which the insurance was carried or otherwise disposed of as provided in this Article X. The Board is hereby granted the authority to negotiate loss settlements with the appropriate insurance carriers, with participation, to the extent they desire. Any two Members of the Board may sign a loss claim form and release form in connection with the settlement of a loss claim, and such signatures shall be binding on all the named insureds.

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Actions as Trustee. Except as otherwise specifically provided in this Declaration, the Board, acting on behalf of the Association and all Owners, together with the Trustee, shall have the exclusive right to bind such parties in respect to all matters affecting insurance carried by the Association, the settlement of a loss claim, and the surrender, cancellation, and modification of all such insurance. Duplicate originals or certificates of all policies of fire and casualty insurance carried by the Association and of all renewals thereof, together with proof of payment of premiums, shall be delivered by the Association to all Mortgagees who have requested the same in writing.

Annual Insurance Review. The Board shall review the insurance carried by the Association at least annually for the purpose of determining the amount of the insurance referred to in Section 10.01 above. Prior to each such annual review, the Board shall obtain a current appraisal of the full replacement value of all Common Area Improvements, without deduction for depreciation, by a qualified independent insurance appraiser. Notwithstanding the requirement for annual review, the insurance policies carried by the Association shall, to the maximum extent possible, provide for automatic adjustments of coverage levels to reflect the changes in costs resulting from inflation.

Required Waivers. All insurance obtained by the Association shall be maintained by the Association for the benefit of the Association, the Owners and the Mortgagees as their interests may appear. All policies of physical damage insurance shall provide, if reasonably possible, for waiver of the following rights, to the extent that the respective insurers would have the right without such waivers: (a) subrogation of claims against Occupants of the Owners, (b) any defense based on coinsurance; (c) any right of set-off, counter-claim, apportionment, proration or contribution by reason of other insurance not carried by the Association; (d) any invalidity, other adverse effect or defense on account of any breach of warranty or condition caused by the Association, any Owner or any Occupants of any Owner, or arising from any act, neglect, or omission of any named insured or the respective agents, contractors and employees of any insured; (e) any right of the insurer to repair, rebuild or replace, and, if the Improvement is not repaired rebuilt or replaced following loss, any right to pay under the insurance, an amount less than the replacement value of the Improvements insured or the fair market value thereof; (f) notice of the assignment of any Owner of its interest in the insurance by virtue of a conveyance of any Lot; and (g) any right to require any assignment of any Mortgage to the insurer. As to each policy of insurance maintained by the Association which will not be voided or impaired thereby, the Association hereby waives and releases all claims against the Board, the Owners, Declarant, and the agents and employees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by negligence of or breach of any agreement by said persons, but only to the extent that insurance proceeds are received in compensation for such loss.

Right and Duty of Owners to Insure.
(a) Liability Insurance. Each Owner shall, at its sole cost and expense, carry or cause to be carried commercial general liability insurance applying to the use, operation and occupancy of its Lot and the Common Area having a minimum combined single limit of liability of at least Two Million Dollars ($2,000,000.00) and a general

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aggregate limit of at least Two Million Dollars ($2,000,000.00), or in such other minimum amount as the Board may from time to time determine. (b) Property Insurance. Each Owner shall cause to be carried 100% full insurable replacement cost fire and extended coverage “all risk” property insurance on all Buildings and Improvements on their respective Lots in amounts at least sufficient to raze and demolish all the Buildings and Improvements located on the respective Lot. (c) General Requirements. All of the policies of insurance maintained or caused to be maintained by the Owners shall: (a) contain a provision that said policy or policies shall not be canceled or terminated, or coverage reduced below the levels required to be maintained hereunder, or expire by their terms, without thirty (30) days prior written notice to the Owner and all additional insureds; (b) provide for severability of interest; (c) provide for contractual liability coverage, naming all other Owners (including the Declarant) and the Association as additional insureds, endorsed to cover said Owner’s agreement to indemnify as set out in Section 10.09 below; and (d) be primary and non-contributory. Each Owner agrees to furnish to any other Owner requesting same a certificate affirming that: (i) such insurance is in full force and effect; (ii) the premiums have been paid in full; (iii) the appropriate parties are designated as additional insureds as required by this Declaration; and (iv) the policy contains, to the maximum extent possible, waivers of subrogation of claims against Declarant, the Association, the Board, the officers of the Association and all other Owners. Such liability insurance shall be carried by an insurance company or companies qualified to do business in the state in which the Project is located with a Best’s Key Rating of at least an A- and a financial rating of VII.

Waiver of Subrogation. If any Owner suffers a loss or damage, and such loss or damage is covered under any policy of insurance that such Owner actually maintains or is required to maintain pursuant to this Declaration, then such Owner hereby releases the other Owners and the Association to and from any and all liability for each such loss or damage, notwithstanding that such loss, damage or liability may arise out of the negligent or intentionally tortious act or omission of the other Owners, the Association their agents, officers or employees and/or notwithstanding that such Owner has failed to maintain the insurance policy required to be maintained by it under this Declaration. All insurance that is carried by any Owner under this Declaration to insure against damage or loss to such Owner’s property shall include provisions denying to each respective insurer rights of subrogation and recovery against the other Owners, Declarant, the Association, the Board, and officers of the Association .

Owner’s Indemnification. Each Owner (the “Indemnifying Owner”) hereby agrees to defend, indemnify and hold harmless the other Owners and the Association from and against all demands, claims, causes of action or judgments, and all reasonable expenses incurred in investigating or resisting the same, for injury to person, loss of life or damage to property (i) occurring on the Indemnifying Owner’s Lot, except if caused by the negligence or willful act or omission in whole or in part of the Association, any other Owner or the Occupants of such other Owner or the employees, contractors or agents of such other Owner or Occupants, or (ii) occurring on another Owner’s Lot if caused by the sole negligence, willful act or omission

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of the Indemnifying Owner or the Occupants of the Indemnifying Owner or the employees, contractors or agents of such Indemnifying Owner or Occupants.

ARTICLE XI

DAMAGE OR LOSS TO IMPROVEMENTS
Restoration of Common Area Improvements. If any portion of the Common Area Improvements is totally or partially destroyed by fire or other casualty, the Board shall cause reconstruction to commence by the earlier of (i) thirty (30) days of the Association’s receipt of the insurance proceeds payable by reason of such destruction, or (ii) ninety (90) days after each destruction, and to thereafter be diligently and continuously prosecuted to completion within a reasonable period of time. The Trustee shall pay to the Board all insurance proceeds payable by reason of such destruction and the Board shall apply such proceeds to the costs of reconstruction. The Board shall be authorized to have prepared the necessary documents to effect such reconstruction as promptly as practical. The Common Area Improvements shall be reconstructed or rebuilt substantially in accordance with the original construction plans if such plans are available, with such changes as are recommended by the Architectural Committee, subject to the provisions of Article VI. If the amount available from the proceeds of such insurance policies for such restoration and repair shall be less than the estimated cost of restoration and repair, a Reconstruction Assessment shall be levied by the Board upon the Owners and their Lots in order to provide the necessary funds for such reconstruction over and above the amounts of any insurance proceeds available for such purpose. Reconstruction Assessments shall be borne by the Owners in the same proportions as Regular Assessments.

Negotiations with Insurer. The Board shall have full authority to negotiate in good faith with representatives of the insurer of the Common Area, and to make settlement with the insurer for less than full insurance coverage on the damage to the Common Area. Any settlement made by the Board in good faith shall be binding upon all Owners.

Restoration of Buildings and Improvements. If a Building or Improvement on a Lot is damaged or destroyed, the Owner shall, at its sole cost, promptly raze the Improvements and thereafter maintain the Lot as an undeveloped parcel in accordance with the covenants and restrictions set forth in this Declaration, or rebuild the Building in accordance with the covenants and restrictions set forth in this Declaration, in a lawful and workmanlike manner and which such reconstruction shall be completed as promptly as practical.

ARTICLE XII

CONDEMNATION
Definition of Taking. The term “taking” as used in this Article shall mean condemnation by eminent domain, or by sale under threat thereof, of all or part of the Property.

Taking of Common Areas. In the event of a taking with respect to the Common Areas, the Board shall, subject to the right of all Mortgagees who have requested the right to join the Board in the proceedings, represent all of the Members in any condemnation action or inverse condemnation to recover all awards. No Member shall challenge the good faith exercise of the discretion of the Board in fulfilling its duties under this Section. The Board is

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further empowered, subject to the limitations herein, as the sole representative of the Members, in all aspects of condemnation proceedings not specifically covered herein.

Notice to Owners. The Board, immediately upon having knowledge of any taking or threat with respect to the Property, or any portion thereof, shall promptly notify all Owners.

Taking of Lots. Notwithstanding anything to the contrary herein, each Owner shall represent its own interest in connection with any condemnation action or inverse condemnation proceeding that relates to its Lot.

ARTICLE XIII

DEFAULT
Enforcement. The Association and any Owner, including Declarant, shall have the right to enforce by proceedings at law or in equity all covenants, conditions, restrictions, easements, reservations, liens and charges now or hereafter imposed by this Declaration, as amended and supplemented, the Articles and Bylaws, including, without limitation, the right to prosecute a proceeding at law or in equity against the person or persons who have violated or are attempting to violate any of these covenants, conditions restrictions, easements, reservations, liens or changes to enjoin or prevent them from doing so, to cause said violation to be remedied or to recover damages for said violation. Nothing herein contained shall be deemed to require Declarant to enforce any covenant, condition, restriction, easement, reservation, lien, charge or provision hereof.

Cure. Should any Owner fail to comply with any of the provisions of this Declaration and should any such failure of an Owner continue for a period of thirty (30) days following written notice of such failure from the Association, the Association shall have the right, but not the duty, to correct any such non-compliance by an Owner, and the cost thereof shall be reimbursed by such Owner to the Association, and if any such costs incurred by the Association are not paid to the Association within thirty (30) days after the Association has furnished a statement therefor, the Association shall have the right, but not the duty, to levy a Special Assessment against such Owner to cover such costs of maintenance and repair or correction, of such noncompliance. No one or more failures or refusals by the Association to accomplish such compliance which an Owner shall have failed to perform shall be deemed a waiver of the right in the Association to perform such work at a later time as to the same or different work or compliance.

Attorneys’ Fees. In any legal or equitable proceeding for the enforcement, or to restrain the violation, of these restrictions or any provisions hereof, the losing party shall pay to the prevailing party the reasonable attorneys’ fees, costs and expenses incurred in connection with the prosecution or defense of such action. All remedies provided herein or at law or in equity shall be cumulative and not exclusive.

No Waiver. Failure by the Declarant, the Association, or an Owner to enforce any covenant, condition, restriction, easement, reservation, lien or charge herein contained shall in no event be deemed a waiver of the right to do so thereafter.

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No Termination. No breach of or default under this Declaration shall entitle any Owner to terminate this Declaration, but such limitation shall not affect in any manner any other rights or remedies which such Owner may have hereunder or by reason of any breach or default under this Declaration or at law or in equity.

Enforcement by City. Should (i) any Owner fail to comply with any provision of this Declaration in which the City has an interest or (ii) the Association fail to comply with any provision of this Declaration in which the City has an interest, the City shall have the right, but not the duty, to correct any such failure, and the cost thereof shall be reimbursed by such Owner or the Association, as applicable, to the City, and if any such costs incurred by the City are not paid to the City within thirty (30) days after the City has furnished a statement therefor, the cost to correct such failure, together with interest thereon and costs of collection thereof, shall be a continuing lien upon any interest in the Lot of the Owner who failed to reimburse the City or in the Common Area of the Association.

ARTICLE XIV

GENERAL PROVISIONS
Negligence or Willful Misconduct. The cost of any maintenance services required to be performed by the Association which are caused by the negligence or willful misconduct of any Owner, or an Owner’s Occupants or Permittees shall be borne entirely by such Owner.

Assignment of Declarant Rights and Duties. Any and all of the rights, powers and reservations of Declarant set forth herein may be assigned to any person, provided such assignee agrees in writing to accept such assignment and to assume the duties of Declarant pertaining thereto.

Covenants to Run with the Land; Term. The covenants, conditions and restrictions of this Declaration shall be perpetual, shall run with and bind the Property, and shall inure to the benefit of each individual Owner of the Property or any portion thereof.

Construction By Declarant. Nothing in this Declaration shall limit the right of Declarant to alter the Lots owned by Declarant, or to construct such improvements thereon as Declarant deems necessary or advisable, provided the same is done in accordance with applicable law. Nothing in this Declaration shall limit the right of Declarant to sell, convey or lease the Lots owned by it. This Declaration shall not limit the right of Declarant at any time to establish on the Project while owned by Declarant additional licenses, reservations, easements and rights-of-way to itself, to utility companies, or to others as may from time to time be reasonably necessary for the proper development and disposal of the Project, provided that no such additional licenses, reservations, easements or rights-of-way shall unreasonably interfere with the use and enjoyment of any Owner’s Lot. Declarant reserves the right to alter its construction plans and designs as it deems appropriate in its discretion.

Liability of Declarant; Hold Harmless. In no event shall Declarant, or any of its agents, employees, partners, members, directors or officers, be liable to any Owner, tenant, Permittee or other Person for any loss, claim, damage, demand, cause of action, liability or

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expense suffered or incurred on account of any finding, decision, approval or disapproval, course of action, mistake in judgment, nonfeasance, action or inaction, enforcement or failure to enforce any Owner obligations, error, negligence or the like made pursuant to this Declaration, except only for a party’s willful misconduct or wanton and reckless conduct. Every Owner, tenant and other Person who now or hereafter owns, occupies or acquires any right, title, estate or interest in or to any Lot has or shall be conclusively deemed to have waived and agreed not to bring any action or suit for damages for equitable relief against Declarant, or any of its agents, employees, partners, members, directors or officers, except solely for an action seeking injunctive relief to specifically enforce this Declaration.

Amendments. This Declaration may be amended only by an instrument in writing signed by not less than two-thirds (2/3rds) of the voting power of the membership of the Association; provided, however, this amendment provision shall not be amended to allow amendments by the assent or vote of less than two-thirds (2/3rds) of the voting power of the membership of the Association. If a Lot is owned by more than one Owner, any one of the coOwners may sign such instrument in writing on behalf of all co-Owners. Any amendment must be properly recorded in the Official Records.

No Merger of Ownership. Declarant is currently the owner of all of the Property as of the date hereof, but upon conveyance of fee title of a Lot to an entity other than Declarant, said entity shall become an Owner. Notwithstanding Declarant’s common ownership of the Property, such common ownership shall not cause a merger of any of the easements, rights and benefits granted hereunder for the benefit of any Lot over another Lot, nor cause a merger of any of the obligations or burdens placed hereunder upon a Lot for the benefit of another Lot.

Notices. Any notice to be given to the Association, the Declarant or an Owner under the provisions of this Declaration shall be in writing and shall be delivered as follows:
(a) Notice to the Association shall be deemed to have been properly delivered when delivered personally or sent by certified mail, postage prepaid, return receipt requested, to the address furnished by the Association or the address of its principal place of business.
(b) Notice to Declarant shall be deemed to have been properly delivered when delivered personally or sent by certified mail, postage prepaid, return receipt request to:

Oak Valley Development Company LLC
P.O. Box 645
Calimesa, California 92320
Attn: John Ohanian
(c) Notice to all Owners shall be deemed to have been properly delivered when delivered personally or placed in the first class United States Mail, postage prepaid, to the most recent address furnished by such Owner in writing to the Association for the purpose of giving notice, or if no such address shall have been furnished, then to the

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street address of such Owner’s Lot. Any notice so deposited in the mail within Riverside County shall be deemed delivered forty-eight (48) hours after such deposit.

Invalidity of Provision. If any provision of this Declaration, or the application thereof to any person or any circumstance, shall be held by a court of competent jurisdiction to be invalid, void or illegal, the remaining provisions hereof and the application of such provision to any person and any circumstance other than those as to which it is held to be invalid, void or illegal, shall nevertheless remain in full force and effect to the maximum extent permitted by law and not be affected thereby.

Counterparts. This Declaration may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute one agreement.

Construction. The provisions of this Declaration shall be liberally construed to effect its purpose; the section headings have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.

Dedications. The provisions of this Declaration shall not be deemed to constitute a dedication for public use nor create any rights to the general public.

Entire Agreement. This Declaration contains the entire agreement and supersedes all prior agreements (either oral or written) with respect to the subject matter hereof.

Joint and Several. If any Owner is composed of more than one Person, the obligations of such Owner shall be joint and several.

Time of Essence; Force Majeure. Time is of the essence with respect to the performance of each obligation of this Declaration. Whenever performance is required by any Person, such Person shall use all due diligence to perform and take all necessary measures in good faith to perform; provided, however, that if completion of performance shall be delayed at any time by reason of acts of God, war, civil commotion, riots, strikes, picketing or other labor disputes, unavailability of labor or materials, damage to work in progress by reason of fire or other casualty, or any other cause beyond the reasonable control of such Person, then the time for performance as herein specified shall be extended by the amount of the delay actually so caused.

Notwithstanding the foregoing, the provisions of this Section shall not operate to excuse any Person from the prompt payment of any monies required by this Declaration to be paid.

Consent of the City.
(a) Condition of Approval. The Conditions of Approval require the City to review and approve this Declaration for the Property.
(b) Acknowledgement by Declarant. Declarant acknowledges that the City has reviewed this Declaration and that its review is limited to a determination of whether this Declaration properly implements the requirements of the Conditions of Approval.

The City’s consent to this Declaration does not contain or imply any approval of the appropriateness or legality of the other provisions of this Declaration, including, without

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limitation, the use restrictions, private easements and encroachments, private maintenance requirements, architecture and landscape controls, assessment procedures, assessment enforcement, resolution of disputes or procedural matters. (c) Conflict. In the event of a conflict between the Conditions of Approval of the land use entitlements issued by the City for the Property or federal, state, or local laws, ordinances, and regulations and this Declaration, the provisions of the Conditions of Approval and federal, state, or local laws, ordinances, and regulations shall prevail, notwithstanding the language of this Declaration.
(d) Amendment or Termination of the Declaration. Any amendment of this Declaration that alters, modifies, terminates, or changes (i) the Association’s obligation to maintain the Common Areas or the Project perimeter wall, (ii) other provisions of this Declaration in which the City has an interest, or (iii) the City's right to enforce maintenance of the Common Areas shall require the prior approval of the City. Written notice of any proposed amendment to a section identified in the foregoing sentence, along with a copy of such proposed amendment, shall be given to the City Attorney, City Engineer, and Director of Community Development for the City and shall be deemed disapproved unless specifically approved by the City in writing.

ARTICLE XV

RECYCLED WATER DISCLOSURE
Use for Irrigation. All Lots and the Common Area in the Project are required, as of the date this Declaration is recorded, to use in-ground irrigation systems supplied with recycled water by YVWD, for the irrigation of landscaping. Recycled water shall not be used for any purpose other than irrigation. Each Lot will include two (2) separate water meters and water systems - one for drinking (potable) water, and one for landscape irrigation using recycled water. Exterior hose bibs (water spigots) are connected to the drinking water system.

Modification or relocation of the drinking water meter or the recycled water meter and the associated water systems, which results in nonconformance with any YVWD Policies and Standards, is prohibited. Irrigation systems installed by or on behalf of Owners must comply with YVWD Policies and Standards, must be approved by YVWD prior to installation or modification of the irrigation system, and must be inspected prior to backfill of excavations, as described in Sections 8.09(b)(i) and 8.09(b)(ii), above. YVWD requires that a Declaration of Restrictions Regarding Recycled Water (“Recycled Water Declaration”) be recorded over an Owner’s Lot as part of the irrigation system approval process for each such Lot. Under the Recycled Water Declaration, if the Lot is rented, the Lot Owner remains responsible for proper use of recycled water on the Lot, and for notifying an Occupant or a new Owner of the requirements associated with recycled water. Also, YVWD reserves the right to periodically enter each such Lot to inspect recycled water irrigation systems and to test for prohibited crossconnection of irrigation and potable water systems.

Description of Recycled Water. Recycled water comes from wastewater and it goes through at least three stages of treatment in compliance with the standards set by California’s Department of Health Services and Regional Water Quality Control Board, but recycled water may not be treated to levels required for consumption by humans or domestic

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animals. Recycled water irrigation water lines and equipment are purple in color for ready identification. All Persons in the Project should always assume that water originating from purple irrigation water lines and equipment is recycled, and therefore is never suitable for human or domestic animal consumption. There is no way to reliably tell the difference between potable water and recycled water without a chemical test. Owners and the Association should ensure that there is no overspray of irrigation water. The repeated spray of any water used in irrigation may stain or discolor personal property, fences, walls and other Improvements.

Role of YVWD. YVWD is responsible for the approval of plans and inspections of all separate recycled water irrigation and exterior drinking water systems within the Project. Where repair or replacement of a water line on the upstream-side of the water meter is required, it shall be the responsibility of YVWD. Conversely, the cost of repair or replacement of the water service facilities on a Lot shall be the responsibility of the Owner. The Association will provide YVWD information to the Owners regarding recycled water and will provide facilities where YVWD can conduct workshops on recycled water use. The Association through its Site Supervisor, approved by YVWD, is responsible for the maintenance of all Common Area landscape irrigation systems.

YVWD reserves the right to utilize other water supplies in the recycled water system without notice to any Person. Generally this will involve utilizing raw water or potable water.

Neither Declarant, the Association, nor their officers, directors, employees or agents are liable for any property damage or personal injury caused by recycled water. Further information concerning recycled water is available at the YVWD’s main office at 12770 Second Street Yucaipa, CA 92399, and at its website: http://www.yvwd.dst.ca.us/home. [SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, Declarant has executed this Declaration on the date first herein above written.
“Declarant” OAK VALLEY DEVELOPMENT COMPANY LLC.,
a Texas limited liability company
By:

Name:

Title:

APPROVED AS TO CONTENT:

By:

Name:

Title:

APPROVED AS TO FORM:

By:

Name:

Title:

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ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California )
County of ____________ )
On _________________________, before me, ,
(insert name of notary)
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)

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CONSENT AND SUBORDINATION
The undersigned, _____________________________, (“Lender”), being the lender under that certain , by and between
and , dated as of , and recorded
, as Instrument No. in the Official Records of Riverside County, California (the “Deed of Trust”), hereby consents to the execution and recordation of the foregoing Declaration of Covenants, Conditions and Restrictions and Grant of Easements (the “CC&Rs”) to which this Subordination is attached and agrees that the Deed of Trust shall be subject and subordinate to the CC&Rs.

IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed as of the ____ day of _____________, 2022.
_____________________________________
By:

Name:

Title:
[CORPORATE SEAL]

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State of California )
County of ______________________ )
On _________________________, before me, ,
(insert name of notary)
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)

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EXHIBIT “A”
-1-
EXHIBIT “A”

PROPERTY LEGAL DESCRIPTION

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EXHIBIT “B”

SITE PLAN

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RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

QR BIRTCHER OAK VALLEY OWNER LLC
450 Newport Center Drive, Suite 220
Newport Beach, CA 92660
Attention: Brandon R. Birtcher
(Space Above For Recorder’s Use)

DECLARATION OF

COVENANTS, CONDITIONS AND RESTRICTIONS
AND

GRANT OF EASEMENTS
FOR

BIRTCHER OAK VALLEY COMMERCE CENTER

CALIMESA, CALIFORNIA
Attachment 8F

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DECLARATION OF

COVENANTS, CONDITIONS AND RESTRICTIONS
AND

GRANT OF EASEMENTS

BIRTCHER OAK VALLEY COMMERNCE CENTER

THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND GRANT OF EASEMENTS (this “Declaration”) is made as of this ____ day of __________________, 2022, by QR BIRTCHER OAK VALLEY OWNER LLC, a Delaware limited liability company (“Declarant”).

R E C I T A L S:

A. Declarant is the owner of that certain real property located in the City of Calimesa (the “City”), County of Riverside (the “County”), State of California, more particularly described on Exhibit “A” attached hereto (the “Property”).

B. Concurrently with the recordation of this Declaration, Declarant is subdividing the Property into six (6) parcels (each, a “Lot,” and, collectively, the “Lots”) by Parcel Map No. 37862 (the “Map”).

C. The Map is being filed of record in accordance with the Community Development Department Conditions of Approval of Tentative Parcel Map No. 37862 (the “Conditions of Approval”).

D. Substantially concurrently with or following the filing of the Map, Declarant intends to incorporate into certain of the Lots additional lands contiguous to the Lots on the Map which have been or may be acquired by Declarant from owners of properties immediately appurtenant to the Lots, by purchase, lot line adjustment or otherwise, including without limitation the parcel of land appurtenant to Lot 1 described on Exhibit “A-2” attached hereto known as the “Tracy Mack Parcel” (which will become a part of Lot 1 and is included therein for all purposes of this Declaration), which upon conveyance to Declarant shall automatically be included in the Project an incorporated into the applicable Lot into which they are merged for all purposes of this Declaration
E. Declarant intends to develop and construct on the Property four (4) industrial/warehouse distribution buildings to be known as “Building A” (to be constructed on Lot 4), “Building B” (to be constructed on Lot 3), “Building C” (to be constructed on Lot 2) and “Building D” (to be constructed on Lot 1 inclusive of the adjacent Tracy Mack Parcel), each also a “Building” and collectively, the “Buildings”, as well as a truck trailer and vehicle storage facility (the “Wedge Parking Facility”) to be constructed on Lots 5 and 6 which are also known collectively as the “Wedge Lots”. The six (6) Lots, together with the four (4) Buildings, the Wedge Parking Facility and all related improvements to be constructed thereon as described herein are to be known collectively as “Birtcher Oak Valley Commerce Center” (the "Project").

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F. Declarant desires to provide for the construction, development, operation and maintenance of the Project as hereinafter provided as an industrial common interest development.

G. Certain of the Conditions of Approval required or recommended that covenants, conditions and restrictions and easements, in form approved by the City, be recorded encumbering the Property to assure compliance with various City requirements. This Declaration is being recorded in order to satisfy said Conditions of Approval and to establish and impose upon the Project mutually beneficial covenants, conditions, restrictions and easements for the purpose of implementing a uniform plan for the development and operation of a first-class industrial project so as to enhance and protect the value, desirability and attractiveness of the Project for the benefit of Declarant and all future Owners of the Lots and Buildings.

H. In connection therewith, Declarant deems it desirable to create a nonprofit corporation to which shall be delegated and assigned the powers of performing certain common maintenance and repairs within the Project, collecting and disbursing funds pursuant to the assessments and charges hereinafter created and referred to, and administering and enforcing these covenants, conditions and restrictions.

I. Oak Valley Commerce Center Owners Association, a nonprofit mutual benefit corporation, will be incorporated under the laws of the State of California for the purposes of exercising the powers and functions aforesaid. All Owners of a Lot within the Project shall automatically become Members of said Association and shall be subject to its powers and jurisdiction. The Association may not be terminated at any time without the prior approval of the City.

NOW, THEREFORE, Declarant hereby covenants, agrees and declares that all of the Project and each Lot therein and all improvements therein and thereon shall be held, conveyed, hypothecated, encumbered, leased, rented, used, occupied and improved subject to the following covenants, conditions, restrictions, rights, easements, all of which are declared to be for the benefit of the Project, and the Owners of each of the Lots comprising the Project and their successors and assigns. The covenants, conditions, restrictions and easements herein shall run with the Property and each of the Lots, shall be binding on all parties having or acquiring any right or title in the Property, any Lot or any part thereof, shall be for the benefit of each Owner of any portion of the Property or any Lot, shall inure to the benefit of and be binding upon, as the case may be, each successor in interest of the Owners thereof, and shall be imposed upon the Property and each Lot and every part thereof as equitable servitudes in favor of each and every portion thereof.

ARTICLE I

DEFINITIONS
The following terms (in addition to terms defined elsewhere in the Declaration), when used in this Declaration or in any amendment hereto, shall have the following meanings, unless the context clearly indicates otherwise:

Section 1.01 “ADA shall mean and refer to the Americans with Disabilities Act of 1990, 42 USC 12111 et seq., as the same may be amended from time to time.

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Section 1.02 “Articles” shall mean and refer to the articles of incorporation of the Association, and any amendments thereto.

Section 1.03 “Assessment(s)” shall mean and refer to any or all of the assessments hereinafter defined:
(a) “Regular Assessment(s)” shall mean and refer to a charge against any individual Owner or Owners of a Lot, and each such Owner’s Lot, for each such Owner’s respective share of regularly occurring Association Maintenance Expenses incurred by the Association to provide for and promote the health, safety and welfare of the Members of the Association and, in particular, for the maintenance and repair of any portions of the Project established pursuant to this Declaration as Association Maintenance Areas and the services and facilities devoted to this purpose and related to the use and enjoyment of the Association Maintenance Areas and establishing and maintaining reserves for such purposes.
(b) “Special Assessment(s)” shall mean and refer to a charge against a particular Owner or Owners and such Owner’s or Owners’ Lot(s), directly attributable to such Owner(s), as (i) Association Maintenance Expenses allocable to such Owner(s) which are not Regular Assessments specifically and periodically allocable as among designated Owners of Lots within the Property as provided herein, (ii) a reasonable fine or penalty levied by the Association for a violation by such Owner(s) of this Declaration, the Articles, Bylaws and Association Rules, (iii) reimbursement to the Association for costs incurred in bringing such Owner(s) or such Owner(s)’s Lot(s) into compliance with the provisions of this Declaration, the Articles, Bylaws and Association Rules, which costs shall include, without limitation, attorneys’ fees and costs, or (iv) certain costs incurred by the Association or Declarant for materials or services furnished to such Owner(s) or such Owner(s)’s Lot(s) at the request of such Owner(s) or on behalf of such Owner(s) as a result of such Owner(s) failure to maintain any portion of such Owner(s)’s Lot(s) in accordance with the provisions of this Declaration, or for material or services furnished with respect to an Association Maintenance Area as a result of the negligence or willful misconduct of such Owner(s), such Owner(s)’s Occupants or Permittees, or for excessive use or special use of the services or facilities provided by the Association. (c) “Capital Improvement Assessment(s)” shall mean and refer to a charge against any Owner(s) and each such Owner(s)’s Lot(s) representing such Owner(s)’s pro rata share of the cost to the Association for the installation, construction, unexpected repair or replacement of any capital improvements benefitting such Owner(s) as provided herein, including the necessary fixtures and personal property related thereto, with respect to any Association Maintenance Area or other portion of the Property upon which the Association may be required to install, construct, repair or replace any capital improvements as provided in this Declaration, which cost has not been provided for by insurance or reserves established by Regular Assessments paid by the Members or is otherwise not directly chargeable separately to an Owner or specific Owners as a Special Assessment.

Section 1.04 “Association” shall mean and refer to Oak Valley Commerce Center Owners Association, a nonprofit mutual benefit corporation, that will be incorporated under the

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laws of the State of California for purposes of exercising the powers and functions set forth in this Declaration.

Section 1.05 “Association Maintenance Area(s)” shall mean and refer to such portions of the Property, exclusive of all Buildings, within which Association Maintenance Improvements (as defined below) are designated herein to be maintained and repaired by the Association or which are hereafter established by any Owner or Owners as an area outside of the Buildings within which Association Maintenance Improvements are to be maintained by the Association at the expense of any individual Owner or Owners. The Association Maintenance Areas shall initially consist of the Building A&B Drainage Line Maintenance Area, the Building A&B Common Driveway Easement Maintenance Area, the Building A, B & Wedge Common Driveway Easement Maintenance Area, the Building A, B & Wedge Drainage Line Maintenance Area, and all areas immediately surrounding each and all of the Project Monument and Directional Signs.

Section 1.06 “Association Maintenance Area Improvements” shall mean and refer to those specifically designated Improvements situated within any Association Maintenance Areas which are to be maintained and repaired by the Association as provided in this Declaration including, without limitation, all Project Monument and Directional Signs, shared storm drainage lines, shared utility lines and equipment, shared screen walls and fences, shared trash enclosure walls and gates and exterior light poles and lighting comprising part of an Association Maintenance Area as described in this Declaration (all of which shall be owned by the Owners of the applicable Lots though maintained by the Association) and any real or personal property owned, leased, maintained or administered by the Association or over which the Association has an easement, for the common use and enjoyment of any Owners. Association Maintenance Area Improvements shall not include the surface area Improvements above any underground utility or drainage line Improvements which comprise Association Maintenance Area Improvements except to the extent the Association is required to repair any damage to such Improvements resulting from the exercise of the Association’s maintenance and repair obligations as to the below ground Association Maintenance Area Improvements.

Section 1.07 “Association Maintenance Expenses” shall mean and refer to the actual and estimated costs of: maintenance, management, operation (exclusive of the payment of any costs of utilities therefor), repair and replacement by the Declarant and/or the Association of all Association Maintenance Areas and Association Maintenance Area Improvements including costs of utilities servicing any Association Maintenance Improvements; unpaid assessments; costs for management and administration of the Association, including, without limitation, a property management fee payable to the Association and/or any third party property manager retained by the Association, and reasonable and customary compensation paid by the Association to accountants, attorneys, property management companies, consultants, architects, engineers, contractors and employees; premiums on all insurance maintained by the Declarant or the Association, if any, as provided herein and other insurance covering the Association Maintenance Area Improvements and the Board officers and agents of the Association; reasonable reserves as appropriate; the costs of bonding of the members of the Board, any professional managing agent or any other person handling the funds of the Association; amounts paid or incurred by the Association in collecting Assessments pursuant to Article IV hereof, including amounts expended to purchase a Lot in connection with the foreclosure of the Assessment lien against such Lot; and all other expenses incurred by the Association for any reason whatsoever in connection with the

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Association Maintenance Areas and the Association Maintenance Area Improvements, this Declaration or any amendment to this Declaration, the Articles or Bylaws or in furtherance of the purpose of the Association or in the discharge of any obligations imposed on the Association or the Board by this Declaration or any amendment to this Declaration.

Section 1.08 “Association Rules” shall mean and refer to the rules and regulations from time to time adopted by the Board pursuant to Section 7.01(n) below.

Section 1.09 “BMPs” shall mean “Best Management Practices,” which are methods, protocols and procedures for the control, reduction and prevention of stormwater and pollutant runoff from the Project into storm drains and waterways. The BMPs applicable to the Project are specified in detail in the WQMP.

Section 1.10 “Board” shall mean and refer to the Board of Directors of the Association, who shall be appointed and elected as provided in the Bylaws.

Section 1.11 “Building” shall mean any structural improvement on any Lot which is enclosed by exterior walls, floor and roof and is designed for human occupancy and/or the conduct within of activities and business by the Owner of such Lot, or such Owner’s Permittees, successors or assigns.

Section 1.12 “Building A” is defined in Recital D.

Section 1.13 “Building A Business Entry and Directional Signs” shall mean and refer to that certain entry monument sign structure to be constructed and situated on Lot 4 including the base, structure and Project logo and the Building A directional sign structure and signage to be situated on Lot 4 as shown on Exhibit “C-3” attached hereto including all electrical service and equipment and lighting equipment. The Building A Business Entry and Directional Signs including maintenance and repair of all Declarant/Project Owner and Occupant identification sign panels on such signs are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be borne solely by the Owner of Building A as provided in this Declaration.

Section 1.14 “Building A&B Business Entry and Directional Signs” shall mean and refer to those certain entry monument sign structures to be constructed and situated on Lots 3 and/or 4 at the driveway entrance to Building A and Building B at Singleton Road including the base, structure and Project logo and the directional sign structure and signage to be situated on Lot 3 and/or Lot 4 at the front and rear of Buildings A and B as shown on Exhibit “C-3” attached hereto including all electrical service and equipment and lighting equipment for such signs. The Building A&B Business Entry and Directional Signs including maintenance and repair of all Declarant/Project Owner and Occupant identification sign panels on each such sign are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be shared equally by the Owners of Building A and Building B as provided in this Declaration.

Section 1.15 “Building A&B Common Driveway Easement Maintenance Area” is shown on Exhibit “C-1” attached hereto.

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Section 1.16 “Building A&B Common Driveway Improvements” shall mean and refer to the shared wall of pump houses and trash enclosures serving both Building A and Building B, all red no parking area curb and gutter and driveway striping, the shared fence and screen wall and light poles and light pole bases running along the property line between Building A and Building B, all as and to the extent situated within the Building A&B Common Driveway Easement Maintenance Area as shown on Exhibit “C-1” attached hereto and including the fixtures, light bulbs, tubes and above and below ground electrical conduit and wiring for such exterior drive aisle lighting systems, but specifically excluding all below ground utility lines and improvements within the Building A&B Common Driveway Easement Maintenance Area which shall be the obligation of the Owners of Building A and Building B to maintain and repair. The Building A&B Common Driveway Improvements are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be shared equally by the Owners of Building A and Building B as provided in this Declaration.

Section 1.17 “Building A&B Drainage Line Maintenance Area” is shown on Exhibit “C- 2” attached hereto.

Section 1.18 “Building A&B Drainage Line Improvements” shall mean and refer to that certain below ground common storm drainage line to be installed within the Building A&B Drainage Line Maintenance Area as shown on Exhibit “C-2” attached hereto which provides shared common below grade drainage for Building A and Building B, specifically excluding all at grade drainage inlet Improvements which shall be the responsibility of the Building A Owner or Building B Owners to maintain and repair to the extent situated on either such Owner’s Lot. The Building A&B Drainage Line Improvements are to be maintained and repaired by the Association, the costs of which including costs incurred by the Association to restore any surface Improvements damaged in the course of maintaining or repairing the Building A&B Drainage Line Improvements shall be shared equally by the Owners of Building A and Building B as provided in this Declaration.

Section 1.19 “Building A, B & Wedge Common Driveway Easement Maintenance Area” is shown on Exhibit C-4” attached hereto.

Section 1.20 “Building A, B & Wedge Common Driveway Improvements” shall mean and refer to the shared common driveway situated between Building B and the Wedge Lots providing shared common access to and from Building A, Building B and the Wedge Lots and Roberts Road, the ADA path of travel concrete sidewalks, crosswalk striping and truncated domes providing path of travel from Building A, Building B and the Wedge Lots to Roberts Road and all red no parking curb and gutter situated within the Building A, B & Wedge Common Driveway Easement Maintenance Area as shown on Exhibit “C-4” attached hereto. The Building A, B and Wedge Common Driveway Improvements comprising same are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be shared by the Owners of Building A, Building B and the Wedge Lots as provided in this Declaration.

Section 1.21 “Building A, B & Wedge Drainage Line Maintenance Area” is shown on Exhibit “C-5” attached hereto.

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Section 1.22 “Building A, B & Wedge Drainage Line Improvements” shall mean and refer to that certain below ground common drainage line to be installed within the Building A, B & Wedge Drainage Line Maintenance Area as shown on Exhibit “C- 5” attached hereto which provides shared common drainage for Building A, Building B and the Wedge Lots, specifically excluding all at grade drainage inlet Improvements which shall be the responsibility of the Building A Owner, Building B Owner or Wedge Lots Owner to maintain and repair to the extent situated on such Owner’s Lot. The Building A, B and Wedge Drainage Line Improvements are to be maintained and repaired by the Association, the Association Maintenance Expenses for which including costs incurred by the Association to restore any surface Improvements damaged in the course of maintaining or repairing the Building A, Building B and Wedge Lots Drainage Line Improvements shall be shared by the Owners of Building A, Building B and the Wedge Lots as provided in this Declaration.

Section 1.23 “Building A, B & Wedge Business Entry and Directional Signs” shall mean and refer to the entry monument sign structures to be constructed and situated at the driveway entrance between Building B and the Wedge Lots at Roberts Road including its base, structure and Project logo and the directional sign structure and signage to be situated on Lot 3 as shown on Exhibit “C- 3” attached hereto including all electrical service and equipment and lighting equipment for such signs. The Building A, B & Wedge Business Entry and Directional Signs including maintenance and repair of all Declarant/Project Owner and Occupant identification sign panels on such signs are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be shared by the Owners of Building A, Building B and the Wedge Lots as provided in this Declaration.

Section 1.24 “Building B” is defined in Recital D.

Section 1.25 “Building B Drainage Line Maintenance Area” is shown on Exhibit “C-7” attached hereto.

Section 1.26 “Building B Drainage Line Improvements” shall mean and refer to that certain below ground common storm drainage line to be installed upon Lot 3 within the Building B Drainage Line Maintenance Area as shown on Exhibit “C-7” attached hereto which provides drainage for Building B. The Building Drainage Line Improvements are to be maintained and repaired by the Owner of Lot 3 at such Owner’s sole cost and expense as provided in this Declaration.

Section 1.27 “Building C” is defined in Recital D.

Section 1.28 “Building C Business Entry and Directional Signs” shall mean and refer to that certain entry monument sign structure to be constructed and situated on Lot 2 including the base, structure and Project logo and the Building A directional sign structure and signage to be situated on Lot 2 as shown on Exhibit “C- 3” attached hereto including all electrical service and equipment and lighting equipment for such signs. The Building C Business Entry and Directional Signs including maintenance and repair of all Declarant/Project Owner and Occupant identification sign panels on such signs are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be borne solely by the Owner of Building C as provided in this Declaration.

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Section 1.29 “Building D” is defined in Recital D.

Section 1.30 “Building D Business Entry and Directional Signs” shall mean and refer to that certain entry monument sign structure to be constructed and situated on Lot 1 including the base, structure and Project logo and the Building A directional sign structure and signage to be situated on Lot 1 as shown on Exhibit “C- 3” attached hereto including all electrical service and equipment and lighting equipment for such signs. The Building D Business Entry and Directional Signs including maintenance and repair of all Declarant/Project Owner and Occupant identification sign panels on such signs are to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be borne solely by the Owner of Building D as provided in this Declaration.

Section 1.31 “Bylaws” shall mean and refer to the bylaws of the Association, and any amendments thereto.

Section 1.32 “Declarant” shall mean QR Birtcher Oak Valley Owner LLC, a Delaware limited liability company, its successors, and any person to which it shall have assigned certain specific rights hereunder, in whole or in part, by express written assignment. Any such assignment may include some or all of the rights of Declarant and may be subject to such conditions or limitations as QR Birtcher Oak Valley Owner LLC may impose in its sole discretion. As used in this Section, “successor” means any person who acquires Declarant or substantially all of its assets, or who merges with Declarant by sale, merger, reverse merger, consolidation, sale of stock or assets, operation of law or otherwise.

Section 1.33 “Environmental Regulations” shall mean local, state and federal laws, judgments, ordinances, orders, rules, regulations, codes and other governmental restrictions and requirements, any amendments and successors thereto, replacements thereof and publications promulgated pursuant thereto, which deal with or in any manner relate to or regulate Hazardous Material.

Section 1.34 “Freeway Monument Sign” shall mean and refer to that certain freeway pylon sign to be constructed and situated on Lot 1 as shown on Exhibit “C-3” attached hereto including its base, structure, pole cover, City of Calimesa logo, Project logo and all electrical service and equipment and lighting equipment. The Freeway Monument Sign is to be maintained and repaired by the Association, the Association Maintenance Expenses for which shall be shared by the Owners of Building A, Building B, Building C, Building D and the Wedge Lots as provided in this Declaration.

Section 1.35 “Governmental Requirements” shall mean all laws, statutes, ordinances, rules, regulations, requirements, permits, or approvals promulgated by any federal, state or local governmental entity or quasi-governmental agency including utility providers, with jurisdiction over the Project or any business, use or operation thereon, as the same may, from time to time, be amended, superseded, supplemented, modified or revised, including, without limitation, all Environmental Regulations.

Section 1.36 “Hazardous Material” shall mean: (i) any waste, material or substance (whether in the form of a liquid, a solid or a gas and whether or not air-borne), which is deemed

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to be a pollutant or a contaminant, or to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful or injurious to public health or to the environment, and which is or may become regulated by or under the authority of any applicable Environmental Regulations; (ii) petroleum and hydrocarbons, whether crude or refined, and any fraction or mixture thereof; (iii) asbestos; (iv) polychlorinated biphenyls; and (v) any radioactive material.

Section 1.37 “Improvements” shall mean and refer to all structures and improvements of every type and kind, whether above or below the land surface, including, without limitation, all Buildings including loading areas and docks, accessory structures, outbuildings, underground and above ground installations, including telecommunications towers of any kind, electric vehicle charging stations, back-up generators, solar energy generation systems and equipment, slope and grade alterations, roads, curbs, gutters, walls, fences, screening walls and barriers, retaining walls, transformers, fire monitoring equipment, meters, external stairs, decks, windbreaks, outdoor amenities including umbrellas and patio covers, raised decks and outdoor sports or recreation or lifestyle amenity features, all Project Monument and Directional Signs, plantings, planted trees, shrubs and other landscaping and irrigation systems and equipment, parking area and drive aisle improvements, including curb, gutter, sidewalks, light standards and poles and above and below ground utility lines, facilities and equipment.

Section 1.38 “JEN SC” is defined in Section 1.49 below.

Section 1.39 “JEN SC Property” is defined in Section 1.49 below.

Section 1.40 “Lot” shall mean each separate legal lot within the Project as shown on the Map, and any such new or modified lots as are created out of such lots or added to such lots as a consequence of the recordation of mergers, lot line adjustments, parcel maps or final maps. As of the date of this Declaration, the Project consists of Lot 1, Lot 2, Lot 3, Lot 4, Lot 5 and Lot 6 and the Tracy Mack Parcel (which Declarant intends to incorporate into Lot 1 by lot line adjustment), all as substantially shown on Exhibit B.

Section 1.41 “Member” shall mean and refer to every person or entity who holds membership in the Association as provided in Section 2.01.

Section 1.42 “Mortgage” shall mean a recorded mortgage or deed of trust encumbering the fee or leasehold interest in a Lot.

Section 1.43 “Mortgagee” shall mean the mortgagee of a recorded mortgage or the beneficiary under a recorded deed of trust, and any successors and assigns thereof.

Section 1.44 “Occupant” shall mean any person or entity from time to time entitled by right of ownership or under any lease, sublease or license to use and occupy any portion of the Property.

Section 1.45 “Official Records” shall mean and refer to the Official Records of Riverside County, State of California.

Section 1.46 “OVTC Monument Sign Maintenance Areas” are shown on Exhibit “C- 9” attached hereto.

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Section 1.47 “OVTC Monument Signs” shall mean and refer to those certain four (4) monument signs to be constructed and situated on the corners of Singleton and Roberts Roads within the OVTC Monument Sign Maintenance Areas as shown on Exhibit “C-9” attached hereto including its base, structure, pole cover, City of Calimesa logo, Project logo and all electrical service and equipment and lighting equipment and landscaping appurtenant and surrounding such signs. The OVTC Monument Signs are to be maintained and repaired by the Association. The Association Maintenance Expenses for the OVTC Monument Signs shall be shared (i) 50% by the owner of the Oak Valley Town Center Project situated on the other side of Roberts Road by separate agreement between Declarant and the owner of the Oak Valley Town Center Project, and (ii) 50% by the Owners of Building A, Building B, Building C, Building D and the Wedge Lots, as provided in this Declaration.

Section 1.48 “Owner” shall mean and refer to the person or entity, including Declarant, who is the record owner of fee simple title to a Lot, but excluding those having such interest merely as security for the performance of an obligation. “Ownership” shall mean the status incident to being an Owner.

Section 1.49 “Party Wall Easement Agreement” shall mean that certain Party Wall Easement Agreement by and between Declarant and JEN SOCAL 1, a California limited liability company (“JEN SC”), the owner of property adjacent to the Property. The Party Wall Easement Agreement sets forth rights and obligations of Declarant and JEN SC relative to the construction, maintenance and repair of the Perimeter Wall to be constructed between Lot 1 and Lot 2 and the adjacent property owned by JEN SC (the “JEN SC Property”).

Section 1.50 “Perimeter Wall” shall mean that certain shared wall that is to be constructed between Lots 1 and 2 and the lots and the adjacent property owned by JEN SC as depicted on Exhibit “C-10” attached hereto. The Owners of Lots 1 and 2 shall be responsible for maintenance and repair of the Party Wall as provided in this Declaration.

Section 1.51 “Permittees” shall mean and refer to all customers, patrons, employees, agents, concessionaires, independent contractors and other invitees of Declarant, the Association and the Occupants and Owners of Lots within the Property.

Section 1.52 “Person” means an individual, partnership, firm, association, limited liability company, corporation, trust, governmental agency, administrative tribunal, or any other form of a business or legal entity.

Section 1.53 “Project” is defined in Recital E.

Section 1.54 “Project Monument and Directional Signs” shall mean and refer to the Building A Business Entry and Directional Signs, the Building A&B Business Entry and Directional Signs, the Building A, B & Wedge Business Entry and Directional Signs, the Building C Business Entry and Directional Signs, the Building D Business Entry and Directional Signs, the Freeway Monument Sign, and the OVTC Monument Signs.

Section 1.55 “Sign Program” shall mean and refer to the Birtcher Oak Valley Commerce Center Master Sign Program developed by HPA Architects in 2022 and/or any other uniform sign criteria for the Project that may be adopted by the Association or Declarant from time to time.

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Section 1.56 “Tracy Mack Parcel” is defined in Recital D.

Section 1.57 “Wedge Parking Facility” is defined in Recital D.

Section 1.58 “Wedge Lots” is defined in Recital D and means Lots 5 and 6.

Section 1.59 “Wedge Lots Sewer Maintenance Area” is situated on Lot 4 as shown on Exhibit “C-6” attached hereto.

Section 1.60 “Wedge Lots Sewer Improvements” shall mean and refer to that certain sewer improvements to be installed within the Wedge Lots Sewer Maintenance Area as shown on Exhibit “C-6” attached hereto which provides sewer line connection for the Wedge Lots. The Wedge Lots Sewer Improvements are to be maintained and repaired by the Owner of the Wedge Lots at such Owner’s sole cost and expense as provided in this Declaration.

Section 1.61 “WQMP” means water quality management plans for the Project that have been approved by the City and any other applicable government entity or agency, as may be updated and approved for the Project. A copy of the WQMP may be viewed at or obtained from the City.

Section 1.62 “YVWD” shall mean Yucaipa Valley Water District.

ARTICLE II

ASSOCIATION MEMBERSHIP
Section 2.01 Membership. Every Owner shall automatically be a Member of the Association upon becoming an Owner of a Lot. The terms and provisions set forth in this Declaration, which are binding upon all Owners and all Members in the Association, are not exclusive restrictions, as both the Member and the Member’s Lot shall, in addition to the Declaration, be subject to the terms and provisions of the Articles and the Bylaws. Membership shall be appurtenant to and may not be separated from an Owner’s fee interest in a Lot. Ownership of such Lot shall be the sole qualification for membership.

Section 2.02 Transfer. The membership held by any Owner shall not be transferred, pledged or alienated in any way, except upon the sale or assignment of such Owner’s Lot and then only to the purchaser or assignee thereof. Any attempt to make a prohibited transfer is void and will not be reflected upon the books and records of the Association. If an Owner should fail or refuse to transfer the membership registered in the Owner’s name to the purchaser of such Owner’s Lot, the Association shall have the right to record such transfer upon the books of the Association upon receipt of evidence of such transfer satisfactory to the Association. The Association may levy a reasonable transfer fee against a new Owner and such Owner’s Lot (which shall be paid through escrow or added to the Regular Assessment chargeable to such new Owner) to reimburse the Association for the administrative cost of transferring the membership to the new Owner on the Association’s records. Such fee may not exceed the Association’s actual cost involved in changing its records.

Section 2.03 Voting Rights. The Association shall have two classes of voting membership:

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(a) Class A. Class A Members shall be all Owners excepting Declarant until the Class B Member voting rights have terminated as provided below. Class A Members shall be entitled to two (2) votes for each Lot owned by such Member except that the Owner of the Wedge Lots shall only be entitled to one (1) vote in the aggregate. When more than one person owns a portion of the interest in a Lot required for membership, such persons together shall constitute a single Member and the vote for such Lot shall be exercised as they among themselves determine; provided, however, that said co-Owners shall file with the Association a writing executed by all of such co-Owners designating one of said coOwners as the sole co-Owner having the right to cast the vote of said co-Owners as the Member of the Association.
(b) Class B. The Class B Member shall be Declarant. The Class B Member shall be entitled to twenty (20) votes for each Lot owned by Declarant. Class B membership shall cease on the happening of the first to occur of the following: (i) when Declarant no longer owns any Lots within the Property; (ii) at Declarant’s election, when Declarant forever relinquishes such Class B voting power by recording a document to such effect in the Official Records and notifying the Board.

All voting rights shall be subject to the restrictions and limitations provided herein and in the Articles and Bylaws of the Association.

Section 2.04 Approval of Members. Except with respect to matters specified in this Declaration as requiring a vote or approval of the Owners, the Board, acting on behalf of the Association shall have all power and authority to act for and bind the Association as provided in this Declaration and all references to the Association taking action or exercising rights, powers, authority or discretion shall mean and refer to the Board, acting on behalf of the Association with respect to all such matters. Unless otherwise specifically provided in this Declaration or the Bylaws, any provision of this Declaration or the Bylaws which requires the vote or written assent of a specified majority of the voting power of the Association or any class or classes of membership shall be deemed satisfied by the following:
(a) the vote of the specified percentage at a meeting duly called and noticed pursuant to the provisions of the Bylaws dealing with annual or special meetings of the Members. Such percentage must include the specified number of all Members entitled to vote at such meeting and not such a percentage of those Members present; (b) written consents signed by two-thirds (2/3rds) or more of the voting power of the Members, as provided in the Bylaws; and
(c) in any matter requiring the consent of the Members, but not specifically provided for in this Declaration or the Articles, Bylaws or any contract executed by the Association, a simple majority of the voting power of Members present at a meeting in person or by proxy or by email vote of Members, shall suffice.

Section 2.05 Initial Board of Directors. The Board of Directors of the Association shall consist of no fewer than three (3) and no more than seven (7) members. The initial three (3) members of the Board of Directors of the Association shall be appointed by Declarant and

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Declarant may appoint and remove and replace any members of the Board until Declarant no longer owns a Lot in the Property, after which the Owners may elect and remove all of the members of the Board. The Bylaws may provide for staggered terms and lengths of terms for directors different from those initially set forth in this Declaration and may provide for a greater or lesser number of directors than set forth herein; provided, however, in no event shall there be more than seven (7) directors or less than three (3) directors. The Board shall undertake all duties and responsibilities of the Association and the management and conduct of the affairs thereof, except as expressly reserved herein to a vote of the Members.

Section 2.06 Personal Liability. No member of the Board, or of any committee of the Association, or any officer or manager of the Association shall be personally liable to any Owner, or to any other party, including the Association, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error or negligence of any such Person.

Section 2.07 Annual Membership Meetings. The initial Board may call the first annual meeting of Owners at any time after the Association has been formed. Thereafter, the Association shall hold an annual meeting of the Owners in accordance with the Bylaws of the Association.

Section 2.08 Pre-Association Powers of Declarant. For purposes of this Article 2, the Association shall not be deemed formed until it is incorporated and the Board has been appointed or elected. Until such time as the Association has been formed, Declarant shall be entitled to exercise all rights and powers the Association would have when formed, as provided in this Declaration, and of an association formed in accordance with the requirements of all Governmental Requirements, including, but not limited to, the right to levy and enforce the payment of Assessments.

Section 2.09 Termination of Association. The Association may not be terminated at any time without the prior approval of the City.

ARTICLE III

COVENANT FOR MAINTENANCE ASSESSMENTS
Section 3.01 Creation of the Lien and Personal Obligation of Assessments. The Declarant, for each Lot of which it is the Owner, hereby covenants and agrees to pay, and each successor Owner of a Lot by acceptance of a deed conveying a Lot, is deemed to covenant and agree to pay to the Association: (1) Regular Assessments, (2) Special Assessments and (3) Capital Improvement Assessments, as such Assessments may be fixed, established and collected from time to time as hereinafter provided. The Regular Assessments, Special Assessments and Capital Improvement Assessments, together with such interest thereon and costs of collection thereof as hereinafter provided, shall be a charge on the land and improvements thereon and shall be a continuing lien upon any interest in the Lot of the Owner against whom each such Assessment is made. Each such Assessment, together with such interest, costs and reasonable attorneys’ fees, shall also be the personal obligation of the person who was the Owner of such Lot at the time when the Assessment fell due and shall bind such Owner’s successors and assigns.

Section 3.02 Regular Assessments. The amount of Regular Assessments for a fiscal year of the Association shall be estimated and determined by the Board pursuant to this Declaration,

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the Articles and the Bylaws after giving due consideration to the current or reasonably estimated maintenance and repair costs (whether recurring monthly or periodic) and future anticipated needs, including the buildup of reserves for working capital and contingencies of the Association as reasonably determined by the Association. The Regular Assessments for a fiscal year of the Association shall be paid by each Lot Owner or its Occupant(s) in monthly installments. If the amount budgeted to meet Association Maintenance Expenses for any period proves to be excessive in light of the actual Association Maintenance Expenses, the Board in its discretion may either, by resolution, reduce the amount of any Regular Assessments or may abate collection of Regular Assessments as it deems appropriate. Regular Assessments shall be allocated among the Lot Owners as follows (subject to modification as to any additional maintenance and repair services the Association may be asked to provide for any Owner or Owners as to which Regular Assessments shall be established by the Association at such time(s):
(a) Regular Assessments for Association Maintenance Costs for the Building A Business Entry and Directional Signs shall be borne solely by the Owner of Lot 4.
(b) Regular Assessments for Association Maintenance Costs for the Building A&B Common Driveway Improvements shall be allocated 50% to the Owner of Lot 3 and 50% to the Owner of Lot 4.
(c) Regular Assessments for Association Maintenance Costs for the Building A&B Drainage Line Improvements shall be allocated 50% to the Owner of Lot 3 and 50% to the Owner of Lot 4.
(d) Regular Assessments for Association Maintenance Costs for the Building A&B Business Entry and Directional Signs shall be allocated 50% to the Owner of Lot 3 and 50% to the Owner of Lot 4.
(e) Regular Assessments for Association Maintenance Costs for the Building A, B & Wedge Common Driveway Improvements comprising same shall be allocated 35% to the Owner of Lot 1, 35% to the Owner of Lot 2 and 30% to the Owner(s) of the Wedge Lots collectively (to be allocated 50/50 between such Owners if Lots 5 and 6 are owned separately at any time).
(f) Regular Assessments for Association Maintenance Costs for the Building A, B & Wedge Drainage Line Improvements shall be allocated 35 to the Owner of Lot 1, 35% to the Owner of Lot 2 and 30 to the Owner(s) of the Wedge Lots collectively (to be allocated 50/50 between such Owners if Lots 5 and 6 are owned separately at any time). (g) Regular Assessments for Association Maintenance Costs for the Building A, B & Wedge Business Entry and Directional Signs shall be allocated 35% to the Owner of Lot 1, 35% to the Owner of Lot 2 and 30% to the Owner(s) of the Wedge Lots collectively (to be allocated 50/50 between such Owners if Lots 5 and 6 are owned separately at any time).
(h) Regular Assessments for Association Maintenance Costs for the Building B Drainage Line Improvements shall be payable solely by the Owner of Lot 3.

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(i) Regular Assessments for Association Maintenance Costs for the Building C Business Entry and Directional Signs shall be borne solely the Owner of Lot 2. (j) Regular Assessments for Association Maintenance Costs for the Building D Business Entry and Directional Signs shall be borne solely the Owner of Lot 1. (k) Regular Assessments for Association Maintenance Costs for the Freeway Monument Sign shall be allocated to the Owners of Building A, Building B, Building C, Building D each as to 22% of such costs, and to the Owner(s) of the Wedge Lots as to 12% of such costs (to be allocated 50/50 between such Owners if Lots 5 and 6 are owned separately at any time).
(l) Regular Assessments for Association Maintenance Costs for the OVTC Monument Signs allocable to the Project Owners shall be allocated to the Owners of Building A, Building B, Building C, Building D each as to 22% of such costs, and to the Owner(s) of the Wedge Lots as to 12% of such costs (to be allocated 50/50 between such Owners if Lots 5 and 6 are owned separately at any time). (m) Regular Assessments for Association Maintenance Costs for the Wedge Lots Sewer Improvements shall be payable solely by the Owner(s) of the Wedge Lots (to be allocated 50/50 between such Owners if Lots 5 and 6 are owned separately at any time).

Section 3.03 Special Assessments. Each Owner shall be liable to the Association by way of Special Assessments for all Special Assessments imposed against such Owner in accordance with the terms of this Declaration. In the case of joint ownership of a Lot, the liability of such Owners shall be joint and several. Any expense incurred by the Association in repairing any such damage or curing any such breach, together with costs and attorneys’ fees, shall be a debt of the Owner causing the same, and the Board may specifically assess, by way of Special Assessment, said Owner for the amount thereof to the extent that any such damage or costs are not be covered by a policy of insurance.

Section 3.04 Capital Improvement Assessments. In addition to the Regular and Special Assessments, the Association may levy in any calendar year Capital Improvement Assessments for the purposes described in Section 1.02(c). If insurance proceeds payable with respect to any damage to any portion of Association Maintenance Area or Association Maintenance Area Improvements are not sufficient to pay the costs of reconstruction of any such Association Maintenance Area or Association Maintenance Area Improvements, the Board shall levy a uniform Capital Improvement Assessment against any one or more Owners based on the particular Association Maintenance Area affected, such allocation of such Capital Improvement Assessment to be based on the allocation of Regular Assessments for such Association Maintenance Area as between such affected Owner(s) as provided in Section 3.02 above. For example, if there were any casualty damage to the Building A and B Business Entry and Directional Signs that is not covered by insurance, the Association may levy a Capital Improvements Assessment for restoration of the Building A&B Business Entry and Directional Signs which Capital Improvements Assessment shall be payable 50% by the Owner of Lot 3 and 50% by the Owner of Lot 4 in the same manner as such Owners share in the cost of Regular Assessments for the Building A&B Business Entry and Directional Signs. If insurance proceeds received by the Association or

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any Owner(s) exceed the cost of reconstruction of such Association Maintenance Area or Association Maintenance Area Improvements, the Board shall distribute the excess in proportionate shares to each Owner that contributed to such Capital Improvement Assessment or to all applicable Mortgagees as their interests may appear.

Section 3.05 Reserves. Regular Assessments may include reasonable amounts as determined by the Association collected as reserves for the repair, restoration, replacement or maintenance of, or litigation involving the repair, restoration, replacement or maintenance of, any Association Maintenance Areas which the Association is obligated to repair, restore, replace or maintain. All amounts collected as reserves, whether pursuant to this Section or otherwise, shall be deposited by the Association in separate bank accounts to be held in trust for the benefit of the Owners depositing same for the purposes for which they are collected and are to be segregated from and not commingled with any other funds of the Association. Such reserves shall be deemed a contribution to the capital account of the Association by the Members. Any such reserves shall be applied towards the Association Maintenance Expenses and Capital Improvements Assessments for the respective Association Maintenance Areas for which they were contributed.

Section 3.06 Date of Commencement of Regular Assessments and Fixing Thereof. The Regular Assessments provided for herein shall commence upon the first day of the month following the recordation of this Declaration; provided that, as long as Declarant owns a Lot that has not been leased to a third party, Declarant’s share of assessments shall not include any payments for reserves or other similar charges that are not used for actual maintenance, repairs and insurance costs for the Property.

Section 3.07 Certificate of Payments. The Association shall, within ten (10) business days of written or email demand, furnish to any Owner liable for any Assessment, a certificate in writing signed by an officer of the Association, setting forth whether the Assessments on a specified Lot has been paid and the amount of the delinquency, if any. A reasonable charge may be made by the Board for the issuance of these certificates. Such certificate shall be conclusive evidence of payment of any Assessment therein stated to have been paid.

Section 3.08 Duties of the Board of Directors. The Board of Directors shall fix the amount of Regular Assessment against each Lot for each calendar year at least thirty (30) days in advance of the commencement of such year and shall, at that time, prepare a roster of the Lots and Regular Assessments applicable thereto which shall be kept in the office of the Association and shall be open to inspection by any Owner during normal business hours. Written notice of the Regular Assessments shall be sent to every Owner subject thereto at least fifteen (15) days prior to each fiscal year of the Association. The Board shall fix the amount of all Capital Improvement Assessments at least thirty (30) days in advance of the date such Capital Improvements Assessments shall become due and shall give written notice at least fifteen (15) days in advance of the date such Capital Improvements Assessments shall become due to each Owner subject thereto.

Section 3.09 Nonuse and Abandonment. No Owner may waive or otherwise escape personal liability for the Assessments provided for herein by nonuse of any Association Maintenance Area Improvements or abandonment of such Owner’s Lot.

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ARTICLE IV

NONPAYMENT OF ASSESSMENTS
Section 4.01 Notice of Assessments and Foreclosure. The Association shall distribute a written notice regarding Assessments and any lien or foreclosure filings during the sixty (60) day period immediately preceding the beginning of the Association’s fiscal year.

Section 4.02 Delinquency. Any installment of any Assessment provided for in this Declaration which is not paid when due shall be delinquent. If any such installment is not paid within thirty (30) days after the delinquency date, a late charge shall be assessed as reasonably determined by the Association, and, in addition to all legal and equitable rights or remedies, the Association may, at its option, declare all the installments of Assessments for the current Association fiscal year immediately due and payable.

Section 4.03 Notification of Delinquency. At least thirty (30) days prior to recording a lien to collect a delinquent Assessment, the Association shall send a written notification to the delinquent Owner.

Section 4.04 Payment of Delinquent Assessment. Any payments made by a delinquent Owner toward the delinquent Assessment, shall first be applied to the Assessments owed, and only after the Assessments owed are paid in full, shall the payments be applied to the costs of collection.

Section 4.05 Recording a Lien. The amount of the delinquent Assessment, plus any costs of collection, shall be a lien on the Owner’s Lot from and after the time the Association records a notice of delinquent assessment in the Official Records, together with an itemized statement of the charges owed by the Owner. A lien created pursuant to this Section shall be prior to all other liens recorded subsequent to the notice of assessment.

Section 4.06 Foreclosure. Subject to the limitations set forth below, after the expiration of thirty (30) days following the recording of a lien, the lien may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the notice of delinquent assessment, or sale by a trustee substituted pursuant to applicable law. Any sale by the trustee shall be conducted in accordance with applicable law governing the exercise of powers of sale in mortgages and deeds of trust.

Section 4.07 Notice to Mortgagees of Right to Cure. If the Board files a notice of delinquent assessment as provided above, it shall give notice of such filing to any Mortgagee which has given written notice to the Board of its desire to receive such notice. Such Mortgagee shall have the right, but not the obligation, both before and for sixty (60) days after notice of the recording of the Association’s lien, to cure such defaults, including the payment of interest and other charges as provided herein.

Section 4.08 Cumulative Remedies. The Assessment lien and the rights to foreclosure and sale thereunder shall be in addition to and not in substitution for all other rights and remedies which the Association and its assigns may have hereunder and by law, including a suit to recover a money judgment for unpaid Assessments as provided above or to bring an action for injunctive relief.

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Section 4.09 Protection of Mortgagees. A breach of any of the restrictions, conditions, covenants or reservations herein contained shall not defeat or render invalid the lien of any bona fide Mortgage made in good faith and for value as to any Lot, or any portion or portions thereof, but such restrictions, conditions, covenants and restrictions shall be binding upon and effective against any Owner or Owners of any such Lot, or any portion or portions thereof, whose title is acquired by foreclosure, trustee’s sale or otherwise. Should any notice be sent by the Association to an Owner in connection with a breach by such Owner of any of the restrictions, conditions, covenants or reservations herein contained, a copy of any such notice shall be sent to such Owner’s Mortgagee if such Mortgagee has filed a written request with the Association to receive such notice.

Section 4.10 Effect of Foreclosure. If any Lot subject to a monetary lien created by any provision hereof shall be subject to the lien of a Mortgage: (a) the foreclosure of any lien created herein or pursuant hereto shall not operate to affect or impair the lien of such Mortgage; and (b) the foreclosure of the lien of such Mortgage, the acceptance of a deed in lieu of foreclosure of such Mortgage or a sale under a power of sale included in such Mortgage shall not operate to affect or impair the lien hereof, except that any persons who obtain an interest through any of the events of foreclosure, and their successors in interest, shall take title free of the lien hereof or any personal obligation for charges as shall have accrued to the time of any of the events of foreclosure, but subject to the lien hereof for all said charges that shall accrue subsequent to the events of foreclosure. Nothing in this Section shall be construed to release any Owner from his personal obligation to pay any Assessment levied pursuant hereto.

ARTICLE V

EASEMENTS
Section 5.01 Amendment to Eliminate Easements. This Declaration cannot be amended to modify or eliminate the easements reserved to the Association or the Declarant or granted to any Owner(s) without prior written approval of the party(ies) benefited by such easement(s) (i.e., the Association, the Declarant or all Owner(s) benefited by such easements), and any attempt to do so shall have no effect. Any attempt to modify or eliminate this Section shall likewise require the prior written approval of the Association and all Owners.

Section 5.02 Nature of Easements. Unless otherwise set forth herein, any easement reserved to the Association, the Declarant or granted to any Owner(s) herein shall be nonexclusive and perpetual.

Section 5.03 Certain Rights and Easements Reserved to the Declarant and the Association. The following rights and easements are hereby reserved to Declarant and the Association:
(a) Easements for Repair, Maintenance and Restoration. Easements for ingress, egress and access in, to and over all Association Maintenance Areas for the purpose of permitting Declarant and/or the Association to discharge all obligations with respect to all Association Maintenance Areas and Association Maintenance Area Improvements in accordance with this Declaration, together with the right to grant and transfer the same to contractors, subcontractors, agents and representatives of the Association and easements for reasonable and necessary ingress, egress and access in, to

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and over all other portions of the Property including, without limitation, the exterior areas of all Lots immediately appurtenant to such Association Maintenance Area outside of the Buildings and exterior secured areas, for the purpose of permitting Declarant and/or the Association to reasonably access such Association Maintenance Areas and Association Maintenance Area Improvements and discharge all obligations with respect thereto as described in this Declaration, together with the right to grant and transfer the same to contractors, subcontractors, agents and representatives of Declarant and the Association.

In exercising the easement and access rights provided for herein with respect to all Association Maintenance Areas, the Association shall (i) use reasonable care not to interfere with the operations of the Owners and Occupants of any Lots other than as reasonably necessary to perform its maintenance and repair obligations as provided herein, (ii) shall provide reasonable notice to each Lot Owner before commencing any work within any Association Maintenance Areas situated on such Owner’s Lot, (iii) shall pay all costs and expenses with respect thereto, and (iv) shall cause all work in connection therewith (including general clean-up and proper surface and/or subsurface restoration) to be completed as quickly as possible and in a manner so as to minimize interference with the use of the impacted Lot. Except with respect to repair and restoration of any portions of any Owner’s Lot Improvements including improved and landscaped surface areas, the Association shall restore such areas to the substantially the condition existing prior to performing such work, the cost of which shall be included in Association Maintenance Expenses. Subject to the foregoing, the Association shall have no obligation to maintain or repair the surface of any Association Maintenance Areas above below ground utility, sewer or drainage improvements, the obligations for which shall be the Owner of the Lots in questions.
(b) Easements for Public Agency Ingress and Egress. Easements over the Property sufficient to guarantee access and entry to the Property and any Improvements thereon for any authorized fire inspector, building official, or any other official charged with carrying out the laws of the City or any other governmental entity. (c) Easements for Monument and Directional Sign(s). Easements in favor of Declarant and the Association over the Association Maintenance Area portions of the Property for the continued placement and maintenance and repair of all Project Monument and Directional Signs and for the installation or supervision of installation and maintenance and repair of Occupant identification sign panels thereon, together with the right to grant and transfer the same to contractors, subcontractors, agents and representatives of Declarant and the Association.

Section 5.04 Certain Easements for Owners.
(a) Utilities. Each Owner, as grantor, hereby grants to each other Owner which has beneficial use and enjoyment of any Association Maintenance Area Improvements situated on such grantor Owner’s Lot, for the benefit of the Lot owned by such grantee Owner, an easement under, through and across that portion of any Association Maintenance Areas located on such grantor Owner’s Lot for the use, operation, maintenance, repair and replacement of any Association Maintenance Area Improvements situated within such Association Maintenance Area on such Owner’s Lot as shown on

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Exhibits “C-1” through “C-10” attached hereto. Except as provided herein, no Owner shall be obligated to grant any additional easements over such Owner’s Lot to benefit any other Owner’s Lot, including, without limitation, for electricity, gas, water, sewer, telephone, fiber optics, irrigation lines or storm drainage without the express prior written consent of the grantor Owner.
(b) Drainage Easements. The Owner of Lot 4 hereby grants to the Owner of the Wedge Lots, a non-exclusive easement for emergency surface water drainage over and through the drainage patterns and storm water drainage systems that are established from time to time upon Lot 4. The Owner of Lot 3 hereby grants to the Owner of Lot 4, a nonexclusive easement for emergency surface water drainage over and through the drainage patterns and storm water drainage systems that are established from time to time upon Lot 3. Except for the express drainage easements granted herein, each Building and Lot is intended to be designed to provide for appropriate surface water drainage flow on site or into a shared or separate drainage line or lines and no Owners shall have the right to alter the drainage patterns and storm water drainage systems of the Project nor shall any Owner interfere with the surface water drainage of other Lots nor interfere with the orderly discharge of surface water to such drainage system. Except to the extent any such drainage lines and systems constitute Association Maintenance Area Improvements to be maintained by the Association as provided in this Declaration, each Owner shall repair and maintain portions of the storm water drainage systems located on its Lot in the condition required pursuant to this Declaration at its sole cost and expense. (c) Encroachment. In the event Building wall footings encroach from one Lot onto another Lot, despite efforts to avoid that occurrence, the Owner onto whose Lot the footings encroach shall cooperate in granting an encroachment permit or easement to the Owner whose Building wall footings encroach provided such encroachment does not exceed two (2) feet.

Section 5.05 Emergency Access Easement. Each Owner, as grantor, hereby grants to Declarant and the Association, together with the right to grant and transfer same to its successors and assigns, the City and/or any public or private entities, an easement for public emergency vehicles and personnel acting in a public emergency over all portions of its Lot designed for vehicular or pedestrian traffic.

Section 5.06 Rights Reserved. Each Owner shall have the right to eject or cause the ejection from any portion of its Lot of any person not authorized to use such portion of its Lot. Each Owner shall further have the right to close off, from time to time, its Lot for such reasonable periods of time as may be legally necessary to prevent the acquisition of prescriptive rights by any person; provided, however, that prior to so closing off any portion of its Lot, such Owner shall give written notice to the other Owners of its intention to do so and shall coordinate such closing with the other Owners so that no unreasonable interference with the operation of the Project or any part thereof shall occur.

Section 5.07 Obstruction of Association Maintenance Area within Project. Except as specifically provided in this Declaration, no Owner of a Lot nor any of such Owner’s Permittees shall obstruct any portion of any Association Maintenance Area in any way which will impair the

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continuous and uninterrupted access to and use of such areas for the purposes for which easements and rights are established under this Declaration, except during the period and to the extent that the same shall be reasonably required in connection with any of the following:
(a) The exercise of the easements established or which may be established under any of the above sections of this Declaration; and (b) The reasonable and so long as reasonably required construction, reconstruction, enlargement, repair, maintenance, modification, alteration, or replacement of the improvements on such Owner’s Lot, or any part or parts thereof (to the extent the same may be permitted under applicable Governmental Requirements and is not prohibited by any provision of this Declaration), at any time or from time to time located on such Lot.

Section 5.08 Restrictions on Easements. Each of the easements established under this Declaration shall be appurtenant to and shall pass with the title to every Lot, subject to the following provisions:
(a) The right of the Association to include in the Association Rules regulations pertaining to the use of the Association Maintenance Areas and Association Maintenance Area Improvements situated on each such Lot;
(b) The right of the Association to suspend the voting rights of any Member for any period during which any Assessment against such Member’s Lot remains unpaid and delinquent and for a period not to exceed thirty (30) days from any single infraction of the Association Rules, provided that any suspension of such voting rights, except for failure to pay Assessments, shall be made only by the Association or a duly appointed committee thereof, after notice and hearing given and held in accordance with the Bylaws; and (c) The right of the Association or Declarant to grant or transfer all or any part of its easements for utilities, sewage and drainage in any Association Maintenance Area to any public agency, authority or utility for such purposes and subject to such conditions as may be agreed to by the Members. No such grant or transfer shall be effective unless an instrument signed by Members entitled to cast two-thirds of the votes of the membership has been recorded, agreeing to such dedication or transfer, and unless written notice of the proposed action is sent to every Member not less than thirty (30) days nor more than sixty (60) days in advance.

Section 5.09 Delegation of Use. Any Owner may delegate, in accordance with the Bylaws, such Member’s right of enjoyment of any Association Maintenance Area Improvements on such Owner’s Lot to such Owner’s Occupants and Permittees.

Section 5.10 General Restrictions. All present and future Owners of Lots, by their acceptance of their respective deeds, covenant and agree as follows:
(a) That if any portion of any Association Maintenance Area or Association Maintenance Area Improvements encroaches upon any Lots, a valid easement for the encroachment and for the maintenance, so long as it stands, shall and does exist. If any structure is partially or totally destroyed and then rebuilt, the Owners of the Lots agree that

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minor encroachments of parts of an Association Maintenance Area and/or Association Maintenance Area Improvements due to construction shall be permitted and that valid easements for said encroachments and the maintenance thereof shall exist. (b) That the Association Maintenance Areas are and shall always be subject to easements for minor encroachments of the Lots thereon and that a non-exclusive easement for ingress, egress and support for the Association Maintenance Areas and Association Maintenance Area Improvements is appurtenant to each Lot and the Association Maintenance Area Improvements are subject to such easements.

ARTICLE VI

ARCHITECTURAL CONTROL
Section 6.01 Architectural Approval. Except for the initial Improvements for the Project constructed by Declarant, no Building, fence, wall, sign or other Improvement shall be commenced, erected or maintained upon the Property (including, without limitation, any Association Maintenance Area Improvements), nor shall any exterior addition to or change or alteration therein (including painting) be made until the plans and specifications showing the nature, kind, shape, height, materials and location of the same shall have been submitted to and approved in writing as to harmony of external design and location in relation to the original Improvements of the Project by the Architectural Committee as provided for in Section 6.03 hereof. If the Architectural Committee, or its designated representatives, fails to approve or disapprove any plans and specifications within forty-five (45) days after such plans and specifications have been submitted to the Architectural Committee, the plans and specifications shall be deemed disapproved. All Improvement work approved by the Architectural Committee shall be diligently completed.

Section 6.02 Landscaping Approval. Except for the initial landscaping throughout the Project installed by Declarant and replacement of any initial landscaping with like-kind trees, plants and materials by Owners, no trees, bushes, shrubs or plants shall be planted or otherwise placed within the Property until the plans and specifications describing the species and showing the placement of any such trees, bushes, shrubs or plants have been submitted to and approved in writing by the Architectural Committee as provided for in Section 6.03 hereof. Said plans as submitted shall show in detail the proposed elevations and locations of said trees, bushes, shrubs, or plants, including the locations and elevation of same in relation to all landscaping on the Property.

Section 6.03 Appointment of Architectural Committee; Review of Plans and Specifications.

Declarant shall initially appoint an Architectural Committee (“Architectural Committee”) consisting of not less than three (3) members. Declarant shall have the right to appoint, remove and replace all members of the Architectural Committee until Declarant no longer owns a Lot in the Property. From and after such time, the Architectural Committee shall be appointed by the Board and shall be composed of three (3) or more representatives who may be, but need not be, Owners. In the event of the death or resignation of any member of the Architectural Committee prior to the time when the Board is vested with authority, the Declarant shall have the right to appoint such member’s successor. The Architectural Committee shall consider and act upon all plans and specifications submitted for its approval under this Declaration and perform such other duties as the Board assigns to it. The Architectural Committee may reject any such plans and

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specifications and shall approve plans and specifications submitted for its approval only if it determines that (a) the installation, construction or alterations contemplated thereby in the locations indicated will not be detrimental to the appearance of the surrounding area of the Property as a whole, (b) the appearance of any structure affected thereby will be in harmony with the surrounding structures, (c) the installation, construction or alteration thereof will not detract from the attractiveness of the Association Maintenance Area or the enjoyment thereof by the Members, and (d) the maintenance thereof will not become a burden on the Association.

The Architectural Committee may condition its approval of proposals or plans and specifications for any Improvements upon any of the following: (1) the payment of an architectural review fee, in an amount determined by the Association, (2) the applicant’s furnishing the Association with security acceptable to the Association against any mechanic’s lien or other encumbrance which may be recorded against the Property as a result of such work, (3) such modifications therein as it deems appropriate, (4) the applicant’s agreement to grant appropriate easements to the Association for the maintenance of the Improvements, (5) the applicant’s agreement to install (at its sole cost) water, gas, electrical or other utility meters to measure any increased consumption, (6) the applicant’s agreement to reimburse the Association for the cost of such maintenance, or (7) the applicant’s agreement to complete the proposed work within a stated period of time, and may require submission of additional plans and specifications or other information prior to approving or disapproving material submitted. The Architectural Committee may provide that the amount of any architectural review fee be uniform, or that it be determined in any other reasonable manner, such as by the reasonable cost of the construction, alterations or installations contemplated. The Architectural Committee may require such detail in plans and specifications submitted for its review as it deems proper, including without limitation, floor plans, site plans, drainage plans, elevation drawings and descriptions or samples of exterior material and colors. All Improvement work approved by the Architectural Committee shall be diligently completed by Owner. The applicant shall also satisfy any conditions or permit requirements of the City and all other governmental entities and shall also satisfy any conditions and obtain any approvals prior to commencing any construction, installation or alterations permitted hereunder in accordance with such requirements.

Section 6.04 No Liability. Neither Declarant, the Association, nor the Architectural Committee or the members thereof shall be liable for damages to anyone submitting plans or specifications to them for approval, or to any Owner affected by these restrictions by reason of mistake in judgment, negligence, or nonfeasance arising out of or in connection with the approval, disapproval or failure to approve or disapprove any such plans or specifications. Every Owner and every person who submits plans or specifications agrees that he or she will not bring any action or suit against Declarant, the Association, the Architectural Committee or any of the members thereof to recover any such damages.

Section 6.05 Notice of Non-Compliance or Non-Completion. Notwithstanding anything herein to the contrary, after the expiration of the later of: (a) one (1) year from the date of issuance of a building permit by the City or other governmental authority for any Improvements or, (b) one (1) year from the date of commencement of construction of any Improvement, said Improvements shall be deemed to be in compliance with all provisions of this Article 6, unless notice of such non-compliance and noncompletion, executed by the Architectural Committee or its designated

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representatives, shall appear of record in the Official Records, or unless legal proceedings shall have been instituted to enforce compliance or completion.

Section 6.06 Rules and Regulations. The Architectural Committee may from time to time, in its sole discretion, adopt, amend and repeal Association Rules including regulations interpreting and implementing the provisions of this Article 6.

Section 6.07 Variances. Where circumstances, such as topography, location of property lines, location of landscaping, or other matters require, the Architectural Committee, by the vote or written consent of a majority of the members thereof, may allow reasonable variances as to any of the covenants, conditions or restrictions contained in this Declaration under the jurisdiction of the Architectural Committee, on such terms and conditions as it shall require; provided, however, that all such variances shall comply with the general plan for the improvement and development of the Property, the laws and ordinances of the City and all other applicable Governmental Requirements.

Section 6.08 Appointment and Designation. The Architectural Committee may from time to time, by the vote or written consent of a majority of its members, delegate any of its rights or responsibilities hereunder to one or more duly licensed architects or other qualified persons who shall have full authority to act on behalf of said Architectural Committee in all matters delegated.

Section 6.09 Review Fee and Address. Any plans and specifications shall be submitted in writing for approval by the Architectural Committee together with a reasonable processing fee established by the Architectural Committee which may also include reimbursement by such Owner for any and all fees and costs reasonably incurred by the Architectural Committee for third party consultants (e.g., architects and engineers and contractors) engaged by the Architectural Committee in connection with such review. The address of the Architectural Committee shall be the principal place of business of the Association or such other place as the Architectural Committee may from time to time designate in writing to the Board. Such address shall be the place for the submittal of any plans and specifications and the place where the current Association Rules, if any, of the Architectural Committee shall be kept.

Section 6.10 Inspection. Any member or agent of the Architectural Committee may, from time to time, at any reasonable hour or hours, and upon reasonable notice, inspect any Improvements constructed upon the Property subject to the jurisdiction of said Architectural Committee to assure compliance with the provisions hereof.

Section 6.11 Compliance With Governmental Laws and Other Requirements. Declarant and its successors and assigns, all future Owners of any Lot, and their successors and assigns, by their acceptance of their respective deeds, and the Association each agree to be, and they hereby are, bound by and subject to all laws and ordinances of the City and all other applicable governmental laws or regulations. No Building or other Improvements or addition or change or alteration thereof shall be commenced, constructed, erected, placed, altered, maintained or permitted to remain on any of the real property within the Property, including the Association Maintenance Area, which is in violation of any of the laws or ordinances of the City or any other applicable governmental laws or regulations.

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ARTICLE VII

DUTIES AND POWERS OF THE ASSOCIATION AND OWNERS
Section 7.01 Duties and Powers of Association. In addition to the duties and powers enumerated in the Articles, Bylaws or elsewhere in this Declaration and without limiting the generality thereof, the Association shall:
(a) Maintain, repair, operate, replace and otherwise manage in a first-class, safe, clean, sanitary and attractive condition, all Association Maintenance Areas and all Association Maintenance Area Improvements of the Project as part of Association Maintenance Expenses to be paid for by the Owners as provided in this Declaration and any other areas of the Project which an Owner may request the Association to maintain and repair, at such Owner’s sole cost and expense.
(b) Maintain such policies of insurance as are required under this Declaration or as the Board may deem necessary or desirable for furthering the purposes of and protecting the interests of the Association and the Members and review the effectiveness and adequacy of such policies on an annual basis. If the particular type of business, use or special circumstances of any individual Owner is responsible for an increase in the premiums to obtain said policy or policies of insurance, the Board may require reimbursement from such Owner to compensate the Association for the higher premium payments or may levy a Special Assessment upon such Owner in the amount of the higher premium payments.
(c) Have the authority to employ a property manager (which may be an affiliate of Declarant) or other persons and to contract with independent contractors or managing agents to perform all or any part of the duties and responsibilities of the Association, provided that any contract with a person or firm appointed as a manager or managing agent shall be limited to a duration of not more than three (3) years, except with the approval by vote or written consent by Members entitled to exercise not less than a majority of the voting power of the Association.
(d) Have the power to establish and maintain a working capital and contingency fund from Regular Assessments for such purposes and in such amounts as may be determined by the Board.
(e) Reconstruct, replace or refinish any Association Maintenance Improvements in accordance with the terms of this Declaration. (f) Employ personnel necessary for the effective operation and maintenance of the Association Maintenance Areas, including the employment of legal, management and accounting services.
(g) Have the power, subject to the rights of Declarant as provided herein, to enforce the provisions of this Declaration by appropriate means, including, without limitation, the expenditure of funds of the Association, the employment of legal counsel and the commencement of actions.

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(h) Have the power to adopt, amend and repeal such rules and regulations as it deems reasonable (the “Association Rules”), which may include the establishment of a system of fines and penalties enforceable against each Owner as Special Assessments. The Association Rules shall govern such matters in furtherance of the purpose of the Association, including, without limitation, the use of the Association Maintenance Area Improvements; provided, however, that the Association Rules may not discriminate among Owners (except based upon distinctions due to differing Association Maintenance Areas and Association Maintenance Area Improvements), and shall not be inconsistent with this Declaration, the Articles and the Bylaws. A copy of the Association Rules as they may from time to time be adopted, amended or repealed or a notice setting forth the adoption, amendment or repeal of specific portions of the Association Rules shall be delivered to each Owner in the same manner established in this Declaration for the delivery of notices.

Upon fulfillment of the notice requirements, said Association Rules shall have the same force and effect as if they were set forth in and were part of this Declaration and shall be binding on the Owners and their successors in interest whether or not actually received thereby, in the event of any conflict between any such Association Rules and any other provisions of this Declaration, the Articles and the Bylaws, the provisions of this Declaration, the Articles and the Bylaws shall prevail over the Association Rules to the extent of any such conflict.
(i) Have the right and obligation to keep and preserve separate and complete books of account covering the Association Maintenance Expenses. Any Owner and/or its authorized representatives shall have the right to examine and/or audit the books of the Association at their sole cost and expense during reasonable business hours, following reasonable notice and without unreasonable frequency.

Section 7.02 Maintenance and Repair Obligations of all Owners. Subject solely to the duty of the Association to perform maintenance and repair of any Association Maintenance Areas and Association Maintenance Area Improvements situated on such Owner’s Lot as described in Section 7.01 above, each Owner shall maintain, repair and replace, or cause to be so maintained, repaired and replaced, at such Owner’s sole cost and expense, in first-class, safe, clean, sanitary and attractive condition and state of repair, in compliance with all Laws, all portions of such Owner’s Lot which does not comprise any Association Maintenance Area or Association Maintenance Area Improvements as described in this Declaration, including, without limitation:
(a) All elements of such Owner’s Lot and all Improvements thereon including all Buildings which do not constitute Association Maintenance Areas or Association Maintenance Improvements as provided herein, including, without limitation, the exterior and interior elements of any Building and all other Improvements comprising same including walls, roofs, windows, doors, awnings, HVAC units, truck docks and doors, gutters and downspouts, all sound walls, screen walls, fencing and gates and exterior lighting situated on such Owner’s Lot, including the Perimeter Wall which shall be maintained by Lot 1 Owner and Lot 2 Owner in accordance with the terms of the Party Wall Easement Agreement, each as to the portion of the Perimeter Wall which is situated on such Owner’s Lot;

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(b) All restored slopes and landscaping situated on such Owner’s Lot as provided in Section 8.09(a) below and all landscape lighting, drainage and irrigation systems and equipment;
(c) All unimproved portions of such Owner's Lot, if any, so as to keep the same clear of all rubbish, trash and debris visible from other Lots and ensuring that all Occupants deposit trash in the appropriate receptacles and are responsible for ensuring compliance with governmental and/or trash and recycling service provider requirements and governmental regulations;
(d) All Building wall address signage, all wall dock door number signage, all Owner logo and identification wall signage situated on such Owner’s Building, all parking including ADA parking and path of travel signage, and all Owner and/or Occupant identification sign panels located on such Owner’s Building or on any Project Monument and Directional Signs, all in accordance with Section 8.05; (e) All sidewalks, curb, gutters, driveways, drive aisles, parking areas, parking curbs, parking lot striping including path of travel Improvements and striping and parking and walkway lighting in a neat and clean condition in accordance with Section 8.06, reasonable wear and tear excepted, and repairing any damage to such areas caused by such Owner or any Occupants of such Lot;
(f) All utility lines and equipment including water, sewer, gas, electricity and telecommunications facilities on such Owner's Lot from and within all Improvements on such Owner’s Lot to the point of connection in the public right of way; and (g) All stormwater detention elements and systems and storm drain facilities situated on such Owner’s Lot which are not to be maintained by the Association as provided herein in accordance with Best Management Practices and so as to prevent any obstructions to any other Owner's or the Project's stormwater detention facilities.

Section 7.03 Maintenance and Repair by Certain Owners. Without limiting the obligations of all Owners as described in Section 7.02 above, the following Owners shall have the following specific maintenance and repair obligations:
(a) The Owner of Lot 3 shall maintain and repair the Building B Drainage Line Improvements at its sole cost and expense.
(b) The Owner(s) of the Wedge Lots shall maintain and repair the Wedge Lots Sewer Improvements at its/their sole cost and expense.

Section 7.04 Maintenance of Public Utilities. Nothing contained herein shall require or obligate the Association to maintain, replace or restore the underground facilities of public utilities which are located within easements in any Association Maintenance Area owned by such public utilities.

However, the Association shall take such steps as are necessary or convenient to ensure that such facilities are properly maintained, replaced or restored by such public utilities.

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ARTICLE VIII

USE RESTRICTIONS
Section 8.01 Use in General. The Project shall be used for the construction, operation and maintenance of industrial, warehouse, logistics and distribution establishments and related facilities, all as more specifically described hereinafter.

Section 8.02 Permitted and Prohibited Uses; Maintenance. (a) Permitted Uses. Each Lot shall be used only for uses permitted by applicable zoning and related general and specific plans and in compliance with all governmental laws, ordinances and regulations applicable to the use of such Lot and its occupancy.
(b) Prohibited Uses.
(i) No portion of a Lot except within the interior of a Building shall be used for outside manufacturing or assembly of materials or equipment. (ii) No Lot shall be used for a business or use which does not comply with the City of Calimesa Municipal Code including, without limitation, as respects sound, electrical disturbances, radioactivity, fire and explosion risks, vibration, smoke, dust, fumes and particulate emissions, odors; and emission of heat and glare.

Section 8.03 Storage and Loading Areas. Unless specifically approved by Declarant or the Association in writing, no outside storage of pallets, boxes, metal drums, , materials, supplies or equipment, mobile homes, boats, or recreation vehicles, shall at any time be stored in any area on a Lot except inside a closed Building, or behind a visual barrier screening such areas as reasonably feasible in compliance with Governmental Requirements.

Section 8.04 Signs. There shall be no signs, banners or similar advertising media allowed on the Lots, except directional signs, handicap parking signs and signs on Buildings identifying the Building Owner or Occupants and sign panels on monument signs identifying the Building Owner or Occupants. All exterior Building signs shall be restricted to identification of the businesses or services located or provided on the applicable Lot and all signage including without limitation for lease and for sale signage shall conform to (i) all Governmental Requirements and (ii) the Birtcher Oak Valley Commerce Center Master Sign Program. Declarant, its successors and assigns, may erect and maintain such signs and other advertising devices or structures as it may deem necessary or proper in connection with the conduct of its operations for the development, improvement, leasing and sale of the Property and Lots therein.

Section 8.05 Parking and Drive Areas.
(a) The parking area on each Lot shall contain sufficient parking spaces in order to comply with all Governmental Requirements without reliance on parking spaces located on any other Lot. Each Owner and its Permittees shall park only in the parking spaces located on such Owner’s Lot. All parking, drive and loading areas shall be paved and

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striped (including any restriping) in accordance with (i) plans on file with the Community Development Department for the City, (ii) plans approved by the Association, and (iii) all Governmental Requirements, including without limitation the ADA. (b) No automobile, recreational vehicle or equipment, commercial vehicle, automobile, or any other motorized vehicle may be dismantled, rebuilt, repaired, serviced or repainted on the Property except within a Building, unless authorized by the Association.

The foregoing restriction shall not be deemed to prevent temporary parking for loading or unloading of vehicles. No motor vehicle may be parked on any public streets abutting or within the Property.
(c) All parking for the Property shall be in compliance with the laws and ordinances of the City and all applicable Governmental Requirements. The Association has full power (but not the obligation) to enforce the parking within the Property and any parking violations, including, without limitation, the right to call local police to issue citations or tow the vehicles (at the expense of the Owners of such vehicles) which are violating the laws or ordinances of the City.

Section 8.06 General Construction Requirements.
(a) Manner of Performance. All work performed in the construction, maintenance and repair of any Building, landscape or other Improvements located on a Lot shall be effected as expeditiously as possible and in such a manner as not to unreasonably interfere, obstruct or delay (i) access to or from Association Maintenance Areas, or any part thereof, or to or from any public right-of-way, (ii) construction work being performed on the other Lots, or (iii) the use, enjoyment or occupancy of the other Lots by the other Owners or their Occupants. Unless otherwise specifically stated herein, the Owner shall, at its sole cost and expense, promptly repair and restore all Buildings, Improvements and Association Maintenance Area Improvements damaged or destroyed in the performance of such work.
(b) Staging. Staging for the construction, maintenance and repair of any Building or other Improvements located on any Lot, including, without limitation, the location of any temporary Buildings or construction sheds, the storage of building materials, and the parking of construction vehicles and equipment, shall be limited to and take place only on that Lot. At the request of another Owner, the applicable Owner shall fence off such staging and storage areas.
(c) Standard of Work. All work performed in the construction, maintenance and repair of any Building or other Improvements located on any Lot shall be done in a good and workmanlike manner and in accordance with good engineering standards. (d) Mechanics’ Liens. If any mechanics’, materialman’s, architects’, or other design or construction liens shall be filed against any Lot for any work done or materials furnished in connection with any other Lot (“Improved Lot”), the Owner of the Improved Lot shall cause the lien to be satisfied and released of record. Such Lot Owner shall, within thirty (30) days after the filing of such lien, either (i) cause any such outstanding lien or

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claim of lien to be released of record or transferred to bond in accordance with applicable Governmental Requirements, or (ii) give such assurances as would enable a title insurance company to insure over said outstanding lien or claim of lien, failing both of which the other Owners shall have the right, at such Owner’s expense, to transfer said lien to bond.

The Owner of the Improved Lot shall indemnify, defend, protect and hold the other Owners and their respective officers, directors, shareholders, employees and agents harmless for, from and against any and all causes of action, claims, liability, losses, damages, costs, expenses (including reasonable attorneys’ fees and court costs), liens and claims of lien arising out of or in any way connected with the performance of such work. The obligation to indemnify, defend, protect and hold harmless as set forth herein shall survive the expiration of this Declaration.
(e) Indemnity. In addition to any other indemnification set forth in this Declaration, each Owner shall indemnify, defend, protect and hold the Association, Declarant, and the other Owners, and their respective officers, directors, shareholders, employees and agents harmless for, from and against any and all causes of action, claims, liabilities, losses, costs, expenses (including reasonable attorneys’ fees and court costs) and damages, arising out of or related to injury or to death of any person or damage to or destruction of any property (i) arising out of or resulting from any construction activities performed by or at the request of such Owner or its Occupants, or (ii) occurring within such Lot.
(f) Debris. During all construction on a Lot, the Owner undertaking such work shall keep the construction site and surrounding areas clean and free of construction materials, trash and debris, and shall take appropriate precautions to protect against personal injury and property damage to the other Owners and their Permittees.

Section 8.07 Hazardous Materials.
(a) Restriction on Hazardous Materials. No Hazardous Material shall be brought upon, kept, used, generated or stored in or around any Lot, except in compliance with all applicable Environmental Regulations, and then only to the extent that such Hazardous Material is necessary in the ordinary course of business conducted on such Lot.

Without limiting the foregoing, in the event of a violation of any Environmental Regulation on a Lot, the respective Lot Owner shall promptly take all actions at its sole expense as are necessary to correct such violation to the satisfaction of applicable governmental entities. (b) Indemnity. If an Owner breaches its obligations under Section 8.08(a) above, or if a Hazardous Material is at any time released or found to exist on a Lot (except to the extent caused by the other Owners), then such Owner shall indemnify, defend, protect and hold the Association, Declarant, and the other Owners, and each of them, and their respective officers, directors, shareholders, employees and agents, harmless from and against any and all causes of action, claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys’ fees and court costs) arising out of such breach or the existence of such Hazardous Material. The obligation to indemnify, defend, protect and hold the other Owners harmless as set forth herein shall survive the expiration of this Declaration.

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Section 8.08 Rubbish. All rubbish, trash and garbage shall be regularly removed from the Lots and shall not be allowed to accumulate thereon. All exterior refuse containers, woodpiles, storage areas, machinery and equipment shall be prohibited without the prior written approval of the Board.

Section 8.09 Landscaping and Related Uses.
(a) Maintenance. All berms, slopes and landscaping areas within the Property shall be maintained by the Owner of each Lot as to berms, slopes and landscaping areas on such Owner’s Lot in first-class condition and repair, said maintenance to include, without limitation, the following: (i) landscaping shall be evenly groomed, evenly edged, free of bare or brown spots, debris, and weeds; (ii) trees and shrubs shall be trimmed so they do not impede vehicular or pedestrian traffic; (iii) trees shall be pruned so they do not intrude into walkways or drive aisles; (iv) trees shall be maintained so they do not have excessive droppings or create other nuisances to neighboring Lots; (v) trees within the vegetative barrier shall be maintained in a healthy state and groomed equally to prevent the occurrence of a vegetative gap; and (vi) trees shall be root pruned to eliminate exposed surface roots and damage to sidewalks, driveways, and Improvements.
(b) Recycled Water Irrigation System.
(i) Installation of Irrigation. All landscaping shall be served by an inground recycled water irrigation system that is designed, installed or modified in compliance with the City design standard and procedures and with the YVWD Policies and Standards. YVWD is responsible for the approval of irrigation plans and inspections of all dual plumbed recycled water irrigation and exterior potable water systems within a Lot. Owners must obtain prior approval for all proposed modifications to the in-ground recycled water irrigation system located on their Lot.

Changes must be submitted to and approved by the Architectural Committee and YVWD prior to any modifications.
(ii) Recycled Water Irrigation System. The Lots are served by two (2) water supply systems, including a separate recycled water meter and system installed for landscaping irrigation. Each Owner’s installation of an irrigation system serving the Owner’s Lot is also required to be connected to the recycled water system. All landscaping irrigation systems are required to be connected to the recycled water systems; in no case will irrigation be connected to the drinking water systems. The Project is supplied with recycled water for landscape irrigation by YVWD. Owners are required to comply with YVWD Polices and Standards when designing, installing or modifying a recycled water landscape irrigation system, and the work must be approved by YVWD prior to work beginning. Once plans have been approved by YVWD and after initial construction of proposed systems, an open trench inspection must be scheduled with YVWD by the Owner prior to covering any water line. In no case shall irrigation or drinking water lines be covered before inspection by YVWD. YVWD requires that a Declaration of Restrictions Regarding Recycled Water be Recorded over an Owner’s Lot as part of the irrigation system approval process for each such Lot, and YVWD reserves

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the right to periodically enter each such Lot to inspect recycled water irrigation systems and to test for prohibited cross-connection of irrigation and potable water systems.
(iii) Irrigation System Design, Installation or Modification. All Owners must comply with all YVWD Policies and Standards for recycled water irrigation systems. Besides the information about YVWD’s recycled water program in this Declaration, additional information is available directly from YVWD, either by visiting its website at http://www.yvwd.dst.ca.us/contact-us, or by contacting YVWD at 909-797-5117.
(iv) Prevent Overspray, Runoff and Ponding. Irrigation systems should be designed and operated to prevent overspray, runoff and ponding. Irrigation spray nozzles must be installed to prevent overspray onto paved surfaces, as directed by YVWD Policies and Standards. Unless otherwise provided in the YVWD Policies and Standards, a buffer zone around landscaped areas irrigated with recycled water spray nozzles must be designated and installed to prevent overspray and run-off. The buffer zone may be irrigated with a drip system only.

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equipped with internet-connected weather-controlled irrigation control systems.

These systems will be connected remotely to internet weather data through the wifi serving the Building or independent cellular service to prevent irrigation before, during, and 48 hours after a storm event.
(xi) Maintenance. Owners are responsible for the following maintenance of the recycled water irrigation systems on their Lot:
(A) Perform regular inspections of the entire recycled water systems, including sprinkler heads, drip irrigation system emitters, spray patterns, water lines and valves. Immediately repair all broken or faulty sprinkler heads that cause overspray, leakage or ponding, all leaking water lines and valves, and any other conditions that violate the recycled water use requirements. (B) Check all recycled water identification signs, tags stickers and above-grade water line markings for their proper placement and legibility.

Replace damaged, unreadable, or missing signs, tags, stickers, and water line markings.
(C) Check spray patterns to eliminate ponding, runoff and windblown spray conditions. If evidence of ponding or runoff is noted, sprinkler heads should be adjusted to prevent further ponding or runoff. (xii) Site Supervisor. Each Owner shall restrict the use of recycled water to those uses set forth in the YVWD Policies and Standards for recycled water services. Each Owner must have completed the Site Supervisor Training class offered by YVWD. Site Supervisors are to know the following restrictions on the use of recycled water:
(A) Recycled water, although highly treated, is non-potable (not drinking water) and must never to be used for human consumption. (B) YVWD Policies and Standards prohibit ponding, windblown spray and runoff of recycled water.
(C) State law prohibits a connection between the recycled water and drinking water systems.
(xiii) Site Supervisor Transfer Due to Owner Transfer. If an Owner’s Lot is transferred to a new Owner, the recycled water customer must notify YVWD within 10 days after the transfer to receive a new Recycled Water Use Permit. The Owner of a Lot occupied by an Occupant remains responsible for proper use of recycled water on the Lot and for notifying the Occupant or new Owner of the recycled water requirements.
(xiv) Landscape Companies. Landscape companies hired by Owners to perform landscape and irrigation maintenance must have completed Site

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Supervisors training offered by YVWD and be on the approved landscape company list provided by the Association.
(xv) Inspection and Testing Requirements. YVWD personnel have the right to visit an Owner’s Lot, after giving the Owner prior written notice, to inspect the recycled water systems and use. YVWD may also enter the Owner’s Lot immediately if an emergency arises related to recycled water. (A) YVWD will inspect the installation of the Owner’s recycled water irrigation system. A landscape irrigation plan must be submitted and approved before any construction of the recycled water irrigation system may begin. The irrigation system must comply with YVWD’s Policies and Standards.

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(2) Backflow Prevention Devices. For the protection of
the drinking water system, a backflow prevention device is required at drinking water service connections to Lots where recycled water is used.

Section 8.10 Water Quality Protection.
(a) Compliance with Law. To protect the quality of our nation’s waters, a number of federal, state and local laws, ordinances, rules, regulations and orders prohibit the discharge of anything other than natural rainwater into storm drain systems, including gutters and streets that drain into storm drains. These governmental requirements include the Clean Water Act, the National Pollution Discharge Elimination System, orders and permits of the State Water Resources Control Board and the Regional Water Quality Control Board, the ordinances and regulations of the City and County, any Storm Water Pollution Prevention Plan, and the WQMP covering the Property. Each Owner and the Association shall comply with, and cause its contractors to comply with, all such Governmental Requirements regarding the use, storage and disposal of pesticides, fungicides, herbicides, insecticides, fertilizers and other such chemicals, which such compliance shall include the effective establishment, operation, management, use, repair, and maintenance of all of the Association Maintenance Areas, drainage facilities, and pollution prevention devices set forth in the WQMP. Owners and the Association should consult with the City, County, other governmental authorities, and their refuse hauler regarding the proper disposal of any Hazardous Materials. (b) Owner/Association Responsibilities. Most discharges of anything other than natural rainwater into storm drain systems are unlawful and may result in significant penalties and fines. Neither an Owner nor the Association shall discharge or permit any of the following to be disposed in the Property or discharged into any street, gutter, storm drain or storm water conveyance system: toxic or hazardous chemicals, hydrocarbon compounds such as gasoline, motor oil, antifreeze, solvents, paints, paint thinners, wood preservatives, fertilizers, lawn clippings, yard waste, detergents, pet waste, or other Hazardous Materials. Each Owner and the Association shall indemnify, protect, defend and hold Declarant and its officers and directors harmless from any and all claims, liability, actions, penalties or damages (including attorney’s fees, experts’ fees and costs) arising from or attributable to the Owner’s or Association’s failure to comply with the

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requirements of this Section 8.10(b). The obligation to indemnify, defend, protect and hold harmless as set forth herein shall survive the expiration of this Declaration. (c) BMPs. The WQMP for the Property describes Best Management Practices or “BMPs”, which are methods, protocols and procedures for the control, reduction and prevention of storm water and pollutant runoff from the Property into storm drains and waterways. The BMPs applicable to the Property are specified in the WQMP, and they include both “source control” BMPs (which are structural or design requirements), and “non-structural” BMPs (which include maintenance requirements for the Association and practices and procedures that must be followed by the Association and by all the Owners), all of which are discussed in the WQMP. The Association shall operate and maintain the BMPs designated for the Association in accordance with the WQMP. BMPs designated for the Owners are the sole responsibility of the Owner of the affected Lot, provided that if the Owner of the Lot fails or refuses to perform the required BMP, then the Association may after prior written notice to the Owner, perform or maintain the Owner’s BMP at the Owner’s cost. No Owner whose Lot contains any Drainage and Water Quality Improvements shall permit interference with or damage to same, and neither the Association nor any Owner shall do any act which shall contribute to the introduction of pollutants into the Drainage and Water Quality Improvements, including, but not limited to, soil, sand, sediment, oil, gasoline or other hydrocarbons, paint, fertilizers, pool chemicals, and other household chemicals.

ARTICLE IX

INSURANCE AND INDEMNIFICATION
Section 9.01 Right and Duty of Association to Insure. The Association shall obtain and continue in effect the following types of insurance:
(a) Commercial General Liability Insurance. Commercial general liability insurance written on a standard CG 00 01 occurrence form in an amount not less than five million dollars ($5,000,000.00), combined single-limit coverage per occurrence, or in such greater amount per occurrence or in the aggregate as the Association may from time to time determine, covering all claims for personal injury and property damage within and about any Association Maintenance Area; Such insurance may be satisfied by a combination of a Commercial General Liability policy and a Commercial Umbrella or Commercial Excess Liability policy.
(b) Auto Liability Insurance: Business Auto Liability insurance written on a standard ISO form CA 00 01, covering any owned, hired, and non-owned automobiles with a liability limit of One Million Dollars ($1,000,000.00) per accident with no annual aggregate.
(c) Commercial Property Insurance. Property insurance in an amount as near as possible to the full replacement value of all Association Maintenance Area Improvements, without deduction for depreciation. Such insurance shall be on a Special Form perils basis and shall be maintained by the Association as named insured for the benefit of the Association, the Owners and all Mortgagees as their interests may appear,

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subject, however, to loss payment requirements as set forth herein. The deductible may not be greater than $10,000.00.
(d) Crime Insurance. Fidelity coverage against dishonest acts on the part of directors, officers, employees, volunteers or managers who handle or who are responsible to handle the funds of the Association, and such fidelity bonds shall name the Association as obligee, shall be written in an amount equal to one hundred fifty percent (150%) of the estimated annual operating expenses of the Association, including reserves, but in no event less than One Million Dollars ($1,000,000.00), and shall contain waivers of any defense based on the exclusion of persons who serve without compensation or from any definition of “employee” or similar expression. Such Crime Insurance shall also include money and securities coverage, both on and off premises, in an amount equal to one month of revenue.

The deductible may not be greater than $10,000.00.
(e) Directors and Officers Liability Insurance: Directors and Officers Liability insurance coverage against wrongful acts committed by directors and officers of the Association in an amount not less than Five Million Dollars ($5,000,000.00) per claim and in the aggregate. The self-insured retention may not be greater than Ten Thousand Dollars $10,000.00.
(f) Workers’ Compensation coverage as required by applicable Legal Requirements on all of its employees. Such coverage shall be maintained as required by applicable statutes and shall include Employer’s Liability coverage of at least One Million Dollars ($1,000,000.00).
(g) Other Insurance. Such other insurance as the Board deems necessary, including, without limitation, errors and omissions and such other risks as shall customarily be covered with respect to planned developments similar in construction, location and use of the Property.

General Requirements. The following requirements apply to the policies required by this Section 9.01: All policies are to be underwritten by insurance companies with “Best’s Key Rating Guide” rating of A- or better and financial size of VII or greater.

Section 9.02 Premiums. The premiums for any and all such insurance maintained by the Association shall constitute a portion of the Association Maintenance Expenses to be included in the Regular Assessments levied by the Association and collected from the Owner.

Section 9.03 Trustee for Policies. The Association, acting through its Board, shall appoint a trustee (“Trustee”) for the interest of all named insureds under policies of insurance purchased and maintained by the Association. Except as provided below, all insurance proceeds payable under Section 10.01 hereof, requiring fire and extended coverage insurance, shall be paid to the Trustee.

The Trustee shall hold, distribute and expend such proceeds for the benefit of the Owners, Mortgagees and others, as their respective interests shall appear, pursuant to the provisions of Article X hereof, entitled “Damage or Loss to Improvements”. The Trustee shall be appointed by the Board and shall be a commercial bank, or branch thereof, or a trust company, or branch thereof,

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in the County, which has agreed in writing to accept such trust. When proceeds from a single claim do not exceed ten thousand dollars ($10,000), such proceeds shall be paid to the Association to be used as provided in Article XI, entitled “Damage or Loss to Improvements”. When proceeds from a claim relate to the Improvements insured by the Owners, such proceeds shall be paid to the applicable Owner. Except as otherwise expressly provided above, insurance proceeds shall be disbursed by the Trustee to the Association for use by the Association for the repair or replacement of the Property for which the insurance was carried or otherwise disposed of as provided in this Article IX. The Board is hereby granted the authority to negotiate loss settlements with the appropriate insurance carriers, with participation, to the extent they desire. Any two Members of the Board may sign a loss claim form and release form in connection with the settlement of a loss claim, and such signatures shall be binding on all the named insureds.

Section 9.04 Actions as Trustee. Except as otherwise specifically provided in this Declaration, the Board, acting on behalf of the Association and all Owners, together with the Trustee, shall have the exclusive right to bind such parties in respect to all matters affecting insurance carried by the Association, the settlement of a loss claim, and the surrender, cancellation, and modification of all such insurance. Duplicate originals or certificates of all policies of fire and casualty insurance carried by the Association and of all renewals thereof, together with proof of payment of premiums, shall be delivered by the Association to all Mortgagees who have requested the same in writing.

Section 9.05 Annual Insurance Review. The Board shall review the insurance carried by the Association at least annually for the purpose of determining the amount of the insurance referred to in Section 9.01 above. Prior to each such annual review, the Board shall obtain a current appraisal of the full replacement value of all Association Maintenance Area Improvements, without deduction for depreciation, by a qualified independent insurance appraiser.

Notwithstanding the requirement for annual review, the insurance policies carried by the Association shall, to the maximum extent possible, provide for automatic adjustments of coverage levels to reflect the changes in costs resulting from inflation.

Section 9.06 Required Waivers. All insurance obtained by the Association shall be maintained by the Association for the benefit of the Association, the Owners and the Mortgagees as their interests may appear. All policies of physical damage insurance shall provide, if reasonably possible, for waiver of the following rights, to the extent that the respective insurers would have the right without such waivers: (a) subrogation of claims against Occupants of the Owners, (b) any defense based on coinsurance; (c) any right of set-off, counter-claim, apportionment, proration or contribution by reason of other insurance not carried by the Association; (d) any invalidity, other adverse effect or defense on account of any breach of warranty or condition caused by the Association, any Owner or any Occupants of any Owner, or arising from any act, neglect, or omission of any named insured or the respective agents, contractors and employees of any insured; (e) any right of the insurer to repair, rebuild or replace, and, if the Improvement is not repaired rebuilt or replaced following loss, any right to pay under the insurance, an amount less than the replacement value of the Improvements insured or the fair market value thereof; (f) notice of the assignment of any Owner of its interest in the insurance by virtue of a conveyance of any Lot; and (g) any right to require any assignment of any Mortgage to the insurer. As to each policy of insurance maintained by the Association which will not be voided or impaired thereby, the Association hereby waives and releases all claims against the Board, the Owners, Declarant, and

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the agents and employees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by negligence of or breach of any agreement by said persons, but only to the extent that insurance proceeds are received in compensation for such loss.

Section 9.07 Right and Duty of Owners to Insure.
(a) Commercial General Liability Insurance. Each Owner shall, at its sole cost and expense, carry or cause to be carried, Commercial General Liability Insurance with limits of not less than Two Million Dollars ($2,000,000.00) each occurrence, Two Million Dollars ($2,000,000.00) General Aggregate and Two Million Dollars ($2,000,000.00) Products-Completed Operations Aggregate, or in such other minimum amount as the Board may from time to time determine, applying to the use, operation and occupancy of its Lot.

Such insurance may be satisfied by a combination of a Commercial General Liability policy and a Commercial Umbrella or Commercial Excess Liability policy. (b) Property Insurance. Each Owner shall cause to be carried in an amount as near as possible to the full replacement value special form “all risk” property insurance on all Buildings and Improvements on their respective Lots in amounts at least sufficient to raze and demolish all the Buildings and Improvements located on the respective Lot. (c) Auto Liability Insurance. Business Auto Liability insurance covering any owned, hired and non-owned automobiles with liability limits of One Million Dollars ($1,000,000.00) per accident with no annual aggregate.
(d) General Requirements. All of the policies of insurance maintained or caused to be maintained by the Owners shall: (a) contain a provision that said policy or policies shall not be canceled or terminated, or coverage reduced below the levels required to be maintained hereunder, or expire by their terms, without thirty (30) days prior written notice, excepting only non-payment of premium which shall be ten (10) days, to the Owner, who shall be required to immediately notify, in writing, the Declarant, the Association, and all other Owners; (b) The Commercial General Liability, Business Auto, and Umbrella or Excess Liability policies shall be endorsed include as additional lnsureds the Association, Declarant, all other Owners, and their respective directors, officers, members, managers, partners, and employees and shall include a primary, non-contributory endorsement in favor of the Association, Declarant, all other Owners and their respective directors, officers, and employees; and (f) The Commercial General Liability, Business Auto, Workers’ Compensation and Employer’s Liability, and Umbrella or Excess Liability policies shall include a waiver of subrogation endorsement in favor of in favor of the Association, Declarant, all other Owners, and their respective directors, officers, members, managers, partners, and employees. Each Owner agrees to furnish to any other Owner requesting same a certificate affirming that: (i) such insurance is in full force and effect; (ii) the premiums have been paid in full; and (iii) all required endorsements are attached to said Certificate. All policies are to be underwritten by insurance companies with “Best’s Key Rating Guide” rating of A- or better and financial size of VII or greater.

Section 9.08 Waiver of Subrogation. If any Owner suffers a loss or damage, and such loss or damage is covered under any policy of insurance that such Owner actually maintains or is required

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to maintain pursuant to this Declaration, then such Owner hereby releases the other Owners and the Association to and from any and all liability for each such loss or damage, notwithstanding that such loss, damage or liability may arise out of the negligent or intentionally tortious act or omission of the other Owners, the Association their agents, officers or employees and/or notwithstanding that such Owner has failed to maintain the insurance policy required to be maintained by it under this Declaration. All insurance that is carried by any Owner under this Declaration to insure against damage or loss to such Owner’s property shall include provisions denying to each respective insurer rights of subrogation and recovery against the other Owners, Declarant, the Association, the Board, and officers of the Association.

Section 9.09 Owner’s Indemnification. Each Owner (the “Indemnifying Owner”) hereby agrees to defend, indemnify and hold harmless the other Owners, Declarant and the Association from and against all demands, claims, causes of action or judgments, and all reasonable expenses incurred in investigating or resisting the same, for injury to person, loss of life or damage to property (i) occurring on the Indemnifying Owner’s Lot, except if caused by the negligence or willful act or omission in whole or in part of the Association, Declarant, any other Owner or the Occupants of such other Owner or the employees, contractors or agents of the Association, Declarant, such other Owner or Occupants, or (ii) occurring on another Owner’s Lot if caused by the sole negligence, willful act or omission of the Indemnifying Owner or the Occupants of the Indemnifying Owner or the employees, contractors or agents of such Indemnifying Owner or Occupants. The obligation to indemnify, defend, protect and hold harmless as set forth herein shall survive the expiration of this Declaration.

ARTICLE X

DAMAGE OR LOSS TO IMPROVEMENTS
Section 10.01 Restoration of Association Maintenance Area Improvements. If any portion of the Association Maintenance Area Improvements is totally or partially destroyed by fire or other casualty, the Board shall cause reconstruction to commence by the earlier of (i) thirty (30) days of the Association’s receipt of the insurance proceeds payable by reason of such destruction, or (ii) ninety (90) days after each destruction, and to thereafter be diligently and continuously prosecuted to completion within a reasonable period of time. The Trustee shall pay to the Board all insurance proceeds payable by reason of such destruction and the Board shall apply such proceeds to the costs of reconstruction. The Board shall be authorized to have prepared the necessary documents to effect such reconstruction as promptly as practical. The Association Maintenance Area Improvements shall be reconstructed or rebuilt substantially in accordance with the original construction plans if such plans are available, with such changes as are recommended by the Architectural Committee, subject to the provisions of Article VI. If the amount available from the proceeds of such insurance policies for such restoration and repair shall be less than the estimated cost of restoration and repair, a Capital Improvements Assessment shall be levied by the Board upon the Owners and their Lots in order to provide the necessary funds for such reconstruction over and above the amounts of any insurance proceeds available for such purpose.

Capital Improvements Assessments shall be borne by the Owners in the same proportions as Regular Assessments.

Section 10.02 Negotiations with Insurer. The Board shall have full authority to negotiate in good faith with representatives of the insurer of the Association Maintenance Area, and to make

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settlement with the insurer for less than full insurance coverage on the damage to the Association Maintenance Area. Any settlement made by the Board in good faith shall be binding upon all Owners.

Section 10.03 Restoration of Buildings and Improvements. If a Building or Improvement on a Lot is damaged or destroyed, the Owner shall, at its sole cost, promptly raze the Improvements and thereafter maintain the Lot as an undeveloped Lot in accordance with the covenants and restrictions set forth in this Declaration or rebuild the Building in accordance with the covenants and restrictions set forth in this Declaration, in a lawful and workmanlike manner and which such reconstruction shall be completed as promptly as practical.

ARTICLE XI

CONDEMNATION
Section 11.01 Definition of Taking. The term “taking” as used in this Article shall mean condemnation by eminent domain, or by sale under threat thereof, of all or part of the Property.

Section 11.02 Taking of Association Maintenance Areas. In the event of a taking with respect to any Association Maintenance Area, the Board shall, subject to the right of all Mortgagees who have requested the right to join the Board in the proceedings, represent all of the Members in any condemnation action or inverse condemnation to recover all awards. No Member shall challenge the good faith exercise of the discretion of the Board in fulfilling its duties under this Section. The Board is further empowered, subject to the limitations herein, as the sole representative of the Members, in all aspects of condemnation proceedings not specifically covered herein.

Section 11.03 Notice to Owners. The Board, immediately upon having knowledge of any taking or threat with respect to the Property, or any portion thereof, shall promptly notify all Owners.

Section 11.04 Taking of Lots. Notwithstanding anything to the contrary herein, each Owner shall represent its own interest in connection with any condemnation action or inverse condemnation proceeding that relates to its Lot.

ARTICLE XII

DEFAULT
Section 12.01 Enforcement. The Association and any Owner, including Declarant and the Association, shall have the right to enforce by proceedings at law or in equity all covenants, conditions, restrictions, easements, reservations, liens and charges now or hereafter imposed by this Declaration, as amended and supplemented, the Articles and Bylaws, including, without limitation, the right to prosecute a proceeding at law or in equity against the person or persons who have violated or are attempting to violate any of these covenants, conditions restrictions, easements, reservations, liens or changes to enjoin or prevent them from doing so, to cause said violation to be remedied or to recover damages for said violation. Nothing herein contained shall be deemed to require Declarant to enforce any covenant, condition, restriction, easement, reservation, lien, charge or provision hereof.

Section 12.02 Cure. Should any Owner fail to comply with any of the provisions of this Declaration and should any such failure of an Owner continue for a period of thirty (30) days

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following written notice of such failure from the Association, the Association shall have the right, but not the duty, to correct any such non-compliance by an Owner, and the cost thereof shall be reimbursed by such Owner to the Association, and if any such costs incurred by the Association are not paid to the Association within thirty (30) days after the Association has furnished a statement therefor, the Association shall have the right, but not the duty, to levy a Special Assessment against such Owner to cover such costs of maintenance and repair or correction, of such noncompliance. No one or more failures or refusals by the Association to accomplish such compliance which an Owner shall have failed to perform shall be deemed a waiver of the right in the Association to perform such work at a later time as to the same or different work or compliance.

Section 12.03 Attorneys’ Fees. In any legal or equitable proceeding for the enforcement, or to restrain the violation, of these restrictions or any provisions hereof, the losing party shall pay to the prevailing party the reasonable attorneys’ fees, costs and expenses incurred in connection with the prosecution or defense of such action. All remedies provided herein or at law or in equity shall be cumulative and not exclusive.

Section 12.04 No Waiver. Failure by the Declarant, the Association, or an Owner to enforce any covenant, condition, restriction, easement, reservation, lien or charge herein contained shall in no event be deemed a waiver of the right to do so thereafter.

Section 12.05 No Termination. No breach of or default under this Declaration shall entitle any Owner to terminate this Declaration, but such limitation shall not affect in any manner any other rights or remedies which such Owner may have hereunder or by reason of any breach or default under this Declaration or at law or in equity.

Section 12.06 Enforcement by City. Should any Owner fail to maintain its Lot or the Association fail to maintain any Association Maintenance Improvements in the condition required by this Declaration or the City ordinances and should any such failure continue for a period of thirty (30) days following written notice of such failure by the City, the City shall have the right, but not the duty, to correct any such failure, and the cost thereof shall be reimbursed by such Owner or the Association, as applicable, to the City, and if any such costs incurred by the City are not paid to the City within thirty (30) days after the City has furnished a statement therefor, the cost to correct such failure, together with interest thereon and costs of collection thereof, shall be a continuing lien upon any interest in the Lot of the Owner who failed to reimburse the City or in the Association Maintenance Area of the Association.

ARTICLE XIII

GENERAL PROVISIONS
Section 13.01 Negligence or Willful Misconduct. The cost of any maintenance services required to be performed by the Association which are caused by the negligence or willful misconduct of any Owner, or an Owner’s Occupants or Permittees shall be borne entirely by such Owner.

Section 13.02 Assignment of Declarant Rights and Duties. Any and all of the rights, powers and reservations of Declarant set forth herein may be assigned to any person, provided such assignee agrees in writing to accept such assignment and to assume the duties of Declarant pertaining thereto.

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Section 13.03 Covenants to Run with the Land; Term. The covenants, conditions and restrictions of this Declaration shall run with and bind the Property and shall inure to the benefit of the individual Owner of the Property and, except as otherwise provided in this Declaration with respect to certain easements and other obligations which are to survive the expiration of this Declaration, shall be enforceable for a term commencing on the date hereof and continuing until that date which is seventy-five (75) years from the date set forth in the initial paragraph of this Declaration; provided, however, the term of this Declaration shall automatically and without further notice continue in full force and effect for successive terms of five (5) years each unless within one (1) year prior to the expiration of the initial term or any such five (5) year extension a termination of this Declaration shall be recorded an instrument conforming to the provisions of Section 13.06 below with the express written consent of the Director of Community Development for the City of Calimesa.

Section 13.04 Construction By Declarant. Nothing in this Declaration shall limit the right of Declarant to alter the Lots owned by Declarant, or to construct such Improvements thereon as Declarant deems necessary or advisable, provided the same is done in accordance with applicable Governmental Requirements. Nothing in this Declaration shall limit the right of Declarant to sell, convey or lease the Lots owned by it. This Declaration shall not limit the right of Declarant at any time to establish on the Project while owned by Declarant additional licenses, reservations, easements, Association Maintenance Areas and rights-of-way to itself, to utility companies, or to others as may from time to time be reasonably necessary for the proper development and use of the Project, provided that no such additional licenses, reservations, easements or rights-of-way shall unreasonably interfere with the use and enjoyment of any Owner’s Lot. Declarant reserves the right to alter its construction plans and designs as it deems appropriate in its discretion.

Section 13.05 Liability of Declarant/Association/Architectural Committee; Hold Harmless. In no event shall Declarant, the Association, the Architectural Committee or any of their respective agents, employees, partners, members, directors or officers, be liable to any Owner, Occupant, Permittee or other Person for any loss, claim, damage, demand, cause of action, liability or expense suffered or incurred on account of any finding, decision, approval or disapproval, course of action, mistake in judgment, nonfeasance, action or inaction, enforcement or failure to enforce any Owner obligations, error, negligence or the like made pursuant to this Declaration, except only for a party’s willful misconduct or wanton and reckless conduct. Every Owner, Occupant and other Person who now or hereafter owns, occupies or acquires any right, title, estate or interest in or to any Lot has or shall be conclusively deemed to have waived and agreed not to bring any action or suit for damages for equitable relief against Declarant, the Association, the Architectural Committee or any of their respective agents, employees, partners, members, directors or officers, except solely for an action seeking injunctive relief to specifically enforce this Declaration.

Section 13.06 Amendments. This Declaration may be amended only by Declarant so long as Declarant owns any Lot in the Project and thereafter, only by an instrument in writing signed by not less than two-thirds (2/3rds) of the voting power of the membership of the Association; provided, however, this amendment provision shall not be amended to allow amendments by the assent or vote of less than two-thirds (2/3rds) of the voting power of the membership of the Association. If a Lot is owned by more than one Owner, any one of the co-Owners may sign such instrument in writing on behalf of all co-Owners. Any amendment must be properly recorded in the Official Records.

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Section 13.07 No Merger of Ownership. Declarant is currently the owner of all of the Property as of the date hereof, but upon conveyance of fee title of a Lot to an entity other than Declarant, said entity shall become an Owner. Notwithstanding Declarant’s common ownership of the Property, such common ownership shall not cause a merger of any of the easements, rights and benefits granted hereunder for the benefit of any Lot over another Lot, nor cause a merger of any of the obligations or burdens placed hereunder upon a Lot for the benefit of another Lot.

Section 13.08 Notices. Any notice to be given to the Association, the Declarant or an Owner under the provisions of this Declaration shall be in writing and shall be delivered as follows:
(a) Notice to the Association shall be deemed to have been properly delivered when delivered personally or sent by certified mail, postage prepaid, return receipt requested, to the address furnished by the Association or the address of its principal place of business.
(b) Notice to Declarant shall be deemed to have been properly delivered when delivered personally or sent by certified mail, postage prepaid, return receipt request to:

QR Birtcher Oak Valley Owner LLC
c/o Birtcher Development
450 Newport Center Drive, Suite 220
Newport Beach, California 92660
Attn: Property Manager
(c) Notice to all Owners shall be deemed to have been properly delivered when delivered personally or placed in the first-class United States Mail, postage prepaid, to the most recent address furnished by such Owner in writing to the Association for the purpose of giving notice, or if no such address shall have been furnished, then to the street address of such Owner’s Lot. Any notice so deposited in the mail shall be deemed delivered fortyeight (48) hours after such deposit.

Section 13.09 Invalidity of Provision. If any provision of this Declaration, or the application thereof to any person or any circumstance, shall be held by a court of competent jurisdiction to be invalid, void or illegal, the remaining provisions hereof and the application of such provision to any person and any circumstance other than those as to which it is held to be invalid, void or illegal, shall nevertheless remain in full force and effect to the maximum extent permitted by law and not be affected thereby.

Section 13.10 Counterparts. This Declaration may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute one agreement.

Section 13.11 Construction. The provisions of this Declaration shall be liberally construed to effect its purpose; the section headings have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.

Section 13.12 Dedications. The provisions of this Declaration shall not be deemed to constitute a dedication for public use nor create any rights to the general public.

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Section 13.13 Entire Agreement. This Declaration contains the entire agreement and supersedes all prior agreements (either oral or written) with respect to the subject matter hereof.

Section 13.14 Joint and Several. If any Owner is composed of more than one Person, the obligations of such Owner shall be joint and several.

Section 13.15 Time of Essence; Force Majeure. Time is of the essence with respect to the performance of each obligation of this Declaration. Whenever performance is required by any Person, such Person shall use all due diligence to perform and take all necessary measures in good faith to perform; provided, however, that if completion of performance shall be delayed at any time by reason of acts of God, war, civil commotion, riots, strikes, picketing or other labor disputes, unavailability of labor or materials, damage to work in progress by reason of fire or other casualty, or any other cause beyond the reasonable control of such Person, then the time for performance as herein specified shall be extended by the amount of the delay actually so caused. Notwithstanding the foregoing, the provisions of this Section shall not operate to excuse any Person from the prompt payment of any monies required by this Declaration to be paid.

Section 13.16 Consent of the City.
(a) Condition of Approval. The Conditions of Approval require the City to review and approve this Declaration for the Property.
(b) Acknowledgement by Declarant. Declarant acknowledges that the City has reviewed this Declaration and that its review is limited to a determination of whether this Declaration properly implements the requirements of the Conditions of Approval. The City’s consent to this Declaration does not contain or imply any approval of the appropriateness or legality of the other provisions of this Declaration, including, without limitation, the use restrictions, private easements and encroachments, private maintenance requirements, architecture and landscape controls, assessment procedures, assessment enforcement, resolution of disputes or procedural matters. (c) Conflict. In the event of a conflict between the Conditions of Approval of the land use entitlements issued by the City for the Property or federal, state, or local laws, ordinances, and regulations and this Declaration, the provisions of the Conditions of Approval and federal, state, or local laws, ordinances, and regulations shall prevail, notwithstanding the language of this Declaration.
(d) Amendment or Termination of the Declaration. Any amendment, modification, or termination of Sections 8.10(a) or 12.06 of this Declaration or which otherwise alters, modifies, terminates, or changes the City's right to enforce maintenance of the berms, landscape and wall areas of the Project shall require the prior approval of the City. Written notice of any proposed amendment to Sections 8.10(a) or 12.06 of this Declaration or which otherwise alters, modifies, terminates, or changes the City's right to enforce maintenance of the berms, landscape and wall areas of the Project shall be given to the City Attorney, City Engineer, and Director of Community Development for the City and shall be deemed disapproved unless specifically approved by the City in writing.

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ARTICLE XIV

RECYCLED WATER DISCLOSURE
Section 14.01 Use for Irrigation. All Lots in the Project are required, as of the date this Declaration is recorded, to use in-ground irrigation systems supplied with recycled water by YVWD, for the irrigation of landscaping. Recycled water shall not be used for any purpose other than irrigation. Each Lot will include two (2) separate water meters and water systems - one for drinking (potable) water, and one for landscape irrigation using recycled water. Exterior hose bibs (water spigots) are connected to the drinking water system. Modification or relocation of the drinking water meter or the recycled water meter and the associated water systems, which results in nonconformance with any YVWD Policies and Standards, is prohibited. Irrigation systems installed by or on behalf of Owners must comply with YVWD Policies and Standards, must be approved by YVWD prior to installation or modification of the irrigation system, and must be inspected prior to backfill of excavations, as described in Sections 8.09(b)(i) and 8.09(b)(ii), above.

YVWD requires that a Declaration of Restrictions Regarding Recycled Water (“Recycled Water Declaration”) be recorded over an Owner’s Lot as part of the irrigation system approval process for each such Lot. Under the Recycled Water Declaration, if the Lot is rented, the Lot Owner remains responsible for proper use of recycled water on the Lot, and for notifying an Occupant or a new Owner of the requirements associated with recycled water. Also, YVWD reserves the right to periodically enter each such Lot to inspect recycled water irrigation systems and to test for prohibited cross-connection of irrigation and potable water systems.

Section 14.02 Description of Recycled Water. Recycled water comes from wastewater and it goes through at least three stages of treatment in compliance with the standards set by California’s Department of Health Services and Regional Water Quality Control Board, but recycled water may not be treated to levels required for consumption by humans or domestic animals. Recycled water irrigation water lines and equipment are purple in color for ready identification. All Persons in the Project should always assume that water originating from purple irrigation water lines and equipment is recycled, and therefore is never suitable for human or domestic animal consumption. There is no way to reliably tell the difference between potable water and recycled water without a chemical test. Owners and the Association should ensure that there is no overspray of irrigation water. The repeated spray of any water used in irrigation may stain or discolor personal property, fences, walls and other Improvements.

Section 14.03 Role of YVWD. YVWD is responsible for the approval of plans and inspections of all separate recycled water irrigation and exterior drinking water systems within the Project. Where repair or replacement of a water line on the upstream-side of the water meter is required, it shall be the responsibility of YVWD. Conversely, the cost of repair or replacement of the water service facilities on a Lot shall be the responsibility of the Owner. The Association will provide YVWD information to the Owners regarding recycled water and will provide facilities where YVWD can conduct workshops on recycled water use. The Association through its Site Supervisor, approved by YVWD, is responsible for the maintenance of all Association Maintenance Area landscape irrigation systems.

YVWD reserves the right to utilize other water supplies in the recycled water system without notice to any Person. Generally, this will involve utilizing raw water or potable water.

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Neither Declarant, the Association, nor their officers, directors, employees or agents are liable for any property damage or personal injury caused by recycled water. Further information concerning recycled water is available at the YVWD’s main office at 12770 Second Street Yucaipa, CA 92399, and at its website: http://www.yvwd.dst.ca.us/home. [SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, Declarant has executed this Declaration on the date first herein above written.
“Declarant” QR BIRTCHER OAK VALLEY OWNER LLC,
a Delaware limited liability company
By:

Name:

Title:

APPROVED AS TO CONTENT:
_________________________________
By:

Name:

Title:

APPROVED AS TO FORM:
____________________________________
By:

Name:

Title:

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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)

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CONSENT AND SUBORDINATION
The undersigned, _____________________________, (“Lender”), being the lender under that certain , by and between and
, dated as of , and recorded
, as Instrument No. in the Official Records of Riverside County, California (the “Deed of Trust”), hereby consents to the execution and recordation of the foregoing Declaration of Covenants, Conditions and Restrictions and Grant of Easements (the “CC&Rs”) to which this Subordination is attached and agrees that the Deed of Trust shall be subject and subordinate to the CC&Rs.

IN WITNESS WHEREOF, the undersigned has caused this instrument to be executed as of the ____ day of _____________, 2022.
_____________________________________
By:

Name:

Title:
[CORPORATE SEAL]

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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)

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102737\15763718v8 Exhibit “A”
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EXHIBIT “A”

PROPERTY LEGAL DESCRIPTION
The land referred to herein below is situated in the City of Calimesa, County of Riverside, State of California, and is described as follows:

PARCELS 1 THROUGH 6 OF PARCEL MAP NO. 38135, IN THE CITY OF CALIMESA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS SHOWN BY PARCEL MAP ON RLE IN BOOK 2S2, PAGES 10 THROUGH 20 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

EXCEPT FROM A PORTION THEREOF 10% OF THE OIL RIGHTS, IN A PORTION OF SAID LAND AS RESERVED IN DEED FROM WILSON W. TURLEY, RECORDED MARCH 17, 1953 IN BOOK 1451, PAGE(S) 507 OF OFFICIAL RECORDS.

ALSO EXCEPTING FROM A PORTION THEREOF 24% OF ALL OIL, GAS, MINERALS,

PETROLEUM, NAPHTHA AND OTHER HYDROCARBON SUBSTANCES LYING ON OR UNDER

THE SURFACE OF A PORTION OF SAID LAND AS RESERVED IN DEED FROM ETTIE LEE, RECORDED JULY 23, 1953 AS INSTRUMENT NO. 36147 OF OFFICIAL RECORDS.

ALSO EXCEPTING FROM A PORTION OF SAID LAND ALL WATER RIGHTS, INCLUDING

OVERLYING, APPROPRIATE, PRESCRIPTIVE AND RIPARIAN RIGHTS TO TAKE, DIVERT,

EXPORT, EXTRACT, PUMP, PROOUCE, RECEIVE TRANSPORT, APPROPRIATE AND USE

WATER OF WHATSOEVER KIND OR NATURE, IN AND TO THE SURFACE UNDERGROUND,

SUBSURFACE, PERCOLATING, ARTESIAN, SPRING, FLOOO, DRAINAGE AND ALL

NATURAL AND ARTIFICIAL WATER SOURCES AND FACILITIES, AS RESERVED BY THE

BEAUMONT-YUCAIPA WATER CONSERVATION ASSOCIATION, IN THE DEED RECORDED NOVEMBER 16, 1961 AS INSTRUMENT NO. 98758 OF OFFICIAL RECORDS.

NOTE: SAID RIGHTS AND INTERESTS NOW VEST IN COUNTY CORK CONCEPTS

CORPORATION, PURSUANT TO JUDGEMENT OF THE A UNITED STATES DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA, CASE NO. 80-04649-FW, A CERTIFIED COPY OF WHICH WAS RECORDED AUGUST 19, 1983 AS INSTRUMENT NO. 169330 OF OFFICIAL RECORDS.

ALSO EXCEPTING FROM A PORTION OF SAID LAND ALL MINERALS, OILS, GASES AND

OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN THAT MAY BE WITHIN OR

UNDER THE PARCEL OF LAND DESCRIBED THEREIN WITHOUT, HOWEVER, THE RIGHT TO

DRILL, DIG OR MINE THROUGH THE SURFACE THEREOF, AS RESERVED BY THE STATE OF CALIFORNIA, IN DEED RECORDED FEBRUARY 3, 1966 AS INSTRUMENT NO. 12822 OF OFFICIAL RECORDS.

ALSO EXCEPT FROM A PORTION OF SAID LAND ALL MINERALS, OILS. GASES AND ALL

HYDROCARBONS BY WHATSOEVER NAME KNOWN THAT MAY BE WITHIN OR UNDER SAID LAND, WITHOUT, HOWEVER, THE RIGHT TO DRILL. DIG OR MINE THROUGH THE

SURFACE THEREOF AS RESERVED BY THE STATE OF CALIFORNIA, IN DEED RECORDED MARCH 30, 1966 AS INSTRUMENT NO. 33247 OF OFFICIAL RECORDS.

ALSO EXCEPTING FROM A PORTION OF SAID LAND ALL MINERAL, OILS, GASES AND ALL

HYDROCARBONS, BY WHATSOEVER NAME KNOWN THAT MAY BE WITHIN OR UNDER

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102737\15763718v8 Exhibit “A”
-2-

SAID LAND, WITHOUT, HOWEVER, THE RIGHT TO DRILL, DIG OR MINE THROUGH THE SURFACE THEREOF AS RESERVED BY RICHARD L. SEINFELD, BY DEED RECORDED FEBRUARY 25, 1988 AS INSTRUMENT NO. 49453 OF OFFICIAL RECORDS.

For conveyancing purposes only: APNs
413-190-033 (Affects portion of Parcel 1), 413-190-034 (Affects portion of Parcel 1), 413-190-035 (Affects portion of Parcel 2), 413-190-036 (Affects portion of Parcel 2), 413-190-033 (Affects portion of Parcel 1), 413-290-079 (Affects portion of Parcel 3), 413-290-080 (Affects portion of Parcel 3), 413-290- 081 (Affects Parcel 4), 413-290-082 (Affects Parcel 5), 413-290-083 (Affects Parcel 6)

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102737\15763718v8 Exhibit “A-2”
-1-
EXHIBIT “A-2”

TRACY MACK LEGAL DESCRIPTION

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF CALIMESA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS:

PARCEL 1:

THOSE PORTIONS OF SECTION 23 AND FRACTIONAL SECTION 24. TOWNSHC 2 SOUTH.

RANGE 2 WEST. SAN BERNARDINO MERIDIAN, AS SHOWN ON “PLAT OF LANDS OF JAMES SINGLETON”, ON FILE IN BOOK 1, PAGE 60 OF MAPS. RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA. DESCRIBED AS FOLLOWS:

BEGINNING AT THE EASTERLY TERMINUS OF THAT CERTAIN COURSE SHOWN AS COURSE (2) IN PARCEL “A” IN DEED TO THE STATE OF CALIFORNIA RECORDED AUGUST 7, 1963 IN BOOK 3459, PAGE 71 OF OFFICIAL RECORDS OF SAID COUNTY. SAID COURSE

BEING DESCRIBED THEREIN AS BEING A CURVE CONCAVE SOUTHEASTERLY WITH A RADIUS OF 880.00 FEET, A CENTRAL ANGLE OF 27’37”58O AND A LENGTH OF 424.41 FEET, TO THE TRUE POINT OF BEGINNING;

THENCE FOLLOWING THE WESTERLY LINE OF THE LAND DESCRIBED IN SAID DEED TO THE STATE OF CALIFORNIA. NORTH 44'28”290 EAST 50.05 FEET, NORTH 05’04”500 WEST,

92.61 FEET TO THE SOUTHERLY TERMINUS OF THAT CERTAIN COURSE IN SID DEED TO

THE STATE OF CALIFORNIA DESCRIBED AS HAVING A BEARING AND DISTANCE OF NORTH 04’33”13 O EAST, 151.29 FEET;
THENCE NORTH 04’33”13 O EAST 151.29 FEET ON LAST SAID COURSE; THENCE NORTH 17’34”58 O WEST, 52.71 FEET;
THENCE NORTH 77’44”58 O WEST, 94.58 FEET;
THENCE SOUTH 70’15”2 O WEST, 50.00 FEET;
THENCE SOUTH 25‘48”55 O WEST, 143.35 FEET;
THENCE SOUTH 35‘06”32 O WEST, 132.00 FEET;
THENCE SOUTH 05’38”14 O WEST, 185.41 FEET TO A PONT IN THE ABOVE DESCRCED NONTANGENT CURVE HAVING A RADIUS OF 880.00 FEET;
THENCE EAST ON THIS CURVE THRU A CENTRAL ANGLE OF 18’47”18 O AN ARC DISTANCE OF 288.57 FEET, TO THE TRUE PONT OF BEGINNING.

PARCEL 2:

ALL THAT PORTION OF SECTION 24, TOWNSHIP 2 SOUTH, RANGE 2 WEST, SAN BERNARDNO MERIDIAN, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA. AS SHOWN ON "PLAT OF LANDS OF JAMES SINGLETON*. ON FILE IN BOOK 1, PAGE 60 OF

MAPS, IN THE OFFICE OF THE RECORDER OF SAN BERNARDINO COUNTY, CALIFORNIA, DESCRCED AS FOLLOWS:

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102737\15763718v8 Exhibit “A-2”
-2-
BEGINNING AT THE EASTERLY TERMINUS OF THAT CERTAIN COURSE (2) IN PARCEL A IN DEED TO THE STATE OF CALIFORNIA RECORDED AUGUST 7, 1963 IN BOOK 3459, PAGE 71

OF OFFICIAL RECORDS, SAID COURSE BEING DESCRIBED THEREIN AS BEING A CURVE CONCAVE SOUTHEASTERLY WITH A RADIUS OF 880.00 FEET. A CENTRAL ANGLE OF 27’37”58 O AND A LENGTH OF 424.41 FEET;
THENCE NORTH 44'28”'29 O EAST, 50.50 FEET;
THENCE NORTH 05’04”50 O WEST, 92.61 FEET;
THENCE NORTH 04’33”13 O EAST, 151.29 FEET;
THENCE NORTH 17’34”58 O WEST, 52.71 FED FOR THE POINT OF BEGINNING; THENCE NORTH 77’44”58 O WEST, 94.58 FEET;
THENCE NORTH 70’15”02 O EAST, 82.10 FEET;
THENCE SOUTH 17’34”58 O EAST, 50.00 FEET TO THE POINT OF BEGINNING.

FOR CONVEYANCING PURPOSES ONLY: APN 413-190-006 (AFFECTS PARCEL 2 AND PORTION OF PARCEL 1) AND 413-190-007 (AFFECTS PORTION OF PARCEL 1).

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102737\15763718v8
EXHIBIT “B”
EXHIBIT “B”

SITE PLAN

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102737\15763718v8
EXHIBIT “C”
EXHIBIT “C”

ASSOCIATION MAINTENANCE AREAS
SEE EXHIBITS “C-1” THROUGH “C-10” FOLLOWING

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102737\15763718v8
EXHIBIT “C-1”
EXHIBIT “C-1”
Building A&B Common Driveway Easement Maintenance Area

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102737\15763718v8
EXHIBIT “C-2”
EXHIBIT “C-2”
Building A&B Drainage Line Maintenance Area

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102737\15763718v8
EXHIBIT “C-3”
EXHIBIT “C-3”
Project Monument and Directional Signage

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102737\15763718v8
EXHIBIT “C-4”
EXHIBIT “C-4”
Building A, B & Wedge Common Driveway Easement Maintenance Area

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102737\15763718v8
EXHIBIT “C-5”
EXHIBIT “C-5”
Building A, B & Wedge Drainage Line Maintenance Area

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102737\15763718v8
EXHIBIT “C-6”
EXHIBIT “C-6”

WEDGE LOT SEWER MAINTENANCE AREA

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102737\15763718v8
EXHIBIT “C-7”
EXHIBIT “C-7”

BUILDING B DRAINAGE LINE MAINTENANCE AREA

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102737\15763718v8
EXHIBIT “C-8”
EXHIBIT “C-8”

NOT USED

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EXHIBIT “C-9”
EXHIBIT “C-9”

OVTC MONUMENT SIGN MAINTENANCE AREAS

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EXHIBIT “C-10”
EXHIBIT “C-10”

PERIMETER WALL

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City Council Meeting
Agenda Report
Agenda Item No. 9
SUBJECT: APPROVAL OF RESOLUTION NO. 2023-07 AUTHORIZING THE

CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT

AUTHORITY TO CONDUCT SPECIAL ASSESSMENT

PROCEEDINGS AND LEVY ASSESSMENTS WITHIN THE

TERRITORY OF THE CITY OF CALIMESA FOR THE YUCAIPA
VALLEY WATER DISTRICT; AND AUTHORIZING RELATED

ACTIONS
MEETING DATE: February 6, 2023
PREPARED BY: Will Kolbow, City Manager
RECOMMENDATION: That the City Council adopt Resolution No. 2023-07, Resolution of the City Council of The City of Calimesa authorizing the California Statewide Communities Development Authority to conduct special assessment proceedings and levy assessments within the territory of the City of Calimesa for the Yucaipa Valley Water District; and authorizing related actions.

BACKGROUND & DISCUSSION: In February 2014 Yucaipa Valley Water District (YVWD) joined the Statewide Communities Infrastructure Program (SCIP) in order to issue bonds through the California Statewide Communities Development Authority (CSCDA), a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. SCIP is a financing program that enables developers to pay most impact fees and finance improvements with proceeds from tax-exempt bonds through an acquisition agreement that qualifies under the 1913/1915 Act.

In 2014, YVWD used SCIP to finance the 6.0-million-gallon Zone 12 Potable Water Storage Reservoir on Singleton Road. At the time, the City of Calimesa adopted a similar Resolution that allowed that transaction to proceed for projects within our City’s jurisdiction. Please note that the proposed Resolution does not commit the City of Calimesa to any future SCIP financings; it simply facilitates YVWD’s financing. The City is exploring other financing options/programs for its development community.

YVWD and CSCDA are now ready to commence assessment proceedings to finance the sewer lift station, sewer force mainline, sewer backbone sewer backbone system, and water storage reservoir to support the projects of Oak Valley Town Center, Summerwind Trails (residential), and Mesa Verde. The costs will be borne by YVWD and three developers: Oak Valley Partners, Jen So Cal, and Shopoff. Although the developments are in the YVWD service territory they are also within the City of Calimesa, and as such, in order to levy assessments, the City must consent. The property owners and YVWD are in support of forming the assessment district, and there is no cost to the

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City. Bonds are expected to be issued in the next few months, and YVWD will manage all construction.

FISCAL IMPACT: None. There is no financial liability to the City. Costs are minimal to process resolution.

ATTACHMENTS:

Attachment A: Resolution No. 2023-07

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A-1
4165-9499-8833
RESOLUTION NO. 2023-07

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA,

CALIFORNIA AUTHORIZING THE CALIFORNIA STATEWIDE

COMMUNITIES DEVELOPMENT AUTHORITY TO CONDUCT SPECIAL

ASSESSMENT PROCEEDINGS AND LEVY ASSESSMENTS WITHIN

THE TERRITORY OF THE CITY OF CALIMESA FOR THE YUCAIPA
VALLEY WATER DISTRICT; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the “Authority”) is a joint exercise of powers authority the members of which include numerous cities and counties in the State of California, including the City of Calimesa (the “City”); and
WHEREAS, the Authority has established the Statewide Community Infrastructure Program (“SCIP”) to allow the financing of certain development impact fees (the “Fees”) levied in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and following) and other authority providing for the levy of fees on new development to pay for public capital improvements (collectively, the “Fee Act”) and to pay for the construction and acquisition of certain public capital improvements (the “Improvements”) through the levy of special assessments pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Local Obligations”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the “1915 Act”) upon the security of the unpaid special assessments; and
WHEREAS, the Yucaipa Valley Water District has previously adopted a resolution to join SCIP and authorizing the Authority to conduct assessment proceedings under the 1913 Act and to issue Local Obligations under the 1915 Act to finance Fees levied on properties within the boundaries of the Yucaipa Valley Water District and Improvements that will be owned and/or operated by the Yucaipa Valley Water District; and
WHEREAS, certain property within the boundaries of the Yucaipa Valley Water District and within the boundaries of the City is being developed by the owners of such property (the “Participating Developers”) in development projects currently known as Oak Valley Town Center, Summerwind, EPC and Mesa Verde (the “Development Projects”); and
WHEREAS, the City desires to allow the Participating Developers of the Development Projects to participate in SCIP and to allow the Authority to conduct assessment proceedings under the 1913 Act and to issue Local Obligations under the 1915 Act to finance Fees and/or Improvements, provided that such Participating Developers voluntarily agree to participate and consent to the levy of such assessments; and
Attachment 9A

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A-2
4165-9499-8833
WHEREAS, certain Participating Developers have requested that the Authority conduct assessment proceedings under the 1913 Act for one or more assessment districts and issue Local Obligations under the 1915 Act to finance Fees payable by such property owners and/or Improvements and, at the conclusion of such proceedings, to levy special assessments on such property within the Yucaipa Valley Water District that is also within the territory of the City; and
WHEREAS, there has been presented to this meeting a proposed form of Resolution of Intention to be adopted by the Authority in connection with such assessment proceedings (the “ROI”), a copy of which is attached hereto as Exhibit A, and the territory within which assessments may be levied for SCIP (provided that each Participating Developer consents to such assessment) shall be as shown on the map attached hereto as Exhibit B (the “Proposed Boundaries”), and reference is hereby made to such boundaries for the plat or map required to be included in this Resolution pursuant to Section 10104 of the Streets and Highways Code; and WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Local Obligations or any other bonds issued in connection with SCIP; and
WHEREAS, pursuant to SCIP, the Authority periodically issues Local Obligations on behalf of the local agency participants in SCIP to provide financing for the Fees and Improvements and then concurrently issues its revenue bonds pursuant to the MarksRoos Local Bond Pooling Act of 1985, consisting of Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code, the proceeds of which are used to purchase the Local Obligations; and WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least five days prior to the adoption of this resolution at a public hearing, which was duly conducted by this Council concerning the significant public benefits of the issuance of revenue bonds by the Authority and the financing of the Improvements and the public capital improvements to be paid for with the proceeds of the Fees.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The City hereby consents as required by Section 10104 of the Streets and Highways Code to the conduct of special assessment proceedings for one or more assessment districts by the Authority in connection with SCIP pursuant to the 1913 Act and the issuance of Local Obligations under the 1915 Act on any property within the Proposed Boundaries; provided, that
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in substantially the form of the ROI; and
(2) The Participating Developers, who shall be the legal owners of such property, execute a written consent to the levy of assessment in connection with SCIP by the

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4165-9499-8833
Authority and execute an assessment ballot in favor of such assessment in compliance with the requirements of Section 4 of Article XIIID of the State Constitution.

Section 2. The City hereby finds and declares that the issuance of bonds by the Authority in connection with SCIP will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs and the more efficient delivery of local agency services to residential and commercial development within the City.

Section 3. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents, including but not limited to such documents as may be required by Bond Counsel in connection with the participation in SCIP of any districts, authorities or other third-party entities entitled to levy and collect fees on new development to pay for public capital improvements within the jurisdiction of the City, as are reasonably required by the Authority to implement SCIP for Participating Developers and to evidence compliance with the requirements of federal and state law in connection with the issuance by the Authority of the Local Obligations and any other bonds for SCIP.

Section 4. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the Authority.

PASSED, APPROVED AND ADOPTED this 6
th day of February, 2023.
_____________________________________

WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________________

DARLENE GERDES, CITY CLERK

EXHIBIT A TO THE RESOLUTION

FORM OF RESOLUTION OF INTENTION

TO BE ADOPTED BY CSCDA

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4165-9499-8833
RESOLUTION NO. __SCIPRESOLUTION OF INTENTION OF THE CALIFORNIA STATEWIDE

COMMUNITIES DEVELOPMENT AUTHORITY TO FINANCE CAPITAL

IMPROVEMENTS AND/OR THE PAYMENT OF DEVELOPMENT IMPACT

FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED

STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM ASSESSMENT
DISTRICT NO. ___ ([NAME OF PROJECT]) CITY OF CALIMESA, COUNTY

OF RIVERSIDE, APPROVING A PROPOSED BOUNDARY MAP, MAKING

CERTAIN DECLARATIONS, FINDINGS AND DETERMINATIONS

CONCERNING RELATED MATTERS, AND AUTHORIZING RELATED

ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 (the “1913 Act”), being Division 12 (commencing with Sections 10000 and following) of the California Streets and Highways Code (the “Code”), the Commission (the “Commission”) of the California Statewide Communities Development Authority (the “Authority”) intends to finance, through its Statewide Community Infrastructure Program, the payment of certain development impact fees for public improvements (the “Improvement Fees”) and/or to finance certain public capital improvements to be owned by the Yucaipa Valley Water District or another local agency (the “Improvements”) as described in Exhibit A attached hereto and by this reference incorporated herein, all of which are of benefit to the property within the proposed Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) City of Calimesa, County of Riverside (the “Assessment District”); WHEREAS, the Commission finds that the land specially benefited by the Improvements and/or the Improvement Fees is shown within the boundaries of the map entitled “Proposed Boundaries of California Statewide Communities Development Authority Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) City of Calimesa, County of Riverside, State of California,” a copy of which map is on file with the Secretary and presented to this Commission meeting, and determines that the land within the exterior boundaries shown on the map shall be designated “Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) City of Calimesa, County of Riverside, State of California”;
WHEREAS, the City of Calimesa is a member of the Authority and has approved the adoption on its behalf of this Resolution of Intention and has consented to the levy of the assessments in the Assessment District;
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide Communities Development Authority hereby finds, determines and resolves as follows:

Section 1. The above recitals are true and correct.

Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (the “1931 Act”), being Division 4 (commencing with Section 2800) of the Code, the Commission hereby declares its intent to comply with the requirements of the 1931 Act by complying with Part 7.5 thereof.

The Commission has designated a registered, professional engineer as Engineer of Work for this project, and hereby directs said firm to prepare the report containing the matters required by

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Sections 2961(b) and 10204 of the Code, as supplemented by Section 4 of Article XIIID of the California Constitution.

The proposed boundary map of the Assessment District is hereby approved and adopted.

Pursuant to Section 3111 of the Code, the Secretary of the Authority is directed to file a copy of the map in the office of the County Recorder of the County of Riverside within fifteen (15) days of the adoption of this resolution.

The Commission determines that the cost of financing the Improvements and/or the payment of the Improvement Fees shall be specially assessed against the lots, pieces or parcels of land within the Assessment District benefiting from the financing of the Improvements and/or the payment of the Improvement Fees. The Commission intends to levy a special assessment upon such lots, pieces or parcels in accordance with the special benefit to be received by each such lot, piece or parcel of land, respectively, from the financing of the Improvements and/or the payment of the Improvement Fees.

The Commission intends, pursuant to subparagraph (f) of Section 10204 of the Code, to provide for an annual assessment upon each of the parcels of land in the proposed Assessment District to pay various costs and expenses incurred from time to time by the Authority and not otherwise reimbursed to the Authority which result from the administration and collection of assessment installments or from the administration or registration of the improvement bonds and the various funds and accounts pertaining thereto.

Bonds representing unpaid assessments, and bearing interest at a rate not to exceed twelve percent (12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10 of the Code), and the last installment of the bonds shall mature not to exceed twenty-nine (29) years from the second day of September next succeeding twelve (12) months from their date.

The procedure for the collection of assessments and advance retirement of bonds under the Improvement Bond Act of 1915 shall be as provided in Part 11.1 thereof.

Neither the Authority nor any member agency thereof will obligate itself to advance available funds from its or their own funds or otherwise to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the Authority or any such member agency from, in its sole discretion, so advancing funds.

The amount of any surplus remaining in the improvement fund after acquisition of the Improvements and/or payment of Improvement Fees and all other claims shall be distributed in accordance with the provisions of Section 10427.1 of the Code.

To the extent any Improvement Fees are paid to the Authority in cash with respect to property within the proposed Assessment District prior to the date of issuance of the bonds, the amounts so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer that made the payment.

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PASSED AND ADOPTED by the California Statewide Communities Development Authority this ___ day of ______, 20__.

I, the undersigned, an Authorized Signatory of the California Statewide Communities Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Commission of the Authority at a duly called meeting of the Commission of the Authority held in accordance with law on _____ __ , 20__.

By [form not to be executed]
Authorized Signatory
California Statewide Communities
Development Authority

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4165-9499-8833

EXHIBIT A TO THE RESOLUTION OF INTENTION

DESCRIPTION OF WORK
The payment of development impact fees levied within the Assessment District and/or public capital improvements to be acquired and owned by the Yucaipa Valley Water District or another local agency upon or for the benefit of parcels within the Assessment District, for the project known as [Project Name], which are authorized to be financed pursuant to the Municipal Improvement Act of 1913 and as to which the owners of the applicable parcels within the Assessment District have applied for participation in SCIP, as more particularly described below.

PAYMENT OF IMPACT FEES
CAPITAL IMPROVEMENTS*
*Capital improvements includes funding for incidental costs associated with the capital improvements, including but not limited to, contingency, design, engineering, and construction management
[End of Form of Resolution of Intention]

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EXHIBIT B TO THE RESOLUTION

BOUNDARY MAP

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City Council Meeting
Agenda Report
Agenda Item No. 10
SUBJECT: PUBLIC HEARING: STREET VACATION OF A PORTION OF WEST AVENUE L, LOCATED SOUTH OF APN 413-060-001
MEETING DATE: February 06, 2023
PREPARED BY: Will Kolbow, City Manager
Michael Thornton, City Engineer
RECOMMENDATION: Staff recommends that City Council adopt Resolution 2023-08, a resolution of the City Council of the City of Calimesa, California, Declaring the Vacation of a portion of West Avenue L as described and shown in the attached legal and plat.

BACKGROUND: The property owners of 888 W Avenue L have requested that the City vacate approximately 3,000 square feet of public right-of-way as shown in the attached legal and plat.

Currently, this portion of West Avenue L contains private improvements such as concrete walkways, landscaping, and fencing. Staff has determined that the portion of the roadway is not necessary for future circulation.

On December 12, 2022, staff presented the proposed vacation of West Avenue L to the Planning Commission, and the Planning Commission adopted Resolution 2022-20, finding the proposed vacation of West Avenue L to be consistent with the General Plan, and directing staff to forward its finding to the City Council.

Staff is requesting City Council to adopt Resolution No. 2023-08 to approve the roadway vacation.

FISCAL IMPACT: None
ATTACHMENTS:

Attachment A: Resolution 2023-08
Attachment B: Exhibit A “Legal Description for APN: 413-060-001 Attachment C: Exhibit B “Plat Map for APN: 413-060-001

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RESOLUTION NO. 2023-08

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CALIMESA, CALIFORNIA, DECLARING THE VACATION OF A PORTION OF “WEST AVENUE L” LOCATED SOUTH OF APN 413-060-001.

WHEREAS, on December 12, 2022, the Planning Commission adopted Resolution No. 2022-20, which found the proposed vacation of a portion of West Avenue L public right-of-way, located south of APN 413-060-001, to be in conformity with the City of Calimesa General Plan and directing City staff to forward its findings to the City Council; WHEREAS, pursuant to the requirements of the California Streets and Highways Code Section 8320 et seq., Staff set a public hearing and posted and published notice as required by law; and
WHEREAS, the City Council of the City of Calimesa finds, pursuant to Sections 15060(c)(2), 15061(b)(3), and 15304 of the State California Environmental Quality Act Guidelines, that the proposed vacation will not result in a direct or reasonably foreseeable indirect physical change in the environmental.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:

Section 1. The City Council specifically finds that the facts and determinations contained in the Recitals to this Resolution are true and correct.

Section 2. Pursuant to Section 8324 of the Streets and Highways Code, the City Council finds that the portion of West Avenue L, located south of APN 413-060-001, is unnecessary for present and future.

Section 3. The City Council hereby vacates the portion of West Avenue L, located south of APN 413-060-001, as described in Exhibit A and depicted in Exhibit B attached hereto.

Section 4. The City Council hereby directs the City Clerk to send a certified copy of this Resolution with exhibit A and B, attested by the City Clerk and under the seal of the City, to the Office of the County Recorder of Riverside County.

PASSED, APPROVED, and ADOPTED this 6
th day of February, 2023.
________________________________

WILLIAM DAVIS, CITY MAYOR
ATTEST:
___________________________

DARLENE GERDES, CITY CLERK
Attachment 10A

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City Council Meeting
Agenda Report
Agenda Item No. 11
SUBJECT: PUBLIC HEARING ‒ ZONING TEXT AMENDMENT 22-02 TO AMEND VARIOUS SECTIONS OF THE ZONING CODE (TITLE 18

OF THE CALIMESA MUNICIPAL CODE) REGARDING

ACCESSORY DWELLING UNITS, JUNIOR ACCESSORY

DWELLING UNITS, URBAN LOT SPLITS, AND HOUSING UNITS

BUILT IN ACCORDANCE WITH SENATE BILL
MEETING DATE: February 6, 2023
PREPARED BY: Brendan Kearns, Assistant City Attorney
RECOMMENDATION: That the City Council conduct a first reading by title only of Ordinance No. 388, approving Zoning Text Amendment 22-02 (“project”) regarding Accessory Dwelling Units, Junior Accessory Dwelling Units, Urban Lot Splits, and Housing Units Built in Accordance with Senate Bill 9 and find the project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to pursuant to Government Code Sections 65852.21(j) and 66411.7(n), Public Resources Code Section 21080.17 and CEQA Guidelines Sections 15061(b)(3) and 15282(h).

BACKGROUND/DISCUSSION: On September 16, 2021, Governor Newsom signed Senate Bill 9 (“SB 9”), a housing bill with potentially significant implications for the City’s planning and development process. SB 9 will limit the City’s land use authority over qualifying housing developments containing no more than two residential units (“SB 9 Development Projects”) and Urban Lot Splits in single-family residential neighborhoods. SB 9 took effect on January 1, 2022 SB 9 generally requires cities to ministerially approve, within single-family residential zones, SB 9 Development Projects and parcel maps for Urban Lot Splits. Ministerial approval means that the City cannot conduct a public hearing or discretionary review.

Up to four units may be developed under either or both SB 9’s provisions governing SB 9 Development Projects and Urban Lot Splits. When an SB 9 Development Project is developed on an existing parcel (i.e., a parcel not created by an Urban Lot Split), up to two accessory dwelling units (ADU) may be added to the parcel under current ADU law. When two parcels are created by an Urban Lot Split, up to two units of any kind (including ADUs) may be developed on each of the two new parcels. When an Urban Lot Split is combined with an SB 9 Development Project, no ADUs or Junior ADUs are permitted on the new parcels, resulting in a total of four units on the two parcels.

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An ordinance to implement SB 9, which may include objective standards applicable to such projects, is exempt from CEQA. Because any development pursuant to SB 9 must be approved ministerially, such projects are also exempt from CEQA.

The following is a brief summary of key provisions governing the ministerial approval of housing developments under SB 9:
• Objective Development Standards: Objective zoning and development standards may be applied, provided the standards do not physically preclude the construction of up to two units of at least 800 square feet each.
• Setbacks: Setbacks of up to four feet may be enforced, provided that no setback may be applied to existing structures or structures constructed in the same location and to the same dimensions as an existing structure.
• Parking: One off-street parking space may be required, unless the parcel is located within one-half mile of a high-quality transit corridor or major transit stop or there is a car share vehicle located within one block of the parcel.
• Short-Term Rentals Prohibited: Local agencies must require that tenancies be longer than 30 days.

The ministerial approval of Urban Lot Splits pursuant to SB 9 is governed by the following provisions:
• Parcel Size: The two parcels must be approximately equal in size, with one parcel being no smaller than 40 percent of the original parcel’s size. Both parcels must be at least 1,200 square feet in size, unless the local agency authorizes smaller parcels. • Public Improvements: A local agency cannot require dedications of right-of-way or offsite public improvements as conditions of approval, although it may require public utility easements and street access.
• Use Restrictions: A local agency must restrict the newly created parcels to residential uses and require the owner to sign an affidavit stating their intent to occupy one of the units as their principal residence for at least three years. • Further Subdivisions: A local agency may deny an Urban Lot Split if a parcel was created by a prior Urban Lot Split or the owner has subdivided an adjacent parcel using an Urban Lot Split.
• Other Provisions: The above provisions relating to objective development standards, setbacks, parking, and short-term rentals also apply to units developed in conjunction with Urban Lot Splits.

The City may deny applications for SB 9 Development Projects or Urban Lot Splits under the following circumstances:

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• The development is located in (1) the coastal zone; (2) wetlands; (3) very high fire severity zones; (4) earthquake fault zones; (5) special flood hazard areas (100-year flood zones); (6) conservation or sensitive habitat areas; and (7) certain other areas designated in state housing law.
• The development would require the demolition of (1) an affordable housing unit; (2) a rent controlled unit; (3) a unit that has been rented within the past three years; (4) housing units removed from rental market within the past 15 years under the Ellis Act; (5) more than 25 percent of the existing structure’s walls unless permitted by the local agency or the site has not been occupied by a tenant in the last three years; or (6) a designated historic site.
• The building official finds that the development would have a specific, adverse impact on public health and safety or the physical environment that cannot be mitigated.

The draft Ordinance would implement the required State requirements and impose objective development standards on SB 9 Development Projects and Urban Lot Splits to protect the health, safety, and general welfare within Calimesa, including the following requirements:
• Non-public utility electrical elements such as wires, conduits, junction boxes, transformers, ballasts, and switch and panel boxes must be concealed from view from adjacent public rights-of-way.
• All flashing, sheet metal vents, and pipe stacks shall be painted to match the adjacent roof or wall material.
• Pedestrian access to a public street or alley must be provided with an exterior pedestrian pathway from the primary entrances of each unit to the adjoining sidewalk, street, or alley.
• Applicants must provide a sworn statement affirming eligibility with SB 9 regulations, and the City may, at the applicant’s expense, conduct independent inquiries and investigation to ascertain the veracity of any or all portions of the sworn statement.

The draft Ordinance would also make minor changes to the City’s existing regulations of ADUs and Junior ADUs in response to recent State legislation that modified that standards applicable to such projects, including new provisions governing height limitations and the conversation of an attached garage into a Junior ADU.

ENVIRONMENTAL ANALYSIS: In accordance with the requirements of the California Environmental Quality Act (CEQA), the Planning Commission has analyzed proposed Zone Text Amendment 22-02 and has determined that it is exempt from CEQA because it can be seen with certainty that this Ordinance has no likelihood of causing a significant negative effect on the environment and accordingly both the adoption of this Ordinance and the effects derivative from

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that adoption are exempt from the application of CEQA pursuant to State CEQA Guideline Section 15061(b)(3). This Ordinance will provide local regulations related to accessory dwelling units, junior accessory dwelling units, SB 9 development projects, and urban lot splits in the City in order to protect the public health, safety, and general welfare, and will thereby serve to avoid potentially significant adverse environmental impacts. There is no possibility that adopting this Ordinance will have a significant effect on the environment. It is therefore not subject to the California Environmental Quality Act review pursuant to Title 14, Chapter 3, Section 15061(b)(3) of the California Code of Regulations and no environmental analysis is required. Furthermore, this Ordinance is exempt from CEQA pursuant to: (1) Government Code Section 65852.21(j) as an action to implement Government Code Section 65852.21; (2) Government Code Section 66411.7(n) as an action to implement Government Code Section 66411.7; and (3) Public Resources Code Section 21080.17 and CEQA Guidelines Section 15282(h) as an action to implement the provisions of Government Code Sections 65852.2 and 65852.22.

FISCAL IMPACT: There is no fiscal impact associated with this action.

ATTACHMENTS:

Attachment A: Planning Commission Resolution No. 2022-19 Attachment B: Draft Ordinance 388

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Attachment 11A

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ORDINANCE NO. 388

AN ORDINANCE OF THE CITY OF CALIMESA, CALIFORNIA,
APPROVING ZONE TEXT AMENDMENT 2022-02, AMENDING
VARIOUS SECTIONS OF THE SUBDIVISION ORDINANCE (TITLE 17 OF THE CALIMESA MUNICIPAL CODE) AND ZONING CODE (TITLE 18 OF

THE CALIMESA MUNICIPAL CODE) REGARDING ACCESSORY

DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, URBAN

LOT SPLITS, AND HOUSING UNITS BUILT IN ACCORDANCE WITH
SENATE BILL 9, AND MAKING A DETERMINATION OF EXEMPTION

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
GUIDELINES SECTIONS 15061(B)(3) AND 15282(H), GOVERNMENT CODE SECTIONS 65852.21(J) AND 66411.7(N), AND PUBLIC
RESOURCES CODE SECTION 21080.17

THE CITY COUNCIL OF THE CITY OF CALIMESA DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council has reviewed and considered the information included in the General Plan, Zoning Code and Staff Report for the Public Hearing and public testimony prior to taking action on this Ordinance and Zoning Text Amendment.

This information is on file and available at the Community Development Department at Calimesa City Hall.

SECTION 2. The City Council finds that the Zoning Text Amendment is consistent with the goals and policies of the General Plan and would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Applicable General Plan goals are identified below with a description of how this Ordinance furthers the goals of the General Plan:

1. GOAL LU-1: Preserve and enhance the small-town atmosphere of Calimesa.

This Ordinance preserves and enhances the existing small-town atmosphere of Calimesa, by encouraging growth and reinvestment in existing residential areas, while the existing character of single family and multifamily areas, where new units would be located, remains essentially unchanged.

2. GOAL LU-2: A logical and efficient pattern of development that reduces infrastructure costs and maintains the character of Calimesa. This Ordinance provides for a logical and efficient pattern of development because it allows additional residential units and urban lot splits without the development of major road, water and sewer infrastructure that is typical of new development, while also maintaining the existing character of Calimesa.

3. GOAL LU-3: An arrangement of land uses that achieves maximum compatibility between land uses and especially with existing neighborhoods. This Ordinance provides for maximum compatibility with existing development because it maintains the existing character of development. Compatibility issues associated Attachment 11B

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with developing new multistory housing next to single-family development are avoided as the new units and urban lot splits maintain the character of the land use/zoning where they are located.

4. GOAL H-3: The City will provide opportunities for the development of new housing units to meet the housing needs of all economic segments of the population while preserving the natural environment and unique existing character and physical attributes of the community. This Ordinance provides for new housing units to meet the housing needs of all economic segments of the population, while preserving the natural environment and unique existing character and physical attributes of the community, because the additional units and urban lot splits do not rely upon any substantial development of vacant land or undeveloped open space located within the City.

SECTION 3. Section 17.10.020 (Definitions) of Chapter 17.10 (Definitions) of the Subdivision Ordinance, Title 17, of the Calimesa Municipal Code, is hereby amended to add definitions of “Dwelling unit, accessory,” “Dwelling unit, junior accessory,” “SB 9,” and “Urban lot split” as follows, with all other definitions in Section 17.10.020 to remain the same:
“Dwelling unit, accessory” means an attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as a single-family dwelling or multifamily dwelling is situated. An accessory dwelling unit also includes: (1) an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code; and (2) a manufactured home, as defined in Section 18007 of the Health and Safety Code. “Dwelling unit, junior accessory” means a unit that is no more than 500 square feet in size and entirely contained within a single-family residence. A junior accessory dwelling unit includes cooking and food storage areas and may include separate sanitation facilities or may share sanitation facilities with the existing structure. A junior accessory dwelling unit also includes an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code.
“SB 9” means a state law signed by the Governor on September 16, 2021 that amends Government Code section 66452.6 and adds Government Code sections 65852.21 and 66411.7.
“Urban lot split” means a parcel map subdivision permitted pursuant to the regulations set forth in SB 9 that creates no more than two parcels of approximately equal size.

SECTION 4. A new Section 17.15.060 (Urban Lot Splits) is hereby added to Chapter 17.15 (Land Division Ordinance) of the Subdivision Ordinance, Title 17, of the Calimesa Municipal Code to read as follows:

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A. The purpose of these standards is to establish procedures and standards for the urban lot splits pursuant to SB 9 in a manner that preserves the integrity of single-family residential areas, avoids adverse impacts on such areas, and provides additional housing opportunities consistent with state law.

B. An urban lot split shall be processed as a parcel map, but no discretionary review or public hearing shall be conducted if all required criteria have been met.

The Community Development Director shall approve an exception to any of the standards specified in this section upon determining that complying with the standard would physically preclude the construction of up to two residential units per lot or would physically preclude either of the two residential units from being 800 square feet in floor area.

C. The City may deny an application for an urban lot split if the Building Official makes both of the following findings in writing based upon a preponderance of evidence:

1. The proposal would have a specific, adverse impact upon the public health and safety or the physical environment as defined and determined in Government Code Section 65589.5(d)(2); and

2. There is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

D. The following standards shall apply to all urban lot splits:

1. Except as expressly provided in this section or SB 9, all other applicable regulations from the Calimesa Municipal Code shall apply, along with all applicable requirements of state law including the Subdivision Map Act

2. Notwithstanding Government Code Section 66411.1, the City shall not require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map for an urban lot split.

3. No lot resulting from an urban lot split shall be smaller than 1,200 square feet.

4. No lot resulting from an urban lot split shall have more than two residential units inclusive of any accessory dwelling unit or junior accessory dwelling unit.

5. The two lots resulting from an urban lot split shall be approximately equal in size, and no smaller than 40 percent or larger than 60 percent of the lot area of the original parcel.

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6. No flag lots shall be created as a result of an urban lot split if the subject property is adjacent to an alley, located on a corner, or on a through lot.

7. The width of any lot resulting from an urban lot split shall not be less than 20 feet wide.

8. The proposed parcel map shall demonstrate the ability to access the public right-of-way in perpetuity.

E. Applicants are required to submit an application, including any maps, records, or other documents required by the Community Development Director. Applicants must provide a sworn statement affirming eligibility with SB 9 regulations. The City may, at the applicant’s expense, conduct independent inquiries and investigation to ascertain the veracity of any or all portions of the sworn statement.

F. A property owner seeking approval of an urban lot split shall execute and record a covenant, supplied by the City and subject to the approval of the City Attorney, that contains the following provisions:

1. Non-residential uses on the site shall be prohibited;

2. The short term rental for periods less than 30 days of any units on the site shall be prohibited;

3. Any subsequent urban lot split of land that was previously subdivided with an urban lot split shall be prohibited;

4. Except as provided in Government Code Section 66411.7 for community land trusts and qualified nonprofit corporations, the owner of the property for which an urban lot split is proposed shall sign an affidavit stating that the owner intends to occupy one of the housing units as their principal residence for at least three years from the date of the approval of the urban lot split;

5. Ongoing compliance with all SB 9 requirements and restrictions shall be required;

6. Access to the public right-of-way shall be maintained in perpetuity; and

7. All required parking shall be maintained.

G. Urban lot splits shall comply with the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP), the MSHCP implementing agreement, and pay any applicable fees including any local development mitigation fee.

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SECTION 5. Section 18.10.020 (Definitions) of Chapter 18.10 (Definitions) of the Zoning Code, Title 18, of the Calimesa Municipal Code, is hereby amended to add definitions of “SB 9,” “SB 9 development project,” and “urban lot split” as follows, with all other definitions in Section 18.10.020 to remain the same:
“SB 9” means a state law signed by the Governor on September 16, 2021 that amends Government Code section 66452.6 and adds Government Code sections 65852.21 and 66411.7.
“SB 9 development project” consists of an urban lot split or development project proposed pursuant to the regulations set forth in SB 9. “Urban lot split” means a parcel map subdivision permitted pursuant to the regulations set forth in SB 9 that creates no more than two parcels of approximately equal size.

SECTION 6. Table 18.20.030 (Uses Permitted within Residential Districts) in Section 18.20.030 (Use Regulations for Residential Districts) of Chapter 18.20 (Residential Zone Districts) of the Zoning Code, Title 18, of the Calimesa Municipal Code, is hereby amended to add reference to “Senate Bill 9 development project,” as follows, with all other subsections to remain the same:

Table 18.20.030 – Uses Permitted Within Residential Districts o. Subject to the provisions of CMC 18.20.050(P), Senate Bill 9 Development Projects.

SECTION 7. Subsection “P” is hereby added to Section 18.20.050 (Specific Standards for Development in Residential Districts) of Chapter 18.20 (Residential Zone Districts) of the Zoning Code, Title 18, of the Calimesa Municipal Code to read as follows:

P. Senate Bill 9 Development Projects.

1. The purpose of these standards is to establish procedures and standards for the development of residential development projects pursuant to SB 9 in a manner that preserves the integrity of single-family residential areas, avoids adverse impacts on such areas, and provides additional housing opportunities consistent with state law.

2. An application for an SB 9 development project shall be subject to ministerial review by the Community Development Director or designee to determine whether the criteria for approval have been met. The Community Development Director Use O-S-R R-E R-R R-L R-L-M R-M R-H
A. Residential Uses
Senate Bill 9 development project o X X X P P X X

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shall approve an exception to any of the standards specified in this subsection “P” upon determining that complying with the standard would physically preclude the construction of up to two residential units per lot or would physically preclude either of the two residential units from being 800 square feet in floor area.

3. The Building Official may deny an application for an SB 9 development project upon making both of the following findings in writing based upon a preponderance of evidence:
a. The proposal would have a specific, adverse impact upon the public health and safety or the physical environment as defined and determined in Government Code Section 65589.5(d)(2); and b. There is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

4. The following standards shall apply to all SB 9 development projects:
a. Except as expressly provided in this subsection “P” or SB 9, all other regulations of the underlying zone of a property developed pursuant to SB 9 shall apply, along with all other applicable regulations from the Calimesa Municipal Code
b. One enclosed or partially enclosed parking space is required for each unit created pursuant to the regulations in SB 9 and this subsection “P”, unless the parcel upon which the unit is created is within one-half mile walking distance of a high quality transit corridor or a major transit stop or there is a car share vehicle located within one block of the project.

Required parking for an urban lot split lot shall be accessed via an alley, if there is an alley adjacent to the lot.
c. Non-public utility electrical elements such as wires, conduits, junction boxes, transformers, ballasts, and switch and panel boxes shall be concealed from view from adjacent public rights-of-way. d. All flashing, sheet metal vents, and pipe stacks shall be painted to match the adjacent roof or wall material.
e. Pedestrian access to a public street or alley shall be provided with an exterior pedestrian pathway from the primary entrances of each unit to the adjoining sidewalk, street, or alley.
f. More than 25 percent of the exterior structural walls of a primary unit shall not be demolished if the primary unit has been occupied by a tenant in the three years prior to the submission of an SB 9 development project application.

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g. An SB 9 development project shall not require the demolition or alteration of any of the following:
i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income.
ii. Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. iii. Housing that has been occupied by a tenant in the three years prior to the submission of an SB 9 development project
application.
iv. Housing units removed from the rental market under the Ellis Act within the 15 years prior to the submission of an SB 9 development project application.
h. No unit created pursuant to the regulations in SB 9 and this subsection “P” shall be more than 1,200 square feet in floor area, with any basements counting as floor area.
i. Any units created pursuant to the regulations in SB 9 and this subsection “P” shall have a minimum four foot setback from all side and rear lot lines except as allowed by Government Code Section 65852.21. j. A SB 9 development project shall not be permitted on a parcel located in:
i. Prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the State Department of Conservation. ii. Wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993).
iii. A very high fire hazard severity zone, as determined by the State Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the State Department of Forestry and Fire Protection pursuant to Public Resources Code Section 4202. This subparagraph does not apply to sites excluded from the specified hazard zones by a local agency, pursuant to subdivision (b) of Government Code Section 51179, or sites that have adopted fire hazard mitigation

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measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
iv. A hazardous waste site that is listed pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the State Department of Toxic Substances Control pursuant to Health and Safety Code Section 25356, unless the State
Department of Public Health, State Water Resources Control Board, or State Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. v. A delineated earthquake fault zone as determined by the State Geologist in any official maps published by the State Geologist, unless the development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2 of the Government Code. vi. A special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency,
unless either of the following are met: (1) the site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the City, or (2) the site meets Federal Emergency Management Agency
requirements necessary to meet minimum flood plain
management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.
vii. A regulatory floodway as determined by the Federal Emergency Management Agency in any official maps published by the Federal Emergency Management Agency, unless the
development has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.
viii. Lands identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with
Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species

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Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan.
ix. Habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).
x. Lands under conservation easement.
xi. A historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or a site that is designated or listed as a local landmark or historic property or district by the City.

5. Applicants are required to submit an application, including any maps, records, or other documents required by the Community Development Director. Applicants must provide a sworn statement affirming eligibility with SB 9 regulations. The City may, at the applicant’s expense, conduct independent inquiries and investigation to ascertain the veracity of any or all portions of the sworn statement.

6. A property owner seeking approval of an SB 9 development project shall execute and record a covenant, supplied by the City and subject to the approval of the City Attorney, that contains the following provisions:
a. Non-residential uses on the site shall be prohibited; b. The short term rental for periods less than 30 days of any units on the site shall be prohibited;
c. Any subsequent urban lot split of land that was previously subdivided with an urban lot split shall be prohibited;
d. Except as provided in Government Code Section 66411.7 for community land trusts and qualified nonprofit corporations, the owner of the property for which an urban lot split is proposed shall sign an affidavit stating that the owner intends to occupy one of the housing units as their principal residence for at least three years from the date of the approval of the urban lot split;
e. Ongoing compliance with all SB 9 requirements and restrictions shall be required;

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f. Access to the public right-of-way shall be maintained in perpetuity; and
g. All required parking shall be maintained.

7. SB 9 development projects shall comply with the Western Riverside County Multiple Species Habitat Conservation Plan (MSHCP), the MSHCP implementing agreement, and pay any applicable fees including any local development mitigation fee.

SECTION 8. Subdivisions “a”, “b”, “m”, “n”, “q” and “r” of Subparagraph “3” of Paragraph (L) (Accessory Dwelling Units in Residential Zones) of Section 18.20.050 (Specific development standards for residential districts) of Chapter 18.20 (Residential Zone Districts) of the Zoning Code, Title 18, of the Calimesa Municipal Code, are hereby amended in their entirety to read as follows, with all other provisions of Section 18.20.050 to remain the same:
a. The lot shall contain an existing primary unit at the time an application for an accessory dwelling unit is submitted, or the application for the accessory dwelling unit may be made in conjunction with the development of the primary unit.

Commencement of the 60-day accessory dwelling unit review period shall commence upon the approval of the primary dwelling unit. The city may choose to process the accessory dwelling unit and the primary dwelling unit concurrently, so long as the application for the accessory dwelling unit is approved within 60 days after the approval of the primary structure and the primary structure is issued building permits prior to or concurrent with the accessory dwelling unit. A demolition permit for a detached garage that is to be replaced with an accessory dwelling unit shall be reviewed concurrently with the application for the accessory dwelling unit and shall be issued at the same time.
b. For properties with single-family structures, no more than one accessory dwelling unit and one junior accessory dwelling unit (see CMC 18.20.050(O)) shall be permitted on any one lot.
m. Upon approval of an accessory dwelling unit on a lot, the lot shall not be further divided, unless there is adequate land area to divide the lot consistent with the general plan and zoning designation, or as required by Section 17.15.060. n. Except as otherwise required herein, all construction, structural alterations or additions made to create an accessory dwelling unit shall comply with current development standards and building, electrical, fire and plumbing codes. A permit to create an accessory dwelling unit shall not be denied due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the accessory dwelling unit. q. A detached accessory dwelling unit that is 800 square feet or less, consistent with the height requirements in section 18.20.050(L)(5)(b)(ii), and compliant with a

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minimum four-foot side and rear setback, shall be considered consistent with all city development standards, irrespective of any other municipal code limitations governing lot coverage, floor area ratio, open space, or front yard setback. For any other accessory dwelling unit, lot coverage, floor area ratio, open space, and front yard setback requirements for the underlying zone shall apply. r. Fire sprinklers are not required for ADUs if not required for the primary residence, as determined by the fire marshal. The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.

SECTION 9. Subdivisions “b” and “d” of Subparagraph “4” of Paragraph (L) (Accessory Dwelling Units in Residential Zones) of Section 18.20.050 (Specific development standards for residential districts) of Chapter 18.20 (Residential Zone Districts) of the Zoning Code, Title 18, of the Calimesa Municipal Code, are hereby amended in their entirety to read as follows, with all other provisions of Section 18.20.050 to remain the same:
b. Detached Accessory Units on Single-Family Lots. One detached, new construction accessory dwelling unit, so long as the accessory dwelling unit maintains at least a four-foot rear and side yard setback, does not exceed 800 square feet, and does not exceed the height requirements in section

18.20.050(L)(5)(b)(ii). This ADU may be combined with a JADU authorized under subsection (O) of this section.
d. Detached ADUs on Multifamily Lots. Not more than two detached ADUs, on a lot with an existing or proposed multifamily dwelling. The accessory units are subject to the height requirements in section 18.20.050(L)(5)(b)(ii) and must maintain at least a four-foot rear and side yard setback. If the existing multifamily dwelling has a rear or side setback of less than four feet, the existing multifamily dwelling need not be modified to construct an accessory dwelling unit that satisfies the requirements of this subdivision.

SECTION 10. Subsection “ii” of Subdivision “b” of Subparagraph “5” of Paragraph (L) (Accessory Dwelling Units in Residential Zones) of Section 18.20.050 (Specific development standards for residential districts) of Chapter 18.20 (Residential Zone Districts) of the Zoning Code, Title 18, of the Calimesa Municipal Code, is hereby amended in its entirety to read as follows, with all other provisions of Section 18.20.050 to remain the same:
ii. Maximum building height shall not exceed 32 feet for a detached accessory dwelling unit. An accessory dwelling unit that is constructed as an addition to an existing single-family residence shall not exceed 16 feet in height. An accessory dwelling unit shall not be constructed as a second-story addition to an existing single-family residence.

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SECTION 11. Subdivisions “a”, “g”, “i” and “j” of Subparagraph “3” of Paragraph (O) (Junior Accessory Dwelling Units in Residential Zones) of Section 18.20.050 (Specific development standards for residential districts) of Chapter 18.20 (Residential Zone Districts) of the Zoning Code, Title 18, of the Calimesa Municipal Code, are hereby amended in their entirety to read as follows, with all other provisions in Section 18.20.050 to remain the same:
a. The lot shall contain an existing primary unit at the time an application for a junior accessory dwelling unit is submitted, or the application for the accessory dwelling unit may be made in conjunction with the application for the primary unit.

A junior accessory dwelling unit shall be constructed within the walls of the proposed or existing single-family residence, which for these purposes shall include an attached garage.
g. A junior accessory dwelling unit shall have a separate entrance. If the junior accessory dwelling unit does not include a separate bathroom, it shall include a separate entrance from the main entrance to the primary unit, with an interior entry to the main living area of the primary unit.
i. Except as otherwise required herein, all construction, structural alterations or additions made to create the junior accessory dwelling unit shall comply with current development standards and building, electrical, fire and plumbing codes.

A permit to create a junior accessory dwelling unit shall not be denied due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and are not affected by the construction of the junior accessory dwelling unit. j. Fire sprinklers are not required if not required for the primary residence as determined by the fire marshal. The construction of a junior accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.

SECTION 12. CEQA Finding. The City Council hereby finds, in the exercise of its independent judgment and analysis, that this Ordinance is exempt from the California Environmental Quality Act (“CEQA”) because it can be seen with certainty that this Ordinance has no likelihood of causing a significant negative effect on the environment and accordingly both the City Council’s action of adopting this Ordinance and the effects derivative from that adoption are exempt from the application of CEQA pursuant to State CEQA Guideline Section 15061(b)(3). This Ordinance will provide local regulations related to accessory dwelling units, junior accessory dwelling units, SB 9 development projects, and urban lot splits in the City in order to protect the public health, safety, and general welfare, and will thereby serve to avoid potentially significant adverse environmental impacts. There is no possibility that adopting this Ordinance will have a significant effect on the environment. It is therefore not subject to the California Environmental Quality Act review pursuant to Title 14, Chapter 3, Section 15061(b)(3) of the California Code of Regulations and no environmental analysis is required.

Furthermore, this Ordinance is exempt from CEQA pursuant to: (1) Government Code

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Calimesa City CouncilFebruary 6, 2023

Calimesa City Council
February 6, 2023