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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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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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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 PLUMBING
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:
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
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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.
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.
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
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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.
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.
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.
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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.
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.
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.
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.
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
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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.
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 EXISTING
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].
15.54.020 [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 at a regular meeting of the City Council on this 28th day of June, 2023.
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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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) SS
CITY OF COACHELLA )
I HEREBY CERTIFY that the foregoing Ordinance No. 1201 was duly and regularly introduced at a meeting of the City Council on May 24, 2023, and that thereafter the said ordinance was duly passed and adopted at a regular meeting of the City Council on June 28, 2023.
AYES:
NOES:
ABSTAIN:
ABSENT:
By: _________________________
Delia Granados
Deputy City Clerk
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10 days to complete
25,000
Wall at Plaza De Oro on Grapefruit Blvd. between Hill Street and Avenue 52 Gustavo Siono
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13,750 (incl. crew/staff)
Travel, video, photography, mobility: $6,000
$2,250
$3,000
$25,000
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STAFF REPORT
6/28/2023
TO: Honorable Mayor and City Council Members
FROM: Celina Jimenez, Economic Development Director
SUBJECT: Approve an Art in Public Places Proposal for a Mural Celebrating the Importance of Maintaining the City of Coachella's Sister City Relationship with the City of Mexicali in the Amount of $25,000
STAFF RECOMMENDATION:
Staff recommends that the City Council consider approving and awarding a grant to Jorge Alberto Gomez Castro in the amount of $25,000 from the City of Coachella’s Art in Public Places Program to install a mural on the Plaza De Oro building wall on Grapefruit Boulevard between Avenue 52 and Hill Drive.
BACKGROUND:
On January 1, 2011, the City Council approved Ordinance No. 1034 establishing an Art in Public Places Program and implementing a new development impact fee for certain new construction, remodeling and reconstruction of public art installations. The purpose of the Art in Public Places ordinance is to develop and maintain a visual arts program for the residents and visitors of Coachella, to add to the economic vitality of the community, and to enhance the environment and unique character of Coachella by providing for the acquisition and maintenance of quality works of public art.
DISCUSSION/ANALYSIS:
The submitted proposal is a painted mural project approximately 197’ feet in length and 23’ feet high celebrating the City of Coachella’s relationship with its sister city, the City of Mexicali, Mexico. Both cities believe that fostering relationships with neighboring international cities, like the City of Mexicali, play an essential part in creating a more prosperous world through exchanges and initiatives. The value of relationships across borders not only changes the lives of individuals, but helps both communities to thrive. The City is championing prosperity by fostering bonds between people from different communities through this art initiative.
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Budget
Installation Costs – Labor + Crew $ 13,750
Installation Costs – Equipment Rental $ 2,250
Other Costs – Materials $ 3,000
Miscellaneous Costs $ 6,000 (travel, video, photography, mobility) TOTAL $ 25,000
About the Artist
Jorge Alberto Gomez Castro, known as “Boms, the Artist” is an artist who had his beginnings in the 1990s graffiti art movement in Mexicali, Mexico at the tender age of 12. During that time, he was influenced by Hip Hop music, which later complemented his career in marketing. With more than 50 murals under his belt, he has become one of the most prominent muralists in the urban genre by gracing commercial buildings with his work, public plazas, restaurants, including government buildings. His work has gained the praise of the Los Angeles Times
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Proposed Mural Design Rendition
ALTERNATIVES:
1. Approve the Art in Public Places Proposal for a Mural Celebrating the Importance of Maintaining the City of Coachella's Sister City Relationship with the City of Mexicali in the Amount of $25,000
2. Not approve the art mural and provide alternative direction FISCAL IMPACT:
If the City Council approves the staff recommendation, the $25,000 will be withdrawn from the Special Revenue Funds (130) – Development Impact Fees for Public Art for Fiscal Year 2022-
23. ATTACHMENT:
Application
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STAFF REPORT
6/28/2023
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Authorize award of a construction agreement for Vista Escondida Landscaping and Park Improvements Project LL-04 to Urban Habitat, for $1,137,624.05, and allocate $1,137,624.05 from undesignated LLMD 33 fund balance.
STAFF RECOMMENDATION:
Authorize award of a construction agreement for Vista Escondida Landscaping and Park Improvements Project LL-04 to Urban Habitat, for $1,137,624.05, and allocate $1,137,624.05 from undesignated LLMD 33 fund balance.
EXECUTIVE SUMMARY:
A formal bid was published for the Vista Escondida Landscaping and Park Improvements Project LL-04. The project consists of finished grading in preparation for furnishing and installation of irrigation, trees, plant material and solar lights at three retention basins. The project also includes finished grading in preparation for furnishing and installation of irrigation, trees, plant material, site lighting park amenities (sand volleyball court, pavilion area, and playground equipment) for a small pocket park within the Vista Escondida residential development. The bid closed on May 30, 2023 and two (2) bid responses were received:
Urban Habitat; $ 1,137,524.05
Including Bid Alternate (shade structure over playground) i. $1,318,916.05
Conserve LandCare; $ 1,305,882.00
Including Bid Alternate (shade structure over playground) i. $1,501,382.00
Staff is recommending award of a construction agreement to the lowest responsive bidder, Urban Habitat, Inc., for the base bid amount of $1,137,524.05. Based on available funding staff is not recommending award of the bid alternate at this time, a shade structure over the playground structure. Once LLMD 33 has funds available to fund the playground shade structure this improvement will be rebid and installed at a future time.
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FISCAL IMPACT:
Staff is requesting allocation of $1,137,524.05 be allocated from LLMD 33 (Vista Escondida) undesignated fund balance; these funds are available in the LLMD 33 fund balance and will not have a negative impact to the fund.
Attachments: Proposed Construction Agreement
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CONTRACTOR AGREEMENT
This Contract for Construction (“Contract”), is made and entered into this 28 th day of June, 2023,
by and between City of Coachella, a municipal corporation, organized under the laws of the State of California, with its principal place of business at 53462 Enterprise Way, Coachella, California 92236, sometimes hereinafter called the “City” and Urban Habitat Inc., sometimes hereinafter called “Contractor.”
WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:
ARTICLE 1. SCOPE OF WORK.
The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:
Vista Escondida Landscaping and Park Improvements
CITY PROJECT NO. LL-04
Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
ARTICLE 2. TERM.
The term of this Agreement shall commence on the 1
st day of July, and shall terminate on the 30th
day of November 2023, unless terminated earlier as set forth herein.
Contractor and City agree that time is of the essence regarding the performance of this Agreement. All work called for under this Agreement will require the Contractor submit and City approve a Project Schedule for completion of work requested.
ARTICLE 3. CONTRACT PRICE.
The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the not to exceed sum of One Million One Hundred Thirty Seven Thousand Six Hundred Twenty Four Dollars and Five Cents ($1,137,624.05). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Proposal Schedule.
ARTICLE 4. LIQUIDATED DAMAGES.
Contractor acknowledges that the City will sustain actual damages for each and every Working Day completion of the Project is delayed beyond the Contract Time (per approved Project Schedule). Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $500.00 for each and every
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Working Day of delay beyond the time prescribed in the Contract Documents. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.
ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.
The “Contract Documents” include the following:
Notice Inviting Bids
Instructions to Proposers
ProposalForms
ProposalAcknowledgement
ProposalSchedule
ProposalGuarantee
Designation of Subcontractors
Information Required of Proposers
Non-Collusion Declaration Form
Iran Contracting Act Certification
Drug-Free Workplace Certification
Asbestos-Free Material Certification
Recycled Content Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
General Conditions
Special Conditions
Technical Specifications
Addenda
Construction Plans and Drawings
City of Coachella Standard Specifications and Procedures (June 2007) City of Coachella Standard Infrastructure Drawings (2007 Edition) including Surface Improvement Standards and Water Standards
Standard Specifications for Public Works Construction “Greenbook” (2018), Except Sections 1-9
Standard Plans for Public Works Construction “Greenbook” (2018) Caltrans Standard Specifications (2018), except Division 1 Caltrans Standard Plans (2018)
Applicable Local Agency Standards and Specifications, as last revised Reference Specifications
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.
Item 34.
All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.
ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.
Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.
ARTICLE 7. INDEMNIFICATION.
Contractor shall provide indemnification and defense as set forth in the General Conditions.
ARTICLE 8. PREVAILING WAGES.
Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.
ARTICLE 9. FALSE CLAIMS.
Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
Item 34.
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
CITY OF COACHELLA
By:
Dr. Gabriel D. Martin
City Manager
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
URBAN HABITAT INC.
By:
Its:
Printed
Name:
By:
Its:
Printed
Name:
____________________________________
Contractor’s License Number and
Classification
____________________________________
DIR Registration Number
Item 34.
STAFF REPORT
6/28/2023
TO: Honorable Mayor and City Council Members
FROM: Maritza Martinez, Public Works Director
SUBJECT: Greater Coachella Valley Chamber of Commerce March 2023 – June 2023.
STAFF RECOMMENDATION:
Receive and file the Greater Coachella Valley Chamber of Commerce Report for March 2023 – June 2023.
EXECUTIVE SUMMARY:
The City of Coachella has partnered with the Greater Coachella Valley Chamber of Commerce (Chamber), as a private business support organization within the City to provide professional services. The City renews the service agreement annually with the Chamber, which commemorates the services the Chamber will provide to the City each fiscal year. These services include supporting the City’s economic development efforts by providing: business services, various community and city events, and further development of Coachella’s tourism market.
This fiscal year the agreement was executed on November 9, 2022. The GCVCC has submitted their report of economic development and Chamber activities for the period of March 2023 – June 2023.
FISCAL IMPACT:
None.
Attachment:
GCVCC Report March 2023 – June 2023
Item 35.
GCVCC
City of Coachella
Activity Report
April 1, 2022 - June 30, 2023
Presented by Brandon Marley
Item 35.
GCVCC STAFF
BRANDON MARLEY
President/CEO
DIANA SOTO
Senior Director of
Operations
JO BETH PRUDHOMME
Director of Business
Development
TINA RODRIGUEZ
Events Manager
TERRY CATES
Membership Experience
Coordinator
SYLVIA TENORIO
Administration
Item 35.
840
150+
7%
10,000+
GCVCC Members
Regional Events per
year
are Coachella Businesses
Marketing Impressions in the
last 60 days
To help small businesses survive the pandemic,
GCVCC extended all memberships at no cost
during the COVID 19 Pandemic. No business is
ever denied resources or educational
opportunities regardless of their membership
status.
Item 35.
CITY MARKETING
13 Total Weekly E-newsletters
3 City Walks
250
Visitors Center Hours
Coachella's events and news are
consistently represented on our weekly
eblast to approximately 5,500 email
subscribers across the Greater Coachella
Valley. The newsletter open rate hovers at
45% which is considered exceptional within
Constant Contact.
City walks are held once a month. GCV staff
are accompanied by Coachella Chamber
board members and ambassadors. All
potential new member follow-up is
conducted by GCV staff.
We house the Coachella Visitors Center
Monday - Thursday each week 8:30 - 4:30
p.m. The Visitors’ Center maintains
information on economic development
programs, initiatives and support, housing
information, business license information
and general information on the City’s
General Plan, and business initiatives and
programs. Walk in questions ranged from
how to obtain business licenses, the
location of the Coachella Civic Center and
Consulate, requests for maps, restaurants,
things to do in the City, housing,
membership, city issues, events, City
initiatives and programs and general
information.
Item 35.
BUSINESS DEVELOPMENT
4 Ribbon Cuttings
5 CHAMBER 101/AMBASSADOR
EVENTS
25 IN-PERSON MEETINGS
Coachella Canna Club
Green Room Theatre Company
Mr. Clamato
Aldi
Monthly Chamber 101 events showing new
and prospective members who the chamber
is and how to take advantage of their
membership. Also held ambassador
meetings
Appointments and meetings generated as a
result of the unique business contacts
resulting in next level engagements.
Item 35.
LOCAL LEADERSHIP
MEET OUR COACHELLA CHAMBER 23/24 BOARD OF DIRECTORS
Mike Chapa, Fairway Independent Mortgage, Board Chair
Blain Carian, Regional GCVCC Board, Growing Coachella Valley Alma Gutierrez, Plaza Garibaldi Restaurant, Inc.
Aurora Saldivar, CA State Assemblymember Eduardo Garcia, 56th District Chris Little, Desert Jet
Jose Lora, Entravision
Juanita Oakes, Temalpakh Farms
Mirna Flores, Forest Lawn
Pedro Infante, Imperial Western Products
Item 35.
THANK YOU
DIANA SOTO
Senior Director of
Operations
[email protected]
BRANDON MARLEY
President/CEO
[email protected]
[email protected] | gcvcc.org | 760-347-0676
JO BETH PRUDHOMME
Director of Business
Development
[email protected]
Item 35.
STAFF REPORT
6/28/2023
TO: Honorable Mayor and City Council Members
FROM: Dr. Gabriel Martin, City Manager
SUBJECT: Resolution No. 2023-31 Approving Amendments to the City of Coachella Management Employee Compensation Plan
STAFF RECOMMENDATION:
Staff recommends that the City Council approve Resolution No. 2023-31 approving amendments to the City of Coachella Management Employee Compensation Plan; authorizing the City Manager to execute said Plan; and authorize the City Attorney to make non-substantive changes.
BACKGROUND:
On March 14, 2007, the City Council adopted Resolution No. 2007-11 approving the establishment of a comprehensive policy covering the compensation, benefits and employment status of specified “at will” management employees, referred to as the Management Employee Compensation Plan.
The Plan was last amended by Council on September 8, 2021. A summary of the new terms are outlined below and included in the attached proposed Compensation Plan:
1. Salaries (Section 4)
Employees will receive a 7% COLA effective 7/1/23; a 5% COLA effective 7/1/24; a 4% COLA effective 7/1/25; and a 3% COLA effective 7/1/26.
2. Retirement (Section 5A, 5D)
Updated language. PEPRA rate increasing to 7.75% effective 7/1/23. City’s contribution for retiree’s medical premium remains at $647.00 for the term of the contract.
3. Health Insurance (Section 6A)
Updated language. CalPERS renamed PERS Choice to PERS Platinum.
4. Administrative Leave (Section 6G)
Updated language. Employees whose trackable hours show that they have worked 120 hours or more above their normal work schedule during the fiscal year will receive one hour of additional administrative leave returned to their leave bank for every hour worked in excess of 120 hours.
Item 36.
5. Holidays (Section 6H)
Indigenous Peoples’ Day (October 9) added to the paid holiday schedule.
6. Vacation (Section 6I)
Updated language. Employees with 16 years or more of service may cash in up to one hundred sixty (160) hours of vacation annually (based on a fiscal year: July 1– June30).
7. Longevity Pay (Section 6L)
Updated language. Employees with 20 years of service shall be eligible for 4% longevity pay.
ALTERNATIVES:
Do not approve the amendments to the City of Coachella Management Employee Compensation Plan.
FISCAL IMPACT:
The total fiscal impact to all funds for FY 23/24 is $80,450. The budget adjustment has been included in the FY 23/24 annual operating budget.
Attachments:
Resolution No. 2023-31
Proposed Management Employee Compensation Plan Agreement
Item 36.
RESOLUTION NO. 2023-31
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF COACHELLA, CALIFORNIA, APPROVING AMENDMENTS TO
THE CITY OF COACHELLA MANAGEMENT EMPLOYEE COMPENSATION PLAN WHEREAS, at its meeting of March 14, 2007, the City Council approved Resolution No. 2007-11, which established a comprehensive policy covering the compensation, benefits and employment status of specified “at will” management employees, referred to as the Management Employee Compensation Plan.
WHEREAS, the Plan was last amended on September 8, 2021, staff is recommending Council approve the following revisions:
1. Salaries (Section 4)
Employees will receive a 7% COLA effective 7/1/23; a 5% COLA effective 7/1/24; a 4% COLA effective 7/1/25; and a 3% COLA effective 7/1/26.
2. Retirement (Section 5A, 5D)
Updated language. PEPRA rate increasing to 7.75% effective 7/1/23. City’s contribution for retiree’s medical premium remains at $647.00 for the term of the contract.
3. Health Insurance (Section 6A)
Updated language. CalPERS renamed PERS Choice to PERS Platinum.
4. Administrative Leave (Section 6G)
Updated language. Employees whose trackable hours show that they have worked 120 hours or more above their normal work schedule during the fiscal year will receive one hour of additional administrative leave returned to their leave bank for every hour worked in excess of 120 hours.
5. Holidays (Section 6H)
Indigenous Peoples’ Day (October 9) added to the paid holiday schedule.
6. Vacation (Section 6I)
Updated language. Employees with 16 years or more of service may cash in up to one hundred sixty (160) hours of vacation annually (based on a fiscal year: July 1– June30).
7. Longevity Pay (Section 6L)
Updated language. Employees with 20 years of service shall be eligible for 4% longevity pay.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED by the City Council of the City of Coachella, as follows:
Section 1. Incorporation of Recitals. The City Council hereby finds and determines that the foregoing Recitals of this Resolution are true and correct and hereby incorporated into this Resolution as though fully set forth herein.
Item 36.
Section 2. Title. Adopt Resolution No. 2023-31, a Resolution of the City Council of Coachella, California, Approving Amendments to the City of Coachella Management Employee Compensation Plan.
PASSED, APPROVED and ADOPTED this 28th day of June, 2023. ___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
___________________________________
Carlos Campos
City Attorney
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2023-31 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on the 28 th day of June,
2023, by the following vote of Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk
Item 36.
MANAGEMENT EMPLOYEE COMPENSATION PLAN
EFFECTIVE: JULY 1, 2021 JULY 1, 2023 TO JUNE 30, 2027
Item 36.
MANAGEMENT EMPLOYEE COMPENSATION PLAN
TABLE OF CONTENTS
PAGE
SECTION 1 – PURPOSE………………………………………………………. 1
SECTION 2 – ACKNOWLEDGEMENTS…………………………………… 1
SECTION 3 – MANAGEMENT EMPLOYEES……………………………… 1
SECTION 4 – SALARIES……………………………………………………… 2
SECTION 5 – RETIREMENT………………………………………………… 3
SECTION 6 – BENEFITS……………………………………………………… 4
A. HEALTH, OPTICAL, AND DENTAL INSURANCE……………….. 4
B. SICK LEAVE………………………………………………………… 4
C. BEREAVEMENT LEAVE……………………………………………..5
D. LIFE INSURANCE…………………………………………………... 6
E. SHORT AND LONG TERM DISABILITY INSURANCE………….. 6
F. DEFERRED COMPENSATION PLAN……………………………… 6
G. ADMINISTRATIVE LEAVE………………………………………… 6
H. HOLIDAYS…………………………………………………………… 6
I. VACATION………………………………………………………….... 7
J. CITY VEHICLES……………………………………………………. 8
K. CAR ALLOWANCE………………………………………………… 8
L. LONGEVITY PAY…………………………………………………… 8
M. TUITION REIMBURSEMENT……………………………………….. 9
N. MEDICAL FLEX PLAN……………………………………………... 9
O. SEVERANCE BENEFITS……………………………………………. 9
P. JURY DUTY………………………………………………………… 9
Item 36.
1 Management Compensation Plan 7/1/21 7/1/23-6/30/27
CITY OF COACHELLA
MANAGEMENT
EMPLOYEE COMPENSATION PLAN
SECTION 1 - PURPOSE
To maintain a distinct and separate procedure for establishing the compensation of City of Coachella Management employees. The employees in this plan, as designated below, shall be compensated as set forth in this plan. The City Manager shall meet on an annual basis with management employees to discuss this plan. Employees in these groups may not be represented by any employee association which also represents employees who are not in these groups.
SECTION 2 - ACKNOWLEDGEMENTS
The City of Coachella recognizes the special responsibilities and demands placed upon its Management employees. The City also notes the necessity to compensate these employees appropriately in order to maintain a high caliber of top leadership and administrative support. At the same time, the City expects certain levels of performance in return for the compensation considerations.
SECTION 3 - MANAGEMENT EMPLOYEES
Employees in this Plan are exempt from the competitive service. Their appointments are at-will and incumbents serve at the pleasure of the City Manager. Employees in Group I direct one or more departments and employees in Group II serve in a deputy director level capacity to a Department Director or report directly to the City Manager.
Any other position that may be created within the Management Compensation Plan.
Group I: Group II:
City Engineer Assistant Community Development Director
Director of Development Services Controller
Director of Economic Development Human Resources Manager Director of Public Works Public Information Officer
Director of Finance Utilities Manager
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2 Management Compensation Plan 7/1/21 7/1/23-6/30/27
SECTION 4 – SALARIES
• The salary bands for Management positions shall be established and adjusted by the City Council upon the recommendation of the City Manager. • The City Manager shall annually review the pay bands for Management employees and recommend cost-of-living or other changes when deemed necessary to the City Council. Such salary bands shall consist of a maximum and minimum salary. • Any adjustment in salary, other than cost-of-living increases, for the eligible positions shall be approved by the City Manager and shall be subject to the determination by the City Manager that the eligible employee's overall level of documented performance is rated at the level of meritorious or higher. • Performance evaluation of Management employees in Group I will be conducted by the City Manager and employees in Group II will be evaluated by the supervising Director or the City Manager if applicable. Performance evaluations will be conducted in writing annually or on the anniversary date of their appointment or other suitable date not exceeding one (1) year as determined by the City Manager.
• The City Manager may adjust the salary within the established band to reflect job performance.
• The salary band for positions subject to this Plan will be reviewed annually, based on changes in the labor market, internal equity and funds available for salaries. • The salary schedule for employees covered under this Compensation Plan is attached as Appendixces “A-D”.
o Appendix A reflects a three and one-half percent (3.5%) seven percent (7%) cost of living adjustment effective July 1, 2021 2023.
o Appendix B reflects a three and one-half percent (3.5%) five percent (5%) cost of living adjustment effective July 1, 2022 2024.
o Appendix C reflects a four percent (4%) cost of living adjustment effective July 1, 2025.
o Appendix D reflects a three percent (3%) cost of living adjustment effective July 1, 2025.
Item 36.
3 Management Compensation Plan 7/1/21 7/1/23-6/30/27
SECTION 5 - RETIREMENT
A. The City contracts with the California Public Employees Retirement System (CalPERS). Effective October 20, 2012, the City adopted a two-tier retirement plan:
• Employees hired prior to October 20, 2012 are covered under the 3%@60 CalPERS plan (First Level) and are on the one-year final compensation benefit plan. Employees under the 3%@60 CalPERS plan currently pay an 8% member contribution. This amount is set by CalPERS.
• Employees hired after October 20, 2012 are covered under the 2%@60 CalPERS plan (Second Level) and are on the three-year final compensation benefit plan. Employees under the 2%@60 CalPERS plan currently pay a 7% member contribution. This amount is set by CalPERS.
• Effective January 1, 2013, new employees are covered under the 2%@62 CalPERS plan (PEPRA) and are on the three-year final compensation benefit plan. Employees under the 2%@62 CalPERS plan currently pay a 6.75% member contribution, which increases to 7.75% effective July 1, 2023. This amount is set by CalPERS.
B. Effective July 1, 2019, employees under the 3%@60, 2%@60, and 2%@62 CalPERS plans agreed to pay an additional one percent (1%) of the City’s share of their CalPERS pension contribution.
Effective July 1, 2020, employees under the 3%@60, 2%@60, and 2%@62 CalPERS plans agreed to pay an additional one percent (1%) of the City’s share of their CalPERS pension contribution.
C. The City agrees to pay two dollars $2.00 per month per employee for their participation in the 1959 CalPERS Survivor’s Benefit Program (Government Code Sections 21570 et seq.).
D. The City currently contributes the following towards an eligible retiree’s CalPERS medical premium:
2021 - $614.65
2022 - $647.00
2023-2027 - $647.00 per month
Item 36.
4 Management Compensation Plan 7/1/21 7/1/23-6/30/27
SECTION 6 - BENEFITS
A. HEALTH, OPTICAL AND DENTAL INSURANCE
• The City shall provide major medical, dental and optical plans for employees in this plan and their dependents with the following premium limits:
• For employees choosing coverage, the City will pay no more than the cost of the premium for the PPO, PERS Choice Platinum health plan and the full premium for the dental and optical plans.
• For employees choosing to waive medical coverage, the City will allow a cashin of up to the amount of the two-party premium for the PPO, PERS Choice Platinum health plan. An employee must submit a written request for payment and annual evidence of duplicate coverage. There is no cash-in for waiving dental or vision coverage.
B. SICK LEAVE
Sick leave shall be earned at the rate of ten (10) hours per month. The maximum accrual of sick leave shall be two hundred (200) days, two thousand (2,000) hours. Sick leave shall be used only for the employee’s illness or disability or for an illness in the employee's immediate family. Misuse of sick leave shall be grounds for disciplinary action.
Notification of Sickness
1. To receive compensation while absent on sick leave an employee must notify his/her immediate supervisor in the manner provided for in departmental rules and regulations or as otherwise allowed by law.
2. When an employee requests sick leave, the City shall follow the guidelines outlined in SB 579 and all other applicable laws to determine whether a doctor’s note will be required.
Family Sick Leave
1. In the case of an illness of a member of the employee's immediate family, the employee, upon submission of proper notice, may take up to onehalf of his/her annual sick leave accrual (60 hours) per year for family sick leave.
2. Immediate family for the purpose of this section shall be defined as spouse, mother, mother-in-law, father, father-in-law, sister, sister- in-law,
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5 Management Compensation Plan 7/1/21 7/1/23-6/30/27
brother, brother-in-law, child, stepchild, guardian, stepfather, stepmother, registered domestic partner, grandparents or grandchildren.
3. Family sick leave shall be deducted from the employee’s accumulated sick leave.
Return from Sick Leave
Upon return from sick leave, an employee may be required by the City Manager or Department Head to report for an examination by a City selected medical examiner to determine his/her fitness for duty.
Cash Out: Termination of Employment
1. Death: 50% of accrued sick leave
2. Discharged: None
3. Layoff: 50% of accrued sick leave
4. Resignation: None
5. Retirement: 50% of accrued sick leave
Cash Out: Annual
Employees have the option of accruing all of their yearly sick leave or being paid for it in accordance with the following provisions:
1. Provisions for the payment of unused sick leave shall be based on a fiscal year basis (July 1 to June 30).
2. Employees may cash in, convert to vacation, or accrue one-half (1/2) of their annual unused sick leave hours at the end of each fiscal year. If neither of these options is exercised, the unused sick leave will be accrued.
3. The cash in of sick leave shall be based on an employee's hourly rate as of June 30, except for retirement or layoff.
4. Upon retirement, employees shall be paid in accordance with the same schedule provided for at termination of employment and shall be computed at the employee’s hourly rate of pay at the time of separation.
C. BEREAVEMENT LEAVE
1. In case of a death in the employee’s immediate family the employee, upon submission of proper notice, may take up to three (3) consecutive work days of bereavement leave. Bereavement leave shall not be deducted from an employee’s accrued sick leave.
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6 Management Compensation Plan 7/1/21 7/1/23-6/30/27
2. Immediate family is defined as spouse, mother, mother-in-law, father, father-in-law, sister, sister-in-law, brother, brother-in-law, child, stepchild, guardian, stepfather, stepmother, registered domestic partner, grandparents and grandchildren.
3. The City may require an employee to submit evidence of the relationship to the employee and the death of the immediate family member.
D. LIFE INSURANCE
All employees covered by this agreement shall be covered by a life insurance policy in the following coverage amounts: Group I - $250,000 and Group II - $150,000.
The City shall pay the premium.
E. SHORT AND LONG TERM DISABILITY INSURANCE
Employees shall be covered by long-term and short-term disability insurance plans.
The City shall pay the premium for both policies.
F. DEFERRED COMPENSATION PLAN
The City shall maintain a deferred compensation plan and participation in the plan is voluntary. The City does not match funds.
G. ADMINISTRATIVE LEAVE
Employees shall be granted twelve (12) days administrative leave per year on July
1. Administrative leave may be prorated for employees hired after July 1. Use of administrative leave is subject to City Manager approval. Employees shall be allowed to cash in sixty (60) hours of administrative leave per year.
Employees whose trackable hours show that they have worked 120 hours or more above their normal work schedule during the fiscal year will receive one hour of additional administrative leave returned to their leave bank for every hour worked in excess of 120 hours.
H. HOLIDAYS
1. The following days shall be considered holidays with pay:
• New Year’s Day
• Martin Luther King’s Birthday
• President’s Day
• Cesar Chavez’s Birthday
• Memorial Day
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7 Management Compensation Plan 7/1/21 7/1/23-6/30/27
• Juneteenth
• Independence Day
• Indigenous Peoples’ Day
• Labor Day
• Veterans’ Day
• Thanksgiving Day
• Christmas Eve
• Christmas Day
• New Year’s Eve
2. If a holiday falls on a Saturday it will be observed on the preceding Thursday. If a holiday falls on a Sunday it will be observed on the following Monday.
3. Floating Holidays:
In lieu of three (3) former holidays (Lincoln's Birthday, Admission Day, and the day after Thanksgiving), three (3) floating holidays will accrue to employees on July 1 each year. Floating holidays earned in a fiscal year and unused as of June 30, shall either be cashed out or converted to vacation and carried over to the next fiscal year at the employee’s option.
I. VACATION
Vacation shall be earned as follows:
1. During first 12 months service - 12 days per year.
2. 2nd year through 5th year of service - 18 days per year.
3. 6th year through 10th year of service - 21 days per year.
4. 11th year through 15th year of service - 25 days per year.
5. 16th year through 20th year of service - 30 days per year.
6. Over 20 years of service - 40 days per year
Vacation schedules must be submitted to the City Manager or Department Head for approval. Vacation may only be taken in increments of full days or shifts unless specific approval is given for smaller increments of not less than four (4) hours.
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8 Management Compensation Plan 7/1/21 7/1/23-6/30/27
Vacation hours may be accrued up to the amount earned over 24 months, provided that the employee has used a minimum of eight (8) days of vacation annually (July 1 - June 30).
Cash Out: Vacation
Subject to filing an official request, an employee may cash in up to eighty (80) hours of vacation annually (based on a fiscal year: July 1-June 30). Employees with 16 years or more of service may cash in up to one hundred sixty (160) hours of vacation annually (based on a fiscal year: July 1-June 30).
J. CITY VEHICLES
Employees may be provided City vehicles subject to the determination of the City Manager that the vehicles are necessary for use in the performance of their job duties.
K. CAR ALLOWANCE
Employees in Group I will receive a car allowance in the amount of $100.00 per week.
L. LONGEVITY PAY
City Management employees shall be eligible for longevity pay above the base rate of pay, as indicated below, based on total hours of completed continuous* service with the City. Longevity pay shall be paid on all paid hours up to an employee’s standard hours and shall not be considered when determining the appropriate rate of pay for a promotion or demotion.
Longevity payments will be effective July 1, 2022.
TOTAL COMPLETED
SERVICE
COMPENSATION
31,200 Continuous Service Hours
(15 years)
2%
41,600 Continuous Service Hours
(20 years)
4%
*For purposes of this section, continuous service hours includes periods of service from the initial date of hire through an employee’s severance with the City in specific instances when the City initiates lay-off actions for economic reasons and
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9 Management Compensation Plan 7/1/21 7/1/23-6/30/27
the employee was subsequently re-hired. Additionally, part-time service hours are excluded from the calculation of continuous service hours.
M. TUITION REIMBURSEMENT
The City will reimburse employees 50% of tuition for continuing education in nonjob related courses and 100% of tuition for classes in job related courses. Payment is predicated on an employee receiving a 2.0 grade or better. The cost to the City for the education reimbursement shall not exceed $5,000 per employee per fiscal year. Requests for educational reimbursement must be submitted and approved by the City Manager prior to enrolling in a course. Requests for reimbursement of professional training or professional licenses must be approved by the City Manager.
N. MEDICAL FLEX PLAN
The City will provide and administer an “employee benefits plan” for medical expenses pursuant to Section 125 of the Internal Revenue Service Code.
Participation in the plan is voluntary. The annual deduction is determined by the Internal Revenue Service.
O. SEVERANCE BENEFITS
The City Manager shall authorize the payment of up to 120 calendar days for Group I and up to 90 calendar days for Group II of base salary in effect at the time and benefit payments upon separation from City service if not for cause. If such severance compensation is approved, it shall be paid in addition to any accrued leave otherwise payable to the employee.
P. JURY DUTY
An employee who is summoned for attendance to any court for jury duty during his/her normal working hours shall be deemed to be on duty and there shall be no loss of salary. Any jury fees received by an employee shall be paid to the City.
Compensation for mileage or subsistence allowances are not considered as a fee and shall be retained by the employee. Any employee who is called as a witness arising out of and in the course of his/her City employment shall be deemed to be on duty and there shall be no loss of salary. Any witness fees received by an employee shall be paid to the City together with any mileage received by the
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10 Management Compensation Plan 7/1/21 7/1/23-6/30/27
employee if he/she uses City transportation. An employee absent as a witness in a private matter shall not be entitled to be paid during such absence.
Nothing herein shall be deemed to affect the right of the City Manager to discuss with an employee the possibility and practicability of seeking an exemption or excuse from jury duty or as a witness as may legally be available, when absence by the employee would create undue hardship for the employee or his/her department, or would materially affect required service to the public.
Approved/Amended: September 8, 2021 June 28, 2023
Item 36.
City of Coachella - Salary Schedule
Management Group
7% COLA Effective July 1, 2023
(Revised by Council 6/28/23; Resolution No. 2023-31)
APPENDIX A
Management Compensation Plan - 7/1/23-6/30/27
Group I Step A B C D E
City Engineer h 77.81 81.70 85.78 90.07 94.58
m 13,486.65 14,160.98 14,869.03 15,612.48 16,393.11
a 161,839.78 169,931.77 178,428.36 187,349.77 196,717.26 Community Development Director h 82.29 86.41 90.73 95.27 100.03 m 14,264.86 14,978.10 15,727.01 16,513.36 17,339.02
a 171,178.30 179,737.22 188,724.08 198,160.28 208,068.29 Economic Development Director h 77.81 81.70 85.78 90.07 94.58 m 13,486.65 14,160.98 14,869.03 15,612.48 16,393.11
a 161,839.78 169,931.77 178,428.36 187,349.77 196,717.26 Finance Director h 83.06 87.21 91.57 96.15 100.96
m 14,396.43 15,116.25 15,872.06 16,665.67 17,498.95
a 172,757.15 181,395.01 190,464.76 199,988.00 209,987.40 Public Works Director h 81.08 85.13 89.39 93.86 98.55
m 14,050.67 14,753.20 15,490.86 16,265.41 17,078.68
a 168,608.05 177,038.46 185,890.38 195,184.90 204,944.14 Group II Step A B C D E
Assistant Community Development h 65.61 68.89 72.33 75.95 79.74 Director m 11,371.59 11,940.17 12,537.18 13,164.04 13,822.24 a 136,459.10 143,282.06 150,446.16 157,968.47 165,866.89 Controller h 65.61 68.89 72.33 75.95 79.74
m 11,371.59 11,940.17 12,537.18 13,164.04 13,822.24
a 136,459.10 143,282.06 150,446.16 157,968.47 165,866.89 Human Resources Manager h 65.61 68.89 72.33 75.95 79.74 m 11,371.59 11,940.17 12,537.18 13,164.04 13,822.24
a 136,459.10 143,282.06 150,446.16 157,968.47 165,866.89 Public Information Officer h 55.11 57.86 60.76 63.79 66.98 m 9,551.76 10,029.35 10,530.82 11,057.36 11,610.23
a 114,621.16 120,352.22 126,369.83 132,688.32 139,322.74 Utilities Manager h 65.61 68.89 72.33 75.95 79.74
m 11,371.59 11,940.17 12,537.18 13,164.04 13,822.24
a 136,459.10 143,282.06 150,446.16 157,968.47 165,866.89
Item 36.
City of Coachella - Salary Schedule
Management Group
5% COLA Effective July 1, 2024
(Revised by Council 6/28/23; Resolution No. 2023-31)
APPENDIX B
Management Compensation Plan - 7/1/23-6/30/27
Group I Step A B C D E
City Engineer h 81.70 85.78 90.07 94.58 99.31
m 14,160.98 14,869.03 15,612.48 16,393.11 17,212.76
a 169,931.77 178,428.36 187,349.77 196,717.26 206,553.13 Community Development Director h 86.41 90.73 95.27 100.03 105.03 m 14,978.10 15,727.01 16,513.36 17,339.02 18,205.98
a 179,737.22 188,724.08 198,160.28 208,068.29 218,471.71 Economic Development Director h 81.70 85.78 90.07 94.58 99.31 m 14,160.98 14,869.03 15,612.48 16,393.11 17,212.76
a 169,931.77 178,428.36 187,349.77 196,717.26 206,553.13 Finance Director h 87.21 91.57 96.15 100.96 106.01
m 15,116.25 15,872.06 16,665.67 17,498.95 18,373.90
a 181,395.01 190,464.76 199,988.00 209,987.40 220,486.76 Public Works Director h 85.13 89.39 93.86 98.55 103.48
m 14,753.20 15,490.86 16,265.41 17,078.68 17,932.61
a 177,038.46 185,890.38 195,184.90 204,944.14 215,191.35 Group II Step A B C D E
Assistant Community Development h 68.89 72.33 75.95 79.74 83.73 Director m 11,940.17 12,537.18 13,164.04 13,822.24 14,513.35 a 143,282.06 150,446.16 157,968.47 165,866.89 174,160.23 Controller h 68.89 72.33 75.95 79.74 83.73
m 11,940.17 12,537.18 13,164.04 13,822.24 14,513.35
a 143,282.06 150,446.16 157,968.47 165,866.89 174,160.23 Human Resources Manager h 68.89 72.33 75.95 79.74 83.73 m 11,940.17 12,537.18 13,164.04 13,822.24 14,513.35
a 143,282.06 150,446.16 157,968.47 165,866.89 174,160.23 Public Information Officer h 57.86 60.76 63.79 66.98 70.33 m 10,029.35 10,530.82 11,057.36 11,610.23 12,190.74
a 120,352.22 126,369.83 132,688.32 139,322.74 146,288.87 Utilities Manager h 68.89 72.33 75.95 79.74 83.73
m 11,940.17 12,537.18 13,164.04 13,822.24 14,513.35
a 143,282.06 150,446.16 157,968.47 165,866.89 174,160.23
Item 36.
City of Coachella - Salary Schedule
Management Group
4% COLA Effective July 1, 2025
(Revised by Council 6/28/23; Resolution No. 2023-31)
APPENDIX C
Management Compensation Plan - 7/1/23-6/30/27
Group I Step A B C D E
City Engineer h 84.97 89.22 93.68 98.36 103.28
m 14,727.42 15,463.79 16,236.98 17,048.83 17,901.27
a 176,729.04 185,565.49 194,843.77 204,585.95 214,815.25 Community Development Director h 89.87 94.36 99.08 104.03 109.23 m 15,577.23 16,356.09 17,173.89 18,032.59 18,934.21
a 186,926.70 196,273.04 206,086.69 216,391.03 227,210.58 Economic Development Director h 84.97 89.22 93.68 98.36 103.28 m 14,727.42 15,463.79 16,236.98 17,048.83 17,901.27
a 176,729.04 185,565.49 194,843.77 204,585.95 214,815.25 Finance Director h 90.70 95.24 100.00 105.00 110.25
m 15,720.90 16,506.95 17,332.29 18,198.91 19,108.85
a 188,650.81 198,083.35 207,987.52 218,386.89 229,306.24 Public Works Director h 88.54 92.96 97.61 102.49 107.62 m 15,343.33 16,110.50 16,916.02 17,761.83 18,649.92
a 184,119.99 193,325.99 202,992.29 213,141.91 223,799.00 Group II Step A B C D E
Assistant Community Development h 71.64 75.22 78.98 82.93 87.08 Director m 12,417.78 13,038.67 13,690.60 14,375.13 15,093.89 a 149,013.34 156,464.01 164,287.21 172,501.57 181,126.64 Controller h 71.64 75.22 78.98 82.93 87.08
m 12,417.78 13,038.67 13,690.60 14,375.13 15,093.89
a 149,013.34 156,464.01 164,287.21 172,501.57 181,126.64 Human Resources Manager h 71.64 75.22 78.98 82.93 87.08 m 12,417.78 13,038.67 13,690.60 14,375.13 15,093.89
a 149,013.34 156,464.01 164,287.21 172,501.57 181,126.64 Public Information Officer h 60.18 63.19 66.34 69.66 73.14 m 10,430.53 10,952.05 11,499.65 12,074.64 12,678.37
a 125,166.31 131,424.62 137,995.85 144,895.65 152,140.43 Utilities Manager h 71.64 75.22 78.98 82.93 87.08
m 12,417.78 13,038.67 13,690.60 14,375.13 15,093.89
a 149,013.34 156,464.01 164,287.21 172,501.57 181,126.64
Item 36.
City of Coachella - Salary Schedule
Management Group
3% COLA Effective July 1, 2026
(Revised by Council 6/28/23; Resolution No. 2023-31)
APPENDIX D
Management Compensation Plan - 7/1/23-6/30/27
Group I Step A B C D E
City Engineer h 87.52 91.89 96.49 101.31 106.38
m 15,169.24 15,927.70 16,724.09 17,560.29 18,438.31
a 182,030.91 191,132.46 200,689.08 210,723.53 221,259.71 Community Development Director h 92.56 97.19 102.05 107.15 112.51 m 16,044.54 16,846.77 17,689.11 18,573.56 19,502.24
a 192,534.51 202,161.23 212,269.29 222,882.76 234,026.89 Economic Development Director h 87.52 91.89 96.49 101.31 106.38 m 15,169.24 15,927.70 16,724.09 17,560.29 18,438.31
a 182,030.91 191,132.46 200,689.08 210,723.53 221,259.71 Finance Director h 93.42 98.09 103.00 108.15 113.55
m 16,192.53 17,002.15 17,852.26 18,744.87 19,682.12
a 194,310.33 204,025.85 214,227.14 224,938.50 236,185.42 Public Works Director h 91.19 95.75 100.54 105.57 110.84 m 15,803.63 16,593.81 17,423.51 18,294.68 19,209.41
a 189,643.59 199,125.77 209,082.06 219,536.17 230,512.97 Group II Step A B C D E
Assistant Community Development h 73.79 77.48 81.35 85.42 89.69 Director m 12,790.31 13,429.83 14,101.32 14,806.38 15,546.70 a 153,483.74 161,157.93 169,215.82 177,676.61 186,560.44 Controller h 73.79 77.48 81.35 85.42 89.69
m 12,790.31 13,429.83 14,101.32 14,806.38 15,546.70
a 153,483.74 161,157.93 169,215.82 177,676.61 186,560.44 Human Resources Manager h 73.79 77.48 81.35 85.42 89.69 m 12,790.31 13,429.83 14,101.32 14,806.38 15,546.70
a 153,483.74 161,157.93 169,215.82 177,676.61 186,560.44 Public Information Officer h 61.98 65.08 68.33 71.75 75.34 m 10,743.44 11,280.61 11,844.64 12,436.88 13,058.72
a 128,921.30 135,367.36 142,135.73 149,242.52 156,704.64 Utilities Manager h 73.79 77.48 81.35 85.42 89.69
m 12,790.31 13,429.83 14,101.32 14,806.38 15,546.70
a 153,483.74 161,157.93 169,215.82 177,676.61 186,560.44
Item 36.
STAFF REPORT
6/28/2023
TO: Honorable Mayor and City Council Members
FROM: Anahi Fernandez, Management Analyst
SUBJECT: City of Coachella Resident Engagement Academy
STAFF RECOMMENDATION:
Staff recommends that the City Council authorize establishment of a Resident Engagement Academy for the City of Coachella and provide staff feedback.
BACKGROUND:
The City of Coachella General Plan encourages active community engagement with City of Coachella residents as a “high priority” with a short implementation timeframe of 2 to 4 years after Plan adoption. The General Plan encourages the City to work with partner agencies to create minimum protocols for community outreach and engagement processes for different types of municipal decisions so community members can easily learn about input opportunities and know how to best contribute in the City.
In 2013, the City of Coachella participated in the “Coachella Civic Engagement Academy” (CCAE), which was a conceptual product that resulted from a 1-year collaboration between the City and partner organizations working on the City’s General Plan Update. The CCAE focused on developing a system of community empowerment in the City, while also bridging traditional gaps between community and government. Although the concept was not implemented, the main purpose of the CCAE was to:
1. To create a space where community members can have an opportunity learn about decision-making processes, local government functions and operations, and their impact on the public’s health, and
2. To develop an avenue for the City of Coachella’s leadership to communicate its roles and functions and to raise an objective awareness of civic participation’s barriers.
DISCUSSION/ANALYSIS:
The establishment of a Resident Engagement Academy in the City of Coachella is fundamental as it plays a key role in the implementation of the City’s General Plan and has been in the works for the past 10 years. The academy is set to be an interactive civic education program for Coachella
Item 37.
residents that will develop an avenue for the City to communicate its roles and functions and increase civic engagement in the City. The goals and purpose of the Resident Engagement Academy are as follows:
1. Inform the community regarding city government and the decision-making process
2. Provide residents with input opportunities
3. Teach residents how they can contribute to the City
4. Generate active citizens with a sense of belonging
The Resident Engagement Academy would be scheduled to start in the fall of 2023 with a group of up to 25 Coachella residents. Outreach would begin in the Summer through the City’s social media platform and flier postings in both English and Spanish. The following Academy modules are proposed and were identified discussion between local nonprofit, county and local government entities:
1. History of Coachella
2. Parks and Recreation
3. Wastewater and Water Utilities
4. City Finances
5. Land Use Planning/Building and Safety
6. Engineering and Streets
7. Community Health and Wellness
8. Community Engagement.
City Directors and Managers would facilitate each module based on their discipline, which will include a presentation and interactive group activity. At the conclusion of the Academy, participants would be presented with certificates at a closing ceremony in recognition of their participation. Staff has communicated with the Riverside University Health System to provide evaluation services for the program to determine the program’s effectiveness in increasing civic engagement and awareness of City government.
Staff seeks additional feedback and direction from the City Council in the implementation a Resident Engagement Academy in the City.
FISCAL IMPACT:
The provision of meals is budgeted for each Academy meeting in the Fiscal Year 23-24 budget for the Development Services Department. The program is designed to minimize the use of City resources and will be hosted in the conference rooms of the Coachella Library.
ATTACHMENTS:
1. 2013 Coachella Civic Engagement Academy Report
2. General Plan Implementation Actions
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Coachella Civic Engagement Academy
Final Project
The California Leadership Academy for the Public’s Health February 21, 2013
Eastern Coachella Valley Team:
Cristina Mendez , Community Worker, California Rural Legal Assistance Gabriel Perez, Senior Planner, City of Coachella
Karen Borja, Community Organizer, Inland Congregations United for Change Miguel A. Vazquez, AICP Healthy Communities Planner,
Riverside County Department of Public Health
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Coachella Civic Engagement Academy Page 2
Coachella Civic Engagement Academy
Background
The Coachella Civic Engagement Academy (CCEA) is the conceptual product that resulted from 1-year collaboration between a selected group of individuals from partner organizations working on the City of Coachella’s General Plan Update. The organization and participants are:
California Rural Legal Assistance—Cristina Mendez1, Community Worker City of Coachella—Gabriel Perez, Senior Planner
Inland Congregations United for Change—Karen Borja, Community Organizer Riverside County Department of Public Health—Miguel A. Vazquez, AICP Healthy Communities Planner
This team came together through an invitation from The California Endowment to participate in the California Leadership Academy for the Public's Health (CaLAPH)—a project of the Center for Health and Leadership & Practice. The CaLAPH is designed to “develop a multi-sector and trans-disciplinary network of transformative change agent leaders in California. These leaders will have the commitment and capacity to lead the policy, systems, and community change needed to improve community health and health equity in California”.
After much brainstorming, debate and coaching, the team decided to focus its attention on developing a system of community empowerment. The Coachella Civic Engagement Academy is the first attempt to bridge traditional gaps between community and government. The main purpose of the CCAE is twofold:
1. To create a space where community members can have an opportunity learn about decision-making processes, local government functions and operations, and their impact on the public’s health, and
2. To develop an avenue for the City of Coachella’s leadership to communicate its roles and functions and to raise an objective awareness of civic participation’s barriers.
1 Cristina Mendez is no longer in the position as a Community Worker for the California Rural Legal Assistance but is still providing support for the CCEA project.
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Coachella Civic Engagement Academy Page 3
Introduction
This report identifies a framework for a Coachella Civic Engagement Academy (CCEA) as a vehicle to provide residents with opportunities and resources to increase civic engagement in the City of Coachella. For the purpose of this project, civic engagement is defined as “activities such as voting, participating in community meetings, volunteering and membership in community associations”. To this end, a key component for towards civic engagement is the existence of a capacity building system that supports bilateral education and awareness between local government and community at large. Based on our collaborative experience our team identified the lack of civic engagement in the City of Coachella as a major barrier in addressing health disparities not only in the City, but also throughout communities located in the eastern part of the Coachella Valley. We believe the lack of civic engagement is largely attributed to structural barriers and demographic characteristics in the City of Coachella. Civic engagement is essential for healthy communities since there are major decisions made in the public interest by local agencies. Healthy communities are created by residents that are active in local government and engage in the decision that take place in their communities. The primary focus of our project is the City of Coachella as the responsible agency for local decisionmaking and is where many structural barriers to civic engagement may be encountered.
The City of Coachella is 96% Latino, low-income, largely Spanish-speaking with a low level of educational attainment. Research indicates that individuals with higher levels of education tend to be more civically engaged.2 In the 2012 November elections, the voter registration numbers were considerably different between the City of Coachella and the nearby City of Palm Desert, of comparable population size. In the November 2012 Presidential election, there were 25,044 registered voters (51% registered) in Palm Desert with a total population size of 48,445, compared to 9,795 registered voters (24% registered) in the City of Coachella with a population size of 40,707. Voter turnout in the November 6, 2012 Presidential election showed a turnout of 5,883 people or 60% for the City of Coachella compared to a turnout of 20,136 or 80% for the City of Palm Desert. In Coachella 55% of residents have less than a high school education compared to 10.8% in the nearby City of Palm Desert with a similar population size. Since there is a positive correlation between educational attainment and civic engagement, we may be able to conclude that the City of Coachella may also have the lowest level of civic engagement in the Coachella Valley since it also has the lowest level of educational attainment.
2 Verba, S., Scholzman, K.L., and Brady, H (1995) “Voice and equality: Civic Voluntarism in American Politics.” Harvard University Press.
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Coachella Civic Engagement Academy Page 4
The per capita income in the City of Coachella is considerably low at $11,685, versus $40,784 in the City of Palm Desert. Higher economic inequality leads to less trust and in turn lower rates of volunteering.3
In Coachella 88.4% of residents speak Spanish at home and 43.4% Speak English less than “very well.” In the City of Palm Desert only 7.9% of residents speak English less than “very well.” This means that nearly half of Coachella residents are at a distinct disadvantage since the official business at the local, county, state and national level is conducted in English. The City Council and Planning Commission meetings are conducted primarily in English, though translation services are available to residents on an as needed basis. All documents related to items for consideration by these decision-making bodies are largely printed in English. All Zoning and General Plan documents that include all standards and policies in the City are all printed in English. Since nearly half of the residents of the City of Coachella do not Speak English very well, many may be disengaged since they do not understand the language in which official business is conducted and they do not understand dominant cultural norms.
Research indicates that greater civic knowledge among residents leads to support for democratic values, promotes political participation, and builds trust in government and elected officials.
4 The less connected and involved residents are in the local political process, the less likely they are to be able to influence decisions that are made about their communities and can lead to disenfranchisement. Civic knowledge helps residents understand their interests as individuals and as members of groups. The more knowledge residents have the more readily they can connect with and defend their interests in the political process.5 The Eastern Coachella Valley CALAPH group decided that a civic engagement academy would serve as a way to address structural barriers and demographic challenges to civic engagement in Coachella. Civic engagement academies have been implemented in other local jurisdictions in Southern California such as the cities of Chula Vista and Riverside to increase civic engagement. These academies provide a group of residents selected for the academy with knowledge about the operation of local government and important local issues.
The Coachella Civic Engagement Academy is designed to lead to the following outcomes:
1. Residents are comfortable to participate in local government decision-making.
2. Residents understand how their City government functions.
3. Residents can clearly communicate how City of Coachella operates.
4. Resident are more civically engaged.
3 Uslaner, Eric and Brown, Mitchell (2005) “Inequality, Trust, and Civic Engagement” Sage Publications. 4 William A Galston, “Civic Education and Political Participation,” Political Science Online, April 2004. 5 Ibid.
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Coachella Civic Engagement Academy Page 5
5. Residents understand the connection between City government and its impacts on public health.
6. City leaders are able to communicate the functions of the local government and City departments clearly.
7. City leaders are more aware of barriers to local civic participation.
Discussions between local nonprofit, county and local government entities have led to a consensus of the topics that would shape the curriculum for the academy. We believe the Coachella Academy would be unique since it involves collaboration and exchange between government and community organizations. These topics for the Academy would include the following:
1. History of Coachella
2. Parks and Recreation
3. Wastewater and Water Utilities
4. City Finances
5. Land Use Planning/Building and Safety
6. Engineering and Streets
7. Community Health and Wellness
8. Community Engagement.
Structure of the Coachella Civic Engagement Academy
Figure 1: The CCEA is envisioned as a cyclical process with the agency partners providing logistical support and information sharing with academy participants. It is expected that the groups will also learn from the CCEA participants. The participants will be equipped to share information from the CCEA with other residents. The expected outcome is increased civic engagement, including more resident interest in local elected office and more participation in City commissions and/or community organizations.
Community Organizations
ICUC, CRLA
City of Coachella County of Riverside Dept. of
Public Health
Coachella Civic Engagement Academy
Youth - Adults - Seniors
City of Coachella residents
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Coachella Civic Engagement Academy Page 6
Coachella Civic Engagement Academy
Topic 1: HISTORY OF COACHELLA
Purpose: To share the informational history of the City of Coachella (when the city was first settled, who settled it, where did the name come from, who was here, how big was the city with people and land, who has lived here, our incorporation and why, 2-3 social movements, our political history).
Session leader: CALAPH Member
Guest presenters: Librarian of Coachella, former political leaders [Mayors, council members, Union Organizers, organizers], elders, maybe even the mayor.
Agenda:
1. How long have you lived in Coachella? [one important change since you’ve started living here?]
2. Introduction to the CCEA and sharing of the information and expectations for the program.
3. Presentation of History of the City of Coachella by invited guest such as librarian or former councilmembers. Other guests can share social change experiences in the City, and a union representative or organizer to share experiences of social change and the relevance of those experiences to the lives of the community presently. City of Coachella will share archive of historical photos. Participants will be asked to share historical photos they own that they would like to share with the group. Invite guest speakers to add on to any historical research.
4. Questions & Answer section
5. (Next Steps) What is the Coachella legacy you want to leave behind? [Visioning]
6. Group Task: Identify an upcoming City public meeting to attend.
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Coachella Civic Engagement Academy Page 7
Topic 2: PARKS AND RECREATION
Purpose: To share information on the operations of the Parks and Recreation division and other park and recreation providers. The session will discuss the latest improvements and challenges for the City Parks and Recreation division. The session will also discuss the impact of parks and recreation on creating positive community health outcomes and the role community members can play in improving parks and recreation opportunities.
Guests: Maritza Martinez (Public Works Director), Steve Salado (Parks and Recreation Superintendent), Community Organization Member, City of Coachella Parks and Recreation Commissioner, Sports League representative
Other Parks and Recreation stakeholders:
Public Works Dept., City of Coachella Parks and Recreation Commission, Desert Recreation District, Coachella Senior Center, Baseball Leagues, Football and Soccer Leagues, Youth Clubs and Organizations.
Activity: Field Trip
Agenda:
1. Introduce members to existing and planned community parks and spaces. a. Number of parks
b. City and State Park Standards
c. Map of existing public facilities.
2. Inform residents of the list of recreational organizations listed in the City’s web-site, and add additional programs that may not be listed. Ask if any group is missing in the list of players/participants in this department?
3. Discuss the Department’s budget, the source, and financial responsibilities.
4. Field Trip: Visit up to two parks with City staff (Bagdouma Park and Rancho Las Flores)
5. Evaluate the current programs and lists to see if they’re responsive to the community’s leisure, physical, cultural, and social programs needs. a. Such as an enclosed facility in the summertime and what are the possible ways to make it happen
b. Discuss ways in which residents and city department can better promote safety, preservation of park space, graffiti abatement, etc.
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Coachella Civic Engagement Academy Page 8
Topic 3: WASTEWATER AND WATER AGENCIES OF COACHELLA
Purpose: Share information on importance of the Wastewater and water agencies of the City of Coachella including customer usage information [importance of water and water for our community, how many people do water business with Coachella, what parts of the city have water lines/pipes/etc., water history- infrastructure/managing/pricing etc.] Session leader: CALAPH Member
Guest: City employees- Utilities Manager, City Manager, city employees that work at the plants and read meters etc.,
Activity: FIELD TRIP to City of Coachella Wastewater Treatment plant Agenda:
1. Intro Question: How many of you know what it takes to get water to your faucet?
2. TAKE FIELD TRIP!
3. Invite guest speakers to add on to any research. Where our water comes from; the difference between having a municipal water agency and privatizing; little known facts about City operations that residents may be interested; the cost to keep the water facilities in operation; Individual resident responsibilities with household services and the do’s and don’ts; history of water for the City; how clean drinking water is secured for the City.
4. Costs of water and wastewater operation and their relationship to household utility charges.
5. Questions & Answer section
6. (Next Steps) How does water protect our City? [Visioning]
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Coachella Civic Engagement Academy Page 9
Topic 4: CITY OF COACHELLA FINANCE DEPARTMENT
Purpose: Share with people the reasons to understand city finances and budget in order to have a realistic perspective of what can be achieved through means of the city and what cannot. Share community issues such as water and how the budget is affecting water rates.
Session leader: CALAPH team member
Guests: Bill Pattison (City Finance Director), Council Member, David Garcia (City Manager) Agenda:
1. Intro Questions: Where do you think most revenue for the city is generated from? Where do you think the least amount of revenue is generated?
2. Interactive Activity: Each person is designated as their own Finance Director for their own imaginary City and is provided with a designated amount of funds and responsible creating a budget for determining how the funds will be distributed for City’s service obligations. Each person will share their budget and their experiences.
3. Invite City Finance Director to share with the community a simple version of the city budget, how to understand it, where to find it. Ensure that people are aware of how revenue comes into the city and how money must be spent. Share with people the biggest expenditures and why they have to be set up in a city as large as Coachella.
Inform people of those who with the responsibility to organize the budget and important dates.
4. Questions and Answer
5. Next Steps: How can city residents participate with the city in creating the next budget?
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Coachella Civic Engagement Academy Page 10
Topic Area 5: Land Use, Planning and Building and Safety Purpose: To inform residents of the Land Use, Planning, Building and Safety responsibilities of the City of Coachella. Residents will learn about the development process in the City and how the built environment impacts the financial and public health of the community. Residents will also learn about the avenues to participate in these processes and discuss ways to improve community engagement in these efforts.
Session Leader: Planning Division, Building, and Code Enforcement Location: City Hall
Agenda:
1. Community Activity- (Break out into groups with a map)
1. Identify the things that are the most positive in your community.
2. Identify the things that you view as negative or as challenges.
3. What is your vision on how Coachella will grow in the next 20 years?
2. Why is Planning Important? Staff Presentation on Planning and Building Operations
1. Police Power over the Use of Land
2. Stakeholder map- City Council, City Staff, residents, businesses, developers
3. Planning History
4. Planning Documents- General Plan and Zoning Code
5. Zoning in the City
6. Code Enforcement
7. Identify important Planning Issues
8. Planning Trends- Smart Growth, Health, Art in Public Places
9. Costs of operations and revenues from Planning services.
3. Community Participation: Discussion
4. Question and Answer
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Coachella Civic Engagement Academy Page 11
Topic Area 6: Engineering and Streets
Purpose: To provide information on the role of the Engineering Department on the operation and safety of streets and transportation system in the City of Coachella. To share City plans to create complete streets and provide opportunities for all modes of transportation.
Session Leader: Engineering Dept and Public Works Department, Sunline Transit Agency, Riverside County Safe Routes to School representative.
Location: City Hall
Activity: Walking Audit (Downtown 6th Street)
Agenda:
1. Walking Audit (Identify Location)
a. Identify Safety hazards
b. Identify barriers for automobiles, pedestrians, and bicycles c. Wrap-Up with identified solutions
2. Presentation by City Engineer
a. Engineering Operations
b. Planned Projects
c. Capital Improvement Projects
d. Complete Streets
e. Safe Routes to School
3. Question and Answer
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Coachella Civic Engagement Academy Page 12
Topic 7: Community Health and Wellness through prevention Purpose: To understand the local efforts to improve health outcomes including the City’s new Community Health and Wellness Element. The session will also identify the importance of healthy living in Coachella at a City-wide, neighborhood, family, and individual level.
Session leader: CALAPH Member
Guest: Riv Co. Mental Health Official, Riv Co, Nutritionist Activities.
1. Cooking a healthy meal in a group
2. Conduct a group physical activity that all participants can do together
3. Review health-related maps from the City of Coachella’s Health and Wellness element Agenda:
1. Happiness. Define happiness and discuss how happiness makes us healthy and vice versa
2. Healthy habits begin at home. Discuss ways to stay healthy at home a. An agent of healthy behavior. Discuss how our behavior can influence our neighborhood.
b. Discuss Creativity as a method to influence healthy behaviors.
3. Discuss Health Conditions in the City of Coachella
4. Discuss the City of Coachella’s Health and Wellness Element
5. The Food Environment. Discuss food value in terms of costs and nutrition
6. Physical Activity. Discuss the value of embedding physical activities throughout the day.
Take this opportunity to discuss building physical strength and value for cardiovascular health.
7. Healthy in Coachella. Discussion.
a. What does it mean to be healthy in Coachella
b. How can the City of Coachella help provide opportunities for healthy living?
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Coachella Civic Engagement Academy Page 13
c. How does health link to the other topics of this academy?
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Coachella Civic Engagement Academy Page 14
Topic 8: COMMUNITY ENGAGEMENT
Purpose: Showcase the various options participants have in getting involved and creating change after the academy. Talk more about commissions that exist and explore which others could be developed and how. Also talk about the power voting can have in civic participation, and explore other means of participation.
Session Leader: CALAPH Team Member
Guest: Organizations that engage residents in the community, City Commission members Activity: Community organization fair.
Agenda:
1. Leading Question: Have you ever been a part of a group or committee in your city, neighborhood, school? If you could create a committee with people to do one thing in the City of Coachella, what would that committee be?
2. Invite guest to set up tables/panel, to have participants learn the different work the organizations are engaging in currently.
3. Questions, comments, evaluation
4. Next Steps: What commission/organization are you committed to perfroming 10 hours of community service with?
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Coachella Civic Engagement Academy Page 15
CCEA LOGISTICS
The Coachella Civic Engagement Academy will be hosted primarily at Bagdouma Community Center.
There will be activities that lead participants to other locations such as city hall, the corporate yard, or the water treatment plant; all within city limits.
The team will invite people who are known to have shown interest in civic participation; the team will make those specific invitations through one to one conversations. Current city commission members will be highly sought after and invited specifically as well. Still, a simple application is to be available to all city residents- the program will only be accepting twenty-five participants for the first academy. A clear goal is to insure a successful academy promotes new and varied residents to participate in the forthcoming academies.
Due to the large Spanish- monolingual population of the City of Coachella, the academy will be bilingual with the aid of translators and translation equipment. Sessions, no longer than four hours at a time, will be held on 8 Saturdays over a period of 2 months. Once the academy cycle has come to a close, a graduation ceremony will be hosted at a local city council meeting. Participants will be recognized by the council and presented with a “City of Coachella” pendant. At the ceremony, participants will share where they will be investing their ten hours of community service following the academy to the community.
The academy team will have to also plan roles that will be on going throughout the academy and a budget that includes printing, food, speakers, possibly gas. The different ongoing roles anticipated are of timekeeper, discussion moderator, welcome crew, set-up crew, phoning and/or email lead. There is the strong possibly that these roles be filled with academy team members for starters and later developed as leadership roles for the participants.
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Coachella Civic Engagement Academy Page 16
EVALUATION
Purpose: In order to build a genuine relationship and bridge between community residents, and City representatives and structures, we hope to better understand which sessions and information in this Civic Engagement Academy are of most use and interest to you as a City of Coachella resident and participant. We hope this feedback will let us see if we’re building bridges, thus, accomplishing our goal and the opportunity to improve as we learn together. We provide a few sample questions to serve as conversation starters and to be discussed in a group setting in order to learn from each others’ learning experiences and evaluation. Also, we want to give everyone the opportunity to share your ideas, comments and suggestions in an individual and private manner.
Leader: Community Organization Leader, Mayor, City Council Member, and/or City Commission Member
Group Evaluation:
What information topic was most useful to you?
What data have you been able to utilize in your personal life? Do you have a better understanding of how decisions are made in your community? Are there any suggestions for the Community Engagement Academy Team for the next session? How many of you attended council meetings, wrote letters, and/or made phone calls to inquire or learn about a situation in the city?
How many of you volunteered service hours to any group/organization in the community? How many of you would recommend the academy to your peers or neighbors? Do you have people in mind who could benefit from this learning experience? Individual Evaluation:
What part of the Program was most useful to you? What activity did you learn from the most? What suggestions do you have? What areas can we improve on?
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IMPLEMENTATION ACTIONS | 12-1
For some topics in this General Plan, the new adopted policies are sufficient to realize certain goals. However, most goals will require additional implementation actions to help make those operational. This section ties together the goals and policies in the General Plan. The following pages contain actions organized under each of the General Plan Elements (except for Housing) to realize the vision for Coachella's future. These are generally onetime actions needed to mobilize and execute specific policies within the General Plan, such as creating an ordinance or updating a master plan. The actions are in the following order:
1. Land Use + Community Design (LU)
2. Mobility (M)
3. Community Health + Wellness (CHW)
4. Sustainability + Natural Environment (SNE)
5. Safety (S)
6. Infrastructure + Public Services (IPS)
7. Noise (N)
Coachella is a smaller city, with big ideas and a clear vision of its future. The City staff and elected officials welcome and encourage community organizations, the business community, other public agencies, neighborhood groups and passionate individuals to help implement many of these actions. The City and community members have endorsed all of the action items below. While, some items are marked as “low” priority, that should not preclude any partner organization or individual from making it a “high” priority in their own work in collaboration with the City.
In the matrix that follows, each implementation action includes the following information:
# ACTION DESCRIPTION PRIORITY TIME FRAME RESPONSIBILITY RELEVANT GOALS Each action is
numbered as a
comprehensive
list for each
element
An actionable description of the
implementation action. Some
actions include end-note references
to supportive background material
or example projects.
Action items are marked as “High”, “Medium”, or “Low”
depending on community and staff input throughout the
process. Some of the criteria that helped determine priority included:
Cost.
Feasibility.
Whether the action would help engage and empower
residents.
Whether action could improve or enhance existing
programs/infrastructure (instead of create something
new).
A broad timeframe that refers to when the action
should be implemented. The timeframes are as
follows:
Immediate – Current/ongoing projects or
within one year of Plan adoption.
Short – Within 2 to 4 years of Plan
adoption.
Medium – Between approximately 5 and 7
years of Plan adoption.
Long – 10+ years after Plan adoption.
Ongoing – Reoccurring or immediate
action.
Identification of the
agency or department
responsible for
implementing the action.
List of goal(s) that the action item
will help implement. Goals will be
listed with the Element title
acronym and the goal number. For
example an action that implements
Goal 3 from the Land Use +
Community Design Element and
Goal 2 from the Community Health
+ Wellness Element, this column
would contain “LU-3, CHW-2”.
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IMPLEMENTATION ACTIONS | 12-2
# ACTION DESCRIPTION PRIORITY TIME
FRAME
RESPONSIBILITY RELEVANT
GOALS
1. Zoning ordinance update. Following the adoption of the General Plan, update Coachella’s Zoning Ordinance. The City Council and planning staff should explore and/or modify the following items in addition to others in line with the Plan’s vision. The zoning consistency analysis can be found in Appendix C. Update the zoning code and official Zoning Map to comply with and implement the General Plan Designations and General Plan Designation Map. Update the zoning code to encourage creative leisure and recreational uses in transit accessible and walkable areas. Create a park once district.
Establish climate-appropriate, design guidelines that recommend best practices for passive heating and cooling in Coachella’s climate. Develop an incentive program that will assist developers in revitalizing existing structures. Develop an incentive program to encourage and assist developers to develop along transit routes and to revitalize existing structures. Create bicycle parking and storage requirements for all new development (or remodeling/rebuilding to the extent feasible) to cover a broad range of bike parking needs, including parking in multi-family residential dwellings, employee parking for commuters and general purpose parking in commercial areas, civic facilities and parks. Collaborate with the School Districts to provide adequate bicycle parking facilities for students and staff. Require a certain proportion or number of units in each residential development to include universal design elements, ensuring easy modifications to accommodate wheelchairs.
Establish community gardens in appropriate locations and set forth basic regulations for community gardens, such as creation, maintenance, and operating rules. Allow food gardening by right in residential open space areas, including front, back, and side yard space. Prevent schools and other sensitive receptors from locating near known or expected new sources of air pollution and vice versa. The specific “safe” distance from a pollution source is dependent on the source and amount of pollution releases; however, a good rule of thumb is at least 500 feet from busy roadways, highways, and stationary sources.
When permitting new child-care facilities, require them to submit a customized, or adopt a standard, wellness policy plan to address physical activity programs, interdisciplinary nutrition education and provide meals and snacks that are consistent with current guidelines established by the US Department of Agriculture. Allow physicians and other medical providers to convert foreclosed or other vacant residential structures into neighborhood health clinics. The City may set restrictions (such as hours of operation, parking, signage, and services offered) to ensure the clinic is not a burden to the neighborhood. Strive for and encourage all new health and social service facilities to be transit-accessible and pedestrian-friendly. Work with Sun Line to improve transit routes and Sun Dial (Dial a Ride) access to service related facilities. Encourage the co-location of medical healthcare, mental/behavioral health and social services to increase access to care. Update development standards and/or create a development checklist to incorporate climate change adaption techniques into the development process. Establish minimum tree planting requirements and guidelines for different sub areas, development types, street trees and parking lot landscaping to ensure the City’s urban forest/tree canopy is extensive and well maintained. These requirements should also address drought tolerant and native plants and landscaping to reduce overall water usage.
Allow and encourage the creation of legal accessory dwelling units (ADUs) to enhance the diversity of housing options in existing residential neighborhoods. ADUs may be detached or attached to the principal structure. Require below market rate units to come in a mix of sizes/number of bedrooms to address the need for affordable housing for different household types. Require developers/contractors to recycle at least 50 percent of all construction and demolition waste. Allow and incentivize renewable energy and energy efficiency technologies. Identify and remove regulatory or procedural barriers to implementing green building practices within the City, such as updating codes, guidelines and zoning, and ensure that all plan review and building inspection staff are trained in green building design practices and techniques. Identify appropriate buffers between agricultural and urban uses. Develop standards to provide for cluster development and conservation design to minimize the impacts of urban development on areas where sensitive species are identified.
Identify standards for green roofs.
Create guidelines/requirements for permeable paving.
Expand allowances for home occupations/businesses in residential areas. Reduce parking minimum requirements in projects where the developer conducts a traffic study to determine that unbundled parking and other measures will reduce the number of spaces required per unit.
High Short Planning LU-1
LU-2
LU-3
LU-5
M-1
M-4
M-7
CHW-5
CHW-8
CHW-9
SNE-1
SNE-2
SNE-4
SNE-5
SNE-9
SNE-11
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IMPLEMENTATION ACTIONS | 12-3
2. Design guidelines update. Update the City’s design guidelines to encourage human-scale urban design at the neighborhood-, block-, and building-scale to promote walkability and social interaction. Elaborate and expand upon the contents of the Land Use + Community Design and Mobility Elements. Guidelines should specify how development along existing and planned transit lines should provide convenient, direct and safe connections to nearby transit stops and integrate transit stops into public space designs.
Medium Medium Planning
Engineering
LU-2, LU-3
LU-5
LU -6
3. Healthy development review. Work with the Riverside County Department of Public Health to create a development review process to analyze the health and social equity impacts of development proposals prior to the beginning of the CEQA review process. This could include the creation of a checklist that includes a key set of high priority questions related to how the project affects the food, recreation, and active transportation environments; affordability and access; pollution and toxics exposure; local wealth creation and other topics deemed relevant. The City can choose to integrate this review into the approval process. For larger or more complex projects the City may partner with others (the County Public Health Department, community groups, independent consultants, universities, etc.) to compile a more extensive health impact assessment.
High Short Planning
Engineering
County Public Health
LU-3
4. Community engagement process protocols. Work with community groups and the school district to create minimum protocols for community outreach and engagement processes for different types of municipal decisions so community members can easily learn about input opportuniti es and know how best to contribute. These protocols should be utilized by all City departments and could include a single electronic database/spreadsheet of institutions, community groups, business, and interested individuals who want to receive meeting announcements; a list of public outreach methods; Spanish translation/interpretation guidance (in what cases to use); social media strategies; youth engagement; provision of food and child-care at public meetings; and other related items. The City should also consider purchasing translation headsets to support increased inclusion.
High Short Planning
City Clerk
School District
Local community groups
LU-15
5. Sphere of Influence update. Update the City’s Sphere of Influence to exclude undevelopable land in Sub-Area 17. Medium Medium Planning LU-1
6. Open space conservation strategy. Create an open space conservation program that prioritizes which open space lands to preserve. Emphasize the creation of a citywide greenbelt to achieve conservation goals.
Medium Medium Planning
Parks
LU-2
LU-4
7. Economic development strategic plan. Develop a long-term economic development strategy that develops and retains businesses and a strong middle class in Coachella for the decades to come. The plan should place a strong importance on creating quality jobs in Coachella for existing Coachella residents, career support programs and lifelong education, and professional development. The plan should also highlight the community’s desire for industries that use a “triple bottom line” (health/people, environmental sustainability and profit) and invest back into Coachella’s local economy.
High Short Planning
City Manager
Finance
Library
LU-2
LU-7
LU-10
LU-11
8. Fiscal impact assessment fees. Establish guidelines and create a fiscal impact assessments fee structure for new projects over 20 acres. High Medium Planning Finance
LU-13
9. Historic preservation study. Study neighborhoods with a significant number of buildings over 50 years old to determine whether historic districts should be established. Create and maintain an inventory of historic and pre-historic sites, structures and landmarks of historic and cultural significance in order to determine the potential impact on these resources from proposed projects.
Low Ongoing Planning LU-1
Item 37.
STAFF REPORT
6/28/2023
TO: Honorable Mayor and City Council Members
FROM: Gabriel Perez, Development Services Director
SUBJECT: Approval of a Purchase and Sale Agreement between City of Coachella and Hidden Harvest Corporation for purchase of a 2.09 acre parcel, APN 778-030- 012, with an approximately 17,800 sq. ft. building at 85-711 Peter Rabbit Lane for $900,000.00 and 5-year lease agreement for continued operation of Hidden Harvest at the property.
STAFF RECOMMENDATION:
Staff recommends that the Planning Commission:
Adopt Resolution No. 2023-45 authorizing the City Manager to execute a Purchase and Sale Agreement with Hidden Harvest Corporation for the purchase of 2.09 acre parcel, APN 778-030-012, located at 85-711 Peter Rabbit Lane for a contract amount of $900,000. Adopt Resolution No. 2023-46 authorizing the City Manager to execute a Lease Agreement with Hidden Harvest Corporation for the lease of office and cold storage space located at 85-711 Peter Rabbit Lane, APN 778-030-012, for a contract amount of $900,000.
BACKGROUND:
On February 22, 2023 the City Council authorized staff to Negotiate with Hidden Harvest Corporation (seller) for the sale of parcel identified as APN 778-030-012 located at 85-711 Peter Rabbit Lane herein known as the “Site”. Since 2000, Hidden Harvest has harvested over 24 million pounds of fresh, surplus crops from Coachella Valley fields and local packing houses for distribution to nearly 50,000 people monthly through their programs and more than 60 partner agencies that serve low-income families. The Site has served as their operational headquarters since the early 2000s. Staff negotiated a Purchase and Sale Agreement (PSA) with the seller, and is seeking City Council authorization for the City Manager to execute the Agreement and open escrow for the sale of the land pursuant to the terms of the PSA.
DISCUSSION/ANALYSIS:
The Site is currently owned by the Hidden Harvest Corporation and consists of 2.09 acres located adjacent to the Union Pacific Railroad and surrounded by agricultural uses (Peter Rabbit Farms) and light industrial uses. The Site has an approximately 17,800 sq. ft. packinghouse building
Item 38.
constructed of a concrete block, steel and wood frame. The appraisal for the building identifies the structure as constructed in 1947 and in fair condition with some deferred maintenance. Sanborn Maps from 1928 identify that the packinghouse was in existence in 1928 and served as the location for the Coachella Valley Grape Grower’s Association. The building is divided into three sections:
the office area, the warehouse area, and the cold storage area. The office area is a two story wood structure exists at the entrance to the packinghouse with conference rooms, restroom, and storage.
The warehouse area is on a raised concrete platform with steel walls, joists and roof cover. There are two docks and truck wells with four roll up doors at the Southside of the building. A dock exists at the rear of the building. The building consists of 3 cooling areas at the east end of the building: 1 is 30’ x 40’ and the other two are 40’ by 40’. The perimeter fencing is chain-link and barbed wire. The on-site groundkeeper indicates that the original rail spur connecting from the railroad to the packinghouse remains buried at the site.
The site is currently in the Manufacturing Service zoning district and is anticipated to change to the Urban Employment zoning district with the proposed Zoning Consistency Update. The Urban Employment zone allows for an expanded list of the uses that include housing, commercial and office uses. The City retains a 60-foot wide easement for street purposes for 5th Street connecting from Grapefruit Boulevard across the railroad to the South of the Site. The easement could be improved in the future to provide for an at-grade or overhead pedestrian crossing connecting Pueblo Viejo to the areas East of the railroad. Renderings envisioning the rehabilitation of the packinghouse by Hidden Harvest as a community gathering space are shown in attachment 4, consisting of an urban farm, classrooms, gathering areas offices, and food storage. City staff anticipates that the site could be rehabilitated similar to the vision of a community gathering space that may include a food hub, small business incubator, and event venue with the support of existing State funding opportunities.
Attached for City Council's review is a copy of the latest Purchase and Sale Agreement for the sale of the subject parcel for $900,000.00 subject to certain terms and conditions. Additionally, a lease agreement is attached for the Hidden Harvest Corporation to continue to at the parcel to continue to gather and distribute produce to low-income families in the Coachella Valley. The City Attorney's office has assisted staff with the PSA and lease documents. A Phase 1 Environmental Site Assessment was prepared and that based on the findings in the assessment there are no known on-site conditions that would warrant regulatory involvement (Attachment 3).
ALTERNATIVES:
1) Adopt Resolution No. 2023-45 authorizing the City Manager to execute a Purchase and Sale Agreement with Hidden Harvest Corporation for the purchase of 2.09 acre parcel, APN 778-030-012, located at 85-711 Peter Rabbit Lane for a contract amount of $900,000; and Adopt Resolution No. 2023-46 authorizing the City Manager to execute a Lease Agreement with Hidden Harvest Corporation for the lease of office and cold storage space located at 85-711 Peter Rabbit Lane, APN 778-030-012, for a contract amount of $900,000.
2) Continue this item and provide staff with direction. 3) Take no action.
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FISCAL IMPACT:
The land transaction will require a $900,000 appropriation from the City’s General Fund and an estimated obligation of $30,000 over a five-year term for payment of water and electricity utilities related to the operation of Hidden Harvest at the facility during that period.
RECOMMENDED ALTERNATIVE(S):
Staff recommends Alternative #1 as noted above.
Attachment:
1. Resolution No. PC2023-45, General Plan Amendment No. 23-02 Exhibit A – Draft PSA between City of Coachella and Hidden Harvest Corporation
2. Resolution No. PC2023-46,
Exhibit A – Lease Agreement between City and Hidden Harvest Corporation
3. Phase 1 Environmental Assessment – APN 778-030-012
4. Vicinity Map
5. Hidden Harvest renderings for future improvement of the site
6. Site Photos
Item 38.
RESOLUTION NO. 2023-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COACHELLA, CALIFORNIA, APPROVING THE PURCHASE AND SALE
AGREEMENT OF A 2.09 ACRE PARCEL WITH THE HIDDEN HARVEST
CORPORATION ALSO IDENTIFIED AS ASSESSOR PARCEL NUMBER
(APN) 778-030-012.
WHEREAS, the City of Coachella staff (buyer) negotiated the purchase and sale of a 2.09 acre parcel at 85-711 Peter Rabbit Lane (APN 778-030-012), with an approximately 17,800 sq. ft. industrial packinghouse building owned by the Hidden Harvest Corporation, a nonprofit organization (seller).
WHEREAS, on or about August 27, 2022, the City obtained a preliminary property appraisal for the Site, which appraisal indicates that the Site is worth approximately $890,000.00; and
WHEREAS, on or about March 16, 2023, Buyer provided an offer letter to the City to purchase the Site for $900,000; and
WHEREAS, the City desires to accept the offer from Buyer, as described in the Purchase and Sale Agreement, attached hereto and incorporated herein by reference as Exhibit A (the "PSA"); and
WHEREAS, on June 7, 2023 the City Council at their regular meeting reviewed and considered the PSA; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. Recitals. All of the above recitals are true and correct and incorporated herein by reference.
SECTION 2. Findings. The City Council hereby finds and declares that the purchase of the parcel is consistent with the General Plan 2035 as the site is suitable to accommodate future implementation action of the General Plan that include edible landscapes, community gardens and composting education, gardening tools and resources, emergency food, and agricultural education park.
SECTION 2. Approval. The City Council hereby approves purchase of the Site from Seller for valuable consideration and approves the related PSA as enclosed as Exhibit A. The City Council hereby finds that the purchase of the Site from Seller is in the best interest of the City for the above stated reasons.
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Resolution No. 2023-45
SECTION 3. Signature Authority. The Mayor is authorized to take any and all actions necessary to facilitate the purposes of this Resolution including, without limitation, execution of the PSA and any documents required for recording in the Recorder's office for the County of Riverside.
SECTION 4. CEOA. The City Council finds that the approval of this Resolution is not subject to the Califomia Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2), the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.
SECTION 5. Effective Date. This Resolution shall take effect upon adoption by the City Council.
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Resolution No. 2023-45
PASSED APPROVED and ADOPTED this 28th day of June 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
Carlos Campos
City Attorney
Item 38.
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2023-45 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on this 28th day of June 2023 by the following vote of Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk
Item 38.
80237.00835\41249580.1
1 PURCHASE AND SALE AGREEMENT
AND JOINT ESCROW INSTRUCTIONS
This Purchase and Sale Agreement and Joint Escrow Instructions (this “Agreement”) is made as of June ___, 2023 (the “Effective Date”), between HIDDEN HARVEST CORPORATION, a California nonprofit public benefit corporation (“Seller”), and CITY OF COACHELLA, a municipal corporation organized and existing under the laws of the State of California (“Buyer”).
ARTICLE 1. AGREEMENT OF SALE.
Subject to and on the terms and conditions of this Agreement, Seller shall sell to Buyer and Buyer shall purchase from Seller all of the following (collectively, the “Property”):
1.1 Land. The real property commonly known as 85-711 Peter Rabbit Lane, Coachella, California (APN 778-030-012), which is more particularly described in Exhibit A, together with (a) all privileges, rights, easements and appurtenances belonging to the real property, including without limitation all minerals, oil, gas and other hydrocarbon substances on and under the real property, (b) all development rights, air rights, water, water rights and water stock relating to the real property, and (c) all right, title and interest of Seller in and to any streets, alleys, passages, other easements and other rights-of-way or appurtenances included in, adjacent to or used in connection with such real property, before or after the vacation thereof (collectively, the “Land”);
1.2 Improvements. Any and all structures, systems, facilities, fixtures, fences and parking areas located on the Land and any and all machinery, equipment, apparatus and appliances used in connection with the operation or occupancy of the Land (such as heating and air conditioning systems and facilities used to provide utility services, refrigeration, ventilation, garbage disposal or other amenities on the Land) and other improvements located upon the Land, including, but not limited to, the industrial coolers located on the Property (collectively, the “Improvements”.
The Land and the Improvements are sometimes collectively referred to in this Agreement as the “Property”.
1.3 Personal Property. All of Seller’s right, title and interest in and to any personal property located within or used in connection with the Property (collectively, the “Personal Property”).
1.4 Service Contracts. Those Service Contracts (defined in Section 5.7) which Buyer expressly agrees to assume; and
1.5 Other Assets. To the extent owned by Seller, all tangible and intangible assets of any nature relating to the Property or the Personal Property, including without limitation (a) all warranties upon the Improvements or Personal Property, to the full extent such warranties are Exhibit A - PSA
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80237.00835\41249580.1
2 assignable, (b) copies of all plans, specifications, engineering drawings and prints relating to the construction of the Improvements, (c) all license agreements, copyrights, logos, designs, trademarks, trade names, service marks and all goodwill associated with the Property, (d) all other intellectual or intangible property used by Seller in connection with the Property; and (e) all claims and causes of action arising out of or in connection with the Property.
ARTICLE 2. PURCHASE PRICE.
2.1 Amount. The purchase price (the “Purchase Price”) for the Property shall be $900,000.00.
2.2 Deposit/Purchase Price. Within 3 business days after the Effective Date, Buyer shall deposit $50,000.00 into Escrow (as defined below) into an interest bearing account on behalf of Buyer (the “Deposit”). The deposit shall be refundable to Buyer unless Buyer waives all contingencies by the expiration of the Due Diligence Period. If the Closing of the transaction contemplated by this transaction occurs, the Deposit shall be disbursed to Seller and applied to the Purchase Price at Closing. The failure of Buyer to make the Deposit within the time frame specified in this Section shall be material breach of this Agreement and Seller may terminate the Agreement. Buyer shall pay the Purchase Price to Seller through escrow at the Closing described in Section 9.1. On or before the Closing Date (as defined below), Buyer shall deposit into Escrow the Purchase Price, subject to adjustment by reason of any applicable prorations and the allocation of closing costs described below. The Deposit and Purchase Price shall be made by wire transfer of federal funds, cashiers check or in another immediately available form.
Notwithstanding anything herein to the contrary, One Hundred Dollars ($100.00) of the Initial Deposit (the “Independent Consideration”) shall not be refundable to Buyer, but shall represent consideration for this Agreement and shall be paid to Seller. The Independent Consideration shall be paid to Seller within 3 days of the Effective Date. The Independent Consideration shall serve as consideration for the granting of the time periods herein contained for Buyer to exercise Buyer’s right to satisfy and approve all of Buyer’s conditions herein contained. If the Deposit is refunded to Buyer for any reason pursuant to this Agreement, the Independent Consideration shall be subtracted from the Deposit pursuant to this Section.
ARTICLE 3. DUE DILIGENCE.
3.1 Due Diligence Period; Inspection and Access.
3.1.1 Due Diligence Period. The “Due Diligence Period” means the period beginning the later of (a) the Effective Date or (b) the date on which Buyer has received all of the Due Diligence Documents (defined in Section 3.2) from Seller and ending at 5:00 p.m. on the date forty-five (45) days later.
3.1.2 Access to Information and the Property. Buyer shall conduct its investigation of the Property during the Due Diligence Period at no cost to Seller. This investigation (“Due Diligence Investigation”) may include, at Buyer’s option: a physical inspection of the Land and all Improvements thereon, including soil, geological and other tests, engineering evaluations of the mechanical, electrical, HVAC and other systems in the Improvements and review of the Plans; review of all governmental matters affecting the
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3 Property, including zoning, environmental and building permit and occupancy matters; review and verification of all financial and other information previously provided by Seller relating to the operation of the Property; review of the condition of title to the Property, including the building, structural system and roof inspection; and review of such other matters pertaining to an investment in the Property as Buyer deems advisable. Buyer hereby agrees to and shall indemnify, defend and hold harmless Seller and Seller’s members, managers, partners, officers, directors, shareholders, employees, agents, representatives, invitees, successors and assigns (each, a “Seller Indemnitee”), from and against any and all claims, demands, and causes of action for personal injury or property damage, and all damages, judgments, liabilities, costs, fees and expenses (including reasonable attorneys’ fees) resulting therefrom, arising out of any entry onto the Land by Buyer, its agents, employees, contractors and/or subcontractors, pursuant to this Section 3.1.2 hereof. In addition to the Preliminary Documents delivered to Buyer pursuant to Section 3.2, Buyer and its representatives shall have the right of access during reasonable business hours to all files, books and records maintained by Seller or its agents (including, without limitation, all of the Additional Documents to be made available to Buyer at the Property pursuant to Section 3.3), wherever located, relating to the Property, including the right to copy the same. Buyer and its representatives shall also have the right of access to the Property during reasonable business hours to conduct its investigation of the physical condition of the Property.
Seller agrees that the rights granted to Buyer herein and the results of its Due Diligence Investigation shall not relieve Seller of any obligations Seller may have under any other provisions of this Agreement, or under other documents entered into concurrently herewith, or implied by law, nor shall they constitute a waiver by Buyer of the right to enforce any of the same. Seller shall cooperate with Buyer in its due diligence activities and provide access to the Property, its records, or provide information so long as it is within Seller’s control.
3.2 Delivery of Preliminary Documents. Within 5 business days after the Effective Date, Seller shall deliver to Buyer, at Seller’s expense, all of the documents described in the remaining subsections of this Section 3.2 (collectively, the “Preliminary Documents”) in Seller’s possession or control.
3.2.1 Title Report and Survey. A preliminary title report or commitment for title insurance (the “Preliminary Title Report”), dated no earlier than 10 days before the Effective Date, covering the Property and issued by a title insurance company or companies acceptable to Buyer (the “Title Company”), together with a legible copy of each document, map and survey referred to in the Preliminary Title Report. Buyer, at Buyer’s sole cost, may obtain an as-built survey of the Property (the “Survey”) prepared by a certified land surveyor in accordance with the most recent American Land Title Association standards, certified by such surveyor to Buyer and the Title Company in a form acceptable to the Title Company for the purpose of deleting any survey exception from the Title Policy described in Section 4.1.3.
3.2.2 Plans. Copies of all as-built plans and specifications for the Improvements, including without limitation the plans and specifications for and a complete description of all existing renovations and improvements to the Property and all rentable space therein, and as-built drawings for all underground utilities (collectively, the “Plans”), together with a certificate from an architect approved by Buyer certifying to Buyer that the Improvements were constructed and completed in accordance with the Plans;
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4 3.2.3 Soils Report. Any soils report on the Land prepared at Seller’s request or in the possession or control of Seller, including (if available) a report on compliance with any soils work recommended to be done prior to construction of the Improvements;
3.2.4 Engineers’ Reports. Any structural, mechanical, environmental or geological reports concerning the Property which have been prepared at Seller’s request or which are within Seller’s possession or control;
3.2.5 Operating Statements; Tax Bills. Copies of operating statements for the Property certified by Seller including an itemization of income and expenses and copies of all real property tax bills for the Property for such periods;
3.2.6 Licenses, Etc. Copies of any licenses, permits or certificates required by governmental authorities in connection with construction or occupancy of the Improvements, including, without limitation, building permits, certificates of completion, certificates of occupancy and environmental permits and licenses;
3.2.7 Inspection Reports. Copies of all written reports received by Seller within three (3) years prior to the Effective Date from Seller’s insurance companies, any governmental agency or any other person or entity, which requires or demands correction of any condition, or requests modification in or termination of any uses of the Property, accompanied by Seller’s summary of (a) any oral reports from such insurance companies or governmental agencies, and (b) the present status of any matter noted in any oral or written report.
3.3 Additional Documents and Information. From the Effective Date through the Closing Date, Seller shall make available to Buyer at the Property in accordance with Section
3.1, the documents and information described in this Section 3.3 (collectively, the “Additional Documents”):
3.3.1 Agreements. Copies of written, and written descriptions of oral, easements, covenants, restrictions, agreements, contracts and other documents, whether existing or, to the knowledge of Seller, proposed as of the Effective Date, including without limitation any agreements relating to the insurance, service, operation, repair, supply, advertising, promotion, sale, leasing or management of the Property, which (a) affect the Property, (b) are not disclosed by the Preliminary Title Report, and (c) have not been delivered to Buyer pursuant to Section 3.2. If no such documents exist, Seller shall furnish its certification to that effect;
3.3.2 Warranties/Roof Inspections/HVAC Inspections. Copies of any and all guarantees or warranties and other rights given to Seller in connection with the construction, maintenance, repair or remodeling of the Improvements, periodic inspections, or the purchase of any of the Personal Property. If no such documents exist, Seller shall furnish its certification to that effect;
3.3.3 Insurance Policies. Copies of certificates evidencing the insurance carried by Seller of the Property;
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5 3.3.4 Other Documents. All data, correspondence, documents, agreements, waivers, notices, applications and other records with respect to the Property relating to transactions with taxing authorities, governmental agencies, utilities, vendors and others with whom Buyer may be dealing from and after the Closing Date; and
3.3.5 Requested Information. Such other documents and information concerning the Property as Buyer may reasonably request.
3.4 Approval/Disapproval of Due Diligence Investigations. Buyer shall approve or disapprove the results of Buyer’s Due Diligence Investigation, in the exercise of Buyer’s sole discretion, by written notice delivered to Seller no later than the expiration of the Due Diligence Period. Buyer’s disapproval shall terminate this Agreement unless, at the time Buyer gives notice of its disapproval, Buyer also notifies Seller of Buyer’s desire to enter into negotiations with Seller for the purpose of reaching an accommodation concerning the disapproval. If Buyer so notifies Seller and the parties have not reached a written agreement satisfactory to both of them regarding the disapproval within 10 days after the date of the disapproval notice, Buyer, at its option, may either (a) elect to terminate this Agreement by so notifying Seller and recover the Deposit, or (b) elect to proceed with the transactions contemplated by this Agreement notwithstanding its earlier disapproval. If Buyer fails to deliver to Seller notice of its approval or disapproval of the results of its Due Diligence Investigation, Buyer shall be deemed to have disapproved such results. If Buyer elects to terminate the Agreement, Buyer shall return to Seller all of the Preliminary Documents and Additional Documents previously delivered by Seller to Buyer within 5 business days of such termination.
3.5 Title Review.
3.5.1 Monetary Liens. At its expense, Seller shall remove all liens on the Property at or prior to the Closing (collectively, “Monetary Liens”): (i) all delinquent taxes, bonds and assessments and interest and penalties thereon (it being agreed that Seller shall not be required to remove any non-delinquent taxes and assessments imposed by any governmental agency that are paid with the property taxes for the Property); and (ii) all other monetary liens, including without limitation all those shown on the Preliminary Title Report (including judgment and mechanics’ liens, whether or not liquidated, and mortgages and deeds of trust, with Seller being fully responsible for any fees or penalties incurred in connection therewith).
3.5.2 Approval/Disapproval of Title Review. Buyer shall approve or disapprove of the Preliminary Title Report, the Survey and any exceptions to title shown thereon (other than the Monetary Liens) in the exercise of Buyer’s sole discretion, by the expiration of the Due Diligence Period. If Buyer disapproves, Buyer may either (a) terminate this Agreement by giving Seller written notice of termination or (b) give Seller a written notice (“Disapproval Notice”) identifying the disapproved title matters (“Disapproved Title Matters”). With respect to any Disapproved Title Matters, other than the Monetary Liens, Seller shall notify Buyer in writing within 5 days after Seller’s receipt of the Disapproval Notice whether Seller will cause the Disapproved Title Matters to be removed or cured at or prior to Closing. If Seller elects not to remove or cure all Disapproved Title Matters, Buyer may, at its option: (i) subject to satisfaction of the other conditions to Closing, close the purchase of the Property and take title
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6 subject to the Disapproved Title Matters which Seller elects not to remove or cure; or (ii) terminate this Agreement in accordance with Section 9.6.1.
3.5.3 Buyer’s Options. If any Disapproved Title Matters (including the Monetary Liens) have not been removed at least 5 days prior to Closing or provision for their removal at the Closing has not been made to Buyer’s satisfaction, Buyer may, at its option: (i) close the purchase of the Property and take title subject to the Disapproved Title Matters which have not been removed; (ii) close the purchase of the Property and cure or remove the Disapproved Title Matters which have not been removed. Buyer may credit the costs of such cure or removal against the Purchase Price by reducing the amount of cash payable by Buyer at the Closing, but only to the extent such costs are expended to remove (A) Monetary Liens referred to in Section 3.5.1 or (B) Disapproved Title Matters which Seller agreed to remove; or (iii) terminate this Agreement in accordance with Section 9.6.1.
3.5.4 Failure to Disapprove. If Buyer fails to notify Seller of its approval or disapproval of the Preliminary Title Report, the Survey or the exceptions shown thereon by the end of the Due Diligence Period, then Buyer shall be deemed to have disapproved the same.
ARTICLE 4. CONDITIONS PRECEDENT.
4.1 Buyer’s Conditions. Buyer’s obligations under this Agreement are expressly subject to the timely fulfillment of the conditions set forth in this Section 4.1 on or before the Closing Date, or such earlier date as is set forth below. Each condition may be waived in whole or in part by Buyer by written notice to Seller.
4.1.1 Due Diligence. Buyer having approved of the results of its Due Diligence Investigation pursuant to Section 3.4;
4.1.2 Title Review. Buyer having approved of the results of its review of title pursuant to Section 3.5.
4.1.3 Title Policy. Seller having caused the Title Company to deliver to Buyer (a) a CLTA Owner’s policy of title insurance, provided that Buyer may require an ALTA Owner’s Policy if Buyer pays the incremental premium for ALTA coverage (“Title Policy”) (or at Buyer’s election a binder therefor) for the Property, or (b) the Title Company’s irrevocable commitment to issue such policy of title insurance, (including such coinsurance, reinsurance and endorsements as Buyer shall require), with liability equal to the Purchase Price showing fee title to the Property vested in Buyer and subject only to: (i) the matters and exceptions which were approved by Buyer pursuant to Section 3.5; and (ii) the standard printed exceptions in the form of title policy called for (collectively, “Conditions of Title”).
4.1.4 Performance of Covenants. Seller performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Seller prior to or at the Closing.
4.1.5 Representations and Warranties. The representations and warranties of Seller set forth in Article 5 being true and accurate on the Closing Date, as if made on such date.
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7 4.1.6 Non-Foreign Certification. Seller having executed and delivered to Buyer on or prior to the Closing Date a certification (the “Non-Foreign Certification”), substantially in the form of Exhibit B.
4.1.7 California Certification. Seller having furnished the residency certification required pursuant to Sections 18805 and 26131 of the California Revenue and Taxation Code (“Form 593”) or having authorized Escrow Holder in writing to withhold from the Purchase Price the amounts required to be withheld by such Sections.
4.1.8 Lease. Buyer and Seller shall have entered into a lease agreement (the “Lease”) for a portion of the Real Property to be effective as of the Closing Date, substantially in the form of Exhibit F.
4.2 Seller’s Conditions. Seller’s obligations under this Agreement are expressly subject to the timely fulfillment of the conditions set forth in this Section 4.2 on or before the Closing Date, or such earlier date as is set forth below. Each condition may be waived in whole or part by Seller by written notice to Buyer.
4.2.1 Covenants. Buyer performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Buyer prior to or at the Closing.
4.2.2 Representations and Warranties. The representations of Buyer set forth in Article 6 being true and accurate on the Closing Date, as if made on such date.’
4.2.3 Lease. Buyer and Seller shall have entered into the Lease to be effective as of the Closing Date, substantially in the form of Exhibit F.
ARTICLE 5. SELLER’S REPRESENTATIONS AND WARRANTIES.
Seller hereby makes the following representations and warranties to Buyer with the understanding that each such representation and warranty is material and is being relied upon by Buyer:
5.1 Defects. To the best of Seller’s knowledge, the Improvements and the Personal Property are in good condition and repair and are free of any latent or patent design, construction, physical or mechanical defects and there is no actual or threatened settlement, earth movement, termite infestation or damage affecting the Property.
5.2 Compliance. To the best of Seller’s knowledge, the Property, and the operation thereof, are in compliance with all applicable laws, ordinances, rules, regulations, judgments, orders, covenants, conditions, restrictions, whether federal, state, local, foreign or private, and Seller has not received any notice of any violation of the same. Seller has not received any request either formal or informal, oral or written, that Seller modify or terminate any use of the Property. The zoning of the Property permits the current Improvements and use of the Property, and, there is no pending or to Seller’s knowledge, contemplated rezoning. The Property
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8 complies with all applicable subdivision laws and all local ordinances enacted thereunder and no subdivision or parcel map not already obtained is required to transfer the Property to Buyer.
5.3 Documents. All of the Preliminary Documents and the Additional Documents which have been delivered or made available to Buyer pursuant to Article 3, and all other documents delivered to Buyer by or on behalf of Seller (a) are true, correct and complete copies of what they purport to be, (b) represent truly the factual matters stated therein, (c) are in full force and effect, (d) have not been modified, except as set forth therein and (e) do not omit any information required to make the submission thereof accurate and complete in all material respects.
5.4 Taxes and Condemnation. There are no presently pending or, to Seller’s knowledge, contemplated special taxes or assessments which will affect the Property. There are no presently pending or, to Seller’s knowledge, contemplated proceedings to condemn or demolish the Property or any part of it.
5.5 Utilities. To the best of Seller’s knowledge, all water, sewer, gas, electric, telephone and drainage facilities, and all other utilities required by law or by the normal operation of the Property, are (a) installed to the property lines of the Property, (b) connected to the Property, (c) adequate to service the Property in its present use and to permit full compliance with all requirements of law and normal usage by the occupants of the Property and (d) in good working order and repair. All such utilities and storm and sanitary sewers required for the operation of the Property enter the Land through adjoining public streets or through adjoining private land in accordance with valid public or private easements that will inure to the benefit of Buyer.
5.6 Licenses. Seller has all required licenses, permits (including, without limitation, all building permits and occupancy permits), easements and rights-of-way which are required in order to continue the present use of the Property. Seller has no knowledge of any law or regulation of any governmental authority having jurisdiction which might require the Property to be improved beyond its present state or which might restrict the use and enjoyment of the Property in the manner it is presently being used and enjoyed.
5.7 Contracts/Leases/Occupancy Rights. Schedule 5.7 contains a description of all contracts entered into by Seller or its property manager or leasing agent relating to the management, maintenance, leasing or operation of the Property (“Service Contracts”). Except for the Service Contracts, there are no agreements or other obligations to which Seller is party or, to Seller’s knowledge, by which it or the Property is bound which may affect the current use of the Property, nor are there any current leases, occupancy or operating agreements in force. No party has a right to occupancy, tenancy, or a license to use or enter the Property. Except as set forth in Schedule 5.7, Seller has fully performed all the obligations required to be performed by Seller under the Service Contracts, and to Seller’s knowledge, the other parties to the same are not in default thereunder. There are no collective bargaining agreements, other union contracts of any nature, pension plans or other benefit plans of any nature in existence to which Seller is a party and which affect the Property or the operation thereof.
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9 5.8 Litigation. There are no actions, suits, proceedings, judgments, orders, decrees or governmental investigations pending or, to Seller’s knowledge, threatened against the Property or Seller which could affect the Property or the purchase, use or enjoyment thereof by Buyer.
5.9 Agreements with Governmental Authorities. There are no agreements with governmental authorities, agencies, utilities or quasi-governmental entities which affect the Property except those agreements which are identified in the Preliminary Title Report and those matters which are disclosed by the Survey.
5.10 Hazardous Materials.
5.10.1 Definitions. For purposes of this Agreement:
(a) “Environmental Law(s)” means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sections 9601, et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901 et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et. seq., the Hazardous Materials Transportation Act, 49 U.S.C. 1801 et seq., the Clean Water Act, 33 U.S.C. Sections 1251 et seq., [The Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. H&S Code Sections 25249.5-25249.13), the Carpenter-Presley-Tanner Hazardous Substance Account Act (Cal. H&S Code Sections 25300 et seq.), and the California Water Code Sections 1300, et seq.], as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said laws and any other federal, state or local law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or Release or threatened Release into the environment of Hazardous Material.
(b) “Hazardous Material” means any substance which is (i) designated, defined, classified or regulated as a hazardous substance, hazardous material, hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect or as hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude oil or any fraction thereof and all petroleum products, (iii) PCBs, (iv) lead, (v) asbestos, (vi) flammable explosives, (vii) infectious materials or (viii) radioactive materials. (c) “Release” means any spilling, leaking, pumping, pouring, emitting, discharging, injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous Material (including the abandonment or discarding of barrels, containers, and other receptacles containing any Hazardous Material).
5.10.2 Representations. Except as otherwise disclosed in Schedule 5.10.2:
(a) To the best of Seller’s knowledge the Property and all existing uses and conditions of the Property are in compliance with all Environmental Laws, and Seller has not received any written notice of violation issued pursuant to any Environmental Law with respect to the Property or any use or condition thereof.
(b) To the best of Seller’s knowledge neither Seller nor any other present or former owner of the Property has used, handled, stored, transported, released or
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10 disposed of any Hazardous Material on, under or from the Property in violation of any Environmental Law.
(c) To the best of Seller’s knowledge there is no Release of any Hazardous Material existing on, beneath or from or in the surface or ground water associated with the Property.
(d) To the best of Seller’s knowledge all required permits, licenses and other authorizations required by or issued pursuant to any Environmental Law for the ownership or operation of the Property by Seller have been obtained and are presently maintained in full force and effect.
(e) To the best of Seller’s knowledge there exists no writ, injunction, decree, order or judgment outstanding, nor any lawsuit, claim, proceeding, citation, directive, summons or investigation pending or, to Seller’s knowledge, threatened pursuant to any Environmental Law relating to (i) the ownership, occupancy or use of any portion of the Property by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property, (ii) any alleged violation of any Environmental Law by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property or (iii) the suspected presence, Release or threatened Release of any Hazardous Material on, under, in or from any portion of the Property.
(f) To Seller’s knowledge, there are no above-ground or underground tanks located on the Property used or formerly used for the purpose of storing any Hazardous Material.
(g) To the best of Seller’s knowledge, no asbestos abatement or remediation work has been performed on the Property.
(h) To the best of Seller’s knowledge, there is no PCB-containing equipment or PCB-containing material located on or in the Property.
5.11 Title to the Property. Seller has good and marketable title to the Property, subject to the Conditions of Title. There are no outstanding rights of first refusal or first look, options to purchase, rights of reverter, or claim of right relating to the transfer or sale of the Property or any interest therein. To Seller’s knowledge, there are no unrecorded or undisclosed documents or other matters which affect title to the Property. No person holding a security interest in the Property or any part thereof has the right to consent or deny consent to the sale of the Property as contemplated herein, and Seller has the right to pay off such person and to remove all such liens as of the Closing Date. Seller has enjoyed the continuous and uninterrupted quiet possession, use and operation of the Property.
5.12 Seller’s Authority. Seller has the requisite power and authority to own and operate the Property and conduct its business where the same is now owned or operated. The execution, delivery and performance of this Agreement by Seller have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Seller (or its board of directors or shareholders) in order to consummate
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11 the transactions contemplated herein. This Agreement and the other documents executed by Seller in connection herewith are legal, valid and binding obligations of Seller, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement by Seller, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Seller was organized, or any indenture, mortgage, deed of trust, agreement, undertaking, instrument or document to which Seller or any affiliate thereof is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Seller.
5.13 Foreign Person. Seller is not a “foreign person” within the meaning of Section 1445(f) of the Internal Revenue Code.
5.14 Misstatements and Omissions. Neither the representations and warranties made by Seller in this Article 5 nor elsewhere in this Agreement contain any untrue statement or any omission of a material fact. Seller has no documents in its possession, nor has any knowledge, that omits material facts related to the property or which would contradict or negate any of its representations contained in this Agreement.
ARTICLE 6. BUYER’S REPRESENTATIONS AND WARRANTIES.
Buyer makes the following representation and warranties to Seller with the understanding that each such representation and warranty is material and is being relied upon by Seller:
6.1 Buyer’s Authority. The execution, delivery and performance of this Agreement by Buyer have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Buyer in order to consummate the transactions contemplated herein.
6.2 No Conflict. Neither the execution nor delivery of this Agreement by Buyer, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Buyer was organized, or any agreement to which Buyer is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Buyer.
ARTICLE 7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES AND INDEMNIFICATION.
7.1 Survival of Warranties. Buyer and Seller agree that each representation and warranty, covenant by the respective parties contained herein or made in writing pursuant to this Agreement are intended to and shall be deemed made as of the date of this Agreement or such writing and again at the Closing, shall be deemed to be material, and unless expressly provided to the contrary shall survive the execution and delivery of this Agreement, the Deed and the Closing.
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12 7.2 Notice of Changed Circumstances. If either party becomes aware of any fact or circumstances which would render false or misleading a representation or warranty made by such party, then it shall immediately give notice of such fact or circumstance to the other party, but such notice shall not relieve any party of any liabilities or obligations with respect to any representation or warranty.
7.3 Indemnification.
7.3.1 Seller’s Indemnity. Seller’s obligations pursuant to this Section 7.3.1 shall survive the Closing. Seller at its sole cost and expense hereby agrees to indemnify, defend (with counsel acceptable to Buyer), protect and hold harmless Buyer, from and against any and all claims, demands, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, judgments, remedial action and compliance requirements, enforcement and clean-up actions of any kind, and all costs and expenses incurred in connection therewith, including, without limitation, actual attorneys’ fees and costs of defense and costs and expenses of all experts and consultants (collectively, the “Losses), arising directly or indirectly, in whole or in part, out of any one or more of the following:
(a) the breach or alleged breach of any covenant of Seller contained in this Agreement or the inaccuracy or alleged inaccuracy of any representation or warranty of Seller contained in this Agreement;
(b) Seller’s ownership of the Property or the operation of the Property prior to the Closing Date;
(c) the presence on, in or under the Property of any Hazardous Material on or before the Closing Date, any Release of any Hazardous Material, on, under or from the Property prior to the Closing Date or the use, generation, manufacturing, production, handling, storage, transport, discharge or disposal of any such Hazardous Materials on or before the Closing Date, from, under or about the Property, irrespective of whether any of such activities were or will be undertaken in accordance with Environmental Law or other applicable laws, regulations, codes and ordinances. The indemnity contained in this paragraph (c) shall further apply, without limitation, to: (i) all residual contamination and contamination affecting any natural resources; (ii) all consequential damages; (iii) the costs of any required remediation or removal work on the Property, including, without limitation: (A) costs of remediation or removal incurred by the United States Government or the State or any other person; and (B) fines or penalties which arise from the provisions of any statute, state or federal; and (iv) liability for personal injury or property damage arising under any statutory or common-law tort theory, including damages assessed for the maintenance of a public or private nuisance, response costs or for the carrying on of an abnormally dangerous activity; or (d) from the provisions of any statute, state or federal; and (iv) liability for personal injury or property damage arising under any statutory or common-law tort theory, including damages assessed for the maintenance of a public or private nuisance, response costs or for the carrying on of an abnormally dangerous activity.
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13 ARTICLE 8. SELLER’S PRECLOSING COVENANTS.
Seller shall comply with the covenants contained in this Article 8 from the Effective Date through the Closing Date unless Buyer consents otherwise in writing. Buyer may grant or withhold any such consent requested by Seller in Buyer’s sole discretion.
8.1 Contracts and Documents. Seller shall not, without Buyer’s approval, not to be unreasonably withheld or delayed, (a) amend or waive any right under any Service Contract, Preliminary Document or Additional Document, or (b) enter into any material agreement of any type affecting the Property that would survive the Closing Date.
8.2 Insurance. Seller shall maintain or cause to be maintained in full force and effect its present insurance policies for the Property.
8.3 Compliance with Obligations. Seller shall fully and timely comply with all obligations to be performed by it under the Service Contracts, the other Preliminary Documents, the Conditions of Title and all permits, licenses, approvals and laws, regulations and orders applicable to the Property.
8.4 No Transfers. Seller shall not sell, encumber or otherwise transfer any interest in all or any portion of the Property, or agree to do so.
8.5 Termination of Contracts. Seller at its sole cost and expense shall terminate all of the Service Contracts described in Section 5.7 at or before the Closing Date, except for those contracts which Buyer expressly agrees to assume and which are actually assumed by Buyer pursuant to Section 9.3.3.
8.6 Maintenance. At its sole cost and expense, Seller shall operate and maintain the Property such that on the Closing Date the Property shall be in at least as good a condition and repair as on the Effective Date, reasonable wear and tear excepted. Without limiting the generality of the foregoing, Seller shall, at a minimum, spend such amounts for repair and maintenance as are consistent with its prior practice. Seller shall promptly advise Buyer of any significant repair or improvement required to keep the Property in such condition. Seller shall not make any material alterations to the Property, or remove any of the Personal Property therefrom, without Buyer’s prior consent, unless such Personal Property so removed is simultaneously replaced with new Personal Property of similar quality and utility.
8.7 Best Efforts. Seller shall use its best efforts to cause the conditions set forth in Section 4.1 to be satisfied by the Closing Date, and Seller shall not take or permit any action that would result in any of the representations and warranties set forth in Article 5 becoming false or incorrect.
ARTICLE 9. CLOSING.
9.1 Time. Provided all conditions set forth in Article 4 have been either satisfied or waived, the parties shall close this transaction (the “Closing”), on the date which is 15 business
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14 days after the expiration of the Due Diligence Period (the “Closing Date”), as such date may be extended by the provisions of Article 10.
9.2 Escrow. This Article 9, together with such additional instructions as First American Title Company, Attention: , , California (“Escrow Holder”), shall reasonably request and the parties shall agree to, shall constitute the escrow instructions to Escrow Holder. If there is any inconsistency between this Agreement and the Escrow Holder’s additional escrow instructions, this Agreement shall control unless the intent to amend this Agreement is clearly stated in said additional instructions. Buyer and Seller shall cause Escrow Holder to execute and deliver a counterpart of this Agreement to each of them. If the Title Company does not serve as the Escrow Holder, the Title Company shall provide a letter to Buyer, in form and content acceptable to Buyer, pursuant to which the Title Company accepts responsibility and liability for the acts and omissions of Escrow Holder in discharging Escrow Holder’s obligations hereunder, including, without limitation, any acts or omissions of Escrow Holder relating to the Title Company’s commitment to issue the Title Policy, the receipt, recordation or delivery of any documents placed into escrow, and the receipt and disbursement of any funds placed into escrow.
9.3 Seller’s Deposit of Documents and Funds Into Escrow. Seller shall deposit into escrow on or before Closing the following documents:
9.3.1 A duly executed and acknowledged grant deed, in the form acceptable to Buyer, conveying the Property to Buyer (“Grant Deed”) in the form attached as Exhibit E;
9.3.2 A duly executed bill of sale, in the form of Exhibit C, conveying the Personal Property to Buyer free and clear of liens, encumbrances and restrictions (“Bill of Sale”);
9.3.3 A duly executed assignment, in the form of Exhibit D, assigning to Buyer all of Seller’s interest (a) in the Plans, (b) in all warranties of which Seller is the beneficiary with respect to the Property, (c) in all intangible assets of the Property, and (d) in the Service Contracts which Buyer has elected to assume (the “General Assignment”);
9.3.4 The originals (or copies if originals are unavailable) of the Service Contracts Buyer has elected to assume, if any, and estoppel certificates from the other parties to such Service Contracts in form and substance satisfactory to Buyer;
9.3.5 All costs of Closing, including, but not limited to, the CLTA increment of the premium for the Title Policy, recording fees (if any), transfer taxes (if any) and fees, one-half of the escrow fees, sales tax and any other costs of Closing customarily paid by sellers of real property, plus or minus prorations as provided in Section 9.8; provided that, subject to Section
9.6, Buyer and Seller shall bear their own attorneys’ fees and costs in connection with the negotiation and preparation of this Agreement and the transactions completed by this Agreement;
9.3.6 Seller’s Non-foreign Certification;
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15 9.3.7 All records and files relating to the management or operation of the Property, including, without limitation, property tax bills, insurance, and property taxes;
9.3.8 Such additional documents, including written escrow instructions consistent with this Agreement, as may be necessary or desirable for conveyance of the Property in accordance with this Agreement; and
9.3.9 Form 593.
9.4 Deliveries Outside of Escrow. Notwithstanding Section 9.3, Seller and Buyer may elect to deliver the documents described in Section 9.3 outside of escrow (other than documents which are to be recorded) by giving Escrow Holder a joint written notice of such election, specifying the documents which will be so delivered outside of escrow. Upon receipt of such notice, Escrow Holder shall have no further obligation concerning such specified documents.
9.5 Buyer’s Deposit of Documents and Funds. Buyer shall deposit into escrow:
9.5.1 The Purchase Price in accordance with the provisions of Article 2, plus or minus prorations as provided in Section 9.8, by electronic transfer of federal funds to Escrow Holder, on or before the Closing Date; and
9.5.2 Such additional documents, including written escrow instructions consistent with this Agreement, as may be necessary or desirable for conveyance of the Property in accordance with this Agreement.
9.6 Default, Termination and Remedies.
9.6.1 Buyer’s Termination. This Agreement shall automatically terminate without further notice or action by Buyer upon the occurrence of any of the following events, provided that Buyer is not then in material breach of this Agreement: (a) any condition to Closing contained in Section 4.1 has not been satisfied or waived by Buyer by the Closing Date; or (b) Buyer having exercised its right to terminate this Agreement pursuant to Section 3.4 (disapproval of Due Diligence Investigation), Section 3.5 (disapproval of title) or Article 10 (damage or condemnation). In such event, the parties shall have no further obligation to each other except for those obligations that specifically survive the termination of this Agreement. If this Agreement terminates as a result of Seller’s material breach of this Agreement, Buyer shall have all remedies it may have hereunder or at law as a result of such occurrence, including the remedy of specific performance.
9.6.2 Seller’s Termination. Provided that Seller is not then in material breach of this Agreement, this Agreement shall automatically terminate without further notice or action by Seller if any condition to Closing contained in Section 4.2 has not been satisfied or waived by Seller by the Closing Date.
9.6.3 Release from Escrow. Upon termination of this Agreement pursuant to Section 9.6.1 or 9.6.2, Escrow Holder shall promptly return to Buyer and Seller, respectively, all
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16 documents and monies deposited by them into escrow without prejudice to their rights and remedies hereunder.
9.6.4 Remedies.
(a) Buyer’s Remedies. If Seller breaches this Agreement, Buyer shall be entitled to pursue all remedies permitted herein and by law, including the remedy of specific performance. No termination of the escrow by Buyer following a breach by Seller shall be deemed to waive such breach or any remedy otherwise available to Buyer. (b) Seller’s Remedies/Liquidated Damages. IF BEFORE THE CLOSE OF ESCROW BUYER FAILS TO COMPLY WITH OR PERFORM BUYER’S
OBLIGATIONS UNDER THIS AGREEMENT AND (EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH 9.6) DOES NOT CURE SUCH FAILURE WITHIN TEN BUSINESS DAYS AFTER SELLER’S WRITTEN NOTICE OF SUCH FAILURE, THEN SELLER MAY THEREAFTER: (I) TERMINATE THIS AGREEMENT; (II) RECEIVE AND RETAIN THE DEPOSIT AS LIQUIDATED DAMAGES IF SUCH DEFAULT OCCURS AFTER BUYER’S APPROVAL PERIOD; AND (III) EXERCISE THE OTHER RIGHTS AND REMEDIES RESERVED BY SELLER AS PROVIDED IN THIS PARAGRAPH. IN THE EVENT SELLER TERMINATES THIS AGREEMENT BY REASON OF BUYER’S DEFAULT,
BUYER AND SELLER SHALL BE RELIEVED OF ANY FURTHER OBLIGATION TO
EACH OTHER WITH RESPECT TO THIS AGREEMENT AND THE PROPERTY EXCEPT FOR ANY OBLIGATIONS WHICH EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR
SUBSTANTIAL DAMAGES AS A RESULT OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER’S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS
EXTREMELY DIFFICULT AND IMPRACTICAL TO CALCULATE AND ASCERTAIN AS
OF THE EFFECTIVE DATE OF THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A
REASONABLE ESTIMATE OF THE EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER’S DEFAULT IN LIGHT OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER’S ACTUAL DAMAGES AS A RESULT OF SUCH DEFAULT BY BUYER.
_________________ _________________
SELLER’S INITIALS BUYER’S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER’S
OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER
CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER
ACKNOWLEDGES THAT THE PROVISIONS OF THIS PARAGRAPH ARE A MATERIAL
PART OF THE CONSIDERATION BEING GIVEN TO BUYER FOR ENTERING INTO
THIS AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGREEMENT IN THE ABSENCE OF THE PROVISIONS OF THIS PARAGRAPH.
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17 _________________ _________________
SELLER’S INITIALS BUYER’S INITIALS
9.7 Closing. When Escrow Holder has received all documents and funds identified in Sections 9.3 and 9.5, has received notification from Buyer and Seller that all conditions to Closing to be satisfied outside of escrow have been satisfied or waived and Title Company is irrevocably committed to issue the Title Policy, then, and only then, Escrow Holder shall:
9.7.1 Record the Grant Deed;
9.7.2 Cause the Title Company to issue the Title Policy to Buyer;
9.7.3 To the extent not otherwise delivered to Buyer outside of escrow, deliver to Buyer: (a) a conformed copy (showing all recording information thereon) of the Grant Deed; (b) fully executed original counterparts of the Bill of Sale, the General Assignment; and (c) the Seller’s Certificate, the Service Contracts referred to in Section 9.3.6, the Non-foreign Certification;
9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;
9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.
Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal Revenue Service (with copies to Buyer and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code.
9.8 Prorations.
9.8.1 Property Taxes. General real estate taxes, water or sewer rates and charges (if not metered), personal property taxes, or any other governmental tax or charge levied or assessed against the Property (collectively, the “Taxes”), relating to the Property and payable during the year in which Closing occurs shall not be prorated between Seller and Buyer in Escrow. Upon recordation of the Grant Deed, Buyer will request cancellation of the real property taxes for the Property pursuant to California Revenue and Taxation Code Section 4986.
If current taxes have not yet been paid as of the Closing Date, then at Closing Seller shall pay through Escrow or out of Seller’s proceeds, the full amount of the installment applicable for the period in which Closing occurs. Seller shall be entitled to a refund of any excess payment made to the taxing authority on account of the Property, including any taxes paid by Seller and applicable to any period from and after the Closing Date. The taxing authority will notify Seller of any refund due Seller resulting from the subject acquisition after a review and any subsequent proration of the property tax assessment by the county assessor. Seller retains the right, following close of escrow, to apply to the appropriate governmental authority/ies for refund of real property taxes pursuant to Revenue and Taxation Code Section 5096.7 (or such other applicable law), and Buyer shall reasonably cooperate with Seller’s efforts to obtain said refund.
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18 9.8.2 Utility Charges. All utility charges shall be prorated as of the Closing Date and Seller shall obtain a final billing therefor. All utility security deposits, if any, shall be retained by Seller.
9.9 Possession. Seller shall deliver exclusive right of possession of the Property to Buyer on the Closing Date, subject only to the Conditions of Title.
ARTICLE 10. DAMAGE, DESTRUCTION AND CONDEMNATION.
This Agreement shall be governed by the Uniform Vendor and Purchaser Risk Act as set forth in Section 1662 of the California Civil Code as supplemented and modified by this Article 10. Seller shall promptly notify Buyer in writing of any material damage to the Property and of any taking or threatened taking of all or any portion of the Property. Within a reasonable period of time after receipt of such notice, Buyer shall determine whether a material part of the Property has been damaged or whether such taking or threatened taking has affected or will affect a material part of the Property. As used herein, (a) the destruction of a “material part” of the Property shall be deemed to mean an insured or uninsured casualty to the Property having an estimated cost of repair which in the reasonable judgment of Buyer equals or exceeds $100,000 and (b) a taking by eminent domain of a portion of the Property shall be deemed to affect a “material part” of the Property if in the reasonable judgment of Buyer the estimated value of the portion of the Property taken exceeds $100,000. Upon making its determination, Buyer shall notify Seller in writing of the results of such determination. Buyer may elect, by written notice delivered to Seller within 30 days after giving Seller notice of such determination, to terminate this Agreement in accordance with Section 9.6.1 if a material part of the Property has been damaged or if such taking has affected or will affect a material part of the Property. If Buyer does not so terminate, (i) in the case of damage to a material part of the Property, Seller shall assign to Buyer at the Closing its right to recover under any insurance policies covering such damage and shall pay Buyer at the Closing the amount of the deductible, if any, and (ii) in the case of a threatened or actual taking of a material part of the Property, Seller shall assign to Buyer at the Closing Seller’s entire right, title and interest in the proceeds thereof. If between the Effective Date and the Closing Date the Property suffers damage which is not material, Seller shall repair such damage at its expense prior to the Closing, and the Closing Date shall be extended for a reasonable period of time not to exceed 30 days to allow for completion of such repairs. The Closing Date shall be extended as necessary to permit Buyer to exercise its rights under this Article 10.
ARTICLE 11. GENERAL.
11.1 Notices. All notices, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective (a) when personally delivered to the recipient at the recipient’s address set forth below; (b) three business days after deposit in a sealed envelope in the United States mail, postage prepaid, by registered or certified mail, return receipt requested, addressed to the recipient as set forth below; or (c) one business day after deposit with a recognized overnight courier or delivery service, addressed to the recipient as set forth below, whichever is earlier. If the date on which any notice to be given hereunder falls on a Saturday, Sunday or legal holiday, then such date shall automatically be extended to the next business day immediately following such Saturday, Sunday or legal holiday. Email notices may
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19 be used for convenience only, unless otherwise agreed by the parties in writing, and shall be deemed delivered one (1) business day after delivery if sent after 5 pm, or received the same day if sent on a business day between 8 am and 5 pm, and a duplicate shall be sent via United States mail on the same day as the email.
The addresses for notice are:
SELLER: City of Coachella
1515 Sixth Street
Coachella, CA 92236
Attn: Gabriel Martin, City Manager
Email: [email protected]
With a copy to: Best Best & Krieger LLP
74760 Highway 111, Suite 100
Indian Wells, CA 92210
Attn: Carlos Campos
Email: [email protected]
BUYER: Hidden Harvest Corporation
Attn: Christy Porter
85-711 Peter Rabbit
Coachella, CA 92236
Email: [email protected]
Either party may change its address by written notice to the other given in the manner set forth above.
11.2 Entire Agreement. This Agreement and the Schedules and Exhibits hereto contain the entire agreement and understanding between Buyer and Seller concerning the subject matter of this Agreement and supersede all prior agreements, including any previous letter of intent or terms, understandings, conditions, representations and warranties, whether written or oral, made by Buyer or Seller concerning the Property or the other matters which are the subject of this Agreement.
11.3 Amendments and Waivers. No addition to or modification of this Agreement shall be effective unless set forth in writing and signed by the party against whom the addition or modification is sought to be enforced. The party benefited by any condition or obligation may waive the same, but such waiver shall not be enforceable by another party unless made in writing and signed by the waiving party.
11.4 Invalidity of Provision. If any provision of this Agreement as applied to either party or to any circumstance shall be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law) any other provision of this Agreement, the application of any such provision
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20 under circumstances different from those adjudicated by the court, or the validity or enforceability of this Agreement as a whole.
11.5 References. Unless otherwise indicated, (a) all Article, Section, Schedule and Exhibit references are to the articles, sections, schedules and exhibits of this Agreement, and (b) all references to days are to calendar days. All the Schedules and Exhibits attached hereto are incorporated herein by this reference. Whenever under the terms of this Agreement the time for performance of a covenant or condition falls upon a Saturday, Sunday or California state holiday, such time for performance shall be extended to the next business day. The headings used in this Agreement are provided for convenience only and this Agreement shall be interpreted without reference to any headings. The masculine, feminine or neuter gender and the singular or plural number shall be deemed to include the others whenever the context so indicates or requires.
11.6 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed in California.
11.7 Confidentiality and Publicity. Buyer is a public entity and as such, this Agreement, upon its presentation for approval at Buyer’s City council at a duly called and agendized public meeting, shall be subject to the Public Records Act and the Freedom of Information Act. No press release or other public disclosure may be made by Seller or any of its agents regarding Buyer’s intent for this Property this transaction without the prior consent of Buyer.
11.8 Time. Time is of the essence in the performance of the parties’ respective obligations under this Agreement.
11.9 Attorneys’ Fees. In the event of any legal or equitable proceeding to enforce any of the terms or conditions of this Agreement, or any alleged disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding shall be entitled to recover its reasonable costs and expenses, including, without limitation, reasonable attorneys’ fees and costs of defense paid or incurred in good faith.
11.10 Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. However, Seller shall not have the right to assign all or any portion of its interest in this Agreement without Buyer’s prior written consent. Buyer shall have the right to assign all or any portion of its interest in this Agreement, or substitute for itself a nominee, upon notice to Seller not later than three days prior to the Closing Date.
11.11 Further Assurances. Seller, at any time before or after Closing, shall, at its own expense, execute, acknowledge and deliver any further deeds, assignments, conveyances and other assurances, documents and instruments of transfer reasonably requested by Buyer and shall take any other action consistent with the terms of this Agreement that may reasonably be requested by Buyer for the purpose of transferring and confirming to Buyer, or reducing to Buyer’s possession, any or all of the Property or otherwise carrying out the terms of this Agreement.
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21 11.12 Cooperation With Exchange. Buyer agrees to cooperate with the other if Seller intends to accomplish a tax-deferred exchange pursuant to Section 1031 of the Internal Revenue Code of 1986. Buyer and/or Seller may assign this Agreement to an exchange intermediary for the purpose of facilitating such an exchange by the assigning party. Buyer’s duty to cooperate shall be limited to the transfer of money to Seller or Seller’s designee in exchange for the Property, and in no event shall Buyer act as purchaser or acquirer of any exchange property.
Seller shall indemnify and defend and hold Buyer harmless from any claims, loss, damages or liability arising out of participation in an exchange.
11.13 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to it and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any third person to any party hereto or give any third person any right of subrogation or action over against any party to this Agreement.
11.14 Remedies Cumulative. The remedies set forth in this Agreement are cumulative and not exclusive to any other legal or equitable remedy available to a party.
11.15 Commissions, Indemnity, Disclosure. Each party represents to the other party that there is no broker representing such party in the current transaction, and that the representing party has incurred no liability for any brokerage commission or finder’s fee arising from or relating to the transactions contemplated by this Agreement. Seller shall be responsible for any broker commission associated with this purchase. Each party hereby indemnifies and agrees to protect, defend and hold harmless the other party from and against all liability, cost, damage or expense (including without limitation attorneys’ fees and costs incurred in connection therewith) on account of any brokerage commission or finder’s fee which the indemnifying party has agreed to pay or which is claimed to be due as a result of the actions of the indemnifying party. This Section 11.15 is intended to be solely for the benefit of the parties hereto and is not intended to benefit, nor may it be relied upon by, any person or entity not a party to this Agreement.
11.16 Counterparts/Facsimile/PDF Signatures. This Agreement may be executed in counterparts and when so executed by the parties, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument that shall be binding upon the parties, notwithstanding that the parties may not be signatories to the same counterpart or counterparts. The parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. In order to expedite the transaction contemplated herein, facsimile or .pdf signatures may be used in place of original signatures on this Agreement. Seller and Buyer intend to be bound by the signatures on the facsimile or .pdf document, are aware that the other party will rely on the facsimile or .pdf signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature.
[SIGNATURES ON FOLLOWING PAGE]
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22 IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
BUYER:
CITY OF COACHELLA, a California municipal
corporation
By
Its
ATTEST:
By:
City Clerk
APPROVED AS TO FORM:
BEST BEST & KRIEGER LLP
By:
City Attorney
SELLER:
HIDDEN HARVEST CORPORATION, a
California nonprofit public benefit corporation
By
Its
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23 Acceptance by Escrow Holder
Escrow Holder acknowledges receipt of the foregoing Agreement and accepts the instructions contained therein.
Dated: ______________, 2023 FIRST AMERICAN TITLE COMPANY By:
Name:
Title:
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Exhibit “A”
EXHIBIT A
LAND DESCRIPTION
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Exhibit “B”
EXHIBIT B
TRANSFEROR’S CERTIFICATION OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code of 1986, as amended (the “Code”), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the CITY OF COACHELLA, a California municipal corporation (the “Transferee”), that withholding of tax under Section 1445 of the Code will not be required upon the transfer of a U.S. real property interest to the Transferee by (the “Transferor”), the undersigned hereby certifies the following on behalf of the Transferor:
1. The Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder);
2. The Transferor’s U.S. employer identification number is _______________; and
3. The Transferor’s office address is ______________________________________.
The Transferor understands that this Certificate may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.
Under penalty of perjury I declare that I have examined this Certification and, to the best of my knowledge and belief, it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of the Transferor.
DATED: ________________, 20___.
HIDDEN HARVEST CORPORATION, a
California nonprofit public benefit corporation
By: ______________________________________
Name:____________________________________
Title:
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Exhibit “C”
EXHIBIT C
BILL OF SALE
This Bill of Sale (the “Bill of Sale”) is made as of _______________, 2023, by HIDDEN HARVEST CORPORATION, a California nonprofit public benefit corporation (“Transferor”).
FOR VALUABLE CONSIDERATION, as set forth in that certain Purchase and Sale Agreement dated May __, 2023 (the “Agreement”), Transferor hereby sells, transfers, assigns and delivers to the CITY OF COACHELLA, a California municipal corporation (“Transferee”), any and all personal property (the “Personal Property”) located within or used in connection with that certain improved real property commonly known as , CA (the “Real Property”). The Personal Property shall include, without limitation, the items described in the personal property inventory attached hereto as Schedule 1.
1. Transferor hereby assigns all warranties, guarantees and indemnities, whether those warranties are express or implied, and all similar rights which Transferor may have against any other manufacturer or supplier of the Personal property or any portion thereof or against any seller, engineer, contractor or builder, in respect of the Personal Property.
2. Transferor warrants that each item of the Personal Property is in good condition, order and repair and suitable for its intended purpose on the date of this Bill of Sale.
3. Transferor at any time at or after the date of this Bill of Sale shall execute, acknowledge and deliver any further deeds, assignments, conveyances and other assurances, documents and instruments of transfer reasonably requested by Transferee, and shall take any other action consistent with the terms of this Bill of Sale that may reasonably be requested by Transferee for the purpose of granting and confirming to Transferee, or reducing to Transferee’s possession, any or all of the Personal Property. If requested by Transferee, Transferor further agrees to prosecute or otherwise enforce in its own name for the benefit of Transferee any claims, rights or benefits included in the Personal Property that require prosecution or enforcement in Transferor’s name. Transferor also hereby appoints Transferee as its agent to act in Transferor’s name and on Transferor’s behalf to take any action necessary to effect the transfer of any of the Personal Property to Transferee, or prosecute or otherwise enforce any claims, rights or benefits included in the Personal Property in Transferor’s name, including bringing suit in Transferor’s name.
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2 4. This Bill of Sale shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.
DATED: ________________, 2023.
TRANSFEROR:
HIDDEN HARVEST CORPORATION, a
California nonprofit public benefit corporation
By
Its
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Exhibit “C”
SCHEDULE 1
PERSONAL PROPERTY INVENTORY
All Personal Property existing at the Real Property as of the Closing Date
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Exhibit “D”
EXHIBIT D
GENERAL ASSIGNMENT
This Assignment (the “Assignment”) is dated for reference purposes only as of ____________, 2023, by HIDDEN HARVEST CORPORATION, a California nonprofit public benefit corporation (“Assignor”).
FOR VALUABLE CONSIDERATION, as set forth in that certain Agreement of Purchase and Sale and Joint Escrow Instructions dated _______, 2023 (the “Agreement”), Assignor hereby assigns and transfers to the CITY OF COACHELLA, a California municipal corporation (“Assignee”), following:
A. All equipment leases, service and/or maintenance agreements and contracts relating to the Real Property (collectively, the “Contracts”); B. All permits, licenses, consents, registrations and other similar approvals applicable to the Real Property (collectively, the “Approvals”); C. All as-built plans and specifications for: (1) the Real Property; (2) any and all improvements used in connection with the operation or occupancy of the Real Property or located upon the Real Property (the “Improvements”); and (3) any and all personal property owned by Assignor located within or used in connection with the operation of the Real Property and Improvements (the “Personal Property”) (collectively, the “Plans”); and D. All warranties of which Assignor is the beneficiary (the “Warranties”) with respect to the Improvements or Personal Property.
This Assignment shall not supersede the Agreement and, in the event of conflict between this Assignment and the Agreement, the Agreement shall control.
This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective heirs, executors, administrators, successors and assigns.
This Assignment shall take effect the last to occur of the following: (i) full execution by all parties and Lessor’s consent, as shown by the last date entered below the parties’ signatures and (ii) upon the consummation of the transaction between Assignee and Assignor
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Exhibit “E”
IN WITNESS WHEREOF, Assignor has executed this Assignment as of the date first above written.
ASSIGNOR:
HIDDEN HARVEST CORPORATION, a
California nonprofit public benefit corporation
By
Its
Date:_____________________________
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Exhibit “E”
EXHIBIT E
GRANT DEED
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO
City of Coachella
1515 Sixth Street
Coachella, CA 92236
ATTN: City Clerk
EXEMPT FROM RECORDING FEES PURSUANT
TO GOVERNMENT CODE SECTION 27383
SPACE ABOVE THIS LINE FOR RECORDER’S USE
APN: __________________
Grant Deed
The undersigned Grantor(s) declare(s): City of __________________ is exempt from property taxes Documentary transfer tax is $0.
Computed on full value of property conveyed, or
Computed on full value less value of liens and encumbrances remaining at time of sale.
Unincorporated area City of Coachella and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, hereby GRANT(S) to
the following described real property in the City of __________________ County of __________________
State of California:
SEE ATTACHED EXHIBIT A
Dated: _______________, 20___
By: _________________________________
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Exhibit “E”
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
STATE OF CALIFORNIA )
COUNTY OF )
On , 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 “E”
CERTIFICATE OF ACCEPTANCE
Pursuant to Section 27281 of the
California Government Code
This is to certify that the interest in real property conveyed by the Grant Deed dated __________________, 2023, from HIDDEN HARVEST CORPORATION, a California nonprofit public benefit corporation, to the CITY OF COACHELLA, a municipal corporation (“City”), is hereby accepted by the undersigned officer on behalf of the City, pursuant to the authority granted to it and delegated to such officer. City consents to recordation thereof by its duly authorized officer.
Dated: _________________, 2023 CITY OF COACHELLA
By ____________________________
Name: _________________________
Title: _________________________
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Exhibit “E”
Schedule 5.7
Service Contracts
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RESOLUTION NO. 2023-46
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
COACHELLA, CALIFORNIA, APPROVING A 5 YEAR LEASE
AGREEMENT WITH THE HIDDEN HARVEST CORPORATION FOR
CONTINUATION OF OPERATIONS AT THE 2.09 ACRE PARCEL
IDENTIFIED AS ASSESSOR PARCEL NUMBER (APN) 778-030-012.
WHEREAS, the City of Coachella staff (buyer) negotiated the purchase and sale of a 2.09 acre parcel at 85-711 Peter Rabbit Lane (APN 778-030-012), with an approximately 17,800 sq. ft. industrial packinghouse building owned by the Hidden Harvest Corporation, a nonprofit organization (seller).
WHEREAS, on or about August 27, 2022, the City obtained a preliminary property appraisal for the Site, which appraisal indicates that the Site is worth approximately $890,000.00; and
WHEREAS, on or about March 16, 2023, Buyer provided an offer letter to the City to purchase the Site for $900,000; and
WHEREAS, the City desires to accept the offer from Buyer, as described in the Purchase and Sale Agreement, attached hereto and incorporated herein by reference as Exhibit A (the "PSA"); and
WHEREAS, the Seller as a stipulation of the sale of the subject parcel to the City of Coachella (buyer) requests to continue to lease office and cold storage space from the City of Coachella at the subject site to continue its mission of gathering and distributing produce to lowincome families of the Coachella Valley for a term of 5 years, as described in the Lease Agreement, attached hereto and incorporated herein by reference as Exhibit A (the "Lease Agreement"); and WHEREAS, on June 21, 2023 the City Council considered the lease agreement at a regular scheduled City Council meeting; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COACHELLA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. Recitals. All of the above recitals are true and correct and incorporated herein by reference.
SECTION 2. Findings. The City Council hereby finds and declares that the lease of the parcel is consistent with the General Plan 2035 as the site under lease terms with Hidden Harvest will facilitate General Plan implementation actions for the creation of edible landscapes, community gardens and composting education, gardening tools and resources, emergency food, and agricultural education park.
Item 38.
Resolution No. 2023-46
SECTION 2. Approval. The City Council hereby approves lease of the Site to Hidden Harvest Corporation for valuable consideration and approves the related lease agreement as enclosed as Exhibit A. The City Council hereby finds that the lease of the Site to Hidden Harvest Corporation is in the best interest of the City for the above stated reasons.
SECTION 3. Signature Authority. The Mayor is authorized to take any and all actions necessary to facilitate the purposes of this Resolution including, without limitation, execution of the lease agreement and any documents required for recording in the Recorder's office for the County of Riverside.
SECTION 4. CEOA. The City Council finds that the approval of this Resolution is not subject to the Califomia Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2), the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment.
SECTION 5. Effective Date. This Resolution shall take effect upon adoption by the City Council.
Item 38.
Resolution No. 2023-46
PASSED APPROVED and ADOPTED this 28th day of June 2023 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Steven A. Hernandez
Mayor
ATTEST:
___________________________________
Angela M. Zepeda
City Clerk
APPROVED AS TO FORM:
Carlos Campos
City Attorney
Item 38.
4 STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF COACHELLA
)
) ss.
)
I HEREBY CERTIFY that the foregoing Resolution No. 2023-46 was duly adopted by the City Council of the City of Coachella at a regular meeting thereof, held on this 28th day of June 2023 by the following vote of Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________________
Delia Granados
Deputy City Clerk
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LEASE
1. PARTIES. This lease ("Lease") is entered into as of the date on which this Lease is fully executed by the parties as indicated on the signature page ("Effective Date"), by and between the CITY OF COACHELLA, a municipal corporation organized and existing under the laws of the State of California, hereinafter described as landlord ("Landlord") and the HIDDEN HARVEST CORPORATION, a California nonprofit public benefit corporation, as tenant ("Tenant").
2. PREMISES.
2.1 Landlord hereby leases to Tenant and Tenant leases from Landlord a portion of the real property located at 85-711 Peter Rabbit Lane, Coachella, California (APN 778-030-012), consisting of office space and industrial cooler space, as more particularly described on Exhibit A.1 attached hereto, and all existing improvements thereon (hereinafter the "Premises").
2.2 Landlord covenants and warrants that as long as Tenant is not in default of the terms of this Lease, Tenant shall have quiet and peaceful possession of the Premises and shall enjoy all the rights herein granted without interference, subject to the limitations, reservations and conditions set forth herein.
3. TERM. The term ("Term") of this Lease shall commence on _________, 2023 ("Commencement Date") for a term of five (5) years, unless sooner terminated as provided herein.
4. RENT. The initial rent of this Lease ("Rent") shall be one and no/100 dollars ($1.00) per year, payable in advance on the first day of each year commencing on the Commencement Date and thereafter on each anniversary of the Commencement Date.
5. USE.
5.1 The Premises shall be used and occupied by Tenant and its employees for office and industrial cooler space relating to the storage and distribution of food to underserved families in the Coachella Valley in accordance with Tenant’s mission. Tenant acknowledges and agrees that in entering into this Lease, it is not relying on any representations of Landlord or any of its officers, agents or employees for permission for any use beyond that expressly provided herein. The Premises shall not be used for any other unrelated use without the prior written consent of Landlord, which may be withheld in Landlord's sole and absolute discretion. Tenant shall be solely responsible for obtaining any permits necessary to allow such use prior to occupancy of the Premises.
5.2 As the prior owner of the Premises, Tenant shall be deemed to have examined and determined the condition of the Premises and have accepted the present condition and repair. Landlord makes no representation or warranty concerning the condition of the Premises or its fitness for use for the purposes described above Tenant assumes all responsibility and all costs of making any tenant improvements, alterations, refurbishment and repairs which may be necessary or appropriate for Tenant's use and occupancy.
Exhibit A - Lease
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5.3 Tenant shall promptly comply with all applicable statutes, ordinances, rules, regulations, orders and requirements of any governmental agency in effect during the Term or any part of the Term of this Lease regulating Tenant's use of the Premises. Without limiting the generality of the foregoing, Tenant shall, at Tenant's sole cost and expense, comply with all applicable laws, ordinances and regulations with respect to any and all required permits for operation of the Premises for its intended purpose. Tenant shall also promptly comply with all reasonable rules and requirements issued by Landlord during the term of this Lease, so long as such rules and requirements are in conformity with common practice and usage in similar property, are not inconsistent with the provisions of this Lease, or Tenant's permitted use of the Premises, and providing further that a written copy thereof is received by Tenant sufficiently in advance of the time any new rule is effective. Tenant shall not use or permit the use of the Premises in any manner that will tend to create waste or a nuisance or use the Premises for any unlawful or hazardous purpose.
5.4 Tenant agrees that its use of the Premises shall be conducted in compliance with all applicable state, local and federal laws, and regulations.
6. MAINTENANCE, REPAIRS AND ALTERATIONS.
6.1 The obligations and duties enumerated below which require Tenant to repair and maintain the Premises are a part of the consideration for Landlord's renting the Premises:
(a) Except as otherwise expressly provided herein, Tenant shall, at Tenant's expense, keep and maintain the Premises and every part thereof in good order, condition and repair (normal wear and tear excepted), including without limitation, all plumbing, structural components, the exterior of the building, including exterior walls, exterior doors and window frames, gutters and downspouts, parking lot surface and lighting, heating, ventilation and air conditioning systems, and wiring and plumbing within the walls and floors and equipment within the Premises, fixtures, interior walls and interior surfaces of exterior walls, ceilings, windows, doors, plate glass and industrial coolers located within the Premises.
Tenant shall maintain all exterior landscaping in a pleasing condition. (b) If Tenant fails to perform Tenant's obligations under Section 6.1, Landlord may, at Landlord's option, enter upon the Premises if Tenant fails to cure the deficiency after ten (10) days prior written notice to Tenant, and put the same in good order, condition and repair, to the same condition as when accepted by Tenant pursuant to Section 5.2 above, and the reasonable cost of such repair shall be due and payable within thirty (30) days of written request by Landlord, provided Landlord has provided Tenant at least ten (10) days written notice and reasonable opportunity for cure and submits copies of detailed invoices or receipts for the cost of such repairs. (c) Landlord shall be responsible for any capitalized repairs that may be required to the roof of Premises (but not regular maintenance) during the term of this Lease. (d) On the last day of the term or any extended term of this Lease or on any sooner termination, Tenant shall surrender the Premises to Landlord in as good a condition as received, broom clean, ordinary wear and tear excepted. Landlord shall inspect the Premises on Tenant's departure
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and notice Tenant in writing of Landlord's requirements to return the Premises to good condition, ordinary wear and tear excepted.
(e) Tenant shall promptly give Landlord written notice of any damage, destruction or deterioration of or to the Premises, including without limitation the discharge by Tenant of any hazardous materials which are not immediately and completely remedied by Tenant. (f) Notwithstanding anything herein to the contrary, in the event Landlord commences on a major rehabilitation of the building which includes the Premises (the “Rehabilitation Project”), Tenant shall thereafter only be responsible to maintain the Premises (and not the remainder of the building); provided further that Tenant shall not be required to maintain the Premises during any period the Tenant has been relocated from the Premises pursuant to Section 12.
6.2. (a) Tenant agrees not to make any alterations of, changes in or additions to the Premises without the prior written consent of Landlord, which shall not be unreasonably withheld. Any request for alteration should also inquire as to whether such alterations will be required to be removed by Tenant at the end of the Term, or alternatively whether such alteration may remain on the Premises. Tenant agrees that should Landlord give written consent, unless otherwise agreed in writing, all such alterations, additions and improvements, including fixtures, made in, to or on the Premises shall be made at the sole cost and expense of Tenant and shall (except for unattached movable personal property not the property of Landlord) be the property of Landlord and shall remain upon and be surrendered with the Premises, except that if Landlord requires it at the end of the Term, Tenant shall restore the Premises to the same condition as before the alterations, entirely at Tenant's cost and expense. (b) Tenant covenants and agrees to indemnify, defend and hold harmless Landlord and the Premises from all claims, liens or demands arising out of any work performed, materials furnished, or obligations incurred by or for Tenant upon the Premises during the term. (c) All work done by Tenant under these provisions shall be done in a good and workmanlike manner, and in compliance with all applicable laws and all ordinances, regulations and orders of governmental authority, including but not limited to Labor Code Section 1720 et seq. (d) Upon completion of tenant improvement plans, if any, Tenant shall promptly provide Landlord, at no cost to Landlord, with copies of all engineering, architectural and/or mechanical plans and specifications and original final building permits for all alterations, modification and repairs to the Premises by Tenant.
(e) Pursuant to California Civil Code § 1938(a), Landlord hereby states that the Premises have not undergone inspection by a Certified Access Specialist (CASp) (defined in California Civil Code § 55.52). Accordingly, pursuant to California Civil Code § 1938(e), Landlord hereby further states as follows: “A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection
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of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.” In accordance with the foregoing, Landlord and Tenant agree that if Tenant obtains a CASp inspection of the Premises, then Tenant shall pay (i) the fee for such inspection, and (ii) the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the Premises.
7. INSURANCE.
7.1 Property Insurance.
Tenant shall obtain and maintain property casualty insurance covering the full replacement cost of the improvements on the Premises, less a deductible not to exceed $10,000.00. The Premises may be included in a blanket policy. Landlord shall be named as an additional insured or loss payee, as applicable, on the policy of casualty insurance maintained by Tenant pursuant to this Section 7.1.
Notwithstanding anything herein to the contrary, in the event Landlord commences on the Rehabilitation Project, Landlord shall thereafter maintain property casualty insurance covering the full replacement cost of the improvements on the Premises (excluding any personal property of Tenant).
7.2 Commercial General Liability Insurance.
Tenant shall, during the term of this Lease and at no expense to Landlord, maintain commercial general liability insurance, including products liability and completed operations, and contractual liability coverage, not less than Two Million Dollars ($2,000,000) per occurrence, and not less than Two Million Dollars ($2,000,000) annual aggregate. This insurance shall be per occurrence policy.
The policy shall also cover Operations, Independent Contractors, Products and Completed Operations, Contractual Liability covering Tenant's indemnity obligations contained in Section 13 herein, severability of interest and cross liability clauses. The limits of liability of the insurance coverage specified in this paragraph may be provided by any combination of primary and excess liability policies carried by Tenant.
Certificate of insurance must be presented prior to Tenant moving into the Premises.
7.3 Automobile Liability Insurance.
Tenant shall, during the term of this Lease and at no expense to Landlord, maintain business automobile insurance, not less than One Million Dollars ($1,000,000) per occurrence, combined single limit. This insurance shall be a per occurrence policy. The limits of liability of the insurance coverage specified in this paragraph may be provided by any combination of primary and excess liability policies carried by Tenant. Certificate of insurance must be presented prior to Tenant moving into Premises.
7.4 Additional Insured Endorsement.
Under the commercial general liability and automobile liability insurance required in Sections 7.1 and 7.2 above, Landlord, its officers, agents and employees shall be named as additional insured by endorsement and as to such additional insured, the insurance shall be primary and the policies
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shall contain by endorsement a cross Liability clause. All coverage types and limits required are subject to approval, modification and additional requirements by the Landlord, as the need arises.
7.5 Workers' Compensation and Employer's Liability Insurance.
Tenant shall, during the term of this Lease and at no expense to Landlord, maintain workers' compensation insurance, as required by law, and employer's liability insurance at a minimum limit of One Million Dollars ($1,000,000) for all Tenant's employees.
7.6 Tenant's Property, Fixtures and Equipment.
During the Term of this Lease, Tenant shall maintain, at Tenant's expense, a policy of insurance covering loss or damage to all personal property of Tenant. Except to the extent caused by Landlord, its employees, agents, contractors, guests or invitees, Tenant agrees that it shall bear the risk of damage to (or loss of) any furniture, equipment, machinery, cooler, goods, supplies, fixtures, or other items whether they are or remain the property of Tenant, or to remain with the Premises in favor of Landlord at the end of the Term.
7.7 Certificates,
The insurance required by Paragraphs 7.1, 7.2, 7.3, 7.5, and 7.6 above shall be evidenced by a certificate or certificates submitted to Landlord which shall be executed by the insurance company or companies involved and which shall state that this insurance may not be terminated without 30 days prior written notice being received by Landlord, or ten (10) days for non-payment. The certificate(s) shall be submitted to Landlord before or at the time Tenant is entering into use of Premises. All insurance coverage and limits provided hereunder and available or applicable to this Lease are intended to apply to the full extent of the policies. Nothing contained in this Lease limits the application of such insurance coverage.
7.8 Except to the extent caused by the active negligence or intentional misconduct of Landlord, its employees, agents, contractors, guests or invitees, Tenant agrees that Landlord shall not be liable for injury to Tenant's business or any loss of income therefrom or damages to the goods, wares, merchandise or other property of Tenant, Tenant's employees, invitees, contractors or any other person on or about the Premises by or through Tenant, nor shall Landlord be liable for injury to the person of Tenant's employees, agents, or contractors whether such damage or injury is caused by or results from fire, steam, electricity, water or rain, or from breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause.
7.9 Tenant agrees to pay for all damage to the Premises caused by Tenant, its agents, servants, employees or invitees misuse or neglect of said Premises and its apparatus and appurtenances.
8. DAMAGE OR DESTRUCTION.
8.1 In the event of damage or destruction of the Premises during the Term of the Lease, Landlord shall, to the extent of available insurance proceeds, repair the damage to the Premises, provided such repairs can be made within sixty (60) days under the laws and regulations of state, federal, county or municipal authorities, but such destruction shall in no way annul or void this Lease except if such damage
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or destruction is without fault of Tenant and/or Tenant's agents, employees and invitees, in which case Tenant may opt to terminate the Lease immediately. Tenant shall be entitled to a reduction of Rent while such repairs are made proportionate to the extent to which the repair operations interfere with Tenant's business conducted on the Premises. If the repairs cannot be made in sixty (60) days, either party has the option to terminate this Lease. Landlord shall provide Tenant with written notice of Landlord’s election to terminate within thirty (30) days after such damage or destruction. If Landlord elects to repair and restore the Premises, but fails to do so within sixty (60) days of-the event causing the damage, Tenant may elect to terminate the Lease. Tenant shall not be responsible for Lease payments during the time the Premises were unusable or following termination.
8.2 If the damage or destruction does not result from a peril for which insurance is required to be carried pursuant to Section 7, Landlord may at its sole election either repair and restore the Premises or terminate this Lease. Provided, however, that Tenant may elect to restore the Premises to substantially the same condition as they were in immediately before destruction at Tenant's cost in which event such damage or destruction shall not terminate this Lease. Tenant shall restore the Premises if the destruction is caused by the negligence of Tenant.
8.3 Notwithstanding anything in this Lease to the contrary, if at any time during the term of this Lease any governmental agency having jurisdiction over the Premises, other than Landlord, shall require the making of any repairs, improvements or alteration to the building or Premises:
(a) Landlord may, but shall not be required to, elect, in Landlord's sole and absolute discretion, to make said repairs, improvements or alterations to the Premises, in which event the Lease shall continue in full force and effect;
(b) If Landlord, in Landlord's sole and absolute discretion, elects not to make said repairs, improvements or alterations to the Premises, then Tenant shall have the right, at Tenant's sole option and at Tenant’s sole cost and expense, to make such repairs, improvements or alternations and to continue the Lease in full force and effect; or
(c) If neither Tenant or Landlord elects to make such repair, improvements or alteration, then, Tenant shall be required to vacate and surrender to Landlord such portion of the building(s) or Premises (together with exclusive or non-exclusive access thereto) upon which the repairs or alterations are required without making such repairs or alterations, and continue the Lease in effect as to the balance of the Premises but with a proportionate reduction, adjustment or abatement of the Rent or other charges due hereunder, if any. However, if Tenant determines that the remaining available portion of the Premises is inadequate for Tenant's permitted use of the Premises, Tenant may terminate the Lease and neither party shall have any further liability to the other.
9. UTILITIES. Tenant shall pay for gas, water, sewer, garbage collection service, telephone and other communication services supplied to the Premises, which are separately metered to the Premises; provided, however, that Landlord shall pay for the cost of water and power for the Premises, provided such water and power consumption is reasonable and customary for Tenant’s operations at the Premises.
Landlord shall not be responsible to Tenant for any disruption, decrease or loss in utility services not within the control of Landlord. Tenant shall ensure that the garbage collection services will provide sufficient
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container capacity and sufficient frequency of collection to ensure that the Premises are maintained in a safe and sanitary condition in compliance with applicable health and safety laws and regulations.
10. SURRENDER OF PREMISES; HOLDING OVER. On the termination or the end of any extension or renewal of this Lease, Tenant shall promptly surrender and deliver the Premises to Landlord in as good condition as they are now at the date of this Lease, but including the installation of all improvements, equipment and fixtures, reasonable wear and tear excepted. At the end of the Term or any extension thereof, should Tenant hold over for any reason, it is agreed that in the absence of a written agreement to the contrary, that tenancy shall be from month-to-month only and not a renewal of this Lease, nor an extension for any further term. Tenant shall pay a monthly amount equal to One Hundred TwentyFive Percent (125%) of the Rent payable prior to the end of the Term and the month-to-month tenancy shall be subject to every other term, covenant, and condition in this Lease that is consistent with and not contrary to a month-to-month tenancy.
11. HAZARDOUS MATERIALS.
11.1 Hazardous Materials Laws. "Hazardous Materials Laws" means any and all federal, state or local laws, ordinances, rules, decrees, orders, regulations or court decisions relating to hazardous substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the Premises, or soil and ground water conditions, including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended, 42 U.S.C. § 9601, et seq., the Resource Conservation and Recovery Act (“RCRA"), 42 U.S.C. § 6901, et seq., the Hazardous Materials Transportation Act, 49 U.S.C. § 1801, et seq., the California Hazardous Waste Control Act, Cal. Health and Safety Code §25100, et seq., the Carpenter-Presley-Tanner Hazardous Substances Account Act, Cal. Health and Safety Code §25300, et seq., the Safe Drinking Water and Toxic Enforcement Act, Cal. Health and Safety Code §25249.5, et seq., the Porter-Cologne Water Quality Control Act, Cal. Water Code § 13000, et seq., any amendments to the foregoing, and any similar federal, state or local laws, ordinances, rules, decrees, orders or regulations.
11.2 Hazardous Materials. "Hazardous Materials" means any chemical, compound, material, substance or other matter that: (a) is defined as a hazardous substance, hazardous material, hazardous waste or toxic substance under any Hazardous Materials Law; (b) is controlled or governed by any Hazardous Materials Law or gives rise to any reporting, notice or publication requirements hereunder, or gives rise to any liability, responsibility or duty on the part of Tenant or Landlord with respect to any third person hereunder; or (c) is flammable or explosive material, oil, asbestos, urea formaldehyde, radioactive material, nuclear medicine material, drug, vaccine, bacteria, virus, hazardous waste, toxic substance, or related injurious or potentially injurious material (by itself or in combination with other materials).
11.3 Use. Tenant shall not allow any Hazardous Material to be used, generated, manufactured, released, stored or disposed of on, under or about, or transported from, the Premises, unless:
(a) such use is specifically required in the ordinary course of Tenant's business operations on the Premises; and (b) such use is conducted in compliance with the provisions of this Section 12, and further provided that Tenant shall handle, use, store and dispose of such Hazardous Materials in a safe and lawful manner and shall not allow such Hazardous Materials to contaminate the Premises.
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11.4 Compliance With Laws; Handling of Hazardous Materials. Tenant shall strictly comply with, and shall maintain the Premises in compliance with, all Hazardous Materials Laws. Tenant shall obtain, maintain in effect and comply with the conditions of all permits, licenses and other governmental approvals required for Tenant's operations on the Premises under any Hazardous Materials Laws, including, but not limited to, the discharge of appropriately treated Hazardous Materials into or through any sanitary sewer serving the Premises and the use of private disposal service licensed to remove, transport and dispose of Hazardous Materials. At Landlord's request, Tenant shall deliver copies of, or allow Landlord to inspect, all such permits, licenses and approvals. All Hazardous Materials removed from the Premises shall be removed and transported by duly licensed haulers to duly licensed disposal facilities, in compliance with all Hazardous Materials Laws. Tenant shall perform any monitoring, investigation, cleanup, removal, detoxification, preparation of closure or other required plans and any other remedial work (collectively, "Remedial Work") required as a result of any release or discharge of Hazardous Materials affecting the Premises or any violation of Hazardous-Materials Laws by Tenant or any successor or sublessee of Tenant or their respective agents, contractors, employees, licensees or invitees. Landlord shall have the right in Landlord’s sole and absolute discretion (but not the obligation) to intervene at Tenant's cost and expense, in any governmental action or proceeding involving any Remedial Work, and to review and approve performance of the Remedial Work, in order to protect Landlord's interests. Tenant shall not enter into any settlement agreement, consent decree or other compromise with respect to any claims relating to Hazardous Materials without notifying Landlord in writing and providing ample opportunity for Landlord to intervene.
11.5 Notice: Reporting. Tenant shall notify Landlord, in writing, and provide copies of any written notices or related correspondence received by Tenant within three (3) business days after any of the following: (a) Tenant has knowledge, or hasreasonable cause to believe, that any Hazardous Material has been released, discharged or is located on, under or about the Premises, whether or not the release or discharge is in quantities that would otherwise be reportable to a public agency; (b) Tenant receives any order of a governmental agency requiring any Remedial Work pursuant to any Hazardous Materials Laws; (c) Tenant receives any warning, notice of inspection, notice of violation or alleged violation, or Tenant receives notice or knowledge of any proceeding, investigation of enforcement action, pursuant to any Hazardous Materials Laws; or (d) Tenant receives notice or knowledge of any claims made or threatened by any third party against Tenant or the Premisesrelating to any loss orinjury resulting from Hazardous Materials. If the potential risk of any of the foregoing events is material, Tenant shall deliver immediate oral notice to Landlord, in addition to written notice asset forth above.
Tenant shall promptly deliver to Landlord copies of all test results, reports and business or management plans required to be filed with any governmental agency pursuant to any Hazardous Materials Laws.
11.6 Indemnity. Tenant shall indemnify, protect, defend and hold harmless Landlord (and its officers, directors, employees and agents) from and against any and all liabilities, claims, suits, judgments, actions, investigations, proceedings, costs and expenses (including reasonable attorneys' fees and court costs) to the extent arising out of or in connection with any breach of any provisions of this Section 11 or directly or indirectly arising out of the use, generation, storage, release, disposal or transportation of Hazardous Materials by Tenant, or any successor or sublessee of Tenant, or their respective agents, contractors, employees, licensees, or invitees, on, under or about the Premises, including, but not limited to, all foreseeable and unforeseeable consequential damages and the cost of any Remedial Work. Neither the consent by Landlord to the use, generation, storage, release, disposal or transportation of Hazardous Materials nor the strict compliance with all Hazardous
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Materials Laws shall excuse Tenant from Tenant's indemnification obligations pursuant to this Section
11. Tenant's indemnity obligation in this paragraph does not extend to any liabilities, claims, suits, judgments, actions, investigations, proceeds, costs or expenses arising out of or in connection with Landlord's active negligence, or· breach of any provision of this Lease, or non-compliance with or violation of any Hazardous Material Laws. The foregoing indemnity shall be in addition to and not a limitation of the indemnification provisions of Section 13 of this Lease. Tenant's obligations pursuant to this Section 12 shall survive the termination or expiration of this Lease.
12. RELOCATION. In the event Landlord is able to obtain sufficient funding sources to rehabilitate the building which includes the Premises during the Term, upon prior written notice to Tenant, Landlord shall have the right to perform such rehabilitation work and (i) avoid performing such work within the Premises; (ii) if only Tenant’s office space will be affected by such rehabilitation, relocate Tenant’s offices to temporary accommodations either on-site or offsite as reasonably determined by Landlord, or (iii) relocate Tenant’s offices, including provisions for vehicle parking and access to an industrial cooler, to temporary accommodations offsite as reasonably determined by Landlord; provided, however, if Landlord in the exercise of its reasonable judgment is unable to locate a feasible relocation site at a reasonable expense, Landlord shall have the right to (a) request Tenant to vacate the Premises (or such portion as requested by Landlord) during the period of the Rehabilitation Project, or (b) terminate this Lease, in either case on ninety (180) days written notice to Tenant, and Tenant shall promptly comply with such notice. Such relocation will be effective on a date specified by Landlord in its relocation notice, which date will not be less than sixty (60) days after the date of such notice. If Landlord relocates Tenant, Landlord will reimburse Tenant for Tenant’s reasonable out-of-pocket expenses for relocating to and from such temporary accommodations. Upon completion of any such rehabilitation of the building, Tenant may return to and utilize the Premises for the remainder of the Term. Notwithstanding anything herein to the contrary, Landlord shall not be responsible for the cost of any temporary accommodations beyond the date of which the rehabilitation of the building has been completed and the Premises have been made available to Tenant for occupancy. Landlord’s exercise of its rights as permitted by this Section shall not (a) constitute a constructive eviction, an interference with Tenant’s right of quiet enjoyment, or a disturbance of Tenant’s right to use the Premises; and (b) subject Landlord to damages, including, but not limited to, damages for loss of goodwill, business, or profits. Time is of the essence with respect to Tenant’s obligations under this Section.
13. INDEMNITY. Tenant agrees to indemnify and defend Landlord from any claims, demands, causes of action and liability of any nature and any reasonable expense incident to the defense, for injury to or death of persons or loss of or damage to property occurring on or about the Premises arising out of or resulting from Tenant's use, and use its employees, contractors, invitees and guests, and occupation of the Premises or the condition of the Premises (unless the condition is one for which Landlord has expressly assumed the responsibility for remedying), during the Term, excepting only that caused by the active negligence or intentional misconduct of Landlord, its officers, agents, licensees, invitees, volunteers, or employees.
14. ASSIGNMENT AND SUBLETTING. Tenant shall not voluntarily or by operation of law assign, transfer, mortgage,sublet or otherwise transfer or encumber ("transfer") all or any part of Tenant's interest in this Lease or in the Premises, except with the prior written consent of the Landlord.
Any attempt at transfer of this Lease or the Premises shall be voidable at the Landlord's option and shall constitute a material breach of this Lease..
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15. DEFAULT.
15.1 The occurrence of any of the following events shall constitute a material default and breach of this Lease by Tenant:
(a) Vacation or abandonment of the Premises for a period of ninety (90) days or longer, unless the Premises have become unusable for Tenant's permitted use as set forth in Section 5, above.
(b) The failure by Tenant to make any payment of Rent or other payment required to be made by Tenant under the provisions of this Lease, as and when due, unless otherwise excused under Section 8 above.
(c) The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant within thirty (30) days after receiving written notice thereof, or if such breach cannot be cured within said thirty (30) day period, then the failure to commence cure within said thirty (30) day period and thereafter diligently pursue to completion.
(d) Transfer or attempted transfer of this Lease by Tenant contrary to the provisions of Section 14 above.
15.2 Upon the happening of any such event of default, Landlord shall have the following remedies. These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law:
(a) Landlord can continue this Lease in full force and effect and this Lease will continue in effect as long as Landlord does not terminate Tenant's right to possession, and Landlord shall have the right to collect rent when due. During the period Tenant is in default, Landlord can enter the Premises and re-let them, or any part of them, to third parties for Tenant's account. Tenant shall pay to Landlord the rent due under this Lease on the dates the rent is due, less the rent Landlord receives from any reletting. No act by Landlord allowed by this paragraph shall terminate this Lease unless Landlord notifies Tenant that Landlord electsto terminate this Lease. After Tenant's default and for as long as Landlord does not terminate Tenant's right to possession of the Premises, if Tenant obtains Landlord's consent Tenant shall have the right to assign or sublet its interest in this Lease, but Tenant shall not be released from liability. Landlord's consent to a proposed assignment or subletting shall not be unreasonably withheld. If Landlord elects to re-let the Premises as provided in this paragraph, rent that Landlord receives from reletting shall be applied to the payment of:
(i) First, any indebtedness from Tenant to Landlord other than rent due from Tenant;
(ii) Second, Rent due and unpaid under this Lease. After deducting the payments referred to in this paragraph, any sum remaining from the Rent Landlord receives from reletting shall be held by Landlord and applied in payment of future Rent as Rent becomes due under this Lease. In no event shall Tenant be entitled to any
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excess Rent received by Landlord.
(b) Landlord can terminate Tenant's right to possession of the Premises at any time. No act by Landlord other than giving notice to Tenant shall terminate this Lease. Acts of maintenance, efforts to relet the Premises or the appointment of a.receiver on Landlord's initiative to protect Landlord's interest under this Lease shall not constitute a termination of Tenant's right to possession. On termination, Landlord has the right to recover from Tenant:
(i) The worth, at the time of the award, of the unpaid rent that had been earned at the time of termination of this Lease; (ii) The worth, at the time of the award, of the amount by which the unpaid rent that would have been earned after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided;
(iii) The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and (iv) Any other amount, and court costs, necessary to
compensate Landlord for all detriment proximately caused by Tenant's default. "The worth, at the time of the award," as used in (i) and (ii) of this paragraph, is to be computed by allowing interest at the maximum rate allowable by law. "The worth, at the time of the award," as referred to in (iii) of this paragraph, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%). (c) Landlord, at any time after Tenant commits a default, may cure the default at Tenant's cost following not less·than thirty (30) days prior written notice and opportunity to cure.
16. CONDEMNATION.
16.1 If any part of the Premises are condemned for a public or quasi-public use by right of eminent domain, with or without litigation, or transferred by agreement in connection with such public or quasi-public use, by a public agency other than Landlord, this Lease and the leasehold estate of the Tenant, as to the part taken, shall terminate as of the date title shall vest in the condemner, and Tenant shall have no further-obligation to pay Rent once Tenant is no longer in possession of the Premises.
16.2 All compensation awarded upon such condemnation or taking shall belong and be paid to Landlord and Tenant shall have no claim thereto, and Tenant hereby irrevocably assigns and transfers to Landlord any right to compensation or damages to which Tenant may become entitled during the Term of this Lease by reason of the condemnation of all or part of the Premises, except that Tenant shall receive from the award: (i) the pro rata value of Tenant's additions, alterations and improvements as determined by the same appraiser establishing the value of the Premises for Landlord;
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(ii) the value of Tenant's trade fixtures to the extent taken; and (iii) in the event of a partial taking and Tenant restores the Premises, Tenant shall receive a sum attributable to that portion of the award constituting severance damages for the restoration of the Premises. In addition, Tenant shall not be deprived of making any direct claims against the condemning Landlord for loss of goodwill and/or relocation assistance payments.
17. MISCELLANEOUS.
17.1 Whenever any notice, approval, consent, request or election is given or made pursuant to this Lease, it shall be in writing. Communication and payments shall be addressed, if to Landlord, at Landlord's address as indicated below or at such other address as may have been specified by prior notice to Tenant, and if to Tenant, at Tenant's address as indicated below or at such other place as may have been specified by prior notice to Landlord. Any communication so addressed shall be deemed duly served when (i) personally served, (ii) if mailed, as of seventy two hours from the time such notice was deposited in the U.S. Mail, by registered or certified mail, return receipt requested, or (iii) if by email, when such email is received (unless given after 5:00 pm in the receiving location, in which case such receipt shall be deemed the next business day).
LANDLORD:
City of Coachella
1515 Sixth Street
Coachella, CA 92236
Attn: Gabriel Martin, City Manager
Email: [email protected]
TENANT:
Hidden Harvest Corporation
Attn: Christy Porter
85-711 Peter Rabbit
Coachella, CA 92236
Email: [email protected] and [email protected]
17.2 Each party hereunder shall provide to the other, and keep updated in the event of any change, the name and contact information for the on-site representative in order to facilitate the coordination of day-to-day operations at the Premises.
17.3 The receipt by Landlord of Rent or additional rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach. No provision of this Lease shall be deemed to have been waived by Landlord, or by Tenant, unless such waiver is in writing signed by the party to be charged. No consent or waiver, express or implied, by Landlord or Tenant to or of any breach of any agreement or duty shall be construed as a waiver or consent to or of any other breach of the same or any other agreement or duty.
17.4 If any term of this Lease shall to any extent be invalid or unenforceable, the remainder of this Lease shall not be affected thereby and each term of this Lease shall he valid and enforceable to the fullest extent permitted by law.