Agenda packet — Coachella City Council, May 24, 2023 (part 3 of 4)

Item 19.
72 Fund Overview
General Fund (101)
Finance Department Detailed Expense Budget

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Item 19.
73 Development Services
The Development Services Department is comprised of the Planning Division, Building Division and Code Enforcement. The Department is responsible for the orderly planning and development of the City of Coachella and the maintenance of the State Building Code standards which promote public safety and welfare. The department through Code Enforcement monitors and enforces compliance issues throughout the City.

The Department processes all land use applications, administers the California Environmental Quality Act (CEQA), reviews and approves development and related landscaping plans, issues all building permits and performs building inspections to insure public safety. The Department also is responsible for evaluating and resolving damage caused to structures by fire, wind, earthquakes and man made or natural disasters.

A major goal of the department is the enhancement of the character and quality of life in the City through the creation and adoption of standards and ordinances which protect the community from incompatible development and promote orderly and sustainable growth. A major project for the City in the coming fiscal year is to move into new Permit Center Building, cross train staff for new corporate culture at Permit Center, and streamline the City’s inspection logging services.

Fund Overview
General Fund (101)

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Item 19.
74 Development Services
Fund Overview
General Fund (101)
Development Services Administration Detailed Expense Budget Administration
The Development Services Administration (DSA) administers the City’s subdivision, planning, building, and other construction related ordinances.

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Item 19.
75 Development Services
Fund Overview
General Fund (101)
Development Services Planing Detailed Expense Budget
Planning Division
The Planning Division is responsible for all current and advanced planning functions including General Plan Amendments and Housing Element Updates, Specific Plan Adoptions, Municipal Code Amendments, the day-to-day zoning and subdivision administration duties, and GIS mapping maintenance. The staff processes project development reviews from the conceptual designs to the issuance of building permits and the collection of development impact fees and monitoring of environmental mitigation measures. The Director serves as the environmental administrator for CEQA documents, negotiates Development Agreements, and staffs the Economic Development/ Planning Subcommittee and the Public Safety/Code Enforcement Subcommittee with the City Manager.

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Item 19.
76 Development Services
Cannabis Compliance Division
Through innovative policies and effective implementation, the Department (DCC) advances and facilitates a well-regulated, legal market that benefits the City of Coachella.

Cannabis Compliance Division Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
77 Development Services
Building Division
The Building Division issues building permits and performs inspections. They are responsible for ensuring that all projects in the City are properly permitted and meet building code requirements.

Building Department Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
78 Engineering
The Engineering Division is responsible for the design and construction of public improvements. They also provide engineering drawing plan check services, traffic engineering, inspection services, and capital project monitoring and management.

Engineering Division Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
79 The Public Works Department is responsible for the improvement, maintenance and operation of the City’s streets, highways, and parks, and for construction of the City’s infrastructure. The department is organized into three major divisions:
(1) administration, (2) engineering and (3) operations.

Public Works
Activities
The Public Works Department is engaged in a number of infrastructure projects and also acts as the project manager.

Fund Overview
General Fund (101)

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Item 19.
80 Public Works
Administration
Public Works Administration is responsible for interpreting existing City policies and carrying out the City Council’s priorities as they relate to streets, highways, parks and CIP projects. Public Works Administration also provides management services for the Sanitary District, a separate component unit of the City.

Administration Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
81 Public Works
Streets Division:

The Streets Division is responsible for repairs and maintenance of the City’s streets and highways, and median strips. Repairs can range from pothole repair to major improvements that would also involve outside contractors.

Streets Department Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
82 Public Works
Streets Division (Continued)
The Streets Division is responsible for repairs and maintenance of the City’s streets and highways, and median strips. Repairs can range from pothole repair to major improvements that would also involve outside contractors.

Streets Department Detailed Expense Budget (Continued)
Fund Overview
General Fund (101)

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Item 19.
83 Public Works
Parks Division
The Parks Division is responsible for improvement and maintenance of the eight City parks. The Division performs repair and maintenance services on structures, pools and landscape in the parks areas and public buildings.

Fund Overview
General Fund (101)
Parks Division Detailed Expense Budget

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Item 19.
84 Public Works
Parks Division (Continued)
The Parks Division is responsible for improvement and maintenance of the eight City parks.

The Division performs repair and maintenance services on structures, pools and landscape in the parks areas and public buildings.

Fund Overview
General Fund (101)
Parks Division Detailed Expense Budget (Continued)

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Item 19.
85 Public Works
Parks and Recreation Program Division
Fund Overview
General Fund (101)
Parks and Recreation Program Division Detailed Expense Budget

Page 380 ends

Item 19.
86 Police Services
Part of the Public Safety program for the City of Coachella includes the police services function and various law enforcement grants and programs. The police services function is carried out through a contract with the Riverside County Sheriff’s Office.

The City of Coachella police department was disbanded in December 1998. At that time, a contract with the Riverside County Sheriff’s Office was implemented and was designed to provide essentially the same level of service while sharing overhead costs with other contracted cities. The Sheriff’s office contract is funded by the general fund. Many of the special programs such as the Coachella Valley Gang Task Force, The Coachella Valley Narcotics Task Force, the Safe Neighborhood Program and other focused crime prevention and traffic safety programs are funded partially or completely by grants.

The police services contract also includes administrative, clerical, accounting, and investigative support. This support includes sworn personnel for forensics, logistical support, an emergency services team and dispatch service.

Notable highlights of the Police Services Contract include:
 17.44 Patrol Officers @ 90 hours per day
 1 Sheriff’s Sergeant
 1 PACT Deputy (UDC)
 3 Community Action Team (sdc-b)
 1 Coachella Valley Violent Gang Task Force Officer
 1 Coachella Valley Violent Narcotic Crime Task Force Officer  3 Community Service Officer II
 1 Community Service Offecer II (3 year Grant
Fund Overview
General Fund (101)

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Item 19.
87 Police Services
Police Services Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
88 Neighborhood Services
Fund Overview
General Fund (101)
Code Enforcement Detailed Expense Budget
Code Enforcement Division
Under the Community Development Services Department, Code Enforcement monitors and enforces compliance issues for the City of Coachella regarding municipal codes and ordinances including zoning, land use, housing codes, property maintenance, illegal dumping, litter, sanitation, inoperative or abandoned vehicle abatement, parking regulations and public nuisance provisions. This is accomplished through field inspections, patrolling assigned areas and public complaints. Staff investigates and attempts to correct violations through public education, verbal warnings, notices of violations, civil citations, administrative abatement, and other legal remedies. Staff maintains their own case files, prepares all written reports and related correspondence including the necessary follow-up communication. There are currently three full time code enforcement officers and one code enforcement technician.

Goals and Objectives
The Code Enforcement Division established the following goals and objectives for the new fiscal year:
 Begin garage conversion ordinance abatement/enforcement through public, flyers included with utility bills and community meetings.  Continue to strive for the best customer service we can provide.

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Item 19.
89 Public Works
Graffiti Abatement Program
The graffiti abatement program is responsible for the removal of blight primarily caused by vandalism or more commonly known as “tagging”. The Division performs maintenance services on structures and walls in parks areas, public buildings and landscaping districts.

Fund Overview
General Fund (101)
Graffiti Abatement Program Detailed Expense Budget
Goals and Objectives
The Graffiti Abatement Division established the following goals and objectives for the new fiscal year:
 Complete a cost recovery plan for subjects arrested.

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Item 19.
90 Neighborhood Services
Abandoned Vehicle Abatement (AVA)
The Abandon Vehicle Abatement Program is responsible for the removal of wrecked, dismantled and inoperative vehicles on both public and private property.

Fund Overview
General Fund (101)
Goals and Objectives
The AVA Division established the following goals and objectives for the new fiscal year:
 Continue to clean up the City of Coachella by abating blighted vehicles.

AVA Program Detailed Expense Budget

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Item 19.
91 Neighborhood Services
Animal Control
Animal control services are contracted with the County
of Riverside. This contract is administered under the
Neighborhood Services Department.

Fund Overview
General Fund (101)
Animal Control Detailed Expense Budget

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Item 19.
92 City Administration
Emergency Services
The Emergency Services program is responsible for securing the resources necessary to carry out emergency procedures and response to local emergencies and major natural disasters. The program provides emergency preparedness training for City staff and equipment for coordination and communication. The City of Coachella contracted the Riverside County to carry out this program.

Emergency Services Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
93 General Government
The function of the General Government division is to support the other City units by managing the goods and services they use in common. Support is provided in areas such as building maintenance, utility services payments, general insurance risk management and payment, office and operating supplies, equipment maintenance, data processing services, vehicle maintenance and others as they are used by City departments and agencies.

The single largest expenditure for this department is the transfer of $1,776,978 to the Coachella Fire Protection District for fire protection services under contract with the California Department of Forestry through the Riverside County Fire Department. This section also includes insurance premiums that are common to all City divisions and agencies.

The schedule for the allocation of general government support is shown on the following pages.

It represents the total amount that will be allocated. The allocation method is as follows:
 All departments and funds that are supported by general government in some way are included based on their individual budget amount as a percent of the overall City budget.  Contract services such as Police, and the City Attorney are not included. Nor, are grants or special revenue funds included.
 The Water Authority and Sanitary District are included due to their use of the employee insurance, general liability insurance, data processing and vehicle maintenance functions.

Fund Overview
General Fund (101)

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Item 19.
94 General Government
General Government Detailed Expense Budget
Fund Overview
General Fund (101)

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Item 19.
95 General Government (Continued)
General Government Detailed Expense Budget (Continued)
Fund Overview
General Fund (101)

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Item 19.
96 Information Technology Division
Information Technology Division Detailed Expenditure Budget Fund Overview
General Fund (101)
The Department of Information Technology (IT) continues to maintain the pace of rapid change in the world of technology. The Department is responsible for development, implementation, and maintenance of information systems and technology for other City Departments.

The IT Department through collaboration and participation with other departments, provides the highest quality, cost-effective, technical support and services that are critical in meeting the needs of the public.

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Item 19.
97 Fleet Maintenance Division
Fleet Maintenance Division Detailed Expenditure Budget
Fund Overview
General Fund (101)
The Fleet Maintenance Division maintain and repairs the City’s vehicle fleet and equipment assets. Services include heavy equipment such as street sweepers and skip loaders, personnel vehicles such as pick up trucks and autos, commercial passenger vehicles and small equipment such as mowers, blowers, and hedges.

The department is also responsible to manage the inventory replacement parts to service city equipment.

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Item 19.
98 Fleet Maintenance Division (Continued)
Fleet Maintenance Division Detailed Expenditure Budget (Continued) Fund Overview
General Fund (101)

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Item 19.
99 Fleet Maintenance Division (Continued)
Fund Overview
General Fund (101)
Goals and Objectives
The Fleet maintenance Division established the following goals and objectives for the new fiscal year:
 Maintain annual per mile costs for entire fleet to reflect maintenance costs.  Coordinate with all departments to update and maintain the vehicle and equipment replacement and surplus process.  Continue to work on grant options to fund a CNG Fueling Station at the Coachella Corporate Yard.

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Item 19.
100
Building Maintenance Division
Building Maintenance Division Detailed Expenditure Budget Fund Overview
General Fund (101)
The building maintenance division is responsible for all in-house repair, renovation, and maintenance of city owned buildings and other approved facilities. In order to accomplish its responsibilities in maintaining city owned structures, this department may employ specialized electricians, heating and air conditioning technicians, carpenters, maintenance mechanics, laborers, locksmiths, and other service personnel on an as needed basis.

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Item 19.
101
Building Maintenance Division (Continued)
Building Maintenance Division Detailed Expenditure Budget (Continued) Fund Overview
General Fund (101)
Goals and Objectives
The Building Maintenance Division established the following goals and objectives for the new fiscal year:
 Maintain annual per mile costs for entire fleet to reflect maintenance costs.  Coordinate with all departments to update and maintain the vehicle and equipment replacement and surplus process.  Continue to work on grant options to fund a CNG Fueling Station at the Coachella Corporate Yard.

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Item 19.
102
Fund Overview
Special Revenue Funds
The special revenue funds are used to account for the proceeds of revenue sources that are legally or otherwise restricted to expenditures for specified purposes.

The City of Coachella utilizes special revenue funds for the following purposes:
 To account for funds the City receives from other agencies via public law or other enactment
 To account for grant funds received from other entities such as federal, state and county grant programs
 To account for revenue received through special assessments such as the landscape and lighting districts
 To account for revenue either transferred or provided to special districts such as the Coachella Fire Protection District
This section includes those special revenue funds received from other agencies via public law or other enactment, and those special revenue funds included in the landscape and lighting districts. Grant funds, transfers and other special districts are included in separate sections of this document.

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Item 19.
103
Road Maintenance-Dillon Road
Fund Overview
Special Revenue Funds (108)
Detailed Revenue Budget
Detailed Expenditure Budget

Page 398 ends

Item 19.
104
Road Maintenance & Rehabilitaton (SB 1)
After years of advocating for a solution to the state’s transportation crisis, the Legislature passed and the Governor signed SB 1 (Beall, 2017), also known as the Road Repair and Accountability Act of 2017, increasing transportation funding and instituting much-needed reforms. SB 1 provides the first significant, stable, and on-going increase in state transportation funding in more than two decades.

Detailed Expenditure Budget
Fund Overview
Special Revenue Funds (109)
Detailed Revenue Budget
This bill would create the Road Maintenance and Rehabilitation Program to address deferred maintenance on the state highway system and the local street and road system. The bill would require the California Transportation Commission to adopt performance criteria, consistent with a specified asset management plan, to ensure efficient use of certain funds available for the program. The bill would provide for the deposit of various funds for the program in the Road Maintenance and Rehabilitation Account, which the bill would create in the State Transportation Fund, including revenues attributable to a $0.12 per gallon increase in the motor vehicle fuel (gasoline) tax imposed by the bill with an inflation adjustment, as provided, 50% of a $0.20 per gallon increase in the diesel excise tax, with an inflation adjustment, as provided, a portion of a new transportation improvement fee imposed under the Vehicle License Fee Law with a varying fee between $25 and $175 based on vehicle value and with an inflation adjustment, as provided, and a new $100 annual vehicle registration fee applicable only to zero-emission vehicles model year 2020 and later, with an inflation adjustment, as provided. The bill would provide that the fuel excise tax increases take effect on November 1, 2017, the transportation improvement fee takes effect on January 1, 2018, and the zero-emission vehicle registration fee takes effect on July 1, 2020.

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Item 19.
105
State Gas Tax
This fund is used to account for the City’s share of the tax imposed on vehicle fuel under the provision of the Street and Highway Code of the State of California. The funds are restricted to the acquisition, construction, improvement and maintenance of public streets.

Detailed Expenditure Budget
Fund Overview
Special Revenue Funds (111)
Detailed Revenue Budget

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Item 19.
106
Air Quality Improvement
Detailed Expenditure Budget
Fund Overview
Special Revenue Funds (112)
Detailed Revenue Budget
The City of Coachella receives AB 2766 funds to implement programs that reduce air pollution from motor vehicles. A Motor vehicle registration fee surcharge of $6 per vehicle is collected by the Department of Motor Vehicles and subvened to the South Coast Air Quality Management District (AQMD) for disbursement. The program provides a funding source for cities and counties to meet requirements of federal and state Clean Air Acts, and for implementation of motor vehicle measures in the AQMD Air Quality Management Plan (AQMP). The legislation creating this revenue source provides for oversight of the use of these monies by local governments. Air districts that receive AB2766 monies report annually to the California Air Resources Board (CARB) on the use and results of the programs funded by the fees. Cities and counties under AQMD’s jurisdiction provide annual program and financial information to the AQMD. This information is compiled by the AQMD and forwarded as an annual report to CARB.

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Item 19.
107
Local Transportation - Measure A
Detailed Expenditure Budget
This fund is set aside for the collection of the one-half cent sales tax increase approved by the Riverside County voters. The funds received are restricted for use in acquisition, construction and improvement of the City’s streets.

Detailed Revenue Budget
Fund Overview
Special Revenue Funds (117)

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Item 19.
108
Development Impact Fees - Park Land
In 1975 California Government Code Section 66477 (Quimby Act) was passed authorizing cities and counties to pass ordinances requiring that developers set aside land, donate conservation easements or pay fees for park improvements. The goal of the Quimby Act was to require developers to help mitigate the impacts of development on local communities. In 1982 the act was substantially amended to further define acceptable uses of or restrictions on Quimby funds, provided acreage/population standards and required agencies to show a reasonable relationship between the public need for the park or recreational land and the development project which the fee is imposed.

The fee is $1,377.00 per residential unit and $1,134.68 per multi family unit. This fee structure was approved by the Coachella City Council on February 24, 2010.

Fund Overview
Special Revenue Funds (120)
Detailed Revenue Budget
Detailed Expenditure Budget

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Item 19.
109
Development Impact Fees - Library
Impact fees paid to the City by developers for their agreement to subsidize certain improvements or other mitigation measures that result from development projects are set aside in this fund. The use of the money in this fund must be connected to the impact item for which the funds were paid by the developer. This fund was established to collect fee in relation to the expansion and/or construct of a new City Library as needed by an increasing population.

The fee is $577.88 per residential unit and $485.42 per multi family unit. This fee structure was approved the Coachella City Council on September 12, 2012.

Fund Overview
Special Revenue Funds (121)
Detailed Revenue Budget
Detailed Expenditure Budget

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Item 19.
110
Development Impact Fees - Park Improvements
Impact fees paid to the City by developers for their agreement to subsidize certain improvements or other mitigation measures that result from development projects are set aside in this fund. The use of the money in this fund must be connected to the impact item for which the funds were paid by the developer.

This fund was established to account for fees paid in connection with park improvement as a result of increased demand due to new development. This money is restricted to capital improvements only and cannot be used to purchase park land. In addition , these monies should not be confused with the Quimby fees defined in another section. The fee is $7,857.35 per residential unit and $6,578.17 per multi family unit. This fee structure was approved the Coachella City Council on September 12, 2012.

Fund Overview
Special Revenue Funds (126)
Detailed Revenue Budget
Detailed Expenditure Budget

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Item 19.
111
Development Impact Fees - Street and Transportation
Impact fees paid to the City by developers for their agreement to subsidize certain improvements or other mitigation measures that result from development projects are set aside in this fund. The use of the money in this fund must be connected to the impact item for which the funds were paid by the developer. This fund was established to account for fees to construct or install improvements for new or modified traffic signals, street rehabilitation and construction, construction or installation of bridge and grade circulation improvements, and bus shelter improvements, that mitigate impacts of specific development projects. The fee is $2,685.98 per residential unit, $1,390.95 per multi-family unit, and $3,693.22, $4,364.73, $2,997.74 per 1,000 square feet of commercial space, office space, and industrial space respectively. This fee structure was approved the Coachella City Council on September 12, 2012.

Fund Overview
Special Revenue Funds (127)
Detailed Revenue Budget
Detailed Expenditure Budget

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Item 19.
112
Development Impact Fees - Police Facilities
Impact fees paid to the City by developers for their agreement to subsidize certain improvements or other mitigation measures that result from development projects are set aside in this fund. The use of the money in this fund must be connected to the impact item for which the funds were paid by the developer. During the 2023-2024 fiscal year fees were not adjusted.

This fund was established to account for fees paid to offset the expansion / building of police and fire safety facilities necessitated by new development.

These fees are collected for expansion of current facilities and to provide new facilities and equipment for fire. The fee is $306.52 per residential unit, $257.48 per Multi Family unit, and $23.22, $30.57, $12.10, $6.05, and 40.59 per 1,000 square feet of commercial space, office space, industrial space, warehouse space, and open shed space respectively. This fee structure was approved the Coachella City Council on September 12, 2012.

Fund Overview
Special Revenue Funds (128)
Detailed Revenue Budget
Detailed Expenditure Budget

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Item 19.
113
Dev Impact Fee -General Gov't
The purpose of the fee is to ensure that new development funds its fair share of general government facilities. General government facilities in the City of Coachella primarily include public works facilities and the City Hall.

The fee is $2,357.61 per residential unit, $1,980.39 per multi family unit, and $178.57, $235.13, $93.04, 46.52, and $4.55 per 1,000 square feet of commercial space, office space, industrial space, warehouse space, and open shade space respectively. This fee structure was approved the Coachella City Council on September 12, 2012.

Fund Overview
Special Revenue Funds (129)
Detailed Revenue Budget
Detailed Expenditure Budget

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Item 19.
114
Dev Impact Fee - Fire Facilities
Fund Overview
Special Revenue Funds (130)
Detailed Revenue Budget
Detailed Expenditure Budget
The purpose of the fee is to ensure that new development funds its fair share of fire protection facilities.

The fee is $1,750.03 per residential unit, $1,470.02 per multi family unit, and $381.04, $501.80, $198.57, $99.28, and $9.72 per 1,000 square feet of commercial space, office space, industrial space, warehouse space, and open shed space respectively. This fee structure was approved the Coachella City Council on September 12, 2012.

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Item 19.
115
Dev Impact Fee - Public Arts
Fund Overview
Special Revenue Funds (131)
Detailed Revenue Budget
Detailed Expenditure Budget
The City has a responsibility for expanding public experience with art, cultural and artistic resources, including Art Work and the performing arts, enhance the quality of life for individuals living in, working in, and visiting the City balanced development of cultural and artistic resources preserves and improves the quality of the urban environment and increases real property values as development and revitalization of the real property within the City continue, the opportunity for creation of cultural and artistic resources is diminished. As this development and revitalization continue as a result of market forces, urbanization of the community results. As these opportunities are diminished and this urbanization occurs, the need to develop alternative sources for cultural and artistic outlets to improve the environment, image and character of the community is increased development of cultural and artistic assets should be financed by those whose development and revitalization diminishes the availability of the community's resources for those opportunities and contributes to community urbanization establishment of this Art in Public Places Program ("APPP") will promote the general welfare through balancing the community's physical growth with revitalization and its cultural and artistic resources there is a need to create a Public Arts Commission to administer and oversee the Art in Public Places Program.

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Item 19.
116
Grants
Fund Overview
Special Revenue Funds (152)
Detailed Revenue Budget

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Item 19.
117
Grants
Detailed Expenditure Budget
Fund Overview
Special Revenue Funds (152)

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Item 19.
118
CDBG—Community Development Block Grant
Detailed Expenditure Budget
Fund Overview
Special Revenue Funds (210)
Detailed Revenue Budget

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Item 19.
119
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Revenue Budget
A Landscape Maintenance District (LMD) is created to pay for the costs of on-going maintenance of public landscaping that provides special benefits to parcels in given areas of the City. The district provides services solely for the benefit of those parcels located within each district. Formation of LMD is governed by the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code.

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Item 19.
120
Fund Overview
Special Revenue Funds (160)
Detailed Revenue Budget (Continued)
Landscape and Lighting Districts 1-40

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Item 19.
121
Fund Overview
Special Revenue Funds (160)
Detailed Revenue Budget (Continued)
Landscape and Lighting Districts 1-40

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Item 19.
122
Fund Overview
Special Revenue Funds (160)
Detailed Revenue Budget (Continued)
Landscape and Lighting Districts 1-40

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Item 19.
123
Fund Overview
Special Revenue Funds (160)
Detailed Revenue Budget (Continued)
Landscape and Lighting Districts 1-40

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Item 19.
124
Detailed Expense Budget:

The Landscape and Lighting Districts were created to provide landscape and City light service to the districts that are considered benefit zones.

These zones allow for the collection of levies on property that receives a direct benefit from the landscape and lighting provided.

Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40

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Item 19.
125
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
126
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
127
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
128
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
129
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
130
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
131
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)
Fund Overview
Special Revenue Funds (160)

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Item 19.
132
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
133
Fund Overview
Special Revenue Funds (160)
Landscape and Lighting Districts 1-40
Detailed Expense Budget (Continued)

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Item 19.
134

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Item 19.
135
Refuse
Fund Overview
Special Revenue Funds (179)
Detailed Revenue Budget
Detailed Expenditure Budget
The refuse fund is used to collect, account for, and remit proceeds derived from the collection of residential refuse service throughout the City limits.

The City contracts with Burrtec Waste Management for this service. In addition, service charge collections were placed on the property tax bills beginning July 1, 2009 and then remitted to the City by the County Auditor Controller. Of the total amount collected the City receives a franchise fee in the amount of 8.4% in addition to a yearly administration payment of $20,000.

FY 2017-18
Actual
FY 2018-19
Actual
FY 2019-20
Estimated
Year End
FY 2020-21
Initial
Budget
Refuse
179-21-211-40-344 Utility Service Revenue $ 2,207,544 2,053,487 $ $ 2,100,000 $ 2,300,000 Total Refuse Fund 2,053,487 $ 2,207,544 $ 2,100,000 $ 2,300,000 $ FY 2017-18
Actual
FY 2018-19
Actual
FY 2019-20
Estimated
Year End
FY 2020-21
Initial Budget
Refuse
179-21-115-10-334-000 Professional/contract services $ 1,941,990 1,777,350 $ 1,850,000 $ $ 1,978,000 179-21-115-10-335-000 Franchise Fee expense 237,401 260,470 250,000 322,000 179-21-211-40-335-000 Franchise Fee Expense 4,968 4,435 - - Total Refuse 2,019,719 $ 2,206,895 $ 2,100,000 $ 2,300,000 $

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Item 19.
136
Community Facility District - Police Protection Services Fund Overview
Special Revenue Funds (242)
Detailed Revenue Budget
Detailed Expenditure Budget
On September 14, 2005 the Coachella City Council created a Community Facilities District to help fund public safety expenses incurred by new development. Services provided include the operation and maintenance of law enforcement, fire and paramedic services.

The annual cost include $550.70 for fire protection services and $898..51 for police services.

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Item 19.
137
Debt Service
Fund Overview
Debt Service Funds (195)
Detailed Revenue Budget
Detailed Expenditure Budget
The purpose of the Debt Service Fund is to account for the payment of principal and interest due on the City’s debt.

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Item 19.
138
Coachella Sanitary District
The Coachella Sanitary District was created to provide sanitation and sewage treatment services to the City of Coachella. The District is considered to be a component unit of the City and has been blended into the City’s general purpose financial statements for reporting. At the same time, the District is a separate legal entity and must have its own budget and a resolution to adopt it.

The adopted budget for the Coachella Sanitary District is based on total revenues budgeted to cover the cost of operations and debt service plus related depreciation. FY 2019-20 revenues from charges for service are projected to be $5.88 million. This amount does not include revenue from connection fees which are restricted for capital improvements and are projected to be $.94 million. The connections have dropped considerably since the peak due to the housing and mortgage crises. A rate increase was implemented in July 2008 as part of our commitment in securing USDA loans to expand the sewer treatment plant.

The Sanitary District has seen an increase in costs due to increased personnel, equipment replacement and growth in the District. Many of these new costs are required to comply with the more stringent requirements of the State Water Quality Standards Board.

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Sewer Connection Fees
Sanitary District
Detailed Revenue Budget
Detailed Expenditure Budget

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Detailed Revenue Budget
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Detailed Expense Budget - Administration
Sanitary District

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Detailed Expense Budget - Operations
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Detailed Expense Budget - Capital Projects
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The Coachella Water Authority is a joint powers agency (JPA) organized and existing under and by virtue of Articles 1 through 4 of Chapter 5 of Division 7 of Title 1 commencing with 6500 of the California Government Code, as amended. The City and the Coachella Redevelopment Agency entered into a Joint Exercise of Powers Agreement dated July 1, 2003 to establish the Authority. The Authority is governed by a Board of five members comprised of the same individuals who are members of the City Council of the City of Coachella. The Authority was created for the purpose, among other things, of providing financing related to any utility system or service through the lease, acquisition or construction of such capital improvements. Under the bond law, the Authority has the power to issue bonds to pay the costs of public capital improvements.

Prior to the establishment of the Authority, the City of Coachella treated the water utility as an enterprise fund that was self-sustaining and that generated its revenue from user charges. The water utility’s operations have not changed with the creation of the Authority.

The service area of the Authority is the same as the City limits and the City’s sphere of influence. As the City becomes more developed, the demand for water services grows proportionately. Accordingly, the growth of the water system should not require an increase in size of the service area unless annexations are undertaken. However, as expected, the linear footage of the system is expanding as the growth fills in the space within the City’s service area.

On March 24, 2010 the Board of Directors approved a five-year rate structure. Water service charges were increased on May 1, 2010 and are scheduled to increase on January 1 for four year beginning in 2011.

Coachella Water Authority

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Detailed Revenue Budget
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Detailed Expense Budget
Water Connection Fees

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Detailed Revenue Budget

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Water Authority
Detailed Expense Budget - Administration

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Detailed Expense Budget - Operations
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Detailed Expense Budget - Capital Expenditures
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The Coachella Fire Protection District (the District) was created in December 1990 to provide fire protection services to the residents of the City of Coachella.

The District is considered a component unit of the City of Coachella for financial reporting purposes. The Riverside County Fire Protection District provides all necessary services that are described in a contract between the two entities. Governance is provided by the City Council whose members also serve as the District’s Board of Directors. The board funds the District through transfers from the City’s general fund, property tax collected, interest earned on investments, and miscellaneous sources. Fixed assets include structures and equipment that existed prior to the contract with the County Fire Protection District.

The District utilizes the same Fiscal Control Ordinance, as adopted by the City, which provides for a system of fiscal and budgetary controls.

The District is currently staffed by one (1) engine company that staffs three (3) Fire Captains, one (1) Engineer, one (1) Engineer medic, one (1) Firefighter II, four (4) Firefighter II medics, and one (1) Office assistant.

In addition to the staffed positions, an active volunteer program boasts a company that consists of a staff of approximately one (1) Volunteer Firefighter.

Activity for the past fiscal year includes the following (approx. 2,738 responses):

Fire Protection District

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Activity for the 2022 calendar year includes the following:

Fire Protection District (Continued)

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Detailed Expense Budget
Component Units
Coachella Fire Protection District
Detailed Revenue Budget

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CITY OF

COACHELLA

CAPITAL

PROJECTS

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FACILITIES

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PARKS
&

RECREATION

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WASTE WATER

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STREETS

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WATER AUTHORITY

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STAFF REPORT
5/24/2023
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Establishment of an Equity and Social Justice Ad Hoc Subcommittee.

STAFF RECOMMENDATION:

Establishment of an Equity and Social Justice Ad Hoc Subcommittee.

EXECUTIVE SUMMARY:

On July 22, 2020, the City Council adopted Resolution 2020-45. This resolution affirmed the City’s intention to the establishment of a Special Committee on Equity and Social Justice. During the Public Safety Study Session held on December 13, 2021, the City Council asked staff to evaluate and bring back the formation of an Equity and Social Justice Ad Hoc Subcommittee to evaluate various policies, programs, practices, plans and projects; with special attention to Public Safety Services. As the City has never established an Equity and Social Justice Subcommittee staff has contracted Equitable Cities LLC, a consulting firm that has guided many public agencies in these undertakings such as Southern California Association of Governments (SCAG).

The feedback compiled from the Equity and Social Justice Subcommittee will help guide the City Council in the development of a City of Coachella Racial Equity Framework and Action Plan, which will be a valuable tool as the City Council considers alternatives to public safety service structures. After discussion with Equitable Cities to ensure we reach various branches of the community the following subcommittee membership is being recommended for the formation of a twelve (12) member Equity and Social Justice Ad Hoc Subcommittee:
- Two (2) Youth
- Two (2) Faith Based Organization Representatives
- One (1) Public Safety Representative
- One (1) Senior Center Representative
- Two (2) Non-Profit Members
- Two (2) Local Businesses
- One (1) LGBTQIA Services Representative
- One (1) Health Care Provider
FISCAL IMPACT:

None.

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Item 20.

STAFF REPORT
5/24/2023
TO: Honorable Mayor and City Council Members
FROM: Lizzandro Diaz, Building Official
SUBJECT: Introduce Ordinance No. 1201, first reading, revising Municipal Code Title 15 for the purpose of adopting the 2022 California State Building Codes STAFF RECOMMENDATION:

Staff recommends that the City Council introduce Ordinance No. 1201 for first reading, by title only, to amend Chapter 15 of the Coachella Municipal Code.

BACKGROUND:

It is customary to conduct regular updates to the building code every three years. These updates are carried out to bring the state building code in line with current standards and reflect any changes made to the Coachella Municipal Code.

We are pleased to report that the latest building code was successfully adopted in January 2023.

As a result, we are now bringing forward an update to ensure that the language used in the municipal code aligns with the state building code. This will enable us to maintain consistency and accuracy in our regulations and ensure that all relevant rules and requirements are accurately reflected in our building code.

DISCUSSION/ANALYSIS:

The proposed adoption of revisions to the California Building Code to align with the City of Coachella Municipal Code is a positive development that will go a long way in improving the safety of structures within the City. By aligning the building code with the specific needs of Coachella, the construction process will be safer and more efficient.

One of the key advantages of this adoption is that it will help address the challenges posed by the City's unique environment. With specific guidelines for construction materials and practices, the building code will better serve the needs of Coachella, which experiences extreme weather and seismic activity. This will lead to more resilient structures that can withstand the environmental challenges the City faces.

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Aligning the building code with the municipal code will also streamline the building permit process. By ensuring that the building code matches the specific needs of the City, obtaining building permits will be faster and smoother. This means that construction projects can be completed on time and within budget, resulting in less disruption to the community.

Overall, the adoption of revisions to the California Building Code to align with the City of Coachella Municipal Code is a positive step for the City. It will enhance the safety and resilience of structures and streamline the building permit process. The result will be a more vibrant and thriving Coachella that can better meet the needs of its community.

ENVIRONMENTAL REVIEW:

It is recommended Council make the following determination that this action is exempt from environmental review in accordance with the California Environmental Quality Act (CEQA) under the general rule contained in Section 15061(b)(3). This action involves updates and revisions to existing regulations consistent with State law and will not result in any direct or indirect physical changes to the environment.

FISCAL IMPACTS:

Adoption of the proposed Code Amendment would not have a fiscal impact to the City’s General Fund. The cost to administer the Codes is recovered through permit fees.

ALTERNATIVES:

1. Introduce Ordinance No. 1201 for first reading, by title only, to adopt the new California State Building Code.

2. Continue this matter and provide staff direction.

3. Take no action.

RECOMMENDED ALTERNATIVE(S):

Staff recommends Alternative #1 as shown above.

Attachments:

1. Ordinance No. 1201 (first reading)
Amendments to Coachella Municipal Code Title 15 adopting California Building Codes Title 24 Parts 1,2,2.5,3,4,5,6,8,10,11,12

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ORDINANCE NO. 1201

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF COACHELLA, CALIFORNIA, ADOPTING BY
REFERENCE THE 2022 EDITION OF THE CALIFORNIA

BUILDING STANDARDS CODE (CALIFORNIA CODE OF
REGULATIONS, TITLE 24), INCLUDING THE 2022
CALIFORNIA BUILDING CODE; THE 2022 CALIFORNIA
ELECTRICAL CODE; THE 2022 CALIFORNIA
MECHANICAL CODE; THE 2022 CALIFORNIA
PLUMBING CODE; THE 2022 CALIFORNIA FIRE CODE;
MAKING CERTAIN LOCAL AMENDMENTS THERETO;
ADOPTING THE 2022 CALIFORNIA EXISTING BUILDING
CODE; AMENDING CHAPTER 15.54 OF THE

COACHELLA MUNICIPAL CODE RELATED TO

RECYCLING AND DIVERSION OF WASTE FROM
CONSTRUCTION AND DEMOLITION; AND FINDING THE

ACTION EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT. (First Reading)
WHEREAS, the City Coachella, California (“City”) is a general law city and municipal corporation, duly organized under the California Constitution and laws of the State of California; and
WHEREAS, in July 2022, the California Building Standards Commission adopted the 2022 Edition of the California Building Standards Code (“CBSC”), effective January 1, 2023 and codified in Title 24 of the California Code of Regulations (“CCR”); and WHEREAS, the CBSC consists of building standards that regulate the erection, construction, enlargement, alteration, repair, moving, removal, demolition, conversion, occupancy, equipment, use, height, area, electrical systems, plumbing, mechanical systems, and maintenance of all buildings in the state and includes the California Building Code (CCR, Title 24, Part 2); the California Residential Code (CCR, Title 24, Part 2.5); the California Electrical Code (CCR, Title 24, Part 3); the California Mechanical Code (CCR, Title 24, Part 4); the California Plumbing Code (CCR, Title 24, Part 5); the California Energy Code (CCR, Title 24, Part 6); the California Existing Building Code (CCR, Title 24, Part 10); and the California Green Building Standards Code (CCR, Title 24, Part 11); and
WHEREAS, pursuant to California Government Code Section 50022.2, the City may adopt the 2022 Edition of the CBSC by reference; and
WHEREAS, pursuant to sections 17958.7 and 18941.5 of the California Health & Safety Code, the City may adopt local amendments to the CBSC determined by the City Council to be reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, the City desires to adopt the 2022 edition of the CBSC with local amendments to provide for the issuance of permits and the collection of fees, to provide adequate

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remedies for code violations, to establish administrative procedures consistent with City protocols, and to ensure that the state standards are reasonably tailored to local conditions.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Findings. Based on the foregoing, the City Council of the City of Coachella does hereby find that the proposed amendments to the 2022 Edition of the CBSC are reasonably necessary for reasons of local climatic, geologic, and topographic conditions as set forth in Exhibit “A” of this Ordinance.

SECTION 3. Code Amendment.

Chapter 15.08 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.08 Building Code

15.08.010 Adoption of specific sections of the California Building Code.

15.08.020 Enforcement.

15.08.025 Express Findings.

15.08.030 Amendments to the California Building Code.

15.08.010 Adoption of specific sections of the California Building Code.

Except as amended in this chapter, those certain building codes known and designated as the 2022 California Building Code (CBC), including Chapters 2 through 35, and Appendix C, G, H, I, J, N, and O as adopted by the State of California, based on the 2021 International Building Code as published by the International Code Council, except as amended herein, shall become the building code of the City of Coachella for regulating the erection, construction, enlargement, alteration, repair, moving, removal, demolition, conversion, occupancy, equipment, use, height, area and maintenance of all buildings and/or structures in the City. The 2022 California Building Code and its adopted appendices and amendments are on file for public examination in the offices of the Building Official.

15.08.020 Enforcement.

Pursuant to California Building Code, (California) Chapter 1, Section 1.11.2.1, the delegated enforcement official responsible for the enforcement of the building standards relating to fire and panic safety and other regulations of the State Fire Marshal as they relate to Group R, Division 3 Dwellings shall be the Building Official.

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15.08.025 Express Findings.

The City of Coachella finds that the proposed amendments to the California Building Code are reasonable and necessary because of local climactic, geologic, and topographical conditions within the City of Coachella. This finding is supported and based upon the following express findings which address each of these conditions and present the local situation which make the proposed amendments necessary.

I. Climatic Conditions:

A. The City of Coachella located in Riverside County is located in Southern California and covers a vast and varied geographic area. The base climate in western Riverside County consists of semi-arid Mediterranean weather patterns. Eastern Riverside County is a desert area with Mohave Desert temperatures and weather patterns.

Those two primary areas are divided by the San Bernardino Mountain Range. Both areas outside of the mountain terrain annually experience extended periods of high temperatures with little or no precipitation. Hot, dry winds, which may reach speeds of seventy (70) miles per hour or greater, are common to the area. Examples are:

Santa Ana/Foehn winds, afternoon surface-heating generated winds, and prevailing desert winds.

These climatic conditions cause extreme drying of vegetation and common building materials. Frequent periods of drought and low humidity add to the fire danger. This predisposes the area to large destructive fires (conflagration) which necessitates rapid identification, locating and extinguishment of all fires in the smallest stage possible. In addition to directly damaging or destroying buildings, these fires are also prone to disrupt utility services throughout the county. Obstacles generated by a strong wind, such as fallen trees, street lights and utility poles, will greatly impact the response time to reach an incident scene. During these winds, the inability to use aerial type firefighting apparatus would further decrease our ability to stop fires in large buildings and place rescue personnel at increased risk of injury.

B. Although Riverside County and the City of Coachella occasionally experiences periods of significant drought, the county can also experience periods of substantial rainfall. Annual rainfall varying from three inches in Blythe to over thirty-three (33) inches in Pine Cove. When Riverside County does experience heavy rain, or rain over a period of days or weeks, many areas of the county are subject to flooding. Runoff from rain drains either naturally into rivers, washes, and creeks or into flood control facilities. Flash flooding is also a common problem, especially in the Coachella Valley and the easterly portions of the county. Flash flooding is typically associated with short duration, high intensity precipitation events often associated with summer thunderstorms. Such events can occur even during a drought.

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C. Water demand in densely populated Southern California far exceeds the quantity supplied by natural precipitation; and although the population continues to grow, the already-taxed water supply does not. California is projected to increase in population by nearly ten million over the next quarter of a century with fifty (50) percent of that growth centered in Southern California. Due to storage capacities and consumption, and a limited amount of rainfall future water allocation is not fully dependable.

This necessitates the need for additional and on-site fire protection features.

It would also leave tall buildings vulnerable to uncontrolled fires due to a lack of available water and an inability to pump sufficient quantities of available water to floors in a fire.

D. These dry climatic conditions and winds contribute to the rapid spread of even small fires originating in high-density housing or vegetation. These fires spread very quickly and create a need for increased levels of fire protection. The added protection of fire sprinkler systems and other fire protection features such as identification and notification will supplement normal fire department response by providing immediate protection for the building occupants and by containing and controlling the fire spread to the area of origin. Fire sprinkler systems will also reduce the use of water for firefighting by as much as fifty (50) to seventy-five (75) percent.

II. Topographical Conditions
A. Natural: The topographical conditions of Riverside County varies from three hundred (300) feet below sea-level, flat desert communities, to mountains over ten thousand (10,000) feet in Alpine-like areas of the San Bernardino Mountain Range. In between these areas, developable slopes of twenty-five (25) percent and greater generally occur throughout the foothills. Riverside County extends from Orange County to the state of Arizona and is mixed with congested urban areas, rural lands and wild lands. A large number of sensitive habitats for various animal species and vegetation consist within large open space areas between major urban centers that impact building and structure location, which impedes emergency access and response. This variety in regions contributes to an increased emergency response time, which necessitates cooperation between local agencies.

B. Traffic and circulation congestion is an artificially created, obstructive topographical condition, which is common throughout Riverside County.

C. These topographical conditions combine to create a situation, which places fire department response time to fire occurrences at risk, and makes it necessary to provide automatic on-site fire-extinguishing systems and other protection measures to protect occupants and property.

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III. Geological Conditions: Located within Riverside County are several known active and potentially active earthquake faults, including the San Andreas, San Jacinto, and Elsinore Fault. In the event of an earthquake, the location of the epicenter as well as the time of day and season of the year would have a profound effect on the number of deaths and casualties, as well as property damage.

The major form of direct damage from most earthquakes is damage to construction. Bridges are particularly vulnerable to collapse, and dam failure may generate major downstream flooding. Buildings vary in susceptibility, dependent upon construction and the types of soils on which they are built. Earthquakes destroy power and telephone lines; gas, sewer, or water mains; which, in tum, may set off fires and/or hinder firefighting or rescue efforts. The hazard of earthquakes varies from place to place, dependent upon the regional and local geology. Ground shaking may occur in areas sixty-five (65) miles or more from the epicenter (the point on the ground surface above the focus). Ground shaking can change the mechanical properties of some fine grained, saturated soils, where upon they liquefy and act as a fluid (liquefaction).

A. Previous earthquakes in southern California have been accompanied by disruption of traffic flow and fires. A severe seismic event has the potential to negatively impact any rescue or fire suppression activities because it is likely to create obstacles similar to those indicated under the high wind section above. With the probability of strong aftershocks there exists a need to provide increased protection for anyone on upper floors of buildings.

B. Road circulation features located throughout the county also make amendments reasonably necessary. Located through the county are major roadways, highways and flood control channels that create barriers and slow response times. Hills, slopes, street and storm drain design accompanies with occasional heavy rainfall, causes roadway flooding and landslides and at times may make an emergency access route impassable. There are areas in Riverside County that naturally have extended emergency response times that exceed the five-minute goal.

IV. Administrative Conditions. Alternatively, the City of Coachella finds that the proposed amendments to the California Building Code are administrative in nature.

California Health and Safety Code Sections 17958.7 and 18941.5 require that the modification or change be expressly marked and identified as to which each finding refers.

Therefore, the City Council finds that the following table sets forth the 2022 California Existing Building Code sections that have been modified and the associated local climatic, geological, topographical, and/or administrative conditions described above supporting the modification. 2022 BUILDING

CODE SECTION

TITLE/SUBJECT FINDINGS I, II, III
1904.3 Type of cement I, II, III
1907.1 Base course required I, II, III
G101.6 Administration and enforcement Administrative

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J101.3 Administration and Enforcement Administrative
J104.3 Exception Administrative
J107.4 Using alkaline fill soil I, II, III
J109.5 Drainage Devices I, II, III

15.08.030 Amendments to the California Building Code.

A. Automatic Sprinkler Systems. Where determined by the Fire Chief that no major life safety hazard exists, and the fuel load does not pose a significant threat to firefighter safety or to other structures or property, automatic fire sprinklers may be exempted.

One- and two-family dwellings shall have an automatic fire sprinkler system regardless of square footage in accordance with the California Residential Code.

Fire sprinkler systems shall be installed in mobile homes, manufactured homes and multifamily manufactured homes with two dwelling units in accordance with Title 25 of the California Code of Regulations.

The following exceptions in the California Fire Code shall not be allowed:
a. Exception in Section 903.2.3
b. Exceptions 2 in Section 903.2.11.3
B. Section 1904 is hereby amended by adding thereto Section 1904.3 to read as follows:
1904.3 Type of cement. All concrete used in floor slabs where floor slab is supported by earth or fill of any kind and all concrete used in footings, foundations, curbs, gutters, sidewalks, driveways and walls supporting or retaining earth or fill shall contain only sulfate resistant Type V. Portland cement. Portland cement concrete shall be composed of not less than four hundred seventy (470) pound (five sacks) of Portland cement per cubic yard of concrete, except that any concrete containing an approved water reducing admixture, used in accordance with the manufacturer's recommendations shall contain not less than four hundred eighteen (418) pound (4.5 sacks) of Portland cement per cubic yard of concrete.

C. Section 1907.1 is hereby amended by adding thereto Sections 1907.1.2 and 1907.1.3 to read as follows:
1907.1.2 Base course required. A base course shall be provided beneath the concrete floor slab of any structure consisting of at least a four inch thickness of a limited capillarity material. Base course shall be either clean graded gravel or crushed rock. Material shall pass a two inch sieve and be retained in a one-fourth inch sieve. Capillary break in conformance with the California Green Building Standards Code Chapter 4, Division 4.5 is required.

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1907.1.3 Expansion protection for slab. A two-inch layer of dry washed sand shall be placed on top of the base course under of a ten (10) mil thick water-proof membrane. This waterproof membrane shall be placed on top of the base course under all slabs to provide for expansion protection for concrete.

D. Section G101.6 is hereby added to Appendix G, FLOOD-RESISTANT CONSTRUCTION, to read as follows:

G101.6 Administration and Enforcement. For the purpose of the administration and enforcement of this Appendix G, Flood-Resistant Construction, the Building Official shall mean the City Director of Public Works or their designated representative.

E. Appendix J, GRADING, is hereby amended as follows:

1. Section J101.3 is hereby added to read as follows:

J101.3 Administration and Enforcement. For the purpose of the administration and enforcement of this Appendix Chapter, Grading, the Building Official shall mean the City Director of Public Works or their designated representative.

2. The "Exception" in Section J104.3 is hereby amended to read as follows:

Exception: A soils report is not required where the building official determines that the nature of the work applied for is such that a report is not necessary.

3. Section J107.4 is hereby amended by adding thereto Section J107.4.1 to read as follows:

J107.4.1 Using alkaline fill soil. Soils or materials which may have an alkali or sulfate content shall not be relocated, placed or used as fill at any location within the city unless a test sample of the soil is first obtained under the direction of the department of building and tests conducted by an approved testing agency indicates that the alkali or sulfate content of the soil sample does not exceed the amount in the natural soil at the location where the fill is to be placed. The director of building may waive the test sample requirements for good cause.

4. Section J109.5 is hereby added to read as follows:

J109.5 Drainage Devices.

J109.5.1 Minimum gradients. Except on slopes, drainage devices shall be constructed with minimum gradients as follows: Poured in place cement concrete construction - 0.5%; Shotcrete concrete construction - 0.5%; Asphaltic concrete pavement - 1.0%; Soils swales - 0.5%; Pipes - 0.4%.

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J109.5.2 Slopes. Drainage devices constructed on slopes shall have a minimum gradient of five percent (5.0%). Such drainage devices shall be constructed of shotcrete or poured in place concrete with suitable reinforcement. Closed piping, unpaved swales and Asphaltic concrete drainage structures shall not be used for slope drainage.

J109.5.3 Erosion prevention. Drainage devices shall be constructed to convey drainage to an established private or public watercourse, channel, storm drain or public street, and shall be designed to prevent erosion.

J109.5.4 Device design. Drainage devices conveying water to the public streets shall drain over driveway approaches, through curb drains, through sidewalk culverts, or through non-concentrated sheet flow over the curb as designated by the City Engineer.”
SECTION 4. Code Amendment.

Chapter 15.12 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.12 Electrical Code

15.12.010 Adoption of the Electrical Code.

15.12.020 Amendments to the California Building Code.

15.12.010 Adoption of the Electrical Code.

Except as provided in this chapter, the 2022 California Electrical Code, including informative Annexes A, B, C, D, E, F, G, H, I, and J, as adopted by the state of California, based on the 2020 National Electrical Code as published by the National Fire Protection Association (NFPA), shall become the electrical code of the City of Coachella, regulating all installation, arrangement, alteration, repair, use and other operation of electrical wiring, connections, fixtures and other electrical appliances on premises within the City. The California Electrical Code is on file for public examination in the office of the Building Official.

15.12.020 Amendments to the California Building Code.

The 2022 Edition of the California Electrical Code is hereby adopted with no amendments.”
SECTION 5. Code Amendment.

Chapter 15.16 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.16 Mechanical Code

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Item 21.

15.16.010 Adoption of the Mechanical Code.

15.16.020 Amendments to the California Mechanical Code.

15.16.010 Adoption of the Mechanical Code.

Except as provided in this chapter, the 2022 California Electrical Code, including Appendix Chapters A, B, C, D, E, F, G, H, I, and J, as adopted by the state of California, based on the 2020 National Electrical Code as published by the National Fire Protection Association (NFPA), shall become the electrical code of the City of Coachella, regulating all installation, arrangement, alteration, repair, use and other operation of electrical wiring, connections, fixtures and other electrical appliances on premises within the city. The California Electrical Code is on file for public examination in the office of the Building Official.

15.16.020 Amendments to the California Mechanical Code.

The 2022 Edition of the California Mechanical Code is hereby adopted with no amendments.”
SECTION 6. Code Amendment.

Chapter 15.20 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.20 Plumbing Code

15.20.010 Adoption of the Plumbing Code.

15.20.015 Express Findings.

15.20.020 Amendments to Chapter 1, Division II of the California Plumbing Code.

15.20.010 Adoption of the Plumbing Code.

Except as provided in this chapter, the 2022 California Plumbing Code, including Appendix Chapters A, B, D, G, H, I, J, K, L, M, and N, as adopted by the state of California, based on the 2021 Uniform Plumbing Code as published by the International Association of Plumbing and Mechanical Officials (IAPMO), shall be and become the plumbing code of the City of Coachella, regulating erection, installation, alteration, repair, relocation, replacement, maintenance or use of plumbing systems within the City. The California Plumbing Code will be on file for public examination in the office of the Building Official.

15.20.015 Express Findings.

The City of Coachella finds that the proposed amendments to the California Plumbing Code are administrative in nature, and therefore do not require express topographic, geologic, or climatic findings pursuant to California Health and Safety Code Sections 17958.7 and 18941.5.

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CODE SECTION

TITLE/SUBJECT FINDINGS I, II, III
104.1 Permits Required Administrative

15.20.020 Amendments to Chapter 1, Division II of the California Plumbing Code.

The 2022 Edition of the California Plumbing Code is hereby adopted with the following amendment to section 104.1.

A. "104.1 Permits Required." is amended to read as follows:

It shall be unlawful for a person, firm, or corporation to make an installation, alteration, repair, replacement, or remodel a plumbing system regulated by this code except as permitted in Section 104.2, or to cause the same to be done without first obtaining a separate plumbing permit for each separate building or structure.

The City of Coachella requires a plumbing permit to abandon an existing private disposal system, and connect to a public sewer system for the following projects:

1. Additions to existing buildings or structures that result in the need for enlarged capacity of septic tank pursuant to Table H 201.1(1), whenever there is an existing public sewer main line or lateral line within 30 feet of the property boundaries.

2. Remodels to existing buildings or structures that increase the number of plumbing fixtures to a structure served by an existing septic tank that is out of compliance with Table H 201.1(1), whenever there is an existing public sewer main line or lateral line within 30 feet of the property boundaries.” SECTION 7. Code Amendment.

Chapter 15.24 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.24 Fire Code

15.24.010 Adoption of the Fire Code.

15.24.015 Fire Authority Adoption of the Fire Code.

15.24.020 Express Findings.

15.24.030 Amendments to the Fire Code.

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15.24.010 Adoption of the Fire Code.

Except as stated in this section or as amended below in Section 5 [sic] of this chapter, all of the provisions and appendices of the 2022 California Fire Code, inclusive of all of the inclusions and exclusions set for in each chapter's matrix, are hereby adopted and shall apply to the city of Coachella. In addition, the following provisions that are excluded in the 2022 California Fire Code are hereby adopted - Chapter 1, Division II of the California Fire Code is hereby adopted, except that Section 103.2 and 109.3 are not adopted, and Chapters 3, 25, and Sections 403.12, 503, 510.2, and 1103.2 are adopted. The California Fire Code and its adopted appendices and amendments are on file for public examination in the office of the Building Official.

15.24.015 Fire Authority Adoption of the Fire Code.

Except as stated in this section or as amended below in Section 15.24.030 of this chapter, all of the provisions and appendices of the 2022 California Fire Code, inclusive of all of the inclusions and exclusions set for in each chapter's matrix, are hereby adopted and shall apply to the City of Coachella Fire Authority. In addition, the following provisions that are excluded in the 2022 California Fire Code are hereby adopted - Chapter 1, Division II of the California Fire Code is hereby adopted, except that Section 103.2 and 109.3 are not adopted, and Chapters 3, 25, and Sections 403.12, 503, 510.2, and 1103.2 are adopted.

15.24.020 Express Findings.

The City of Coachella finds the following:

The fire department hereby finds that the proposed amendments to the Fire Code are reasonable and necessary because of local climactic, geologic, and topographical conditions within the City of Coachella. This finding is supported and based upon the following express findings which address each of these conditions and present the local situation which make the proposed amendments necessary.

I. Climatic Conditions:

Santa Ana/Foehn winds, afternoon surface-heating generated winds, and prevailing desert winds.

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extinguishment of all fires in the smallest stage possible. In addition to directly damaging or destroying buildings, these fires are also prone to disrupt utility services throughout the county. Obstacles generated by a strong wind, such as fallen trees, street lights and utility poles, will greatly impact the response time to reach an incident scene. During these winds, the inability to use aerial type firefighting apparatus would further decrease our ability to stop fires in large buildings and place rescue personnel at increased risk of injury.

This necessitates the need for additional and on-site fire protection features.

It would also leave tall buildings vulnerable to uncontrolled fires due to a lack of available water and an inability to pump sufficient quantities of available water to floors in a fire.

II. Topographical Conditions

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A. Natural: The topographical conditions of Riverside County varies from three hundred (300) feet below sea-level, flat desert communities, to mountains over ten thousand (10,000) feet in Alpine-like areas of the San Bernardino Mountain Range. In between these areas, developable slopes of twenty-five (25) percent and greater generally occur throughout the foothills. Riverside County extends from Orange County to the state of Arizona and is mixed with congested urban areas, rural lands and wild lands. A large number of sensitive habitats for various animal species and vegetation consist within large open space areas between major urban centers that impact building and structure location, which impedes emergency access and response. This variety in regions contributes to an increased emergency response time, which necessitates cooperation between local agencies.

B. Traffic and circulation congestion is an artificially created, obstructive topographical condition, which is common throughout Riverside County.

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California Health and Safety Code Sections 17958.7 and 18941.5 require that the modification or change be expressly marked and identified as to which each finding refers. Therefore, the City Council finds that the following table sets forth the 2022 California Fire Code sections that have been modified and the associated local climatic, geological, and/or topographical conditions described above supporting the modification.
2022 FIRE CODE

SECTION

TITLE/SUBJECT FINDINGS I, II, III
101.4 Severability Administrative
102.5 Application of the residential code I, II & III
104.7 and 104.7.1 Liability Administrative
104.1.1 Authority of the Fire Chief and Fire
Department
Administrative
104.13 Authority of the Fire Chief to close
hazardous fire areas
Administrative
107.1 Fees Administrative
107.7 Cost Recovery Administrative
111.1 Board of Appeals established Administrative
112.4 Violation and Penalties Administrative
202 Fire Chief Administrative
308.1.6.3 Sky Lanterns I, II & III
503.2.1 Dimensions Administrative
503.2.2 Authority Administrative
503.6.1 Automatic opener Administrative
503.7 Loading areas and passenger drop-offs Administrative 507.5.7 Fire hydrant size and outlets I & III
507.5.8 Fire hydrant street marker I, II & III
508.1, 508.1.1,
508.1.3, 508.1.6,
508.1.9
Fire command center I, II & III
509.2.1 Minimum clearances I & III
608.11.1.2 Manual operation II & III
903.2 Where required (automatic sprinkler
systems)

I, II & III
903.3.5.3 Hydraulically calculated systems I & II
3204.2.1 Minimum requirements for client leased or
occupant
Administrative
4904.4 High Fire Hazard Severity Zone Maps Administrative App Ch B, Table
B105.2
Buildings other than one- or two-family
dwellings

I, II & III
App Ch C, C103.1 Fire hydrant location I, II & III

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15.24.030 Amendments to the Fire Code.

A. DEFINITIONS. Section 202, definition of "Fire Chief" in the California Fire Code is deleted in its entirety and replaced with the following:

FIRE CHIEF. The Fire Chief of Riverside County or the Fire Chief's designee.

B. SCOPE AND GENERAL REQUIREMENTS.

1. Section 101.4 of the California Fire Code is deleted in its entirety and replaced with the following:
101.4 Severability. If any provision, clause, sentence or paragraph of this ordinance or the application thereof to any person or circumstances shall be held invalid, such invalidity shall not affect the other provisions of this ordinance which can be given effect without the invalid provision or application, and to this end, the provisions of this ordinance are hereby declared to be severable.

C. APPLICABILITY.

1. Section 102.5 of the California Fire Code is amended as follows:
102.5 Application of residential code. Where structures are designed and constructed in accordance with the California Residential Code, the provisions of this code shall apply as follows:

1. Construction and design provisions of this code pertaining to the exterior of the structure shall apply including, but not limited to, premises identification, fire apparatus access and water supplies.

Where interior or exterior systems or devices are installed, construction permits required by Section 105.7 of this code shall apply.

2. Administrative, operational and maintenance provisions of this code shall apply.

3. Automatic fire sprinkler system requirements of this code shall apply to detached accessory buildings 3,600 square feet or greater in accordance with Section 903.2. The provisions contained in Section 903.2.18 of the California Fire Code or Section R309.6 of the California Residential Code may be used for the design of the automatic fire sprinkler system for detached private garages.

D. DEPARTMENT OF FIRE PREVENTION

1. Sections 104.7 and 104.7.1 of the California Fire Code are deleted in their entirety and replaced with the following:

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104.7 Liability. Any liability against Riverside County or the City of Coachella or any officer or employee for damages resulting from the discharge of their duties shall be as provided by law.

E. GENERAL AUTHORITY AND RESPONSIBILITIES.

1. A new Section 104.1.1 is added to Section 104.1 of the California Fire Code to read as follows:
104.1.1 Authority of the Fire Chief and Fire Department.

1. The Fire Chief is authorized and directed to enforce all applicable State fire laws and provisions of this ordinance and to perform such duties as directed by the City Council.

2. The Fire Chief is authorized to administer, interpret and enforce this ordinance. Under the Fire Chief's direction, the Riverside County Fire Department is authorized to enforce ordinances of the City of Coachella pertaining to the following:

2.1. The prevention of fires.

2.2. The suppression or extinguishment of dangerous or hazardous fires.

2.3. The storage, use and handling of hazardous materials.

2.4. The installation and maintenance of automatic, manual and other private fire alarm systems and fire extinguishing equipment.

2.5. The maintenance and regulation of fire escapes.

2.6. The maintenance of fire protection and the elimination of fire hazards on land, in buildings, structures and other property, including those under construction.

2.7. The maintenance of means of egress.

2.8. The investigation of the cause, origin and circumstances of fire and unauthorized releases of hazardous materials.

3. The following persons are hereby authorized to interpret and enforce the provisions of this ordinance and to make arrests and issue citations as authorized by law:

3.1. The Unit Chief, Peace Officers and Public Officers of the California Department of Forestry and Fire Protection.

3.2. The Fire Chief, Peace Officers and Public Officers of the Riverside County Fire Department.

3.3. The Riverside County Sheriff and any deputy sheriff.

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3.4. The Police Chief and any police officer of any city served by the Riverside County Fire Department.

3.5. Officers of the California Highway Patrol.

3.6. Code Officers of the City of Coachella Code Enforcement Department.

3.7. Peace Officers of the California Department of Parks and Recreation.

3.8. The law enforcement officer of the Federal Bureau of Land Management.

2. Section 104.13 is added to Section 104 of the California Fire Code to read as follows:
104.13 Authority of the Fire Chief to close hazardous fire areas. Except upon National Forest Land, the Fire Chief is authorized to determine and announce the closure of any hazardous fire area or portion thereof. Any closure by the Fire Chief for a period of more than fifteen (15) calendar days must be approved by the Riverside County Board of Supervisors and/or the City Council within fifteen (15) calendar days of the Fire Chief's original order of closure. Upon such closure, no person shall go in or be upon any hazardous fire area, except upon the public roadways and inhabited areas. During such closure, the Fire Chief shall erect and maintain at all entrances to the closed area sufficient signs giving notice of closure.

This section shall not prohibit residents or owners of private property within any closed area, or their invitees, from going in or being upon their lands. This section shall not apply to any entry, in the course of duty, by a peace officer, duly authorized public officer or fire department personnel. For the purpose of this section, "hazardous fire area" shall mean public or private land that is covered with grass, grain, brush or forest and situated in a location that makes suppression difficult resulting in great damage. Such areas are designated on Hazardous Fire Area maps filed with the office of the Fire Chief.

F. FEES.

1. Section 107.1 of the California Fire Code is deleted in its entirety and replaced with the following:
107.1 Schedule of permit fees. Fees for services and permits shall be as set forth in the City of Coachella fee schedule.

2. A new Section 107.7 is added to Section 107 of the California Fire Code to read as follows:
107.7 Cost recovery. Fire suppression, investigation, rescue or emergency medical costs are recoverable in accordance with Health and Safety Code Sections 13009 and 13009.1, as may be amended from time to time. Additionally, any person who negligently, intentionally or in violation of law causes an emergency response, including, but not limited to, a traffic accident, spill of toxic or flammable fluids or chemicals is liable for the costs of securing such emergency, including those costs

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pursuant to Government Code Section 53150, et seq, as may be amended from time to time. Any expense incurred by the Riverside County Fire Department for securing such emergency shall constitute a debt of such person and shall be collectable by Riverside County in the same manner as in the case of an obligation under contract, express or implied.

G. BOARD OF APPEALS.

1. Section 111.1 of the California Fire Code is deleted in its entirety and replaced with the following:
111.1 Board of appeals established. The Board of Appeals shall be the City Manager. If he or she determines an outside board is needed, he or she shall designate an outside hearing officer to hear the appeal. The Fire Chief shall be notified of any appeal and the Fire Chief or designee shall be in attendance at the appeal hearing. Depending on the subject of the appeal, specialized expertise may be solicited, at the expense of the applicant, for the purpose of providing input to the Appeals Board.

H. VIOLATIONS.

1. Section 112.4 of the California Fire Code is deleted in its entirety and replaced with the following:
112.4 Violation and penalties. It shall be unlawful for any person, firm, corporation or association of persons to violate any provision of this ordinance, or to violate the provisions of any permit granted pursuant to this code or Ordinance.

Punishments and penalties for violations shall be in accordance with the City of Coachella ordinances, fee schedule and Health and Safety Code Sections 17995 through 17995.5.

I. OPEN FLAMES.

1. Section 308.1.6.3 of the California Fire Code is deleted in its entirety and replaced with the following:
308.1.6.3 Sky lanterns or similar devices. A person shall not release or cause to be released a sky lantern or similar device.

J. FIRE APPARATUS ACCESS ROADS.

1. Section 503.2.1 of the California Fire Code is deleted in its entirety and replaced with the following:
503.2.1 Dimensions. Fire apparatus access roads shall have an unobstructed width of not less than 24 feet (7315 mm), exclusive of shoulders, except for approved security gates in accordance with Section 503.6, and an unobstructed vertical clearance of not less than 13 feet 6 inches (4115 mm). For additional requirements or alternatives see Riverside County Fire Department Standards and Policies, as may be amended from time to time.

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2. Section 503.2.2 of the California Fire Code is deleted in its entirety and replaced with the following:
503.2.2 Authority. The fire code official shall be the only authority authorized to designate fire apparatus access roads and fire lanes and to modify the minimum fire lane access widths for fire or rescue operations.

3. A new Section 503.6.1 is added to Section 503.6 of the California Fire Code to read as follows:
503.6.1 Automatic opener. New motorized gates shall be provided with means to be automatically opened remotely by emergency vehicle in accordance with Riverside County Fire Department standards and Policies, as may be amended from time to time.

Exception: Gates serving individual one- and two-family dwelling parcels.

4. A new Section 503.7 is added to Section 503 of the California Fire Code to read as follows:
503.7 Loading areas and passenger drop-off areas. On private properties, where fire apparatus access roads are utilized for loading or unloading or utilized for passenger drop-off or pick-up, an additional eight (8) feet of width shall be added to the minimum required width for the fire apparatus access road.

K. FIRE PROTECTION WATER SUPPLIES.

1. A new Section 507.5.7 is added to Section 507 of the California Fire Code to read as follows:
507.5.7 Fire hydrant size and outlets. As determined by the fire code official, fire hydrant sizes and outlets shall be based on the following:

1. Residential Standard - one (1) four (4) inch outlet and one (1) two and half (2 ½) inch outlet.

2. Super Hydrant Standard - one (1) four (4) inch outlet and two (2) two and one half (2 ½) inch outlet.

3. Super Hydrant Enhanced - two (2) four (4) inch outlet and one (1) two and one half (2 ½) inch outlet.

2. A new Section 507.5.8 is added to Section 507 of the California Fire Code to read as follows:
507.5.8 Fire hydrant street marker. Fire hydrant locations shall be visually indicated in accordance with Riverside County Fire Department Technical Policy 06-11, as may be amended from time to time. Any hydrant marker damaged or removed during the course of street construction or repair shall be immediately replaced by the contractor, developer or person responsible for removal or damage.

L. FIRE COMMAND CENTER.

1. Section 508.1 of the California Fire Code is deleted in its entirety and replaced with the following:

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508.1 General. Where required by other sections of this code and in all buildings classified as high-rise buildings by the California Building Code, in buildings greater than 300,000 square feet in area and in Group I-2 occupancies having occupied floors located more than 75 feet above the lowest level of fire department vehicle access, a fire command center for fire department operations shall be provided and comply with Sections 508.1.1 through 508.1.8.

2. Section 508.1.1 of the California Fire Code is deleted in its entirety and replaced with the following:
508.1.1 Location and access. The fire command center shall be located adjacent to the main lobby and shall be accessible from fire department vehicular access or as approved by the fire code official. The room shall have direct access from the building exterior at the lowest level of fire department access.

3. Section 508.1.3 of the California Fire Code is amended to add the following:

Exception: A fire command center solely required because a building is greater than 300,000 square feet in area shall be a minimum of 96 square feet (9 m2 ) with a minimum dimension of 8 feet (2438 mm).

4. Section 508.1.6 of the California Fire Code is amended to add the following:

Exception: A fire command center solely required because a building is greater than 300,000 square feet in area shall comply with NFPA 72 and contain the features set forth in Section 508.1.6 subsections 5, 8, 10, 12, 13 and 14. The features set forth in Section 508.1.6 subsections 1, 2, 3, 4, 6, 7, 9, 11, 15, 16, 17, 18 and 19 shall be required when such building contains systems or functions related to these features.

5. A new Section 508.1.9 is added to Section 508 of the California Fire Code to read as follows:
508.1.9 Fire command center identification. The fire command center shall be identified by a permanent easily visible sign stating "Fire Dept. Command Center," located on the door to the fire command center.

M. FIRE PROTECTION AND UTILITY EQUIPMENT IDENTIFICATION AND LOCATION.

1. Section 509.2.1 of the California Fire Code is amended to add the following:
509.2.1 Minimum clearances. A 3-foot (914 mm) clear space shall be maintained around the circumference of exterior fire protection system control valves, or any other exterior fire protection system component that may require immediate access, except as otherwise required or approved.

N. MECHANICAL REFRIGERATION.

1. Section 608.11.1.2 of the California Fire Code is deleted in its entirety and replaced with the following:

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608.11.1.2 Manual operation. When required by the fire code official, automatic crossover valves shall be capable of manual operation. The manual valves shall be located in an approved location immediately outside of the machinery room in a secure metal box or equivalent and marked as Emergency Controls.

O. AUTOMATIC SPRINKLER SYSTEMS.

1. Section 903.2 of the California Fire Code is deleted in its entirety and replaced with the following:
903.2 Where required. In all new buildings and structures which are 3,600 square feet or greater, an approved automatic sprinkler system shall be provided regardless of occupancy classification. Where the Sections 903.2.1 - 903.2.20 of the California Fire Code require more restrictive requirements than those listed below, the more restrictive requirement shall take precedence.

Exception: Unless required elsewhere in this code or the California Building Code, automatic fire sprinkler systems shall not be required for the following:

1. Detached Group U occupancies used for agricultural purposes constructed in accordance with the California Building Code.

2. Detached non-combustible equestrian arena shade canopies that are open on all sides and used for riding only - no commercial, assembly or storage uses.

3. Detached fabric or non-combustible shade structures that are open on all sides and used to shade playground equipment, temporary storage of vehicles and dining areas with no cooking.

4. Where determined by the Fire Chief that no major life safety hazard exists, and the fuel load does not pose a significant threat to firefighter safety or to other structures or property, automatic fire sprinklers may be exempted.

One- and two-family dwellings shall have an automatic fire sprinkler system regardless of square footage in accordance with the California Residential Code. Fire sprinkler systems shall be installed in mobilehomes, manufactured homes and multifamily manufactured homes with two dwelling units in accordance with Title 25 of the California Code of Regulations.

The following exceptions in the California Fire Code shall not be allowed:
a. Exception in Section 903.2.3
b. Exception 2 in Section 903.2.11.3

2. A new Section 903.3.5.3 is added to Section 903 of the California Fire Code to read as follows:
903.3.5.3 Hydraulically calculated systems. The design of hydraulically calculated fire sprinkler systems shall not exceed 90% of the water supply capacity.

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P. DESIGNATION OF HIGH-PILED STORAGE AREAS.

1. A new Section is added to Section 3204.2 of the California Fire Code to read as follows:
3204.2.1 Minimum requirements for client leased or occupant owned warehouses. Designs of an automatic sprinkler system for client leased or occupant owned buildings containing high pile storage shall be based on the requirements of NFPA 13. The responsible fire protection engineer shall perform a survey of the building to determine commodity classification, storage configuration, building height and other information related to the development of an appropriate sprinkler system design. The fire protection engineer shall also make reasonable efforts to meet with the building owner or operator to understand seasonal or customer related fluctuations to the stored commodities, storage height, and configuration. The sprinkler design shall be based on the most demanding requirements determined through the onsite survey and discussions with the building owner or operator. The technical report shall describe the basis for determining the commodity and sprinkler design selection, how the commodities will be isolated or separated, and include references to the design document(s). If a specific fire test is used as the basis of design, a copy of the fire test report shall be provided at the time of plan review.

Q. FIRE HAZARD SEVERITY ZONES.

1. A new Section 4904.4 is added to Section 4904 of the California Fire Code to read as follows:
4904.4 High Fire Hazard Severity Zone Maps. In accordance with Government Code Sections 51175 through 51189, Very High Fire Hazard Severity Zones are designated as shown on a map titled Very High Fire Hazard Severity Zones, dated December 24, 2009, and retained on file at the office of the Fire Chief, which supersedes other maps previously adopted by Riverside County designating high fire hazard areas.

R. APPENDIX B.

1. Table B105.2 of the California Fire Code is amended as follows:

TABLE B105.2

REQUIRED FIRE-FLOW FOR BUILDINGS OTHER

THAN ONE- AND TWO-FAMILY
DWELLINGS, GROUP R-3 AND R-4 BUILDINGS AND TOWNHOUSES

AUTOMATIC SPRINKLER
SYSTEM
(Design Standard)

MINIMUM FIRE-FLOW
(gallons per minute)

FLOW DURATION
(hours)
No automatic sprinkler
system
Value in Table B105.1(2) Duration in Table B105.1(2)
Section 903.3.1.1 of the
California Fire Code
50% of the value in Table
B105.1(2)a
Duration in Table B105.1(2)
at the reduced flow rate

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Section 903.3.1.2 of the
California Fire Code
50% of the value in Table
B105.1(2)b
Duration in Table B105.1(2)
at the reduced flow rate
For SI: 1 gallon per minute = 3.785 L/m.
a. The reduced fire-flow shall be not less than 1,000 gallons per minute. b. The reduced fire-flow shall be not less than 1,500 gallons per minute.

S. APPENDIX C.

1. Section C103.1 of the California Fire Code is deleted in its entirety and replaced with the following:

C103.1 Hydrant spacing. Fire apparatus access roads and public streets providing required access to buildings in accordance with Section 503 of the International Fire Code shall be provided with one or more fire hydrants, as determined by Section C102.1. Where more than one fire hydrant is required, the distance between required fire hydrants shall be in accordance with Sections C103.2 and C103.3. Fire hydrants shall be provided at street intersections.”
SECTION 7. Code Amendment.

Chapter 15.32 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.32 Existing Building Code

15.32.010 Adoption of the Existing Building Code.

15.32.015 Express Findings.

15.32.020 Amendments to the Existing Building Code.

15.32.010 Adoption of the Existing Building Code.

Except as provided in this chapter, the 2022 California Existing Building Code, including Appendices A-1, based on the 2021 International Existing Building Code, as adopted by the state of California, as published by the International Code Council (ICC), shall become the Existing Building Code of the City of Coachella for the purpose of regulating the repair, alteration, change of occupancy, addition to and relocation of the Seismic Strengthening Provisions for Unreinforced Masonry Bearing Wall Buildings, in existing buildings in the City. The California Existing Building Code is on file for public examination in the office of the Building Official.

15.32.015 Express Findings.

The City of Coachella finds that the proposed amendments to the Existing Building Code are reasonable and necessary because of local climactic, geologic, and topographical conditions within the City of Coachella. This finding is supported and based upon the following express findings which address each of these conditions and present the local situation which make the proposed amendments necessary.

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V. Climatic Conditions:

E. The City of Coachella located in Riverside County is located in Southern California and covers a vast and varied geographic area. The base climate in western Riverside County consists of semi-arid Mediterranean weather patterns. Eastern Riverside County is a desert area with Mohave Desert temperatures and weather patterns.

Santa Ana/Foehn winds, afternoon surface-heating generated winds, and prevailing desert winds.

F. Although Riverside County and the City of Coachella occasionally experiences periods of significant drought, the county can also experience periods of substantial rainfall. Annual rainfall varying from three inches in Blythe to over thirty-three (33) inches in Pine Cove. When Riverside County does experience heavy rain, or rain over a period of days or weeks, many areas of the county are subject to flooding. Runoff from rain drains either naturally into rivers, washes, and creeks or into flood control facilities. Flash flooding is also a common problem, especially in the Coachella Valley and the easterly portions of the county. Flash flooding is typically associated with short duration, high intensity precipitation events often associated with summer thunderstorms. Such events can occur even during a drought.

G. Water demand in densely populated Southern California far exceeds the quantity supplied by natural precipitation; and although the population continues to grow, the already-taxed water supply does not. California is projected to increase in population by nearly ten million over the next quarter of a century with fifty (50) percent of that growth centered in Southern California. Due to storage capacities and consumption, and a limited amount of rainfall future water allocation is not fully dependable.

This necessitates the need for additional and on-site fire protection features.

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It would also leave tall buildings vulnerable to uncontrolled fires due to a lack of available water and an inability to pump sufficient quantities of available water to floors in a fire.

H. These dry climatic conditions and winds contribute to the rapid spread of even small fires originating in high-density housing or vegetation. These fires spread very quickly and create a need for increased levels of fire protection. The added protection of fire sprinkler systems and other fire protection features such as identification and notification will supplement normal fire department response by providing immediate protection for the building occupants and by containing and controlling the fire spread to the area of origin. Fire sprinkler systems will also reduce the use of water for firefighting by as much as fifty (50) to seventy-five (75) percent.

VI. Topographical Conditions
D. Natural: The topographical conditions of Riverside County varies from three hundred (300) feet below sea-level, flat desert communities, to mountains over ten thousand (10,000) feet in Alpine-like areas of the San Bernardino Mountain Range. In between these areas, developable slopes of twenty-five (25) percent and greater generally occur throughout the foothills. Riverside County extends from Orange County to the state of Arizona and is mixed with congested urban areas, rural lands and wild lands. A large number of sensitive habitats for various animal species and vegetation consist within large open space areas between major urban centers that impact building and structure location, which impedes emergency access and response. This variety in regions contributes to an increased emergency response time, which necessitates cooperation between local agencies.

E. Traffic and circulation congestion is an artificially created, obstructive topographical condition, which is common throughout Riverside County.

F. These topographical conditions combine to create a situation, which places fire department response time to fire occurrences at risk, and makes it necessary to provide automatic on-site fire-extinguishing systems and other protection measures to protect occupants and property.

VII. Geological Conditions: Located within Riverside County are several known active and potentially active earthquake faults, including the San Andreas, San Jacinto, and Elsinore Fault. In the event of an earthquake, the location of the epicenter as well as the time of day and season of the year would have a profound effect on the number of deaths and casualties, as well as property damage.

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upon construction and the types of soils on which they are built. Earthquakes destroy power and telephone lines; gas, sewer, or water mains; which, in tum, may set off fires and/or hinder firefighting or rescue efforts. The hazard of earthquakes varies from place to place, dependent upon the regional and local geology. Ground shaking may occur in areas sixty-five (65) miles or more from the epicenter (the point on the ground surface above the focus). Ground shaking can change the mechanical properties of some fine grained, saturated soils, where upon they liquefy and act as a fluid (liquefaction).

C. Previous earthquakes in southern California have been accompanied by disruption of traffic flow and fires. A severe seismic event has the potential to negatively impact any rescue or fire suppression activities because it is likely to create obstacles similar to those indicated under the high wind section above. With the probability of strong aftershocks there exists a need to provide increased protection for anyone on upper floors of buildings.

D. Road circulation features located throughout the county also make amendments reasonably necessary. Located through the county are major roadways, highways and flood control channels that create barriers and slow response times. Hills, slopes, street and storm drain design accompanies with occasional heavy rainfall, causes roadway flooding and landslides and at times may make an emergency access route impassable. There are areas in Riverside County that naturally have extended emergency response times that exceed the five-minute goal.

VIII. Administrative Conditions. Alternatively, the City of Coachella finds that the proposed amendments to the Existing Building Code are administrative in nature.

California Health and Safety Code Sections 17958.7 and 18941.5 require that the modification or change be expressly marked and identified as to which each finding refers.

BUILDING CODE

SECTION

TITLE/SUBJECT FINDINGS I, II, III
202 Definitions Administrative, III

15.32.020 Amendments to the Existing Building Code.

A. Section 202, Definitions, is hereby amended by adding thereto the following definition to read as follows:

Substantial Structural Damage. A condition where:

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1. In any story, the vertical elements of the lateral-force-resisting system, have suffered damage such that the lateral load-carrying capacity of the structure in any direction has been reduced by more than 20 percent from its pre-damaged condition, or

2. The capacity of any vertical gravity load-carrying component, or any group of such components, that supports more than 30 percent of the total area of the structure's floor(s) and roof(s) has been reduced more than 20 percent from its pre-damaged condition, and the remaining capacity of such affected elements with respect to all dead and live loads is less than 75 percent of that required by the building code for new buildings of similar structure, purpose, and location.” SECTION 8. Code Amendment.

Chapter 15.54 of Title 15 of the Coachella Municipal Code is hereby amended in its entirety to read as follows:
“Chapter 15.54 Recycling and Diversion of Waste from Construction and Demolition

15.54.010 Findings and Purpose.

15.54.020 [Deleted].

15.54.030 [Deleted].

15.54.040 [Deleted].

15.54.050 [Deleted].

15.54.060 [Deleted].

15.54.070 [Deleted].

15.54.080 Performance Security.

15.54.090 Refund of Performance Security.

15.54.100 Use of Performance Security.

15.54.110 [Deleted].

15.54.120 Forfeiture of Performance Security.

15.54.130 Compliance and Release of Performance Security.

15.54.010 Findings and Purpose.

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The City Council of the City of Coachella hereby finds and determines that the City is committed to protecting the public health, safety, welfare, and environment; that in order to meet these goals, it is necessary that the City promote the reduction of solid waste and reduce the stream of solid waste going to landfills; that under California law, as embodied in the California Waste Management Act (California Public Resources Code Section 40000 et seq.), Coachella is required to prepare, adopt, and implement source reduction and recycling elements to reach reduction goals, and is required to make substantial reductions in the volume of waste materials going to landfill, under the threat of penalties of ten thousand dollars ($10,000.00) per day; that waste from demolition and construction of commercial and residential buildings represents a large portion of the volume presently coming from Coachella, and that a percentage of that waste is particularly suitable for recycling; that Coachella's commitment to the reduction of waste and to compliance with state law requires the establishment of programs for recycling and salvaging construction and demolition materials; that the City Council recognizes that requiring demolition and construction waste to be recycled and reused may in some respects add modestly to the cost of demolition and construction and in other respects may make possible some cost recovery and cost reduction; and that it is necessary in order to protect the public health, safety, and welfare that the following regulations be adopted.

15.54.020 [Deleted].

15.54.030 [Deleted].

15.54.040 [Deleted].

15.54.050 [Deleted].

15.54.060 [Deleted].

15.54.070 [Deleted].

15.54.080 Performance Security.

A. The applicant for a building or demolition permit shall submit a performance security along with the C&D waste plan. This performance security shall be in the amount of one percent of the building permit valuation, but not greater than one hundred thousand dollars ($100,000.00).

B. For large projects, a one hundred thousand dollars ($100,000.00) performance security will be deposited. The security may be carried forward to the following phase provided the contractor has met the required diversion requirements. If diversion requirements are not met and a portion or all of the performance security is forfeited, the security must be replenished to meet one hundred thousand dollars ($100,000.00). The dollar amount to be replenished will be based on the diversion schedule in Section 15.54.130 of this chapter.

C. The applicant shall post performance security in the form of cash, money order, letter of credit, performance or surety bond.

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15.54.090 Refund of Performance Security.

A. The compliance official may authorize the refund of any performance security which was erroneously paid or collected.

B. The compliance official may authorize the refund of any performance security when the building permit application is withdrawn or cancelled before any work has begun.

C. The performance security shall be returned, without interest, in total or prorated, upon proof of satisfaction by the compliance official that no less than the required percentage of construction and demolition waste tonnage generated by the covered project has been diverted from disposal and has been recycled or reused. If a lesser percentage of construction and demolition waste tonnage than is required is diverted, a proportionate share of the deposit shall be returned. The deposit shall be forfeited entirely or to the prorated extent that there is a failure to comply with the requirements of this chapter. The city may, by formal resolution, modify the amount of the required security.

15.54.100 Use of Performance Security.

A. Monies received by the city as performance security shall be used only for:

1. Payment of performance security refunds;

2. Programs to divert construction, demolition, and alteration projects from the landfill;

3. Programs whose purpose is to develop or improve the infrastructure needed to divert wastes from construction, demolition, and alteration projects from landfill disposal;

4. Allocated staff costs.

15.54.110 [Deleted].

15.54.120 Forfeiture of Performance Security.

A. If the compliance official determines that the applicant has not made a good faith effort to comply with this chapter, or if the applicant fails to submit the documentation required within the sixty (60)-day time period, then the deposit shall be forfeited to the city.

B. If the compliance official determines that the applicant has diverted a lesser percentage of construction and demolition waste tonnage than required, the deposit shall be forfeited entirely or to the prorated extent that there is failure of compliance.

15.54.130 Compliance and Release of Performance Security.

The compliance official shall review the information submitted under Section 15.54.110 of this chapter and determine whether the applicant has complied with the diversion requirement as follows:

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A. Full Compliance. If the compliance official determines that the applicant has fully complied with the diversion requirement applicable to the project, the compliance official shall cause the performance security to be returned in full, without interest, within fifteen (15) days.

B. Partial Compliance. If the contractor is not found in compliance but has submitted required forms and documentation, the city may refund a percentage of the deposit for partial compliance. See schedule in this subsection to determine the amount of the security to be refunded based on the level of diversion obtained and supported. %
Diverted
% Deposit Returned
65% 100%
55–64% 80%
45–54% 60%
35–44% 40%
25–34% 20%
Under
25%
0%
C. Noncompliance. If the compliance official determines that the applicant has not fully or partially complied with the diversion requirement, or if the applicant fails to submit the documentation required by Section 15.54.110 of this chapter within the sixty (60)-day time period, then the performance security shall be forfeited to the city.” SECTION 9. Certification. The City Clerk of the City of Coachella shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California.

SECTION 10. CEQA Analysis. The City Council finds that the adoption of the California Buildings Standards Code and local amendments thereof is exempt from the California Environmental Quality Act (“CEQA”) under CEQA Guideline section 15061(b)(3) (the common sense exemption). The action is largely administrative in nature and designed to improve and not degrade environmental quality such that there is no possibility that adopting this Ordinance would adversely affect the environment in any manner that could be significant.

SECTION 11. Existing Contracts. Operators of Shared Micromobility Devices that have entered into agreements for operation with the City prior to the effective date of this Ordinance, must comply by any and all agreement provisions for the term of the agreement and thereafter

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must cease conducting business in the City or enter into a new operating agreement with the City and comply with Chapter 15.08 of the Coachella Municipal Code.

SECTION 12. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Ordinance, or any part thereof, is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional.

SECTION 13. Publication and Effective Date. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to published or posted as required by law, which shall take full force and effect thirty (30) days from its adoption.

PASSED, APPROVED, AND ADOPTED this ______ of _____________, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Steven Hernandez, Mayor
City of Coachella
ATTEST:
___________________________________
Angela M. Zepeda, City Clerk
City of Coachella
APPROVED AS TO FORM:
___________________________________
Carlos Campos, Best Best & Krieger LLP
City Attorney

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Item 21.

STAFF REPORT
5/24/2023
TO: Honorable Mayor and City Council Members
FROM: William Pattison, Interim Finance Director
SUBJECT: Authorizing the City Manager to (1) enter into an Affordable Housing Loan Agreement with Tripoli CIC, LP, for the 108-Unit Mixed-Use Development Project Located at the Northeast Corner of Cesar Chavez Street and Bagdad Avenue (APN # 778-081-003 and 778-081-001) in a Not-to-Exceed Amount of $13,569,000; and (2) enter into an Agreement to Prepay Special Tax Obligations for CFD 2005-1
STAFF RECOMMENDATION:

Staff recommends that the City Council consider authorizing the City Manager to (1) enter into an Affordable Housing Loan Agreement with Tripoli Chelsea Investment Corporation (CIC), LP, for the 108-unit mixed-use development project located at the northeast corner of Cesar Chavez Street and Bagdad Avenue (APN #778-081-003 and #778-081-001) in a not-to-exceed amount of $13,569,000; and (2) enter into an Agreement to Prepay Special Tax Obligations for CFD 2005-1, subject to such minor conforming and clarifying changes acceptable to the City Manager and City Attorney.

BACKGROUND:

The Planning Commission approved entitlements in 2022 for a mixed-use development at the 2.5- acre parcel at the northeast corner of Cesar Chavez Street and Bagdad Avenue. The Project will be compatible with neighboring properties with respect to land development patterns. The proposed development would develop according to the development standards of the C-G Zone at a scale, massing, and aesthetic appeal of existing development is in keeping with development of neighboring properties such as Pueblo Viejo Villas. The plans submitted for this project propose a commercial and multi-family residential use with amenities for the future residents of the site that are permitted in the C-G PD (General Commercial, Planned Development) zone. The project would promote a well-designed pedestrian realm that includes shade and a safe pedestrian environment for pedestrians. The proposed use will include three new vehicular approaches to the property designed to improve off-site and on-site vehicular circulation for existing traffic on surrounding public streets or roads. Evidence of this is reflected in the provided site plan design.

The three new proposed drive aisles and internal circulation have been reviewed and approved by the Fire Department and the Engineering Department.

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DISCUSSION/ANALYSIS:

City staff is recommending that the City Council authorize the City Manager to enter into an 'Affordable Housing Loan Agreement'. The intent of the documents are to facilitate the funding of an approximately $13,569,000 million residual cash receipts loan from the City of Coachella that will be used to prepay the CFD assessments. It is anticipated that the note held by the City will be repaid out of 50% of residual cash flow from project operations as defined in the loan agreement.

The agreement between the City of Coachella and Tripoli CIC, LP, will require the new units created to annex into the Public Safety CFD and create a note payable to the City of Coachella for the entire 55 years of assessments. The City will record a deed of trust that will accrue interest at 3% per annum. It is understood that this structure means the likelihood of the City collecting the full amount of the CFD assessments annually and over the term of the CFD loan is reduced and the City loses the ability to lien the property to collect on any unpaid assessments.

City staff is recommending that the City Council authorize the City Manager to enter into a Prepayment of the Special Tax Obligation for CFD 2005-1.

ALTERNATIVES:

1. Authorizing the City Manager to (1) Enter into an Affordable Housing Loan Agreement with Tripoli CIC, LP, for the 108-Unit Mixed-Use Development Project Located at the Northeast Corner of Cesar Chavez Street and Bagdad Avenue (APN # 778-081-003 and 778-081-001) in a Not-to-Exceed Amount of $13,569,000; and (2) Enter into an Agreement to Prepay Special Tax Obligations for CFD 2005-1, subject to such minor conforming and clarifying changes acceptable to the City Manager and City Attorney

2. Take no action.

3. Continue this item and provide staff with direction
FISCAL IMPACT:

The City will record a residual cash receipts loan in the Public Safety CFD funds for Police and Fire for the amounts that are not collected through cash flows from operations. The loan will not exceed $13,569,000 million in total over the 55-year period and will accrue interest at 3% per annum. It is anticipated that the note held by the City will be repaid out of 50% of residual cash flow from project operations as defined in the Loan Agreement. Once those funds are available through either the refinancing of the project or payoff of the note, the General Fund will be reimbursed at the amount paid on behalf of the agreement plus the three percent (3%) interest.

ATTACHMENTS:

1. Affordable Housing Loan Agreement, which includes a Promissory Note Secured by Deed of Trust, and an Affordable Housing Regulatory Agreement; and

2. Agreement to Prepay Special Tax Obligations for CFD 2005-1

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Item 22.
80237.00869\41318206.3
CITY/BBK 05.16.23

AFFORDABLE HOUSING LOAN AGREEMENT
(TRIPOLI)
By and between

THE CITY OF COACHELLA
and

TRIPOLI CIC, LP

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CITY/BBK 05.16.23
2 AFFORDABLE HOUSING LOAN AGREEMENT
This Loan Agreement (“Agreement”) is made this ______ day of 2023, by and between the CITY OF COACHELLA, a California municipal corporation (“City” or “Lender”) and TRIPOLI CIC, LP, a California Limited Partnership (Borrower”) (collectively, the “Parties”).

RECITALS
A. WHEREAS, Borrower represents that it is an experienced developer of affordable multifamily housing;
B. WHEREAS, Borrower desires to construct, develop and operate a one-hundred eight (108) unit affordable multifamily development, with 4,325 square feet of commercial space, a community room, parking spaces, a playground, and related improvements (the “Project”) in the City of Coachella, Riverside County, California, as more particularly described in the attached Exhibit A (the “Property”);
C. WHEREAS, the City Council of the City of Coachella, by Resolution No. 2005- 93, authorized the creation of the City of Coachella Community Facilities District 2005-1 (the “CFD”) and by Resolution No. 2005-94, authorized the levy of a special tax for properties within the CFD (the “Special Assessment”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, to finance a portion of the cost of providing law enforcement, fire and paramedic services within the CFD;
D. WHEREAS, on April 19, 2023 the City Council of the City of Coachella, California (the “Council”) conducted proceedings pertaining to the intention to annex the Property, consisting of [Parcel 2 of Lot Line Adjustment 2018-02] (“Annexation Area No. [31]”), into the City of Coachella Community Facilities District No. 2005-1 (Law Enforcement, Fire and Paramedic Services) (the “District”), including the rate and method of apportionment of a special tax to finance a portion of the cost of providing certain public services, and the calling of an election in regard to the foregoing; and,
E. WHEREAS, on May 24, 2023an election was held within Annexation Area No. [31] regarding the rate and method of apportionment of the proposed special tax; and,
F. WHEREAS, the Property is located within the CFD requiring Borrower to pay each fiscal year a Special Assessment in the amount of One Thousand Three Hundred Forty-Eight and 10/100 Dollars ($1,348.10 ) per certified dwelling unit per year increasing annually since 2015 based on the annual adjustment of the Consumer Price Index; and,
G. WHEREAS, substantial public welfare benefits to the City will be derived from the development of the Project as affordable housing and the City acknowledges

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CITY/BBK 05.16.23
3 that compliance with the Resolutions may cause undue financial hardship on the Borrower and the Project; and,
H. WHEREAS, notwithstanding the terms of the Resolutions, the City desires to permit the Borrower to prepay fifty-five years of Special Assessments, commencing on the date that the Borrower acquires the Property (collectively, the “Prepaid Special Assessments”); and
I. WHEREAS, in order to finance the Prepaid Special Assessments, the Borrower desires to obtain from Lender a loan (the “Loan”) in the amount of Thirteen Million Five Hundred Sixty Eight Thousand Eight Hundred and Fifty Dollars ($13,568,850) as described herein, and Lender desires to lend to Borrower such funds, according to the terms and conditions described herein.

NOW, THEREFORE, Borrower and Lender hereby agree as follows:

AGREEMENT

1. DEFINITIONS.

The following terms have the meanings set forth below wherever used in this Agreement, attached exhibits, or documents incorporated into this Agreement by reference.

1.1 “BORROWER” means TRIPOLI CIC, LP, a California limited partnership, along with any permitted assigns, transferees, or successors-in-interest. Borrower will also be the owner of the Property and the developer of the Project.

1.2 “CERTIFICATE OF OCCUPANCY” means the final Certificate of Occupancy issued by the City to Borrower for the Project.

1.3 “CFD” means the City of Coachella Community Facilities District 2005-1 (Law Enforcement, Fire and Paramedic Services), as described in the Resolutions.

1.4 “CITY” means the City of Coachella, California.

1.5 “COMMENCEMENT OF CONSTRUCTION” means obtaining the first building permit necessary to undertake the Construction.

1.6 “CONSTRUCTION” and “CONSTRUCTION WORK” shall mean the construction of the Project.

1.7 “DAYS” shall mean calendar days unless otherwise specifically provided.

1.8 “DEED OF TRUST” means the Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing encumbering the Property as security for the Loan in the form attached hereto as Exhibit C and incorporated herein, executed and delivered by Borrower as trustor with Lender as beneficiary, as well as any amendments to and

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4 modifications and restatements of the Deed of Trust. The terms of the Deed of Trust are hereby incorporated into this Agreement by this reference.

1.9 “LENDER” means the City.

1.10 “LOAN” means the loan provided by Lender to Borrower pursuant to this Agreement in the original principal amount of Thirteen Million Five Hundred Sixty Eight Thousand Eight Hundred and Fifty Dollars ($13,568,850).

1.11 “LOAN DOCUMENTS” means collectively this Agreement, the Regulatory Agreement, the Deed of Trust, and the Note.

1.12 “NOTE” means that Promissory Note Secured by Deed of Trust to be executed by Borrower in favor of Lender evidencing the Loan in the form attached hereto as Exhibit B and incorporated herein, which is to be secured by the Deed of Trust, as well as any amendments to and modifications or restatements of the Note. The terms of the Note are hereby incorporated into this Agreement by this reference.

1.13 “OPERATING EXPENSES” shall mean actual, reasonable, customary costs, fees and expenses directly attributable to the operation, maintenance, taxes and management of the Project, expressly including, without limitation: mandatory debt service on Senior Loans; onsite administrative costs; maintenance costs (including materials and labor); payments to the operating reserve account; reasonable and customary payments to a replacement reserve account; utilities; permits and licenses; sewer charges; real and personal property taxes and assessments; insurance; security; advertising, promotion and publicity; a reasonable property management fee; fees and expenses of accountants, attorneys, consultants and other professionals, to the extent directly related to the Project, including annual audits and tax return preparation costs payable to a third party; any partnership or asset management fees paid to the investor limited partner or general partners of Borrower, which fees shall not exceed $6,600 during any annual period; deferred development fees; and incentive leasing fees.

1.14 “PREPAID SPECIAL ASSESSMENTS” shall have the meaning set forth in Recital C.

1.15 “PROJECT” means the development and construction of a one-hundred and eight (108) unit affordable multifamily development, including one (1) manager’s unit (the “Project”) on the Property. One-hundred and seven (107) of the units in the Project shall be Regulated Units.

1.16 “PROPERTY” means the real property described in the attached Exhibit A, which is incorporated into this Agreement by this reference.

1.17 “REGULATED UNITS” means One-hundred and seven (107) of the one-hundred and eight (108) rental dwelling units constructed for the Project.

1.18 “REGULATORY AGREEMENT” means the Affordable Housing Regulatory Agreement described in the attached Exhibit D, which is incorporated into this Agreement by this reference.

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5 1.19 “RESIDUAL CASH FLOW” means Revenues less Operating Expenses, calculated on a calendar year basis.

1.20 “RESOLUTIONS” means collectively, Resolution No. 2005-93, and Resolution No. 2005-94, each authorized by the City Council of the City of Coachella, as provided for in Ordinance No. 932 of the City Council of the City of Coachella dated September 28, 2005.

1.21 “REVENUE” means with respect to any period all revenue, income, receipts, and other consideration actually received from the operation or leasing of the Project. Revenue shall include: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the dwelling units, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry room machines, and amounts released from reserves. Revenue shall not include tenants’ security deposits, interest on security deposits, loan proceeds, capital contributions or similar advances, or interest on reserves.

1.22 “SENIOR LENDER” means any lender with a loan secured by the Property whose lien on the Property is senior in priority to the Lender’s Deed of Trust; provided that the Lender’s written consent to the incurrence of any Senior Loan shall be required, except with the respect to (i) one construction loan incurred for the purpose of constructing the Project, and (ii) one refinancing of the construction loan into a term loan or “permanent” loan (which such refinancing shall include any conversion of the construction loan to a term loan pursuant to the terms of the construction loan documents).

1.23 “SENIOR LOAN” means the loan of any Senior Lender to the Borrower in connection with the construction, development, operation or permanent financing of the Project.

1.24 “SPECIAL ASSESSMENT” shall have the meaning set forth in Recital F.

1.25 “TITLE COMPANY” means First American Title Insurance Company.

1.26 “TITLE INSURANCE POLICY” shall mean a title insurance policy in the form of an American Land Title Association Loan Policy 2006 extended coverage (without revision, modification or amendment) issued by the Title Company, with such endorsements, with a liability equal to the amount of the Loan, and in form and substance satisfactory to Lender, subject only to those exceptions as Lender may approve in writing.

2. TERMS OF LOAN.

2.1 LOAN. Lender agrees to provide a loan of funds to Borrower under the terms and conditions of the Loan Documents. The proceeds of this Loan shall be used only to pay for the Prepaid Special Assessments. The Borrower hereby irrevocably authorizes, upon disbursement of the loan proceeds, all such proceeds shall be disbursed directly to the City for the payment of the Prepaid Special Assessments.

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6 2.2 AMOUNT OF LOAN. Subject to the terms and conditions of the Loan Documents, Lender agrees to make and Borrower agrees to accept a Loan in the amount Thirteen Million Five Hundred Sixty Eight Thousand Eight Hundred and Fifty Dollars ($13,568,850) evidenced by the Note in this amount.

2.3 INTEREST. The Note shall bear simple interest at a fixed interest rate of three percent (3.0%) per annum on the principal amount outstanding commencing on the date of disbursement of the Loan, or portion thereof, and is subject to the terms and conditions set forth in this Agreement and the Note. In an Event of Default, as described herein, the Loan shall, at the election of the Lender upon written notice to Borrower, become immediately due and payable in full, and interest on the Loan shall begin to accrue as of the date of default and continuing until such time as the Loan funds are repaid in full or the default is cured, at the default rate of the lesser of ten percent (10%), compounded annually, or the highest rate of interest provided by law.

2.4 TERM OF LOAN. Payments of principal and interest shall be made as required by the Note. Unless due sooner under the Note, the Loan principal balance and all accrued interest shall be due and payable on the earliest of (a) fifty-five (55) years from the date of the issuance of the final Certificate of Occupancy for the Project or (b) an Event of Default by Borrower which has not been cured as provided for in this Agreement.

2.5 REPAYMENT OF LOAN. The Borrower shall make annual payments on the Loan from 50% of Residual Cash Flow as more fully set forth in the Note. Any and all amounts of principal or interest outstanding upon the maturity of the Loan shall be then due and payable.

2.6 REPAYMENT UPON SALE OR REFINANCE. In the event that the Borrower desires to sell or refinance the Project, concurrently with any such sale or refinance of the Project (excluding the onetime refinance of the construction loan for the Project into a term loan or “permanent loan” (which such refinancing shall include any conversion of the construction loan to a term loan pursuant to the terms of the construction loan documents)), Borrower shall pay to Lender the entire Loan amount then outstanding, including any accrued interest thereon and any other amounts owing under the Loan Documents.

2.7 ACCELERATION BY REASON OF TRANSFER. The Lender may declare due and payable the entire Loan amount then outstanding, including any accrued interest thereon, upon the sale, encumbrance or other transfer of the Property as set forth in the Note and the Deed of Trust.

3. PREPAYMENT OF LOAN. No prepayment penalty will be charged to Borrower for prepayment of any portion of the Loan amount prior to the end of the Loan term.

4. RESERVED.

5. LOAN DISBURSEMENT.

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7 5.1 GENERAL. The Loan proceeds of Thirteen Million Five Hundred Sixty Eight Thousand Eight Hundred and Fifty Dollars ($13,568,850) shall be disbursed as provided herein upon satisfaction or waiver of each and all of the conditions precedent to disbursement set forth in this Section 5.2.

5.2 CONDITIONS PRECEDENT TO DISBURSEMENT. Lender shall disburse the full amount of the Loan in the form of indemnity to Borrower’s liability to the City of Coachella -Community Facilities District 2005-01 pre-payment assessments, for the term of this Agreement, upon the satisfaction or waiver of the conditions precedent set forth in this Section.

5.2.1 Borrower has acquired, or shall concurrently acquire, fee title to the Property;

5.2.2 Borrower has executed and delivered to Lender each of the Loan Documents to be executed by Borrower in form and substance satisfactory to Lender;

5.2.3 As of the date of proposed disbursement, there exists no Event of Default by Borrower nor any act, failure, omission or condition that with the passage of time would constitute an Event of Default under the Loan Documents or any the documents related to any other financing for the Project;

5.2.4 The Title Company’s unconditional commitment to issue the Title Insurance Policy;

5.2.5 Lender shall have received evidence satisfactory to Lender of Borrower’s authorization to enter into the Loan Documents;

5.2.6 The representations and warranties of the Borrower as set forth in Section 9 shall be true and correct as of the date of disbursement of the Loan;

5.2.7 Borrower shall have paid to Lender all of Lender’s costs incurred in connection with the underwriting and processing of the Loan, not to exceed $5,500, and all legal fees and costs of Lender’s attorneys relating to the preparation, review and negotiation of the Loan Documents which are estimated to be $7,500, and all costs incurred in connection with the Title Insurance Policy.

6. DEVELOPMENT AND OPERATION OF PROJECT.

6.1 CONFIGURATION OF THE PROJECT. Borrower shall develop the Project in conformance with the plans and specifications as approved by the City, as an affordable housing project consisting of a total of One-hundred eight (108) residential units (including one (1) manager’s unit), One-hundred seven (107) of which shall be Regulated Units rented at rents which are in compliance with Section 9.3 hereof, and related community and common space. Nothing herein shall be construed to limit or impair the City’s discretion in the consideration, approval, and/or disapproval of any necessary entitlements required from the City for the construction of the Project.

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8 6.2 COMPLETION OF CONSTRUCTION. Borrower shall commence Construction within ninety (90) days following the initial funding of the Loan and complete the Construction not later than twenty four (24) months thereafter.

7. INSURANCE. Borrower shall have in full force and effect during the Construction and operation of the Project the insurance coverage specified in Exhibit D to this Agreement.

In addition, Borrower shall ensure that the general contractor for the Project maintains the insurance coverage specified in Exhibit D for the duration of the Construction. All required insurance shall be in effect prior to commencement of work. The City’s insurance policies shall not be contributing.

8. DEFAULT AND REMEDIES.

8.1 EVENTS OF DEFAULT. The occurrence of any of the following events (after the expiration of the cure period set forth in Section 8.2) shall be an “Event of Default” under this Loan:

8.1.1 Borrower’s failure to pay when due any sums payable under the Note, including failure to reimburse Lender for any advances made by Lender under the Deed of Trust;

8.1.2 Borrower’s failure to complete the Project Construction within the time required by this Agreement, as such time may be extended pursuant to Section 9.5 hereof;

8.1.3 Any breach by Borrower of any material obligations of Borrower imposed in the Loan Documents;

8.1.4 Any representation or warranty by Borrower in any Loan Document is materially false, incorrect, or misleading as of the date made;

8.1.5 The occurrence of any default or event of default under any Senior Loan;

8.1.6 Any litigation or proceeding which could reasonably be expected to materially and adversely affect the ability of Borrower to perform its obligations under the Loan Documents is commenced against Borrower, or the Property, or any part thereof, and such litigation or proceeding is not defended diligently and in good faith by Borrower; or

8.1.7 Borrower’s filing for bankruptcy, dissolution, or reorganization, or failure to obtain a full dismissal of any such involuntary filing brought by another party before the earlier of final relief or one hundred twenty (120) days after the filing; making a general assignment for the benefit of creditors; applying for the appointment of a receiver, trustee, custodian, or liquidator, or failure to obtain a full dismissal of any such involuntary application brought by another party before the earlier of final relief or one hundred twenty (120) days after the filing; or failure, inability or admission in writing of its inability to pay its debts as they become due.

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9 8.2 NOTICE OF BORROWER’S OR OWNER’S DEFAULT AND OPPORTUNITY TO CURE.

Lender shall give written notice to Borrower (and Borrower’s limited partner) of any Event of Default by specifying: (a) the nature of the event or deficiency giving rise to the Event of Default, (b) the action required to cure the deficiency, if an action to cure is possible, and (c) a date, which shall not be less than thirty (30) days from the mailing of the notice with respect to a monetary default, or sixty (60) days from the mailing of the notice with respect to a non-monetary default, by which such action to cure must be taken, or the Event of Default otherwise resolved to Lender’s reasonable satisfaction; provided, however, with respect to non- monetary defaults, if such failure is not reasonably susceptible to cure within sixty (60) days from receipt of the said notice and provided that (i) Borrower (or Borrower’s limited partner) shall have in good faith undertaken such cure within said sixty (60) day period and (ii) Borrower (or Borrower’s limited partner) shall have diligently prosecuted such cure thereafter, Borrower (and Borrower’s limited partner) shall have additional time to prosecute such cure, such additional time not to exceed ninety (90) days, from receipt by Borrower (and Borrower’s limited partner) of the said notice.

8.3 LENDER’S REMEDIES. Upon the occurrence of an Event of Default (after expiration of all cure periods set forth in Section 8,2): (i) prior to disbursement of all Loan proceeds, Lender’s obligation to disburse the remaining Loan proceeds shall cease; (ii) Lender may, in addition to other rights and remedies permitted by the Loan Documents or applicable law proceed with any or all of the following remedies in any order or combination Lender may choose in its sole discretion:

8.3.1 Bring an action in equitable relief (a) seeking the specific performance by Borrower of the terms and conditions of the Loan Documents, and/or (b) enjoining, abating, or preventing any violation of the terms and conditions, and/or (c) seeking declaratory relief;

8.3.2 Accelerate the Loan, and demand immediate full payment of the principal amount outstanding and all accrued interest under the Note, as well as any other funds advanced to Borrower by Lender under the Loan Documents; or

8.3.3 Initiate and pursue any private and/or judicial foreclosure action allowed under applicable law and the power of sale provision in the Deed of Trust.

9. GENERAL PROVISIONS

9.1 BORROWER’S REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants:

9.1.1 that Borrower is duly organized, validly existing and in good standing under the laws of the State of California and is qualified to do business in California;

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10 9.1.2 that Borrower has the full power and authority to undertake the Project and to execute and deliver the Loan Documents and perform its obligations under the Loan Documents;

9.1.3 that the persons executing and delivering the Loan Documents are authorized to execute and deliver such documents on behalf of Borrower;

9.1.4 the Loan Documents have been duly executed by Borrower, and are legally valid and binding obligations of Borrower, enforceable against Borrower in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity;

9.1.5 The execution, delivery and performance of the Loan Documents by Borrower will not violate (i) Borrower’s formation documents; (ii) any legal requirement affecting Borrower or any of its properties (including, without limitation, the Property); or (iii) any agreement to which Borrower is bound or to which it is a party and will not result in or require the creation (except as provided in or contemplated by this Agreement) of any lien upon any of such properties (including, without limitation, the Property);

9.1.6 There exists no material violation of or material default by Borrower and, to the best knowledge of Borrower, no event has occurred which, upon the giving of notice or the passage of time, or both, would constitute a material default by Borrower with respect to (a) the terms of any instrument evidencing or securing any indebtedness secured by the Property, (b) any material lease or other agreement affecting the Property to which Borrower is a party, (c) any material license, permit, statute, ordinance, law, judgment, order, writ, injunction, decree, rule or regulation of any governmental authority, or any determination or award of any arbitrator to which Borrower or the Property may be bound, or (d) any mortgage, instrument, agreement or document by which Borrower, or any of its properties is bound: (i) which involves the Property and is not adequately covered by insurance, (ii) which could be reasonably expected to materially and adversely affect the ability of Borrower to perform its obligations under any of the Loan Documents, or (iii) which could be reasonably expected to adversely affect the priority of the liens created by this Agreement or any of the Loan Documents;

9.1.7 There is no action, suit, investigation, proceeding or arbitration (whether or not purportedly on behalf of the Borrower) at law or in equity or before or by any foreign or domestic court or other governmental entity (a “Legal Action”), pending or, to the knowledge of Borrower, threatened against or affecting Borrower or any of their assets which could reasonably be expected to result in any material adverse change in the business, operations, assets (including the Property) or condition (financial or otherwise) of Borrower or would materially and adversely affect Borrower’s ability to perform its obligations under the Loan Documents. Borrower is not (a) in violation of any applicable law which violation materially and adversely affects or could reasonably be expected to materially and adversely affect the business, operations, assets (including the Property) or condition (financial or otherwise) of Borrower, (b) subject to, or in default with respect to any other legal requirement that would have a materially adverse effect on the business,

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11 operations, assets (including the Property) or condition (financial or otherwise) of Borrower, or (c) in default with respect to any agreement to which Borrower is a party or to which it is bound which could reasonably be expected to materially and adversely affect the business, operations, assets (including the Property) or condition (financial or otherwise) of Borrower. There is no Legal Action pending or, to the knowledge of Borrower, threatened against or affecting Borrower questioning the validity or the enforceability of this Agreement or any of the other Loan Documents;

9.1.8 The financial statements and all financial data previously delivered to Lender by Borrower in connection with the Loan and/or relating to Borrower are true, correct and complete in all material respects. Such financial statements fairly present the financial position of the parties who are the subject thereof as of the date thereof. No material adverse change has occurred in such financial position and, except for this Loan, no borrowings have been made by Borrower since the date thereof which are secured by, or might give rise to, a lien or claim against the Property or the proceeds of this Loan (excluding any Senior Loan).

9.2 LENDER’S REPRESENTATIONS AND WARRANTIES. Lender represents and warrants:

9.2.1 that Lender is duly organized and validly existing;

9.2.2 that Lender has the full power and authority to make the Loan and execute the Loan Documents; and

9.2.3 that the persons executing and delivering the Loan Documents are authorized to execute and deliver such documents on behalf of Lender.

9.3 AFFORDABLE HOUSING REGULATORY AGREEMENT. During the term of the Loan, Borrower shall comply with all applicable laws and regulations relating to the construction and operation of a housing project which qualifies as a low income housing tax credit project pursuant to the rules and regulations of the U.S. Department of Housing and Urban Development as agreed to in Affordable Housing Regulatory Agreement described in the attached Exhibit D, which is incorporated into this Agreement by this reference.

9.4 POLITICAL ACTIVITY. None of the funds, materials, property or services loaned by Lender to Borrower under this Agreement shall be used for any partisan political activity or the election or defeat of any candidate for public office.

9.5 TERM OF THIS AGREEMENT. This Agreement shall commence on the date set forth above and remain in full force and effect throughout the term of this Loan and until the Loan, together with all other amounts due under the Loan Documents, has been paid in full.

9.6 UNAVOIDABLE DELAY IN PERFORMANCE. The time for performance of provisions of this Agreement by either party shall be extended for a period equal to the period of any delay directly affecting the Project or this Agreement which is caused by

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12 war, insurrection, terrorism, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of a public enemy, epidemics, quarantine restrictions, freight embargoes, lack of transportation, suits filed by third parties concerning or arising out of this Agreement, or unusually severe weather conditions. An extension of time for any of the above-specified causes will be deemed granted only if written notice by the party claiming such extension is sent to the other party within thirty (30) working days from the commencement of the cause. In any event, Construction of the Project must be completed no later than ninety (90) days after the scheduled completion date specified herein, any unavoidable delay notwithstanding. Times of performance under this Agreement may also be extended for any cause for any period of time by the mutual written agreement of Lender and Borrower.

9.7 GOVERNING LAW. The Loan Documents shall be interpreted under and governed by the laws of the State of California, except for those provisions preempted by federal law.

9.8 ATTORNEYS’ FEES AND COSTS. In the event any legal or administrative action is brought to interpret or enforce the terms of the Loan Documents, the prevailing party shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action.

9.9 TIME. Time is of the essence in these Loan Documents.

9.10 NON-LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS. No member, official, director, employee, or agent of Lender shall be personally liable to Borrower for any obligation created under the terms of these Loan Documents.

9.11 NOTICES, DEMANDS AND COMMUNICATIONS. Formal notices, demands and communications between Borrower and Lender shall be given by registered or certified mail, postage prepaid, return receipt requested, or shall be delivered personally, to the principal offices of Borrower and Lender as follows, or if any such office is relocated, to the new address specified by the relocated party:

LENDER:

City of Coachella
53-990 Enterprise Way
Coachella, CA 92236
Attention: City Manager
BORROWER:

Tripoli CIC, LP
c/o Chelsea Investment Corporation
6339 Paseo Del Lago
Carlsbad, CA 92011
Attention: Cheri Hoffman, President

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13 With copy to:

Winthrop & Weinstine, PA
225 South Sixth Street, Suite 3500
Minneapolis, MN 55426
Attn: Jon L. Peterson, Esq.

If to Borrower, with a copy to Borrower’s limited partner:

USA Institutional Tripoli LLC
777 West Putnam Avenue
Greenwich, CT 06830
Attn: Joanne D. Flanagan, Esq.

9.12 BINDING UPON SUCCESSORS. All provisions of these Loan Documents shall be binding upon and inure to the benefit of the heirs, administrators, executors, successorsin-interest, transferees, and assigns of each of the Parties; provided, however, that this Section 9.12 does not waive the prohibition on assignment of this Agreement by Borrower without Lender’s written consent. The term “Borrower” as used in these Loan Documents shall include all permitted assigns, successors-in-interest, and transferees of Borrower.

9.13 RELATIONSHIP OF PARTIES. The relationship of Borrower with Lender for this Project is and shall remain solely that of a debtor and a creditor, and shall not be construed as a joint venture, equity venture, partnership, or any other relationship. Lender neither undertakes nor assumes any responsibility or duty to Borrower (except as provided for herein) or any third party with respect to the Project, the Property, or the Loan. Borrower shall have no authority to act as an agent of Lender or to bind Lender to any obligation.

9.14 INTEGRATION. The Loan Documents, including exhibits, contain the entire agreement of the Parties and supersede any prior negotiations.

9.15 OTHER AGREEMENTS. Borrower represents that Borrower has not entered into any agreements that are inconsistent with the terms of the Loan Documents. Borrower shall not enter into any agreements that are inconsistent with terms of the Loan Documents without an express waiver in writing by Lender.

9.16 OTHER EXEMPTIONS. This Agreement shall not limit or restrict the Borrower’s right to apply for or obtain any other real property tax exemption to which it might be entitled, including, without limitation, the State of California welfare tax exemption.

9.17 AMENDMENTS AND MODIFICATION. Any amendments or modifications to the Loan Documents must be in writing, and shall be effective only if executed by Borrower and Lender.

9.18 SEVERABILITY. Every provision of this Agreement is intended to be severable. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of

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14 competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.

9.19 INDEMNIFICATION. To the fullest extent permitted by law, Borrower agrees to protect, indemnify, defend and save harmless Lender, its councilmembers, directors, officers, agents and employees for, from and against any and all liability, expense or damage of any kind or nature and for, from and against any suits, claims or demands, including reasonable legal fees and expenses on account of any matter or thing or action or failure to act by Lender, whether in suit or not, arising out of this Agreement or in connection herewith, including, without limitation, any suit, claim or demand arising out of any default which may occur in connection with the Project (collectively, “Claims”), provided, however, that the foregoing shall not apply to any Claim arising as a result of or to the extent of (i) Lender’s gross negligence or willful misconduct, or (ii) a material breach of Lender’s obligations contained within the Loan Documents. A breach by Lender shall be deemed to have occurred only after the following: (a) should Borrower claim a material breach by Lender, it shall give Lender written notice of such claimed breach, which notice shall set forth with reasonable specificity the nature of said breach; and (b) Lender shall not be deemed in breach of any Loan Documents unless said breach is not cured within sixty (60) days from receipt of said notice, or if said breach cannot be cured within said sixty (60) day period, the time for Lender to cure said breach shall be extended, so long as Lender is pursuing the cure thereof with all reasonable due diligence. Upon receiving knowledge of any suit, claim or demand asserted by a third party that Lender believes is covered by this indemnity, Lender shall give Borrower notice of the matter and an opportunity to defend it, at Borrower’s sole cost and expense, with legal counsel reasonably satisfactory to Lender. Lender may also require Borrower to so defend the matter. The obligations on the part of Borrower under this Section 9.18 shall survive the repayment of the Loan.

9.20 NONRECOURSE. Subject to Section 9.20 below, anything contained in any provision of the Loan Agreement, the Deed of Trust, or the Note notwithstanding, the Loan shall be a nonrecourse obligation of Borrower. Neither Borrower nor any of its officers, directors or general and limited partners shall have any personal liability for repaying the principal or interest of the Loan or for any other obligation set forth in the Loan Documents. The sole recourse of Lender for repayment of the principal and interest and other amounts due hereunder shall be the exercise of Lender’s rights against the Project under the Deed of Trust, including, without limitation, the right of Lender to bring a foreclosure action or other appropriate action or proceeding to enable Lender to enforce its rights and remedies to realize upon the collateral given to secure the obligations owing to Lender under the Loan Documents.

9.21 EXCEPTIONS TO NON-RECOURSE. To the fullest extent permitted by law, and notwithstanding anything to the contrary herein or in any of the Loan Documents, Borrower agrees to protect, indemnify, defend and save harmless Lender, its directors, officers, agents and employees for, from and against any and all losses, liabilities, costs, expenses or damages of any kind, including reasonable legal fees and expenses, incurred by Lender, whether in suit or not, arising out of or due to (i) fraud or intentional misrepresentation of a material fact by Borrower or any other person or entity in

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15 connection with the execution and delivery of the Loan Documents; (ii) Borrower’s misappropriation or misapplication of rents received by Borrower after the occurrence and during the continuance of an Event of Default; (iii) Borrower’s misappropriation or misapplication of tenant security deposits or rents collected in advance; (iv) Borrower’s misappropriation or misapplication of any condemnation or insurance proceeds relating to any portion of the Property; (v) Borrower’s failure to comply with applicable environmental laws relating to the Property or the designation of the Property as “environmentally impaired” as provided in Section 24 of the Deed of Trust; (vi) any gross negligence, or criminal act perpetrated (including, without limitation, any act of waste or arson), by the Borrower or any principal, trustee, officer or agent of Borrower; or (vii) the commencement of a voluntary bankruptcy or other similar proceeding under any federal, state, or foreign law by the Borrower.

9.22 CURE BY LIMITED PARTNER. The cure of any default under this Loan Agreement or any other Loan Document made or tendered by or on behalf of the Borrower’s limited partner shall be deemed a cure by the Borrower and shall be accepted or rejected on the same basis as if made by the Borrower.
[Remainder of page intentionally left blank]

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16 IN WITNESS WHEREOF, the Parties hereby have executed this Agreement as of the date first above written.

LENDER:

CITY OF COACHELLA
a California municipal corporation
By:

Name: Gabriel Martin, City Manager
Approved as to form:

By:

Name: Carlos Campos, City Attorney
OWNER:

TRIPOLI CIC, LP,
a California limited partnership
By: Pacific Southwest Community Development Corporation, a California nonprofit public benefit corporation,
its Managing General Partner
By:

Juan P. Arroyo, Executive Vice President
By: CIC Tripoli, LLC,
a California limited liability company,
its Administrative General Partner
By: Chelsea Investment Corporation,
a California corporation,
its Manager
By:

Cheri Hoffman, President
All signatures must be acknowledged.

ADD NOTARY ACKNOWLEDGEMENT

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17 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 ______________ ___, 20__ before me, , Notary Public, personally appeared , who proved to me on the
basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: (Seal)

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18 Exhibit A
Property Description
Real property in the City of Coachella, County of Riverside, State of California, described as follows:

PARCEL A:

PARCEL 1:

A PORTION OF LOT 11, SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN BERNARDINO

BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE CENTER LINES OF BAGDAD AVENUE, AND TRIPOLI WAY;
THENCE SOUTH 89° 54' WEST, 272 FEET ALONG THE CENTER LINE OF BAGDAD AVENUE TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING SOUTH 89° 54' WEST ALONG THE CENTER LINE OF BAGDAD AVENUE, 356.67 FEET, MORE OR LESS, TO THE EASTERLY LINE OF HIGHWAY 99 AS SHOWN BY RECORD OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS;
THENCE NORTHERLY ALONG SAID EASTERLY LINE OF HIGHWAY 86, 102.88 FEET; THENCE NORTH 89° 54' EAST, 356.67 FEET;
THENCE SOUTH 00° 06' EAST, 102.88 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING;
EXCEPTING THEREFROM THE SOUTH 30 FEET FOR ROAD PURPOSES; ALSO EXCEPTING THEREFROM THE WESTERLY 17.00 FEET AS CONVEYED TO THE CITY OF COACHELLA BY DEED RECORDED MARCH 18, 1971 AS INSTRUMENT NO. 26947 OF OFFICIAL RECORDS.

PARCEL 2:

THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN

BERNARDINO

BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT ON THE EAST LINE OF THE STATE HIGHWAY, AS SHOWN ON LICENSED LAND SURVEYOR'S MAP ON FILE IN BOOK 7 PAGE 38 OF RECORD OF SURVEY, RIVERSIDE COUNTY RECORDS, 102.88 FEET NORTH OF THE SOUTHWEST CORNER OF LOT 11;

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19 THENCE CONTINUING NORTHERLY ON SAID EAST LINE OF 140.20 FEET TO THE

SOUTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND CONVEYED TO JENNY JEFFERY, ET AL, BY DEED RECORDED APRIL 12, 1929 IN BOOK 804 PAGE 423 OF DEEDS;

THENCE EASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL AND PARALLEL WITH THE SOUTHERLY LINE OF SAID LOT 11, 229 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL CONVEYED TO JEFFERY;
THENCE NORTH 36° 04' WEST ALONG THE NORTHEASTERLY LINE OF THE JEFFERY PARCEL, 75 FEET TO THE MOST SOUTHERLY CORNER OF THAT PARCEL CONVEYED TO ROBERT J. FERRAUD BY DEED
RECORDED DECEMBER 6, 1972 AS INSTRUMENT NO. 161111;
THENCE NORTH 53° 36' EAST ON THE SOUTHEAST LINE OF SAID PARCEL CONVEYED TO FERRAUD AND ITS NORTHEASTERLY EXTENSION, 159.77 FEET TO THE SOUTHWESTERLY LINE OF TRIPOLI WAY;
THENCE SOUTH 36° 04' EAST ON SAID SOUTHWESTERLY LINE, 313.43 FEET MORE OR LESS, TO A POINT 142.88 FEET NORTH OF THE SOUTH LINE OF SAID LOT 11, SAID POINT

BEING ON THE NORTH LINE OF THAT CENTER PARCEL CONVEYED TO LEONHARDT SWINGLE AND LEE J. ANDERSON BY DEED RECORDED NOVEMBER 22, 1934 IN BOOK 201 PAGE 555 OF OFFICIAL RECORDS;
THENCE NORTH 89° 54' EAST ON SAID NORTH LINE OF THE LEONHARDT-ANDERSON PARCEL, 40 FEET, MORE OR LESS, TO THE NORTHEAST CORNER BEING A POINT ON THE CENTER LINE OF TRIPOLI WAY;
THENCE SOUTH 36° 04' EAST TO A POINT WHICH IS 102.88 FEET NORTH OF THE SOUTH LINE OF SAID LOT 11;
THENCE SOUTH 89° 54' WEST, 566.78 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE WESTERLY 20 FEET AS CONVEYED TO THE CITY OF COACHELLA BY DEED RECORDED MARCH 18, 1971 AS INSTRUMENT NO. 26942 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN THE WELL SITE DESCRIBED AS;
THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN

BERNARDINO BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID LOT 11, 216 FEET

EASTERLY FROM THE POINT OF INTERSECTION OF THE WESTERLY PROLONGATION OF

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20 THENCE NORTH 40 FEET;
THENCE EAST 43 FEET;
THENCE SOUTH 40 FEET;
THENCE WEST 43 FEET TO THE POINT OF BEGINNING.

PARCEL 3:

THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN

BERNARDINO

BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID LOT 11, 216 FEET

EASTERLY FROM THE POINT OF INTERSECTION OF THE WESTERLY PROLONGATION OF

SAID SOUTHERLY LINE AND THE

CENTER LINE OF THE STATE HIGHWAY AS SHOWN ON RECORD OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS; THENCE NORTH 102.88 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 40 FEET;
THENCE EAST 43 FEET;
THENCE SOUTH 40 FEET;
THENCE WEST 43 FEET TO THE POINT OF BEGINNING.

PARCEL B:

THAT PORTION OF LOT 11 IN SECTION 5, T. 6 S., R. 8 E., S.B.B.& M. AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY, ON FILE IN BOOK 4, PAGE 53 OF

MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST NORTHERLY CORNER OF THAT CERTAIN REAL PROPERTY

DESCRIBED IN
DEED TO ROBERT J. FERRAUD RECORDED ON DECEMBER 6, 1972 AS INSTRUMENT NO. 161111, OF
OFFICIAL RECORDS IN SAID COUNTY RECORDER'S OFFICE;

STREET,

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21 97.77 FEET TO THE SOUTHWESTERLY LINE OF TRIPOLI WAY; THENCE NORTH 36° 04' 00" WEST, ALONG SAID SOUTHWESTERLY LINE OF TRIPOLI WAY, 122.89 FEET TO SAID SOUTHEASTERLY LINE OF SIXTH STREET; THENCE SOUTH 53° 56' 00" WEST, ALONG SAID SOUTHEASTERLY LINE OF SIXTH STREET,

97.77 FEET TO THE POINT OF BEGINNING.

APN: 778-081-003 (Affects Parcel A) and 778-081-001 (Affects Parcel B) 26096385v2

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1 EXHIBIT B

PROMISSORY NOTE SECURED BY DEED OF TRUST
$13,568,850 _____________, 2023
FOR VALUE RECEIVED, TRIPOLI CIC, LP, a California limited partnership, with its principal office at c/o Chelsea Investment Corporation, 6339 Paseo Del Lago, Carlsbad, CA 92011, Attention: Cheri Hoffman (“Borrower”), hereby promises to pay to the order of the City Thirteen Million Five Hundred Sixty Eight Thousand Eight Hundred and Fifty Dollars ($13,568,850) or so much, not to exceed this amount, as may be advanced by Lender to Borrower (the “Loan”) pursuant to that certain Affordable Housing Loan Agreement dated the date hereof, by and between Borrower and Lender (the “Loan Agreement”). The obligation of Borrower and Lender with respect to all such advances is subject to the terms of: (a) the Loan Agreement; (b) this Note; (c) the Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (“Deed of Trust”); and Regulatory Agreement recorded on the real property located in the City of Coachella, Riverside County, California and more particularly described in the Deed of Trust (the “Property”), by Borrower as Trustor, for the benefit of Lender, as beneficiary, which secures payment of this Loan (the above documents are collectively referred to as the “Loan Documents”).

1. BORROWER’S OBLIGATION. This Note evidences the obligation of Borrower to Lender for the repayment of funds loaned to Borrower by Lender to finance the Prepaid Special Assessments (as defined in the Loan Agreement) in connection with the Project (as defined in the Loan Agreement). The outstanding principal balance of the Loan shall accrue simple interest at a fixed interest rate equal to three percent (3.0%) per annum. Notwithstanding the foregoing, during any period with respect to which there is an uncured Event of Default, the outstanding principal balance of the Loan shall accrue interest at the rate of ten percent (10%) per annum (the “Default Rate”), compounding annually, or the highest rate allowed by law, whichever is lower.

2. AMOUNT AND TIME OF PAYMENT. The loan shall be repaid as follows:

A. Fifty percent (50%) of Residual Cash Flow (as defined below) shall be available for payments of the Loan and other loans obtained by Borrower to be repaid from Residual Cash Flow (“Available Residual Cash Flow”). Borrower shall make annual payments on the Loan from the Available Residual Cash Flow, based on a pro rata share with other lenders based on the percentage of each respective loan amount according to its share of the total amount of all such loans. Said payment to Lender from the Available Residual Cash Flow shall be credited first against accrued and unpaid interest and then against outstanding principal.

Borrower shall provide to Lender with each said payment a report of the Residual Cash Flow for such preceding calendar year prepared by an independent certified public accountant, together with such other documentation reasonably requested by Lender to substantiate the determination of Residual Cash Flow.

B. In the event that Borrower desires to sell or refinance the Project, concurrently with any such sale or refinance of the Project (excluding the one-time refinance of

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2 the construction loan for the Project into a term loan or “permanent loan” (which such refinancing shall include any conversion of the construction loan to a term loan pursuant to the terms of the construction loan documents)), Borrower shall pay to Lender the entire Loan amount then outstanding, including any accrued interest thereon and any other amounts owing under the Loan Documents.

C. If any payment of interest and/or principal is not received by Lender within fifteen (15) days of when such payment is due, then in addition to the remedies conferred upon Lender pursuant to the provisions of this Note and/or the Loan Documents, a late charge of six percent (6%) of the amount of the payment due will be due and owing by Borrower and will be added to the delinquent amount to compensate Lender for the costs, expenses, and damages to Lender related to the delinquency of Borrower in making such payment, regardless of any notice and/or cure periods (if any). Acceptance of any late charge will not constitute a waiver of default with respect to the overdue payment, and will not prevent or delay Lender from exercising any of its rights or remedies available under this Note and/or the Loan Documents.

D. The following definitions shall apply for purposes of Section 2.A above:
(i) “Revenue” means with respect to any period all revenue, income, receipts, and other consideration actually received from the operation or leasing of the Project. Revenue shall include: all rents, fees and charges paid by tenants, Section 8 payments or other rental subsidy payments received for the dwelling units, deposits forfeited by tenants, all cancellation fees, price index adjustments and any other rental adjustments to leases or rental agreements; proceeds from vending and laundry room machines, and amounts released from reserves. Revenue shall not include tenants’ security deposits, interest on security deposits, loan proceeds, capital contributions or similar advances, payments from reserves, or interest on reserves.
(ii) “Operating Expenses” shall mean actual, reasonable, customary costs, fees and expenses directly attributable to the operation, maintenance, taxes and management of the Project; expressly including, without limitation: mandatory debt service on Senior Loans; onsite administrative costs; maintenance costs (including materials and labor); payments to the operating reserve account; reasonable and customary payments to a replacement reserve account; payments to reserves required by equity investors and/or Senior Lenders; utilities; permits and licenses; sewer charges; real and personal property taxes and assessments; insurance; security; advertising, promotion and publicity; a reasonable property management fee as approved by Senior Lenders; fees and expenses of accountants, attorneys, consultants and other professionals, to the extent directly related to the Project, including annual audits and tax return preparation costs payable to a third party; any partnership or asset management fees paid to the investor limited

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3 partner or general partners of Borrower, which fees shall not exceed the amount approved by Senior Lenders during any annual period; deferred development fees; and incentive leasing fees. (iii) “Senior Loan” means the loan of any Senior Lender to the Borrower in connection with the construction, development, operation or permanent financing of the Project.
(iv) “Residual Cash Flow” means Revenues reduced by Operating Expenses, calculated on a calendar year basis. To the extent Senior Lenders use a different definition or calculation of Residual Cash Flow, such definition shall be used instead of the definition set forth in this Section.

3. MATURITY DATE. Unless the maturity date is accelerated as otherwise provided in this Note, the Loan principal balance and all accrued and unpaid interest and any other amounts due under any of the Loan Documents shall be due and payable on the earliest of (a) fifty-five (55) years from the date of the issuance of the final Certificate of Occupancy for the Project, or (b) an Event of Default by Borrower which has not been cured as provided for in the Loan Agreement.

4. PLACE AND MANNER OF PAYMENT. All amounts due and payable under this Note and any Loan Document are payable at the office of Lender as set forth above, or at such other place as Lender may designate to Borrower in writing from time to time, in any currency of the United States which on the date of payment is legal tender for the payment of public and private debts.

5. PREPAYMENT OF LOAN. No prepayment penalty will be charged to Borrower for payment of any portion of this Note prior to the end of the Loan term.

6. ACCELERATION BY REASON OF TRANSFER. The Deed of Trust contains the following limitation on the right of Borrower to transfer the Property, “In order to induce Beneficiary to make the loan, Trustor agrees that, in the event of any Transfer (as defined below), other than a Permitted Transfer (as defined below), or other Transfer approved by Beneficiary, without the prior written consent of Beneficiary, Beneficiary shall have the absolute right, at its option, without prior demand or notice, to declare all sums secured hereby immediately due and payable. Consent to one such transaction shall not be deemed to be a waiver of the right to require consent to future or successive transactions. Beneficiary may grant or deny such consent in its sole discretion and, if consent should be given, any such Transfer shall be subject to this Deed of Trust, and such transferee shall assume all obligations hereunder and agree to be bound by all provisions contained herein. Such assumption shall not, however, release Trustor or any maker or of the Note from any liability thereunder without the prior written consent of Beneficiary. As used herein, “Transfer” shall mean:
any sale, transfer, conveyance, assignment, lease (except leases of the Property in the ordinary course of business) or vesting of the Property or any part of the Property or

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4 interest in the Property to or in any person, firm or entity, whether voluntary, involuntary, by operation of law, or otherwise (provided, however, that the foregoing shall not include the granting of utility easements in the ordinary course of Trustor’s business); any merger or consolidation of Trustor;
any hypothecation, mortgage, or encumbrance (excepting only an encumbrance by a Senior Lender in an amount that does not exceed the original principal amount of such Senior Lender’s loan);
any dissolution of Trustor or sale or transfer of substantially all of the assets of the Trustor; and
any sale, transfer, conveyance or assignment (at one time or over any period of time) of twenty-five percent (25%) or more of the ownership interests of Trustor.

Notwithstanding anything to the contrary contained herein, the following shall not be deemed a “Transfer” under this Note or under any other Loan Document and shall be a “Permitted Transfer”:
(a) A conveyance of a security interest in the Property in connection with any loan by a Senior Lender;
(b) The inclusion of equity participation by Trustor by addition of investor limited partners, or similar mechanisms, and the purchase of any such limited partnership interests by a tax credit equity investor and any subsequent transfer of such limited partnership interests by the tax credit equity investor therewith;
(c) the removal by the tax credit equity investor of a general partner of Trustor and its replacement by the tax credit equity investor or by an affiliate of the tax credit equity investor, which removal shall be in accordance with the terms of the limited partnership agreement of Trustor; (d) The granting of easements or permits to facilitate the development of the Property in accordance with this Agreement.”
(e) Transfer to a limited partnership in which Tripoli CIC, LP a California limited partnership (“Tripoli”) or an affiliate of Tripoli is a general partner; to a limited liability company in which Tripoli or an affiliate of Tripoli is a general partner; a limited liability company of which Tripoli or a nonprofit affiliate is a member; or transfer to Tripoli or a Tripoli affiliated nonprofit corporation.

7. WAIVERS BY BORROWER. Borrower hereby waives diligence, demand for payment, presentment for payment, protest, notice of nonpayment, notice of protest, notice of intent to accelerate, notice of acceleration, notice of dishonor, and all other notices or demands of any kind (except notices specifically provided for in the Loan Documents, if any). Borrower

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5 waives to the full extent permitted by law, the right to plead any and all statutes of limitations and/or any defenses relating to marshaling of assets as a defense.

8. DEFAULT AND ACCELERATION. This Note is secured by the Deed of Trust. All provisions in the Deed of Trust and the Loan Agreement are hereby made a part of this Note. Borrower agrees that the unpaid balance of the principal amount of this Note, together with all accrued interest thereon and charges owing, shall, at the option of Lender, become immediately due and payable upon any Event of Default as defined in the Loan Agreement which has not been cured pursuant to the applicable agreement, including without limitation the failure of Borrower to make any payment when due. Upon any Event of Default, Lender may exercise any other right or remedy permitted under the Loan Documents.

9. NOTICES. Any notice, communications, or demands shall be in writing and may be communicated to Lender or Borrower at the addresses set forth in the Loan Agreement.

10. BINDING UPON SUCCESSORS. All provisions of this Note shall be binding upon and inure to the benefit of successors and assigns of Borrower and Lender.

11. DEFINITIONS. Capitalized terms not defined in this Note shall have the same meaning as defined in the Loan Agreement.

12. GOVERNING LAW. The Loan Documents shall be interpreted under and governed by the laws of the State of California, except for those provisions preempted by federal law.

13. CONFLICTS. In the event that any provisions of this Note conflict with provisions of the Loan Agreement or the Deed of Trust, the terms of this Note shall control.

14. SEVERABILITY. Every provision of this Note is intended to be severable. If any provision of this Note is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.

15. TIME. Time is of the essence in this Note.

16. ATTORNEYS’ FEES AND COSTS. In the event of any Event of Default, or any legal action is commenced to interpret or to enforce the terms of this Note, the prevailing party in any such action shall be entitled to recover all reasonable attorneys’ fees and costs incurred in such action, In addition, Borrower agrees to pay Lender all reasonable costs incurred in collection of amounts due under this Note which are not paid by the due date as specified herein, whether or not a legal action has been filed. All costs incurred by Lender in any action undertaken to obtain relief from the stay of bankruptcy statutes are specifically included in those costs and expenses to be paid by the Borrower. Borrower will pay to Lender all attorney fees and other costs referred to in this Section 16 on demand, together with interest from the date of the demand at the Default Rate until paid.

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6 17. AMENDMENTS AND MODIFICATIONS. Any amendments or modifications to this Note must be in writing, and shall be effective only if executed by both Borrower and Lender.

18. NONRECOURSE. Subject to anything contained in any provision of the Loan Agreement, the Deed of Trust, or this Note which expressly sets forth an exception to the nonrecourse provisions of this Promissory Note, which expressly sets forth an exception to the nonrecourse provisions of this Promissory Note, the Loan and the obligations under the Deed of Trust and Loan Agreement shall be nonrecourse obligations of Borrower. Neither Borrower nor any of its officers, directors or general and limited partners shall have any personal liability for repaying the principal or interest of the Loan or for any other obligation set forth in this Note or in any other Loan Document. The sole recourse of Lender for repayment of the principal and interest shall be the exercise of Lender’s rights against the Project under the Deed of Trust, including, without limitation, the right of Lender to bring a foreclosure action or other appropriate action or proceeding to enable Lender to enforce its rights and remedies to realize upon the collateral given to secure the obligations owing to Lender under the Loan Documents. [SIGNATURE ON FOLLOWING PAGE]

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7 The undersigned has executed the Promissory Note Secured by Deed of Trust as of the date set forth above.

BORROWER:

TRIPOLI CIC, LP,
a California limited partnership
By: Pacific Southwest Community Development Corporation, a California nonprofit public benefit corporation,
its Managing General Partner
By:

Cheri Hoffman, President
All signatures must be acknowledged.

ADD NOTARY ACKNOWLEDGEMENT

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8 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

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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9 26096412v2

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EXHIBIT C

DEED OF TRUST SECURING AFFORDABLE HOUSING LOAN

AGREEMENT AND PROMISSORY NOTE

FREE RECORDING REQUESTED

PURSUANT TO GOVERNMENT
CODE SECTION 27383 AND 27388.1(a)(2)(D)
Recording Requested by and
When Recorded Please Return To:

City of Coachella
53-990 Enterprise Way
Coachella, CA 92236
Attn: Andrea Carranza, Deputy City Clerk
APN: 778-080-009
(Space above this line for Recorder’s Use)

DEED OF TRUST SECURING AFFORDABLE HOUSING LOAN

AGREEMENT AND PROMISSORY NOTE
(CFD 2005-01 Annexation- Tripoli)
This Affordable Housing Loan Deed of Trust (the “Loan Deed of Trust”) is dated , 2020, by Tripoli CIC, LP, a California limited partnership (the “Borrower”), whose business address is 6339 Paseo Del Lago, Carlsbad, CA 92011, to First American Title Company, as trustee (the “Trustee”), whose business address is _____________________________, for the benefit of City of Coachella, a California Municipal Corporation (the “City”), whose business address is 53-990 Enterprise Way, Coachella, CA 92236, Attn: Deputy City Clerk.

1. For the purpose of securing payment and performance under the Affordable Housing Loan (defined below), BORROWER HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower’s right, title and interest now held or hereafter acquired in and to the real and personal property described in subsection a below (“Property”). This deed of trust is ______ in lien priority with respect to the _______ deeds of trust recording concurrently herewith. The term Property collectively includes the following:
(a) all of that certain real property located in the County of Riverside, State of California, which property address is _______________, City of Coachella, California 92236, as more fully described in Exhibit A attached hereto and incorporated herein by this reference; (b) all buildings, structures, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter

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affixed to, placed upon or used in connection with such real property and owned by Borrower or in which Borrower has an interest, together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; (c) subject to the rights and powers of City under Section 5.8 of this Loan Deed of Trust, all the rents, issues, profits, royalties, income and other benefits derived from use or occupancy of the Property;
(d) all appurtenances, easements, rights of way and rights now owned or hereafter acquired by Borrower as they relate to the Property, including mineral, oil and gas rights and profits, water, water rights, and water stock; all rights title and interest of Borrower now owned or hereinafter acquired, in and to any land lying within the right of way of any street, open or proposed, adjoining all or any portion of the land on which the Property is located, and any and all sidewalks, alleys and strips of land adjacent to or used in connection with the Property; and all of which are hereby pledged and assigned, transferred, and set over unto Trustee, and for purposes of this Loan Deed of Trust declared to be part of the realty; provided, however, that the personal property of tenants of dwelling units in the buildings now or hereafter situated on said real property are not intended to be included within this Loan Deed of Trust except to the extent of Borrower’s interest therein.

2. BORROWER HEREBY ABSOLUTELY, UNCONDITIONALLY AND
IRREVOCABLY ASSIGNS to City all rents, royalties, issues, accounts and profits of or relating to the Property and all of Borrower’s interest under all leases, subleases, rental agreements and other contracts and occupancy agreements relating to construction, use and possession for the purposes and upon the terms and conditions hereinafter set forth. This assignment is absolute, primary and direct and is not intended to be a separate or secondary pledge, or other form of additional security, and no further act or step is or shall be required of City to perfect this assignment. Notwithstanding the foregoing, City confers upon Borrower a license to collect and retain the rents, issues and profits of the Property as they become due and payable until an Event of Default (defined below in Section 5.6), upon the occurrence of which and following any applicable cure period said license shall be automatically revoked. This assignment shall not impose upon City any duty to cause the Property to produce rents nor shall City be deemed to be a mortgagee in possession by reason thereof for any purpose.

3. THE ABOVE GRANT, TRANSFER, AND ASSIGNMENTS ARE FOR THE PURPOSE OF SECURING:
(a) Payment of the indebtedness evidenced by that certain promissory note entitled “Affordable Housing Loan - Promissory Note Secured By Deed of Trust (the “Affordable Housing Loan Promissory Note”) of Borrower in the face amount of Thirteen Million Five Hundred Sixty Eight Thousand Eight Hundred and Fifty Dollars ($13,568,850) (“Loan”), together with interest on such indebtedness according to the terms of the Affordable Housing Loan Promissory Note, and any or all amendments, modifications, extensions or renewals of the Affordable Housing Loan Promissory Note and the indebtedness and all other sums becoming due and payable to City, or Trustee, pursuant to the terms of this Loan Deed of Trust.

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(b) Payment of such additional indebtedness, when evidenced by a promissory note or notes reciting the same to be secured by this Loan Deed of Trust, together with interest, as City at its sole discretion may advance to Borrower, or its successor in interest, from time to time and payment or performance of such other obligations as the then record owner of the Property may agree to pay or perform when evidenced by a promissory note or other instrument or agreement reciting that it is secured hereby.
(c) Performance and observance of all of the terms, covenants and conditions to be performed or observed by Borrower under this Loan Deed of Trust, the Affordable Housing Loan Promissory Note, that certain document entitled Affordable Housing Loan Agreement executed between the Borrower, and City (the “Affordable Housing Loan Agreement”) and any other document evidencing or securing the loan and any other document evidencing or securing the Affordable Housing Loan (all of which shall collectively be referred to as the “Affordable Housing Loan Documents”).
(d) Payment of all other obligations owed by Borrower to City that by their terms recite that they are secured by this Loan Deed of Trust. (e) Borrower covenants that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands, subject to any liens, encumbrances, declarations, easements or restrictions of record as of the date of recordation of this Loan Deed of Trust.

4. TO PROTECT THE SECURITY OF THIS LOAN DEED OF TRUST,
BORROWER AGREES:

4.1 Maintenance of the Property.
(a) To keep the Property in a decent, safe, sanitary, rentable and tenantable condition and repair and permit no waste thereof;
(b) Not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable; (c) Not to construct any buildings or improvements on the Property, other than the buildings and improvements approved by City, or add to, remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) To repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Loan Deed of Trust;
(e) To comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property;

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(f) Not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without City’s prior written consent; and (g) Not to materially alter the use of all or any part of the Property without the prior written consent of City.

4.2 Insurance.
(a) To keep the Property including all furniture, equipment and other insured, with loss payable to City (subject to the right of senior lien holders), against loss or damage by fire and such other hazards, casualties and contingencies, including but not limited to flood insurance (if said property is located in a flood plain as designated by Federal Emergency Management Agency (FEMA)) and liability insurance under policies, approved by City, by companies licensed to do business in the State of California and Rated A- or higher in the most recent edition of Best Insurance Guide, on such forms and in such amounts, at least equal to the replacement value, as City may from time to time require, and to deliver certificates of all such policies to City, together with receipts, if requested, satisfactory to City evidencing of the payment of the premiums. Specific insurance requirements are detailed in Exhibit D of the Affordable Housing Loan Agreement. Borrower shall provide City with thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Certificates evidencing renewal and any replacement policies, together with premium receipts, if requested, shall be delivered to City at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor City shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. CITY HEREBY DISCLOSES TO BORROWER IN WRITING THAT UNDER SECTION 2955.5 OF THE CALIFORNIA CIVIL CODE:
“No lender shall require a Borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the improvements on that real property in an amount exceeding the replacement value of the improvements on the property.”
(b) Effective on the occurrence of any Event of Default, all of Borrower’s right, title and interest in all policies of property insurance and any unearned premiums paid are assigned to City, who may assign them to any purchaser of the Property at any foreclosure. (c) Trustor shall keep general liability insurance for the Property in the amount of one million and no/100 dollars ($1,000,000) per occurrence and two million and no/100 dollars ($2,000,000) in the aggregate, with City as additional insured.

4.3 Payment of Taxes and Charges. Borrower shall pay, when due, all taxes and assessments, both general and special, fines, penalties, levies and charges of every type or nature levied upon or assessed against any part of the Property or upon Trustee’s or City’s interest in the Property. The Borrower shall have the right to contest in good faith any such amounts but in no event shall Borrower allow penalties or such other charges accrue because of late payments.

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4.4 Payment and Discharge of Liens. Borrower shall pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof and shall not at any time create or allow to exist any lien on the Property or any part thereof of any kind or nature other than this Loan Deed of Trust; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent although by law are given the status of a lien; (b) such of the above claims as are, and only during the time they are being contested by Borrower in good faith and by appropriate legal proceedings; and (c) those matters affecting title which appeared in the title insurance policy or binder delivered to City at the time of recording of this Loan Deed of Trust or which have at any time been consented to in writing by City. Borrower shall post security for the payment of these contested claims as may be requested by City.

4.5 Rights of City to Remedy Defaults. If Borrower defaults in payment of any tax, assessment, lien, encumbrance, claim, insurance premium, or any other proper charge, in whole or in part, or defaults in the performance of any of the Affordable Housing Loan Documents beyond any applicable cure period, City at any time and from time to time, with notice to and following a demand upon Borrower, may make such payments or perform any such acts required of Borrower, to such extent and in any form or manner deemed expedient by City, and pay any other sums, expenses and charges, including attorney fees, necessary to protect the Property and the lien of this Loan Deed of Trust, without incurring any obligation or releasing Borrower from any obligations and without waiving or curing any default. City shall exercise reasonable judgment with respect to the validity, priority, and amount of any such tax, assessment, lien, premium, claim or charge so paid by it, and the necessity for the performance by City of any such obligation which Borrower was required but failed to perform. City, at its option, shall be subrogated to any tax, assessment, lien, premium, claim or charge which it has paid under these provisions and any such subrogation rights shall be additional and cumulative security to those set forth in the Affordable Housing Loan Documents. In the event that the Property is or becomes encumbered by liens or deed(s) of trust other than this Loan Deed of Trust, then a default under such other lien or deed(s) of trust shall constitute a default under this Loan Deed of Trust.

4.6 Repayment to City. Upon City’s payment of any tax, assessment, lien, encumbrance, claim, insurance premium or other charge which Borrower fails to pay, or upon City’s performance of any obligation which Borrower fails to perform, all as set forth in paragraph 4.5 above, the amount so paid or the cost of performing any such obligation, together with other sums paid or incurred by City, including charges, expenses and attorney fees relating to or growing out of such default, with interest thereon from date of payment at the rate of the lesser of: (a) the maximum rate permitted by law; or (b) ten percent (10%) per annum, shall be paid by Borrower to City upon written demand. For the purposes of this paragraph 4.6, the term “. . . charges, expenses and attorney fees relating to or growing out of such default . • .” shall include but not necessarily be limited to the cost of obtaining, after the filing of a notice of default but prior to the foreclosure sale, a “Phase I” environmental site assessment of the Property by a qualified environmental professional and, if warranted in the opinion of such professional, a “Phase II” assessment. The aggregate of all such amounts, including interest, shall be secured by the lien of this Loan Deed of Trust.

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4.7 Defense of Actions and Payment of Costs. Borrower shall appear in and defend all actions and proceedings purporting to affect the Property or any right or power of City or Trustee hereunder, provided that City and Trustee, or either of them, may appear in and defend any such action or proceeding and City is authorized to pay, purchase or compromise on behalf of Borrower any lien or claim which in its judgment appears to or purports to affect the security of or to be superior to this Loan Deed of Trust except as provided in Section 5.19 hereof.

Borrower shall pay on demand all sums so expended and all charges, expenses and attorney fees incurred, with interest from the date of expenditure at the lesser amount of: (a) the maximum rate permitted by law; or (b) ten percent (10%) per annum. Borrower shall give City prompt written notice in writing of: (i) the assertion of any claim against the Property; (ii) the filing of an action or proceeding involving the Property; (iii) the occurrence of any damage to any of the Property; (iv) any condemnation of the Property; and (v) any other material nonmonetary default pertaining to the Property.

5. IT IS MUTUALLY AGREED THAT:

5.1 Awards and Damages. Subject to the rights of senior lienholders, all judgments, awards of damages, settlements and compensation made in connection with or in lieu of: (a) taking of all or any part of, or any interest in the Property by or under assertion of the power of eminent domain; (b) any damage to or destruction of the Property, or any part thereof by insured casualty; and (c) any other injury or damage to all or any part of the Property, are hereby assigned to and paid to City. City is authorized and empowered (but not required) to collect and receive any such sums, and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as City shall determine at its option; City shall be entitled to settle and adjust all claims under insurance policies provided under this Loan Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment.

All or any part of the amounts so collected and recovered by City may be released to Borrower upon such conditions as City may impose for its disposition. If it is determined that there are sufficient funds to restore or repair the Property proceeds should be used to restore or repair the Property. Application of all or any part of the amounts collected and received by City or the release thereof shall not cure or waive any default under this Loan Deed of Trust.

5.2 Sale, Forbearance and Late Payment.
(a) No sale of the Property, forbearances on the part of City or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part. (b) City’s acceptance of late payment of any sum shall not constitute a waiver of its rights to require prompt payment when due of all other indebtedness, or to declare a default for any failure so to pay, or to proceed with foreclosure or sale for any other default then existing. City’s acceptance of partial payment of any sum after default shall not cure such default or affect any notice of default unless such notice of default is expressly revoked in writing by City.

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5.3 City’s Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: City may, at its sole discretion: (i) release any person now or hereafter liable for payment of any or all such indebtedness; (ii) extend the time for or agree to alter the terms of payment of any or all such indebtedness; and (iii) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and Trustee, acting pursuant to the written request of City, may reconvey all or any part of the Property, consent to the making of any map or plat thereof, join in granting any easement thereon, or join in any such agreement of extension or subordination.

5.4 Reconveyance. Upon written request of City stating that all sums and obligations secured hereby have been discharged, or otherwise as requested in writing by City, and upon surrender of this Loan Deed of Trust and the Affordable Housing Loan Promissory Note and any additional loan notes to Trustee for cancellation, and upon payment to Trustee of its fees and expenses, Trustee shall reconvey, without warranty, the Property or that part thereof then held hereunder. The recitals in any reconveyance shall be conclusive proof of their truthfulness and the grantee in any such reconveyance may be described “as the person or persons legally entitled thereto.” When the Property has been fully reconveyed, the last such reconveyance shall operate as a reassignment of all of the rents, royalties, issues, accounts, and profits of the Property to the person or persons legally entitled thereto.

5.5 Events of Default. Any one or more of the following events shall constitute a default under this Loan Deed of Trust, subject to any notice and/or cure period provided for in the Affordable Housing Loan Documents: (a) failure of the Borrower to pay the senior or junior lienholders indebtedness or any installment thereof, whether principal, interest or otherwise, when and as the same become due and payable, whether at maturity or by acceleration or otherwise, subject to all applicable grace periods; or (b) failure of Borrower to observe or to perform any material covenant, condition or agreement to be observed or performed by Borrower pursuant to the Affordable Housing Loan Documents; or (c) any representation or warranty made by the Borrower proves to be false or misleading in any material respect at the time such representation or warranty is made; (d) bankruptcy or insolvency of Borrower or any guarantor of the Borrower for the Affordable Housing Loan Documents; or (e) the occurrence of any event which, under the terms of the Affordable Housing Loan Documents and the expiration of all applicable notice and cure periods, shall entitle City to exercise the rights or remedies thereunder.

Notwithstanding anything to the contrary herein, if Borrower’s tax credit investor limited partner offers to cure a Default by Borrower under the Affordable Housing Loan Documents, including this Loan Deed of Trust, City shall accept such offer on the same basis as if made or tendered by the Borrower.

5.6 Acceleration and Sale.
(a) Acceleration. In the event of any default as set forth in paragraph 5.6 above, City, without demand on Borrower, may declare all sums hereby secured immediately

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due and payable by notice thereof to Borrower or by executing and recording or by causing the Trustee to execute and record a notice of default and election to cause the Property, and any personal property secured hereby, either separately or together, to be sold to satisfy the obligations secured hereby or by the commencement of an appropriate action to foreclose this Loan Deed of Trust or by any other appropriate manner;
(b) Sale. After delivery to Trustee of a notice of default and demand for sale and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, either as a whole or in separate parcels and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or City, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty expressed or implied.

The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee, and after deducting all costs, expenses and fees of Trustee and of this Loan Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Affordable Housing Loan Promissory Note or otherwise, or representing advances made or costs or expenses paid or incurred by City under this Loan Deed of Trust, or the Affordable Housing Loan Documents or any other instrument evidencing or securing any indebtedness hereby secured and to the payment of all other sums then secured hereby, including interest as provided in this Loan Deed of Trust, the Affordable Housing Loan Documents or any other such instrument, in such order as City shall direct; and then the remainder, if any, shall be paid to the person or persons legally entitled thereto.

5.7 Entry Possession and Receivership. In the event of any default as set forth in paragraph above, and irrespective of whether City accelerates the maturity of all indebtedness secured hereby or files a notice of default hereunder, City at any time, without notice of demand or regard to the adequacy of any security for the indebtedness and obligations hereby secured, in person, or by any agent or employee, or by receiver appointed by a court, but subject to the rights of residential tenants at the Property, may enter upon and take the possession of the Property or any part thereof and Borrower agrees to surrender such possession to City, and perform any acts, including the right to rent, lease, operate and maintain any part of all of the Property, which City deems necessary or proper to conserve the Property, and may sue for or otherwise collect and receive all rents, royalties, issues, accounts and profits thereof, including those past due as well as those accruing thereafter. Borrower hereby presently assigns to City, absolutely and regardless of possession of the Property, all rents and other monies now due or hereafter to become due under any lease or agreement or otherwise for the use or occupation of all or any part of the Property, now existing or hereafter made, reserving to Borrower only the right, prior to any such default, to collect and retain such rents as they become due, but not otherwise. Borrower shall on demand execute such further assignments to City of any or all such leases, agreements, rents or

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monies as City may require, and deliver to City a fully executed original of any or all such leases or agreements. City, in person, or by any agent, employee or receiver, may also take possession of, and for these purposes use, any and all of Borrower’s personal property contained in or on the Property and used by Borrower in the operation, rental or leasing thereof or any part thereof. The expenses (including, but not limited to, receiver’s fees, attorney fees and agent’s compensation) incurred by City pursuant to the power herein contained shall be secured hereby. City may bring or defend any legal action in connection with the Property, as it may deem proper, and may, from time to time, make all necessary or proper repairs, replacements and alterations to the Property, as to it may seem judicious, and may insure and reinsure the same, and may lease the Property or any part or parts thereof in such parcels and for such periods and on such terms as to it may seem fit, including leases for terms expiring after the maturity of the indebtedness hereby secured, and may terminate and lease for any cause which would entitle Borrower to terminate it. After deducting the expenses of managing and operating the same and all maintenance, repairs, replacements and alterations and all payments which may be made for taxes, assessments, liens, claims, insurance premiums, or other proper charges of the Property or any part thereof, including fair and reasonable compensation for attorneys and for agents employed by City to manage and operate the Property, City may apply any and all remaining funds to the payment of the indebtedness hereby secured in such order and proportion as City may determine. Neither application of said amounts to such indebtedness nor any other action taken by City under this subparagraph shall cure or waive any default hereunder or nullify the effect of any such notice of default or invalidate any act done pursuant to such notice or any cause of action to foreclose this Loan Deed of Trust. The right to enter and take possession of the Property, to manage and operate the same, and to collect the rents, issues and profits thereof, whether by a receiver or otherwise, shall be in addition to any other right or remedy hereunder or afforded by law, and may be exercised concurrently therewith or independently thereof. City shall be liable to account only for such rents, royalties, issues, accounts and profits actually received by it,

5.8 Attorney Fees. If Trustee or City shall be made parties to or shall intervene in any action or proceeding affecting the Property or the title thereto or the interest of Trustee or City under this Loan Deed of Trust, or if City employs an attorney to collect any or all of the indebtedness hereby secured or to foreclose this Loan Deed of Trust, or authorizes Trustee to conduct trustee’s sale proceedings hereunder, then Trustee and City shall be reimbursed by Borrower, immediately and without demand, for all reasonable costs, charges and attorney fees incurred by them or either of them in any such case whether or not suit be commenced, and the same, together with interest thereon from the date of payment at the rate of the lesser of: (a) the maximum rate permitted by law; or (b) ten percent (10%) per annum, shall be secured hereby as provided in paragraphs 4.5, 4.6, and 4.7.

5.9 Exercise of Remedies; Delay. No exercise of any right or remedy by City or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by City or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder.

5.10 Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to City, to be exercised at any time hereafter,

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without specifying any reason therefor by filing a deed of appointment for record in the office where this Loan Deed of Trust is recorded, and said power of appointment of successor trustee or trustees may be exercised as often as and whenever City deems advisable. The exercise of said power of appointment, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with the like effect as if originally named as trustee or as one of the trustees.

5.11 Uniform Commercial Code Security Agreement, Financing Statement and Fixture Filing.
(a) This Loan Deed of Trust is a security agreement and financing statement under the Uniform Commercial Code for the benefit of City as secured party for any of the items specified above as part of the Property which, under applicable law, may be subject to a security interest pursuant to the Uniform Commercial Code, and Borrower hereby grants City a security interest in said items. This Loan Deed of Trust is filed as a fixture filing and covers goods which are or are to become fixtures. The address of City (secured party) from which information concerning the security interest may be obtained and the mailing address of Borrower (debtor) are set forth in this Loan Deed of Trust. The types or items of collateral are described in paragraph 1 of this Loan Deed of Trust. Borrower agrees that City may file any appropriate document in the appropriate index as a financing statement for any of the items specified above as part of the Property. In addition, Borrower agrees to execute and deliver to City, upon City’s request, and further authorizes City to file, with or without Borrower’s signature, any financing statements, as well as extensions, renewals and amendments thereof, and reproductions of this instrument in such form as City may require to perfect a security interest with respect to said items. Borrower shall pay all costs of filing such financing statements and any extensions, renewals, amendments, and releases thereof, and shall pay all reasonable costs and expenses of any record searches for financing statements, and releases thereof, as City may reasonably require. After the date hereof, and without the prior written consent of City (which consent shall not be unreasonably withheld, conditioned or delayed), Borrower shall not create or suffer to be created pursuant to the Uniform Commercial Code any other security interest in said items, including replacements and additions thereto, except as otherwise expressly permitted in the Affordable Housing Loan Documents. Upon an acceleration as provided in paragraph 5.7, City shall have the remedies of a secured party under the Uniform Commercial Code and, at City’s option, may also invoke the other remedies provided in this Loan Deed of Trust and the Affordable Housing Loan Documents as to such items. In exercising any of said remedies, City may proceed against the items of real property and any items of personal property specified above as part of the Property separately or together and in any order whatsoever, without in any way affecting the availability of City’s rights or remedies under the Uniform Commercial Code or of the other remedies provided in this Loan Deed of Trust, in the Affordable Housing Loan Documents, or by law.

Borrower agrees that the filing of any financing statement in the records normally having to do with personal property shall not be construed as anywise derogating from or

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impairing this Loan Deed of Trust and the intention of the parties hereto that those portions of the Property herein declared part of the real estate are, and at all times and for all purposes and in all proceedings both legal or equitable shall be, regarded as part of the real estate irrespective of whether any such item is physically attached to the improvements or any such item is referred to or reflected in any such financing statement so filed at any time. (b) Similarly, the mention in any such financing statement of (i) compensation for damage to or destruction of the Property by insured casualty, or (ii) any judgment, award, or other compensation for a taking of the Property by eminent domain, or (iii) the rents, royalties, issues, accounts and profits of the Property under leases, shall never be construed as altering in any manner any of City’s rights as determined by this Loan Deed of Trust or impugning the priority of City’s lien granted hereby or by any other recorded document, but such mention in the financing statement is declared to be for the protection of City in the event that any court or judge shall at any time hold with respect to (i), (ii) or (iii) of this paragraph that notice of City’s priority of interest to be effective against a particular class of person, including without limitation the federal government or any subdivision or entity thereof, must be filed as provided for in the Uniform Commercial Code.

5.12 Remedies Cumulative. No remedy herein contained or conferred upon City or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to City or Trustee but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity.

5.13 Successors, Assigns, Gender, Number. The covenants and agreements herein contained shall bind, and the benefit and advantages shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders.

5.14 Headings. The headings are inserted only for convenience of reference and in no way define, limit or describe the scope or intent of this Loan Deed of Trust, or of any particular provision, thereof, or the property construction thereof.

5.15 Actions on Behalf of City. Except as be otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by City is required or permitted under this Loan Deed of Trust, such action shall be in writing.

5.16 Terms. The words “City” means City of Developmental Services, or any future owner or holder, including pledgee, of the indebtedness secured hereby.

5.17 Obligations of Borrower. If more than one person has executed this Loan Deed of Trust as “Borrower,” the obligations of all such persons hereunder shall be joint and several.

5.18 Miscellaneous Provisions.
(a) Intentionally Omitted.

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(b) Governing Law; Severability. This Agreement shall be construed in accordance with and governed by the laws of the State of California. If any provision of this Loan Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. (c) Indemnification. Borrower shall indemnify and hold City, its officers and agents, harmless against any and all losses, claims, demands, penalties and liabilities which City, its officers or agents may sustain or suffer by reason of anything done or omitted in good faith pursuant to or in connection with this Loan Deed of Trust and not assert any claim against City, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower’s expense, defend, indemnify, save and hold City, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Loan Deed of Trust. Borrower shall pay City upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) incurred by City as a result of any legal action arising out of this Loan Deed of Trust. Notwithstanding the foregoing, the Borrower shall not be obligated to indemnify City against loss resulting from the gross negligence or willful misconduct of City.
(d) Estoppel Certificate. When requested by City, from time to time, the Borrower shall execute an estoppel certificate in favor of City, which certificate shall certify as to the absence of any default by City in the performance of its obligations hereunder or, if any such defaults exist, their existence as of the date of the certificate. (e) Set off. Borrower shall not, under any circumstances, fail or delay to perform (or resist the enforcement of) any of its obligations to City in connection with this Loan Deed of Trust or any other contract, note or instrument executed by Borrower in favor of City because of any alleged offsetting claim or cause of action against City (or any indebtedness or obligation of City) which has not been confirmed in a final judgment of a court of competent jurisdiction (sustained on appeal, if any) against City. Borrower hereby waives any such rights of set off (or offset) which it might otherwise have with respect to any such claims or causes of action against City or any such obligations or indebtedness of City, unless and until such right of set off (or offset) is confirmed and liquidated by such final judgment. Borrower further waives any right which it might otherwise have (if any) to require a marshalling of any security of City, or to direct the order in which City pursues its rights or remedies with respect to any of its security.

5.19 Recording Order and Subordination. This Loan Deed of Trust regardless of order of recordation, is junior and subordinate to the senior deeds of trust, recorded concurrently herewith.

5.20 Notices. All notices required under this Loan Deed of Trust shall be delivered, by certified mail or overnight courier service, to the parties to this Loan Deed of Trust at the addresses set forth below.

City: City of Coachella
53-990 Enterprise Way

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Coachella, CA 92236
Attn: City Manager
Borrower:

Tripoli CIC, LP
c/o Chelsea Investment Corporation
6339 Paseo Del Lago
Carlsbad, CA 92011
Attention: Cheri Hoffman, President
With copy to:

Winthrop & Weinstine, PA
225 South Sixth Street, Suite 3500
Minneapolis, MN 55426
Attn: Jon L. Peterson, Esq.

If to Borrower, with a copy to Borrower’s limited partner:

USA Institutional Tripoli LLC
777 West Putnam Avenue
Greenwich, CT 06830
Attn: Joanne D. Flanagan, Esq.

Space Intentionally Left Blank
[Signature page follows]

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IN WITNESS WHEREOF, Borrower has executed this Loan Deed of Trust on the day and year set forth above. If a mailing address is set forth below its signature, and not otherwise, Borrower shall be deemed to have requested that a copy of any notice of default and of any notice of sale hereunder be mailed to it at such address.

BORROWER:

TRIPOLI CIC, LP,
a California limited partnership
By: Pacific Southwest Community Development Corporation, a California nonprofit public benefit corporation,
its Managing General Partner
By:

Cheri Hoffman, President
All signatures must be acknowledged.

ADD NOTARY ACKNOWLEDGEMENT

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Item 22.

ALL-PURPOSE ACKNOWLEDGMENT NOTARY FOR CALIFORNIA
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 ______________ ___, 20__, before me, ,
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 of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General
 Attorney-In-Fact Number Of Pages
 Trustee(s)
 Guardian/Conservator
 Other: March 23, 2023
Signer is representing:

Name Of Person(s) Or Entity(ies)
Date Of Document
Signer(s) Other Than Named Above

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Item 22.

STATE OF CALIFORNIA

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 of Notary Public

OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.

Name Of Person(s) Or Entity(ies)
Date Of Document
Signer(s) Other Than Named Above

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Item 22.

EXHIBIT A

LEGAL DESCRIPTION
Real property in the City of Coachella, County of Riverside, State of California, described as follows:

PARCEL A:

PARCEL 1:

A PORTION OF LOT 11, SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND

MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE CENTER LINES OF BAGDAD AVENUE, AND TRIPOLI WAY; THENCE SOUTH 89° 54' WEST, 272 FEET ALONG THE CENTER LINE OF BAGDAD AVENUE TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING SOUTH 89° 54' WEST ALONG THE CENTER LINE OF BAGDAD AVENUE, 356.67 FEET, MORE OR LESS, TO THE EASTERLY LINE OF HIGHWAY 99 AS SHOWN BY RECORD OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS; THENCE NORTHERLY ALONG SAID EASTERLY LINE OF HIGHWAY 86, 102.88 FEET; THENCE NORTH 89° 54' EAST, 356.67 FEET;
THENCE SOUTH 00° 06' EAST, 102.88 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING; EXCEPTING THEREFROM THE SOUTH 30 FEET FOR ROAD PURPOSES; ALSO EXCEPTING THEREFROM THE WESTERLY 17.00 FEET AS CONVEYED TO THE CITY OF COACHELLA BY DEED RECORDED MARCH 18, 1971 AS INSTRUMENT NO. 26947 OF OFFICIAL RECORDS.

PARCEL 2:

THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN BERNARDINO

BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

OF THAT CERTAIN PARCEL OF LAND CONVEYED TO JENNY JEFFERY, ET AL, BY DEED RECORDED APRIL 12, 1929 IN BOOK 804 PAGE 423 OF DEEDS;

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Item 22.

THENCE NORTH 53° 36' EAST ON THE SOUTHEAST LINE OF SAID PARCEL CONVEYED TO FERRAUD AND ITS NORTHEASTERLY EXTENSION, 159.77 FEET TO THE SOUTHWESTERLY LINE OF TRIPOLI WAY; THENCE SOUTH 36° 04' EAST ON SAID SOUTHWESTERLY LINE, 313.43 FEET MORE OR LESS, TO A POINT 142.88 FEET NORTH OF THE SOUTH LINE OF SAID LOT 11, SAID POINT BEING ON THE NORTH LINE OF THAT CENTER PARCEL CONVEYED TO LEONHARDT SWINGLE AND LEE J. ANDERSON BY DEED RECORDED NOVEMBER 22, 1934 IN BOOK 201 PAGE 555 OF OFFICIAL RECORDS; THENCE NORTH 89° 54' EAST ON SAID NORTH LINE OF THE LEONHARDT-ANDERSON PARCEL, 40 FEET, MORE OR LESS, TO THE NORTHEAST CORNER BEING A POINT ON THE CENTER LINE OF TRIPOLI WAY; THENCE SOUTH 36° 04' EAST TO A POINT WHICH IS 102.88 FEET NORTH OF THE SOUTH LINE OF SAID LOT 11;
THENCE SOUTH 89° 54' WEST, 566.78 FEET TO THE POINT OF BEGINNING.

EXCEPTING THEREFROM THE WESTERLY 20 FEET AS CONVEYED TO THE CITY OF COACHELLA BY DEED RECORDED MARCH 18, 1971 AS INSTRUMENT NO. 26942 OF OFFICIAL RECORDS.

ALSO EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN THE WELL SITE DESCRIBED AS;
THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE

AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID LOT 11, 216 FEET EASTERLY FROM THE

POINT OF INTERSECTION OF THE WESTERLY PROLONGATION OF SAID SOUTHERLY LINE AND THE CENTER LINE OF THE STATE HIGHWAY AS SHOWN ON RECORDS OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS;
THENCE NORTH 102.88 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 40 FEET;
THENCE EAST 43 FEET;
THENCE SOUTH 40 FEET;
THENCE WEST 43 FEET TO THE POINT OF BEGINNING.

PARCEL 3:

THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN BERNARDINO

BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID LOT 11, 216 FEET EASTERLY FROM THE

POINT OF INTERSECTION OF THE WESTERLY PROLONGATION OF SAID SOUTHERLY LINE AND THE CENTER LINE OF THE STATE HIGHWAY AS SHOWN ON RECORD OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS;
THENCE NORTH 102.88 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 40 FEET;
THENCE EAST 43 FEET;

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Item 22.

THENCE SOUTH 40 FEET;
THENCE WEST 43 FEET TO THE POINT OF BEGINNING.

PARCEL B:

THAT PORTION OF LOT 11 IN SECTION 5, T. 6 S., R. 8 E., S.B.B.& M. AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY, ON FILE IN BOOK 4, PAGE 53 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS:

BEGINNING AT THE MOST NORTHERLY CORNER OF THAT CERTAIN REAL PROPERTY DESCRIBED IN DEED TO ROBERT J. FERRAUD RECORDED ON DECEMBER 6, 1972 AS INSTRUMENT NO. 161111, OF OFFICIAL RECORDS IN SAID COUNTY RECORDER'S OFFICE;
THENCE ALONG THE NORTHEASTERLY BOUNDARY OF SAID REAL PROPERTY OF ROBERT J. FERRAUD, SOUTH 36° 04' 00" EAST, 122.89 FEET TO THE MOST EASTERLY CORNER OF SAID REAL PROPERTY OF ROBERT J. FERRAUD;
THENCE NORTH 53° 56' 00" EAST, PARALLEL WITH THE SOUTHEASTERLY LINE OF SIXTH STREET,

97.77 FEET TO THE SOUTHWESTERLY LINE OF TRIPOLI WAY;
THENCE NORTH 36° 04' 00" WEST, ALONG SAID SOUTHWESTERLY LINE OF TRIPOLI WAY, 122.89 FEET TO SAID SOUTHEASTERLY LINE OF SIXTH STREET;
THENCE SOUTH 53° 56' 00" WEST, ALONG SAID SOUTHEASTERLY LINE OF SIXTH STREET, 97.77 FEET TO THE POINT OF BEGINNING.

APN: 778-081-003 (Affects Parcel A) and 778-081-001 (Affects Parcel B) 26096422v2

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EXHIBIT D
Affordable Housing Regulatory Agreement

FREE RECORDING IN ACCORDANCE

WITH CALIFORNIA GOVERNMENT
CODE SECTIONS 6103 AND 27383

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:

City of Coachella
53-990 Enterprise Way
Coachella, CA 92236
Attn: City Manager

AFFORDABLE HOUSING REGULATORY AGREEMENT
This Affordable Housing Regulatory Agreement (the “Regulatory Agreement”) dated May 26, 2023, for reference purposes only, by Tripoli CIC, LP, a California limited partnership (“Owner”), hereby given to and on behalf of the City of Coachella (the “City”).

RECITALS
This Regulatory Agreement affects that certain real property commonly known as Tripoli, located at 51392 Cesar Chavez and in the City of Coachella, County of Riverside, State of California, as more particularly described in the Legal Description attached hereto as Exhibit “A” and incorporated herein by this reference (the “Property”) and is entered into based on the following facts and understandings:

1. Pursuant to the terms of the Affordable Housing Loan Agreement dated as of even date herewith (the “Loan Agreement”), the City agreed to provide Owner with a loan under the Program (the “Loan”) in an amount not to exceed $13,568,850. The Loan Agreement requires Owner to use the Loan to prepay the special assessments to be imposed upon a 108-unit affordable housing development (the “Affordable Housing Development”) to be constructed on the Property for the next fifty-five (55) years, all as specified in the Loan Agreement.

2. To ensure the construction and continued operation of the Affordable Housing Development and as consideration for the Loan, Owner agreed to enter into this Regulatory Agreement, to restrict the development, use and occupancy of the Affordable Housing Development.

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3. The term “Owner” as used in this Regulatory Agreement shall include all successors, assigns and transferees of any or all of the Owner’s interest in the Affordable Housing Development and the Property.

NOW, THEREFORE, Owner, in consideration of the City’s Loan to Owner and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Owner hereby covenants, agrees and declares that the Property shall be owned, held, used, maintained, and transferred pursuant to the following restrictive covenants (the “Covenants”) and that such Covenants shall be binding upon all of Owner’s successors, assigns and transferees to the Property, and all leases, tenants, contractors, agents, and all persons claiming an interest in the Property, or claiming an interest by and through any of the foregoing.

COVENANTS

1. Construction, Operation and Maintenance of the Affordable Housing Development.

Owner, for itself and for any successors-in-interest to and transferees or assigns of the Property, hereby declares and covenants that the Property is restricted to the development and use of the Affordable Housing Development and uses ancillary to such housing and other uses as may be reasonably approved by the City in its sole discretion. The Affordable Housing Development shall be comprised of, at the minimum, the number and size of units, have such occupancy and affordability restrictions and such other characteristics as are described in Exhibit B, “Affordable Housing Development Description,” attached hereto and incorporated herein by this reference.

2. Repair and Maintenance of the Property and other Building or Improvements of the Affordable Housing Development. Owner agrees:
a. To keep the Property in a decent, safe, sanitary, rentable, tenantable condition and repair, and permit no waste thereof;
b. Not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable;
c. Not to construct any buildings or improvements on the Property, other than the buildings and improvements contemplated as part of the Affordable Housing Development or add to, remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; d. To repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to this Covenant;
e. To comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property;

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f. Not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the City's prior written consent; and
g. Not to alter the use of all or any part of the Property without prior written consent of the City.

3. Restrictions on Sale, Encumbrance, and Other Acts.
a. Except with the City’s prior written approval, which shall not be unreasonably withheld, Owner shall not make any sale, encumbrance, hypothecation, assignment, refinancing, pledge, conveyance, or transfer in any other form of the Property or the Affordable Housing Development or of any of its interest in either of them.
b. The City may grant its approval for a sale, transfer or conveyance of the Property or the Affordable Housing Development subject to such terms and conditions as may be necessary to preserve or establish the fiscal integrity of the Property or the Affordable Housing Development.

4. Charges; Liens. Owner shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property or to the Affordable Housing Development, if any, by Owner making payment, when due, directly to the payee thereof. Owner shall promptly furnish to City all notices of amounts due under this paragraph, and in the event Owner shall make payment directly, Owner shall promptly furnish to City receipts evidencing such payments.

Owner shall pay when due all encumbrances, charges, and liens, on the Property or to the Affordable Housing Development, any portion thereof and payments on notes or other obligations secured by an interest in the Property or Affordable Housing Development, any portion thereof, with interest in accordance with the terms thereof. Owner shall have the right to contest in good faith any claim or lien, or payment due thereunder, provided that Owner does so diligently and without prejudice to City.

5. Hazard and Liability Insurance and Condemnation.
a. The Owner shall at all times keep the Property and the Affordable Housing Development insured against loss by fire and such other hazards, casualties, liabilities and contingencies, and in such amounts and for such periods as required by the City. All insurance policies and renewals thereof shall be issued by a carrier and in form acceptable to the City.
b. In the event of any fire or other casualty to the Property or Affordable Housing Development or eminent domain proceedings resulting in condemnation of the Property or Affordable Housing Development or any part thereof, Owner shall have the right to rebuild the Property or the Affordable Housing Development, and, subject to the rights of Senior Lenders, to use all available insurance or condemnation proceeds therefore, provided that, as determined by the City in its sole discretion, (a) such proceeds are sufficient to rebuild the Property or Affordable Housing Development in a manner that ensures continued operation of

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the Affordable Housing Development and as consideration for the Loan, (b) the City shall have the right to approve plans and specifications for any major rebuilding and the right to approve disbursements of insurance or condemnation proceeds for rebuilding under a construction escrow or similar arrangement, and (c) no material breach or default then exists under the Loan. If the casualty or condemnation affects only part of the Property or Affordable Housing Development and total rebuilding is infeasible, then, subject to the rights of Senior Lenders, proceeds may be used for partial rebuilding and/or partial repayment of the Loan.

6. Covenants Run with the Land. The Property is held and hereafter shall be held, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to these covenants, conditions, restrictions and limitations. All of the herein-stated covenants, conditions, restrictions and limitations are intended to constitute both equitable servitudes and covenants running with the land. Owner expressly acknowledges and agrees that the Covenants are reasonable restraints on Owner’s right to own, use, maintain, and transfer the Property and any estate or interest therein and are not and shall not be construed to be an unreasonable restraint on alienation. Each and every contract, deed or other instrument hereafter executed covering or conveying the Property or any portion thereof, shall be held conclusively to have been executed, delivered and accepted subject to such covenants and restrictions, regardless of whether such covenants or restrictions are set forth in such contract, deed or other instrument.

7. Binding Effect. Any purchaser of the Property or of any portion of or interest in the Property, by the acceptance of a deed therefor, whether from Owner or from any subsequent owner of the Property, or by the signing of a contract or agreement to purchase the Property, shall by the acceptance of such deed or by the signing of such contract or agreement be deemed to have consented to and accepted the Covenants set forth in this Regulatory Agreement.

8. Term of Regulatory Agreement. The Covenants in this Regulatory Agreement shall be binding, effective and enforceable commencing upon the execution of this Regulatory Agreement and shall continue in full force and effect for a period of fifty-five (55) years after a certificate of occupancy or its equivalent has been issued for the Affordable Housing Development by the local jurisdiction or, if no such certificate is issued, from the date of initial occupancy of the Affordable Housing Development.

9. Building Permits. Owner agrees not to apply for or accept any permits for the construction of improvements on the Property inconsistent with the Affordable Housing Development as described in Exhibit B hereto.

10. Default. The following shall constitute a default of this and shall entitle the City to all of the remedies contained herein.
a. Any failure to perform the Covenants under this Regulatory Agreement, which remains uncured for sixty (60) days following written notice to Owner thereof.

11. Remedies. The City and its successors and assigns may use any or all of the following provisions in the event of a default or breach of this Regulatory Agreement. The failure by the City to exercise any specific right or remedy shall not preclude the City from exercising any other

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right or remedy, or from maintaining any action to which it may otherwise be entitled at law or in equity:
a. Specific Performance. The development, use and maintenance of the Property as an Affordable Housing Development in accordance with Exhibit B attached to this Regulatory Agreement is of a special and unique kind and character, so that a breach of any material provision of this Regulatory Agreement by Owner, its successors, assigns or transferees, would not have an adequate remedy at law.

Therefore, the City’s rights in the affordable housing provisions may be enforced by an action for specific performance and such other equitable relief as is provided by the laws of the State of California.
b. Injunctive Relief. In pursuing specific performance of the Covenants, the City shall be entitled to petition the court for injunctive relief to preserve the City’s interests in the Property and its rights under this Regulatory Agreement. Such injunctive relief may include, but is not limited to, an order of the court restraining any development of the Property inconsistent with the Covenants made herein.

12. City Review and Inspection.
a. At any time during the term of this Regulatory Agreement and upon prior written notice of at least three business days, the City or its designee may enter and inspect the Property and inspect all accounting records pertaining to compliance with this Regulatory Agreement. Upon request by the City, the Owner shall notify occupants of upcoming inspections of their units in accordance with state law. b. At the City's request, the Owner shall provide, at Owner’s expense, a special audit of the Affordable Housing Development certified by an independent certified public accountant.
c. The City may request any other information that it deems necessary to monitor compliance with the Covenants and other requirements set forth in this Regulatory Agreement. The Owner shall provide such information within 14 days from the City’s written request for such information.
d. The Owner agrees to regular monitoring of the housing development by the City or such designee the City may name at any time during the term of this Regulatory Agreement, to verify compliance with the requirements of this Regulatory Agreement. The Owner, or designee, shall submit annual reports as required by the City on forms approved or provided by the City, detailing components of the on-going operations of the housing development, as noted in this subsection. The components of annual operations for which reporting is required, which the City retains the right to inspect, or cause to be inspected, include, and are not limited to:
(1) The Affordable Housing Development, including interior of units, common areas, and exterior of the development;

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(2) Tenant files, demonstrating compliance with affordability standards under this Regulatory Agreement;
(3) Financial records, including the right to request a certified financial audit of the revenue, expenses, and operations of the housing development; and (4) Insurance records to ensure continuous insurance coverage in accordance with City and Program requirements.

13. Owner Representations. Owner represents and warrants to the City that: (1) Owner has sufficient interest in the Property to own, develop, construct and operate the Affordable Housing Development in accordance with this Regulatory Agreement, (2) to Owner’s actual knowledge and belief, there are no agreements, contracts, covenants, conditions or exclusions to which Owner (or its predecessor in interest) is a party which would, if enforced, prohibit or restrict the use of the Property in accordance with the terms of this Regulatory Agreement, (3) Owner has the full right and authority to enter into this Regulatory Agreement, (4) this Regulatory Agreement constitutes a valid and legally binding obligation on Owner, enforceable in accordance with its terms, and (5) Owner is duly organized and authorized to do business in the State of California.

14. Governing Law. This Regulatory Agreement shall be interpreted and be governed by the laws of the State of California.

15. Severability. Every provision of this Regulatory Agreement is intended to be severable.

If any provision of this Regulatory Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired.

IN WITNESS WHEREOF, the Owner has caused this Regulatory Agreement to be signed by its duly authorized representative, as of the day and year first written above.

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OWNER:

TRIPOLI CIC, LP,
a California limited partnership
By: Pacific Southwest Community Development Corporation, a California nonprofit public benefit corporation,
its Managing General Partner
By:

Cheri Hoffman, President
All signatures must be acknowledged.

ADD NOTARY ACKNOWLEDGEMENT

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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 ______________ ___, 20__ before me, , Notary Public, personally appeared , who proved to me on the basis
of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: (Seal)

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STATE OF CALIFORNIA

COUNTY OF
On ______________ ___, 20__ before me, , Notary Public, personally appeared , who proved to me on the basis
of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: (Seal)

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EXHIBIT “A”

LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Coachella, County of Riverside, State of California, described as follows:

PARCEL A:

PARCEL 1:

A PORTION OF LOT 11, SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN

BERNARDINO BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

BEGINNING AT THE INTERSECTION OF THE CENTER LINES OF BAGDAD AVENUE, AND TRIPOLI WAY; THENCE SOUTH 89° 54' WEST, 272 FEET ALONG THE CENTER LINE OF BAGDAD AVENUE TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 89° 54' WEST ALONG THE CENTER LINE OF BAGDAD AVENUE, 356.67 FEET, MORE OR LESS, TO THE EASTERLY LINE OF HIGHWAY 99 AS SHOWN BY RECORD OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS; THENCE NORTHERLY ALONG SAID EASTERLY LINE OF HIGHWAY 86, 102.88 FEET; THENCE NORTH 89° 54' EAST, 356.67 FEET; THENCE SOUTH 00° 06' EAST, 102.88 FEET, MORE OR LESS, TO THE TRUE POINT OF BEGINNING; EXCEPTING THEREFROM THE SOUTH 30 FEET FOR ROAD PURPOSES; ALSO EXCEPTING THEREFROM THE WESTERLY

17.00 FEET AS CONVEYED TO THE CITY OF COACHELLA BY DEED RECORDED MARCH 18, 1971 AS INSTRUMENT NO. 26947 OF OFFICIAL RECORDS.

PARCEL 2:

THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN

BERNARDINO BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE EAST

LINE OF THE STATE HIGHWAY, AS SHOWN ON LICENSED LAND SURVEYOR'S MAP ON FILE IN BOOK 7 PAGE 38 OF RECORD OF SURVEY, RIVERSIDE COUNTY RECORDS, 102.88 FEET NORTH OF THE SOUTHWEST CORNER OF LOT 11; THENCE CONTINUING NORTHERLY ON SAID EAST LINE OF 140.20 FEET TO THE SOUTHWEST CORNER OF THAT

CERTAIN PARCEL OF LAND CONVEYED TO JENNY JEFFERY, ET AL, BY DEED RECORDED APRIL 12, 1929 IN BOOK 804 PAGE 423 OF DEEDS;

THENCE EASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL AND PARALLEL

WITH THE
SOUTHERLY LINE OF SAID LOT 11, 229 FEET TO THE SOUTHEAST CORNER OF SAID PARCEL
CONVEYED TO JEFFERY; THENCE NORTH 36° 04' WEST ALONG THE NORTHEASTERLY LINE OF THE JEFFERY PARCEL, 75 FEET TO THE MOST SOUTHERLY CORNER OF THAT

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PARCEL CONVEYED TO ROBERT J. FERRAUD BY DEED RECORDED DECEMBER 6, 1972 AS

INSTRUMENT
THENCE NORTH 53° 36' EAST ON THE SOUTHEAST LINE OF SAID PARCEL CONVEYED TO FERRAUD AND ITS NORTHEASTERLY EXTENSION, 159.77 FEET TO THE SOUTHWESTERLY LINE OF TRIPOLI WAY; THENCE SOUTH 36° 04' EAST ON SAID SOUTHWESTERLY LINE, 313.43 FEET MORE OR LESS, TO A POINT 142.88 FEET NORTH OF THE SOUTH LINE OF SAID LOT 11, SAID POINT BEING ON THE NORTH LINE OF THAT CENTER PARCEL CONVEYED TO LEONHARDT SWINGLE AND LEE J. ANDERSON BY DEED RECORDED NOVEMBER 22, 1934 IN BOOK 201 PAGE 555 OF OFFICIAL RECORDS; THENCE NORTH 89° 54' EAST ON SAID NORTH LINE OF THE LEONHARDT-ANDERSON PARCEL, 40 FEET, MORE OR LESS, TO THE NORTHEAST CORNER BEING A POINT ON THE CENTER LINE OF TRIPOLI WAY; THENCE SOUTH 36° 04' EAST TO A POINT WHICH IS 102.88 FEET NORTH OF THE SOUTH LINE OF SAID LOT 11; THENCE SOUTH 89° 54' WEST, 566.78 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THE WESTERLY 20 FEET AS CONVEYED TO THE CITY OF COACHELLA BY DEED RECORDED MARCH 18, 1971 AS INSTRUMENT NO. 26942 OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN THE WELL SITE DESCRIBED AS; THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE

AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER

COMPANY ON
FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS:

COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID LOT 11, 216 FEET

EASTERLY FROM THE POINT OF INTERSECTION OF THE WESTERLY PROLONGATION OF

SAID SOUTHERLY LINE AND THE CENTER LINE OF THE STATE HIGHWAY AS SHOWN ON RECORDS OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS;
THENCE NORTH 102.88 FEET TO THE POINT OF BEGINNING; THENCE NORTH 40 FEET; THENCE EAST 43 FEET; THENCE SOUTH 40 FEET; THENCE WEST 43 FEET TO THE POINT OF BEGINNING.

PARCEL 3:

THAT PORTION OF LOT 11 IN SECTION 5, TOWNSHIP 6 SOUTH, RANGE 8 EAST, SAN

BERNARDINO BASE AND MERIDIAN, AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY ON FILE IN BOOK 4 PAGE 53 OF MAPS, RIVERSIDE COUNTY RECORDS, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE SOUTHERLY LINE OF SAID LOT 11, 216 FEET EASTERLY FROM THE POINT OF

INTERSECTION OF THE WESTERLY PROLONGATION OF SAID SOUTHERLY LINE AND THE

CENTER LINE OF THE STATE HIGHWAY AS SHOWN ON RECORD OF SURVEY ON FILE IN BOOK 7 PAGE 38 OF RECORDS OF SURVEY, RIVERSIDE COUNTY RECORDS; THENCE NORTH 102.88 FEET TO THE POINT OF BEGINNING;
THENCE NORTH 40 FEET; THENCE EAST 43 FEET; THENCE SOUTH 40 FEET; THENCE WEST 43 FEET TO THE POINT OF BEGINNING.

PARCEL B:

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THAT PORTION OF LOT 11 IN SECTION 5, T. 6 S., R. 8 E., S.B.B.& M. AS SHOWN BY MAP OF LANDS OF COACHELLA LAND AND WATER COMPANY, ON FILE IN BOOK 4, PAGE 53 OF

MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST NORTHERLY CORNER OF THAT CERTAIN REAL PROPERTY DESCRIBED IN DEED TO ROBERT J.

FERRAUD RECORDED ON DECEMBER 6, 1972 AS INSTRUMENT NO. 161111, OF OFFICIAL RECORDS IN SAID COUNTY RECORDER'S OFFICE;

THENCE ALONG THE NORTHEASTERLY BOUNDARY OF SAID REAL PROPERTY OF ROBERT J. FERRAUD, SOUTH 36° 04' 00" EAST, 122.89 FEET TO THE MOST EASTERLY CORNER OF SAID REAL PROPERTY OF ROBERT J. FERRAUD; THENCE NORTH 53° 56' 00" EAST, PARALLEL WITH THE SOUTHEASTERLY LINE OF SIXTH STREET, 97.77 FEET TO THE SOUTHWESTERLY LINE OF TRIPOLI WAY; THENCE NORTH 36° 04' 00" WEST, ALONG SAID SOUTHWESTERLY LINE OF TRIPOLI WAY, 122.89 FEET TO SAID SOUTHEASTERLY LINE OF SIXTH STREET;
THENCE SOUTH 53° 56' 00" WEST, ALONG SAID SOUTHEASTERLY LINE OF SIXTH STREET,

97.77 FEET TO THE POINT OF BEGINNING.

APN: 778-081-003 (Affects Parcel A) and 778-081-001 (Affects Parcel B)

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EXHIBIT “B”

AFFORDABLE HOUSING DEVELOPMENT
Description of Units
II.

Other Housing Development Requirements
A. The required average net density is 38.57 units per acre.

B. The proposed or planned amenities shall be completed by the date the Affordable Housing Development is completed.

Tripoli APN: 778-081-001, 778-081-003
51392 Cesar Chavez
Coachella CA 92236
Enter the number of units by bedroom size and income level. # of Bedrooms # of Units IIG Restricted
Income Limit
(% of AMI)
1 12 12 60%
1 3 3 50%
1 5 5 40%
1 7 7 30%
2 22 22 60%
2 8 8 50%
2 7 7 40%
2 13 13 30%
3 16 16 60%
3 3 3 50%
3 4 4 40%
3 7 7 30%
2 1 manager
Total 108 107
Net Density (see Guidelines
Sec. 302(u))

38.57

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Amenity Type Distance
(within
fractional
miles)
Number of
Amenities
Public Park 1/2 1
Employment Center 1 1
Retail Center 1 1
Public School or Community
College
1/2 1
Social Service Facility 1/2 1
Senior Center or
Senior Service Facility

N/A N/A
C. The proposed or planned transit stations or major transit stops shall be completed by the date the Affordable Housing Development is completed.

Transit Type Distance
(within
fractional
miles)
Number of
Transit
Stations or
Stops
Transit Station 1/4 1
Major Transit Stop N/A N/A
26096351v2

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1 RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

TRIPOLI CIC, LP
c/o Chelsea Investment Corporation
6339 Paseo Del Lago
Carlsbad, CA 92011
Attention: Cheri Hoffman, President
Space above for Recorder’s use

AGREEMENT TO PREPAY SPECIAL TAX OBLIGATION FOR
CITY OF COACHELLA COMMUNITY FACILITIES DISTRICT 2005-1

THIS AGREEMENT TO PREPAY SPECIAL TAX OBLIGATION FOR CITY OF COACHELLA COMMUNITY FACILITIES DISTRICT 2005-1 (the “Prepayment Agreement”) is dated as of ______________ , 2023 by and between TRIPOLI CIC, LP (“Owner”), and the CITY OF COACHELLA (the “City”), as the legislative body of Community Facilities District 2005-1.

RECITALS
WHEREAS, the Owner is annexing certain real property located in the City of Coachella, Riverside County, California, more particularly described on Exhibit A attached hereto (the “Property”), upon which the Owner intends to develop a 108-unit affordable multifamily development (the “Project”); and,
WHEREAS, the City Council of the City of Coachella, by Resolution No, 2005-93, authorized the creation of the City of Coachella Community Facilities District 2005-1 (the “CFD”) and, by Resolution No. 2005-94, authorized the levy of a special tax for properties within the CFD (the “Special Assessment”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and,
WHEREAS, the City Council of the City of Coachella, by Resolution No. 2005-93, authorized the creation of the City of Coachella Community Facilities District 2005-1 (the “CFD”) and, by Resolution No. 2005-94, authorized the levy of a special tax for properties within the CFD (the “Special Assessment”), pursuant to the Mello-Roos Community Facilities Act of 1982, as amended; and,
WHEREAS, on April 19, 2023 the City Council of the City of Coachella, California (the “Council”) conducted proceedings pertaining to the intention to annex the Property, consisting of Parcel 2 of Lot Line Adjustment 2018-02 (“Annexation Area No. 31”), into the City of Coachella Community Facilities District No. 2005-1 (Law Enforcement, Fire and Paramedic Services) (the “District”), including the rate and method of apportionment of a special tax to finance a portion of the cost of providing certain public services, and the calling of an election in regard to the foregoing; and,

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CITY/BBK 05.16.23
2 WHEREAS, on May 24, 2023, an election was held within Annexation Area No. 31 regarding the rate and method of apportionment of the proposed special tax; and, WHEREAS, at such election the proposal for the rate and method of apportionment and manner of collection of the special tax for Annexation Area No. 31 was approved by the qualified electors of Annexation Area No. 31; and,
WHEREAS, the Property is located within the CFD and is subject to the Special Assessment;
WHEREAS, the Owner has requested that it be permitted to prepay 55 years of the Special Assessments for the Property (“Prepaid Special Assessments”), and the City has agreed to allow such prepayment; and,
WHEREAS, the City has agreed to make a deferral agreement loan to the Partnership in order to finance the Prepaid Special Assessments, and the City and the Owner wish to enter into this Agreement to provide for the terms and conditions upon which the Prepaid Special Assessments will be prepaid.

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Prepayment of Special Assessments; City Loan.
(a) Conditioned upon the Owner acquiring the Property, the Owner is required to pay Special Assessments in the amount of one thousand three hundred forty-eight and 10/100 Dollars ($1,348.10 ) for each of the 108 dwelling units of the Project, for the term of this agreement, and which reflects an annualized average adjustment of the Consumer Price Index commencing in 2015.
(b) The City shall make a loan to the Owner in the amount of $13,568,850 which is an amount equal to the Prepaid Special Assessments for the Project (the “City Loan”).

The City Loan is evidenced by a loan agreement and promissory note, and is secured by a deed of trust encumbering the Property (collectively, the Loan Documents”). The City Loan shall bear interest at 3% and shall be payable from and to the extent of fifty percent (50%) of Residual Cash Flow (as defined in the City Note). The City shall use the payments on the City Loan made by the Owner to reimburse itself for prepayment of the Special Assessments, (c) On the date that the Owner acquires the Property, the Owner shall annex the Property into the CFD, and the City shall prepay the Prepaid Special Assessments. The City shall record a satisfaction of lien or other document necessary to reflect the prepayment of the CFD promptly thereafter.
(d) The City shall have the right to approve any sale or refinancing of the Property (“Capital Transaction”), such approval not to be unreasonably withheld, delayed or conditioned. Upon the occurrence of a Capital Transaction, any outstanding amounts under the City Loan shall be paid in full. The Owner acknowledges and agrees that upon the maturity of the senior loan made by Banner Bank, on the date that is [17] years following the Conversion

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Coachella City CouncilMay 24, 2023

Coachella City Council
May 24, 2023