Agenda packet — Corona City Council, August 20, 2025 (part 9 of 10)

G-5
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
Interest, at all times, shall be prior to any other interest in the personal property encumbered hereby. Trustor shall act and perform as necessary and shall execute and file all security agreements, financing statements, continuation statements and other documents requested by Beneficiary to establish, maintain and continue the perfected Security Interest. Trustor, on demand, shall promptly pay all costs and expenses of filing and recordation, to ensure the continued priority of the Security Interest. Trustor shall not sell, transfer, assign or otherwise dispose of any personal property encumbered hereby without obtaining the prior written consent of Beneficiary, except that the Trustor may, in the ordinary course of business, replace personal property or dispose of personal property that will not be replaced because of its obsolescence.

Unless Beneficiary then agrees otherwise in writing, all proceeds from any permitted sale or disposition in excess of that required for full replacement shall be paid to Beneficiary to be applied on the Notes subject to the rights of any senior lenders. Although proceeds of personal property are covered hereby, this shall not be construed to mean that Beneficiary consents to any sale of such personal property. Upon its recordation in the real property records of Riverside County, this Deed of Trust shall be effective as a financing statement filed as a fixture filing. In addition, a carbon, photostatic or other reproduced copy of this Deed of Trust and/or any financing statement relating hereto shall be sufficient for filing and/or recording as a financing statement;

4. That all rents, profits and income from the property covered by this Deed of Trust are hereby assigned to the Beneficiary for the purpose of discharging the debt hereby secured.

Permission is hereby given to Trustor so long as no default exists hereunder after the giving of notice and the expiration of any applicable cure period, to collect such rents, profits and income for use in accordance with the provisions of the Secured Obligations;

5. That upon default hereunder or under the aforementioned agreements, and after the giving of notice and the expiration of any applicable cure period, Beneficiary shall be entitled to the appointment of a receiver by any court having jurisdiction, without notice, to take possession and protect the property described herein and operate same and collect the rents, profits and income therefrom;

6. That Trustor will keep the improvements now existing or hereafter erected on the property insured against loss by fire and such other hazards, casualties, and contingencies as may be required by applicable provisions of the Secured Obligations, and all such insurance shall be evidenced by standard fire and extended coverage insurance policy or policies. Such policies shall be endorsed with standard mortgage clause with loss payable to the Beneficiary and certificates thereof together with copies of original policies, if requested, shall be deposited with the Beneficiary;

7. To pay before delinquency any taxes and assessments affecting said Property; to pay, when due, all encumbrances, charges and liens, with interest, on said Property or any part thereof which appear to be prior or superior hereto; and to pay all costs, fees, and expenses of this trust. Notwithstanding anything to the contrary contained in this Deed of Trust, Trustor shall not be required to pay and discharge any such tax, assessment charge or levy so long as Trustor Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-6
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
is contesting the legality thereof in good faith and by appropriate proceedings, and Trustor has adequate funds to pay any liabilities contested pursuant to this Paragraph 7;

8. As it is provided more specifically in the Secured Obligations, to keep said property in good condition and repair, subject to ordinary wear and tear, casualty and condemnation, not to remove or demolish any buildings thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged, or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting said property or requiring any alterations or improvements to be made thereon (subject to Trustor's right to contest the validity or applicability of laws or regulations); not to commit or permit waste thereof; not to commit, suffer or permit any act upon said property in violation of law and/or covenants, conditions and/or restrictions affecting said property; not to permit or suffer any material alteration of or addition to the buildings or improvements hereafter constructed in or upon said property without the consent of the Beneficiary;

9. To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee, and to pay all costs and expenses, including cost of evidence of title and reasonable attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear;

10. Should Trustor fail, after the giving of notice and the expiration of any applicable cure period, to make any payment or do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof. Following default, after the giving of notice and the expiration of any applicable cure period, Beneficiary or Trustee, being authorized to enter upon said property for such purposes, may commence, appear in and/or defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; may pay, purchase, contest or compromise any encumbrance, charge, or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising any such powers, may pay necessary expenses, employ counsel, and pay his reasonable fees;

11. Beneficiary shall have the right to pay all insurance premiums required by the Secured Obligations when due should Trustor fail to make any required premium payments. All such payments made by the Beneficiary shall be added to the sums secured hereby;

12. To pay immediately and without demand all sums so expended by Beneficiary or Trustee, under permission given under this Deed of Trust, with interest from date of expenditure, at the highest rate of interest permitted by law;

13. That the funds to be advanced hereunder are to be used in accordance with applicable provisions of the Secured Obligations; upon the failure of Trustor to do so, after the giving of notice and the expiration of any applicable cure period, Trustor shall be in default hereunder;
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-7
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

14. Trustor further covenants that it will not voluntarily create, suffer, or permit to be created against the property subject to this Deed of Trust any lien or liens except as authorized by Beneficiary and/or as provided in the Secured Obligations and further that it will keep and maintain the property free from the claims of all persons supplying labor or materials which will enter into the construction of any and all buildings now being erected or to be erected on said premises. Notwithstanding anything to the contrary contained in this Deed of Trust, Trustor shall not be obligated to pay any claims for labor, materials or services which Trustor in good faith disputes and is diligently contesting, provided that Trustor shall, at Beneficiary's written request, within thirty (30) days after the filing of any claim or lien (but in any event, and without any requirement that Beneficiary must first provide a written request prior to foreclosure) record in the Office of the Recorder of Riverside County, a surety bond in the amount required by law to protect against a claim of lien, or provide such other security reasonably satisfactory to Beneficiary;

15. That any and all improvements made or about to be made upon the premises covered by this Deed of Trust and all plans and specifications, comply with all applicable municipal ordinances and regulations and all other applicable regulations made or promulgated, now or hereafter, by lawful authority, and that the same will upon completion comply with all such municipal ordinances and regulations and with the rules of the applicable fire rating or inspection organization, bureau, association or office.

IT IS MUTUALLY AGREED THAT:

16. Trustor confirms that if Trustor should sell, enter into a contract of sale, convey, or in any way transfer all or any interest of Trustor in the Real Property encumbered by this Deed of Trust or suffer Trustor's title or any interest therein to be divested, whether voluntarily or involuntarily, unless the same is a Permitted Transfer as defined in the Affordable Housing Agreement, without the prior written consent of the Beneficiary being first obtained, then Beneficiary shall have the right, at Beneficiary's sole option, to declare all sums payable under the Notes secured hereby immediately due and payable in full, irrespective of the maturity date otherwise specified in the Notes. No waiver of this right shall be effective unless in writing and signed by the Beneficiary. Consent by the Beneficiary to any one such transaction shall not be deemed a waiver of the right to require such consent to future or successive transactions.

Further, upon default under one of the Secured Obligations, and after the giving of notice and the expiration of any applicable cure period provided therein, the Beneficiary, at its option, may declare the whole of the indebtedness secured hereby to be immediately due and payable in full, irrespective of the maturity date otherwise specified in the Notes;

17. As provided more specifically in the Secured Obligations, should the Property or any part thereof be taken or damaged by reason of any public improvement or condemnation proceeding, or damaged by fire, or earthquake, or in any other manner, subject to the rights of any senior lenders, Beneficiary shall be entitled to all compensation, awards, and other payments or relief therefor which are not used to reconstruct, restore or otherwise improve the property or part thereof that was taken or damaged, and shall be entitled at its option to commence, appear in and prosecute in its own name, any action or proceedings, or to make any compromise or Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-8
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
settlement, in connection with such taking or damage subject to the rights of any senior lenders.

All such compensation, awards, damages, rights of action and proceeds which are not used to reconstruct, restore or otherwise improve the property or part thereof that was taken or damaged, including the proceeds of any policies of fire and other insurance affecting said property, are hereby assigned to Beneficiary subject to the rights of any senior lenders;

18. Notwithstanding Sections 16 and 17, in the event that a portion of the Property is taken for a public improvement or pursuant to a condemnation proceeding and the Qualifying Units (as defined in the Regulatory Agreement) remain intact and continue to be owned and operated by Trustor in conformance with the Affordable Housing Agreement and the Regulatory Agreement, Beneficiary shall not declare all sums due and payable under the Notes, nor shall the Beneficiary be entitled to any compensation, awards and other payments therefor, provided that such compensation, awards and other payments are used for (1) paying principal and interest owed on the Permanent Loan (as defined in the Affordable Housing Agreement), (2) making improvements to the Property that are approved by Beneficiary, in its reasonable discretion, or (3) payment of principal owing under the Notes. In the event that Trustor receives such compensation, awards or other payments and fails to expend the funds in conformance with subsections (1) and (2) this section within thirty (30) days of receipt of such funds, Trustor shall be in default under this Deed of Trust.

19. Upon default by Trustor in taking any action or in making any payments provided for herein, or in the Secured Obligations, if Trustor shall fail to perform any covenant or agreement in this Deed of Trust within thirty (30) days after written demand therefor by Beneficiary (or, in the event that more than thirty (30) days is reasonably required to cure such default, should Trustor fail to promptly commence such cure, and diligently prosecute same to completion), after the giving of notice and the expiration of any applicable cure period, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale, and of written notice of default and of election to cause the property to be sold, which notice Trustee shall cause to be duly filed for record and Beneficiary may foreclose this Deed of Trust. Beneficiary shall also deposit with Trustee this Deed of Trust and all documents evidencing expenditures secured hereby;

20. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the time and place of sale, and from time to time thereafter may postpone the sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to the purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in the Deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-9
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
Trustor, Trustee or Beneficiary, may purchase at the sale. The Trustee shall apply the proceeds of sale to payment of (1) the expenses of such sale, together with the reasonable expenses of this trust including therein reasonable Trustee's fees or attorney's fees for conducting the sale, and the actual cost of publishing, recording, mailing and posting notice of the sale; (2) the cost of any search and/or other evidence of title procured in connection with such sale and revenue stamps on Trustee's Deed; (3) all sums expended under the terms hereof, not then repaid, with accrued interest at the maximum rate allowed by law; (4) all other sums then secured hereby; and (5) the remainder, if any, to the person or persons legally entitled thereto;

21. Beneficiary may from time to time substitute a successor or successors to any Trustee named herein or acting hereunder to execute this Deed of Trust. Upon such appointment, and without conveyance to the successor trustee, the latter shall be vested with all title, powers, and duties conferred upon any Trustee herein named or acting hereunder. Each such appointment and substitution shall be made by written instrument executed by Beneficiary, containing reference to this Deed of Trust and its place of record, which, when duly recorded in the proper office of the county or counties in which the property is situated, shall be conclusive proof of proper appointment of the successor trustee;

22. The pleading of any statute of limitations as a defense to any and all obligations secured by this Deed of Trust is hereby waived to the full extent permissible by law;

23. Upon written request of Beneficiary stating that all sums secured hereby have been paid and all obligations secured hereby have been satisfied, and upon surrender of this Deed of Trust to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto";

24. The trust created hereby is irrevocable by Trustor;

25. This Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors, and assigns. The term "Beneficiary" shall include not only the original Beneficiary hereunder but also any future successor in interest to Beneficiary. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. All obligations of Trustor hereunder are joint and several;

26. Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made public record as provided by law. Except as otherwise provided by law, the Trustee is not obligated to notify any party hereto of pending sale under this Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee;

27. The undersigned Trustor requests that a copy of any notice of default and of any notice of sale hereunder be mailed to it at the address set forth in the Deed of Trust; Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-10
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

28. Trustor agrees at any time and from time to time, upon receipt of a written request from Beneficiary, to furnish to Beneficiary detailed statements in writing of income, rents, profits, and operating expenses of the premises, and the names of the occupants and tenants in possession, together with the expiration dates of their leases and full information regarding all rental and occupancy agreements, and the rents provided for by such leases and rental and occupancy agreements, and such other information regarding the premises and their use as may be requested by Beneficiary;

29. Trustor agrees that the obligations secured by this Deed of Trust are made expressly for the purpose of acquiring the Property and completing the construction work necessary to construct a new 110-unit (including 1 manager's unit) affordable housing development on the Property, as is more specifically provided in the Secured Obligations;

30. As is provided more specifically in the Secured Obligations, the obligations of Trustor thereunder are nonrecourse obligations of the Trustor. The sole recourse of Beneficiary shall be the exercise of its rights against the Property;

31. Notwithstanding specific provisions of this Deed of Trust, non-monetary performance hereunder shall not be deemed to be in default where delays or defaults are due to:
war; insurrection; strikes; lock-outs; riots; floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine restrictions; freight embargoes; lack of transportation; governmental restrictions or priority; litigation; unusually severe weather; inability to secure necessary labor, materials or tools; delays of any contractor or supplier; acts of the other party; acts or failure to act of the Authority or any other public or governmental agency or entity (except that any act or failure to act of Beneficiary shall not excuse performance by Beneficiary unless such act or failure to act is allowed or required by law); or any other causes beyond the reasonable control or without the fault of the party claiming an extension of time to perform. An extension of time for any such cause (a "Force Majeure Delay") shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause. If, however, notice by the party claiming such extension is sent to the other party more than thirty (30) days after the commencement of the cause, the period shall commence to run only thirty (30) days prior to the giving of such notice. Times of performance under this Deed of Trust may also be extended in writing by the Beneficiary and Trustor;

32. If the rights and liens created by this Deed of Trust shall be held by a court of competent jurisdiction to be invalid or unenforceable as to any part of the obligations described herein, the unsecured portion of such obligations shall be completely performed and paid prior to the performance and payment of the remaining and secured portion of the obligations, and all performance and payments made by Trustor shall be considered to have been performed and paid on and applied first to the complete payment of the unsecured portion of the obligations;

33. (a) Subject to the extensions of time set forth in Paragraph 31, and subject to the further provisions of this Paragraph 33, failure or delay by Trustor to perform any term or provision respectively required to be performed under the Secured Obligations or this Deed of Trust constitutes a default under this Deed of Trust;
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-11
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
(b) Beneficiary shall give written notice of default to Trustor, specifying the default complained of by the Beneficiary. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; (c) Any failures or delays by Beneficiary in asserting any of its rights and remedies as to any default shall not operate as a waiver of any default or of any such rights or remedies. Delays by Beneficiary in asserting any of its rights and remedies shall not deprive Beneficiary of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert, or enforce any such rights or remedies; (d) If an event of default occurs under the terms of this Deed of Trust, prior to exercising any remedies hereunder or thereunder, Beneficiary shall give Trustor written notice of such default. Trustor shall have a reasonable period of time after such notice is given within which to cure the default prior to exercise of remedies by Beneficiary under this Deed of Trust.

In no event shall Beneficiary be precluded from exercising remedies if its security becomes or is about to become materially jeopardized by any failure to cure a default or the default is not cured within thirty (30) days after the notice of default is first given; (e) If an event of default occurs under the terms of the Secured Obligations, prior to exercising any remedies hereunder or thereunder, Beneficiary shall give Trustor notice of such default. As is provided more specifically in the Secured Obligations, if the default is reasonably capable of being cured within thirty (30) days, Trustor shall have such period to effect a cure prior to exercise of remedies by the Beneficiary under the Secured Obligations, or this Deed of Trust. If the default is such that it is not reasonably capable of being cured within thirty (30) days, and Trustor (i) initiates corrective action within said period, and (ii) diligently and in good faith works to effect a cure as soon as possible, then Trustor shall have such additional time as is reasonably necessary to cure the default prior to exercise of any remedies by Beneficiary. In no event shall Beneficiary be precluded from exercising remedies if its security becomes or is about to become materially jeopardized by any failure to cure a default.

34. This Deed of Trust shall be subject and subordinate to the terms of that certain extended use agreement executed by the Trustor in connection with the Trustor's allocation of low-income housing tax credits under Section 42 of the Code (the "Extended Use Agreement").

If Beneficiary or its successors or assigns (collectively, the "Subsequent Owner') acquires the Property by foreclosure (or instrument in lieu of foreclosure), then the "extended use period" (as defined in Section 42(h)(6)(D) of the Internal Revenue Code) shall terminate, except for the obligation of the Subsequent Owner to comply with the limitations on evictions, termination of tenancy and increase in rents for the three year period following the Subsequent Owner's acquisition of the Property, as set forth in Section 42(h)(6)(E)(ii) of the Internal Revenue Code.

As provided in the Affordable Housing Agreement, upon request when appropriate, Beneficiary shall execute such documentation as is necessary to subordinate this Deed of Trust to a Senior Loan.
[Signatures on Following Page]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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G-12
Exhibit “G”
Deed of Trust
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year first set forth above.

TRUSTOR:

SECOND STREET FAMILY LP, a California limited partnership By: OHDC Second Street Family LLC,
a California limited liability company,
its managing general partner
By: Orange Housing Development Corporation,
a California nonprofit corporation,
its sole member and manager
By: ____________________________________
Eunice Bobert, Chief Executive Officer
By: C&C Second Street Family LLC,
a California limited liability company,
its developer general partner
By: _____________________________
Todd R. Cottle, Trustee of the 2007
Todd R. Cottle and Jennifer N. Cottle
Revocable Trust. its member,
its member
[SIGNATURES MUST BE NOTARY ACKNOWLEDGED]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Exhibit “G”
A-1
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

EXHIBIT A TO

DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING
(WITH ASSIGNMENT OF RENTS)
(Corona Second Street Family Apartments)
Legal Description of Subject Property

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

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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H-1
Exhibit “H”
Project Scope of Development
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JAMIER\01200.20009\10270109.25
EXHIBIT "H"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

PROJECT SCOPE OF DEVELOPMENT
[SEE ATTACHED TWO (2) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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H-2
Exhibit “H”
Project Scope of Development
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JAMIER\01200.20009\10270109.25

PROJECT SCOPE OF DEVELOPMENT
The 115-unit affordable family project will be situated on about 4 acres of the overall site and will be developed by the Developer. It consists of 115 units with 6 studio, 18 one-bedroom, 46 two-bedroom, and 45 three-bedroom units in five residential buildings. Large family units will be provided to serve the needs of Corona families and to assist in the financing structure. In addition to serving traditional families, to achieve the City's goal of serving homeless families or families at risk of homelessness, the development includes a preference for 20 families that are either currently homeless or at risk of homelessness.

The buildings are oriented towards Second Street and Buena Vista Avenue which provides for consistent massing and street presence across the entire site. Three of the buildings are situated around a central courtyard which includes open space and a pool. Parking has been placed along the southern boundary of the property providing for a buffer between the residential units and Corona-Norco School District school and corporation yard facilities.

The community has been designed to accommodate small to large families. In addition to large family sized units, unit amenities will include energy efficient appliances and HVAC systems to decrease residents' utility costs, the use of low Volatile Organic Compound (VOC) and other sustainable building products to improve resident's indoor environmental air quality, recessed lighting, durable plank vinyl flooring, large windows for natural lighting, and shaded balconies.

The property will have a number of site amenities including an on-site manager with a freestanding leasing office building, tot lot, BBQ pavilion, pool, drought tolerant landscaping, community room with kitchen, and a technology lab. Site amenities have been designed to complement what has previously been provided at the Citrus Circle community directly across the street. Residents of both communities will be able to access the site amenities whether it's programming, swimming in the pool, or dropping in for a parenting or ESL class.

The Second Street project will have a multipurpose room and community center which will be operated by the YMCA or alternative service provider. The proposed services encompass a wide breadth of programs at the location with the goal to complement and not duplicate existing programs in the surrounding community. The proposed initial services fall into two main categories, Adult/Family Education and Health and Wellness as follows:

Adult/Family Education
Teens and Young Adults
 Leadership and Fellowship Classes (Functional Strength, Bootcamp, Beginner/Advanced Strength classes, Teen Fellowship, Teen Conditioning)
 eSports
 Innovation Space
 Teen Scholar Program
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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H-3
Exhibit “H”
Project Scope of Development
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
All Ages
 Volunteer programs (food insecurity, collaboration with local police and fire departments)  Nutrition classes: Diabetes Prevention, Healthy Weight for your Kids, Senior Health, Family Cooking, Meal Prep Classes.

Health/Wellness
All Ages
 Personal Trainer/Partner Training
 Physical Therapist Seminars
 Blood Pressure Monitoring Program
Seniors
 Low impact Group Exercise classes (Chair balance, TRX for Beginners, Stability and Mobility, Chair Yoga).
 Fellowship classes (Technology classes and coffee social hour.) Families
 Family Fitness
 Kids Yoga
The programs will be available to residents at Citrus Circle, Second Street, and Meridian Apartments complexes
The recreation parcel (APN 118-302-030) will feature a central open space surrounded by shade and seating, citrus fruit trees, and native landscape materials. The space can be programmed for various activities such as free play for children, outdoor activities for older children and adults, and other outdoor activities.

The Social Services provider will reach out to the City Volunteer Coordinator to discuss ways to partner and bring different services and opportunities to residents on a regular basis.

The site is well located in the heart of Corona. The property is within walking distance to grocery stores, public transit, community-serving retail, Corona City Hall, YMCA facilities, Historic Civic Center facilities (programmed by the City to host community events year-round), non-profit services providers, and the Corona-Norco Adult education center.

Developer will engage with the Corona Norco Unified School District’s Adult Education Center located at 300 E. Buena Vista, Corona, CA 92882 to help ensure residents are aware of the Adult Education opportunities the school provides such as certificates in Accounting, Computer Skills, welding, and construction.

The site will be designed for ADA path of travel, so that disabled residents can have unimpaired access throughout the site. Handicap parking spaces will be provided along with truncated domes Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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H-4
Exhibit “H”
Project Scope of Development
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JAMIER\01200.20009\10270109.25
on sidewalks for vision impaired individuals. 2% of the units will be configured for visual and hearing impaired individuals. 5% of the units will be designed to Uniform Federal Accessibility Standards (UFAS) or to current state and/or tax credit financing requirements, whatever is most restrictive. In addition, all ground floor and elevator accessible units will be adaptable for wheelchair or disabled residents.

Affordable Family Development Summary:
 Number of Units 115
 Residential Square Footage approx. 110,727 sf
 Number of Structures 5
 Unit Sizes (BR/BA) Studios: 601 sf
1/1: 764 sf
2/1: 939 sf
3/2: 11,115 sf
 Unit Mix (BR/BA) Studios/1: 6 | 1/1: 18 | 2/1: 46 | 3/2: 45  Community Rooms 1 + Leasing Office + Technology Room + Laundry Room
 Recreational Areas on
Family Apartment Parcel
BBQ Pavilion, Outdoor Shaded Seating, Pool, Tot
Lot, Open Space
 Recreational Areas on
Recreation Parcel
Central open space surrounded by shade and seating
 Parking 190 Total Spaces (1.73 spaces/unit)
 Target Population Low, Very Low and Extremely Low Families 20 Unit Preference for At Risk of Homelessness or
Homeless Families
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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H-5
Exhibit “H”
Project Scope of Development
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JAMIER\01200.20009\10270109.25
Unit Mix
Affordability
Unit Type 30%
AMI
50%
AMI
60%
AMI
70%
AMI
Manager Total
Studios 1 1 3 1 6
One Bedroom 1 1 14 2 18
Two Bedroom 5 5 31 5 46
Three Bedroom 5 5 29 5 1 45
Total 12 12 77 13 1 115
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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I-1
Exhibit “I”
Notice of Agreement
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
EXHIBIT "I"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

NOTICE OF AGREEMENT
[SEE ATTACHED EIGHT (8) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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I-2
Exhibit “I”
Notice of Agreement
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

RECORDING REQUESTED BY
AND WHEN RECORDED RETURN TO:

City of Corona Housing Authority
400 S. Vicentia Ave.

Corona, CA 92882
Attn: Executive Director
______________________________________________________________________________ APNs: SPACE ABOVE FOR RECORDER'S USE ONLY

EXEMPT FROM RECORDING FEE PER
GOVERNMENT CODE §27383 AND §27388.1(a)(2)(D)

CITY OF CORONA HOUSING AUTHORITY

NOTICE OF AGREEMENT
Affordable Housing Disposition and Development Agreement (Corona Second Street Family Apartments)
TO ALL INTERESTED PERSONS PLEASE TAKE NOTICE that as of ________, 202_, CITY OF CORONA HOUSING AUTHORITY, a public body, corporate and politic, organized under the laws of the State of California (the "Authority"), the CITY OF CORONA, a California municipal corporation (the "City") and SECOND STREET FAMILY LP, a California limited partnership ("Developer"), entered into an agreement entitled "Affordable Housing Disposition and Development Agreement (Corona Second Street Family Apartments)" dated August 21, 2024(the "Agreement"). A copy of the Agreement is on file with the City Clerk of the City and is available for inspection and copying by interested persons as a public record of the City at the City's offices located at 400 S. Vicentia Ave., Corona, CA 92882, during the regular business hours of the City.

The Agreement affects the real property described in Attachment No. 1 attached to this Notice of Agreement (the "Property"). The meaning of defined terms, indicated by initial capitalization, used in this Notice of Agreement shall be the same as the meaning ascribed to such terms in the Agreement.

PLEASE TAKE FURTHER NOTICE that the Agreement contains certain affordable housing restrictions and other covenants that run with the land of the Property and other agreements between the Developer and the Authority affecting the Property, which restrict the price and terms at which residential units on the Property may be rented. These restrictions may limit the sales price or rents of the Property to an amount which is less than the fair market value of the Property. These restrictions limit the income of persons and households who are permitted to rent residential units on the Property. This Notice does not contain a full description of the details of all of the terms and conditions of the Agreement. You will need to obtain and read the Agreement to fully understand the affordable housing restrictions and requirements which apply to the Property.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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I-3
Exhibit “I”
Notice of Agreement
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JAMIER\01200.20009\10270109.25
THIS NOTICE OF AGREEMENT is dated as of ______, 202__, and has been executed on behalf of the Developer, the Authority and the City by and through the signatures of their authorized representative(s) set forth below. This Notice of Agreement may be executed in counterparts and when fully executed each counterpart shall be deemed to be one original instrument.
[Signatures on Following Pages]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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I-4
Exhibit “I”
Notice of Agreement
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

CITY AND AUTHORITY SIGNATURE PAGE
TO

NOTICE OF AGREEMENT
Affordable Housing Disposition and Development Agreement (Corona Second Street Family Apartments)
Authority, City and Developer have signed this Notice of Agreement by and through the signatures of their authorized representative(s) set forth below:

AUTHORITY:

CITY OF CORONA HOUSING AUTHORITY,
a public body, corporate and politic, organized under the laws of the State of California, By: Date:

Jacob Ellis
Executive Director
ATTEST:

Authority Secretary
CITY:

CITY OF CORONA,
a California municipal corporation
By: Date:

Jacob Ellis
City Manager
ATTEST:

City Clerk
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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I-5
Exhibit “I”
Notice of Agreement
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

DEVELOPER SIGNATURE PAGE
TO

NOTICE OF AGREEMENT
Affordable Housing Disposition and Development Agreement (Corona Second Street Family Apartments)
DEVELOPER:

SECOND STREET FAMILY LP, a California limited partnership By: OHDC Second Street Family LLC,
a California limited liability company,
its managing general partner
By: Orange Housing Development Corporation,
a California nonprofit corporation,
its sole member and manager
By: ____________________________________
Eunice Bobert, Chief Executive Officer
By: C&C Second Street Family LLC,
a California limited liability company,
its developer general partner
By: C & C Development Co., LLC,
a California limited liability company,
its sole member and manager
By: __________________________________________
Todd R. Cottle, Trustee of the 2007 Todd R.

Cottle and Jennifer N. Cottle Revocable
Trust,
its member
[ALL SIGNATURES MUST BE NOTARY ACKNOWLEDGED]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Attachment No. 1
-1-
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ATTACHMENT NO. 1
TO

NOTICE OF AGREEMENT
Affordable Housing Disposition Agreement
(Corona Second Street Family Apartments s)
Property Legal Description

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

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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J-1
Exhibit “J”
Certificate of Completion
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JAMIER\01200.20009\10270109.25
EXHIBIT "J"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

CERTIFICATE OF COMPLETION
[SEE ATTACHED THREE (3) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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J-2
Exhibit “J”
Certificate of Completion
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:

City of Corona Housing Authority
400 S. Vicentia Ave.

Corona, CA 92882
Attn: Executive Director
APNs: SPACE ABOVE FOR RECORDER'S USE ONLY

EXEMPT FROM RECORDING FEE PER
GOVERNMENT CODE §27383 AND §27388.1(a)(2)(D)

CERTIFICATE OF COMPLETION
(Corona Second Street Family Apartments)
I, _____________, Executive Director of the City of Corona Housing Authority ("Authority"), certify as follows:

Section 1. This Certificate of Completion is made with respect to that certain Affordable Housing Disposition and Development Agreement dated August 21, 2024 ("Agreement") by and among the Authority, the City of Corona ("City"), and Second Street Family LP ("Developer").

The Agreement is an official record of the Authority and a copy of the Agreement may be inspected in the office of the Authority Secretary, located at 400 S. Vicentia Avenue, Corona, California, during regular business hours. All capitalized terms not otherwise defined in this certificate shall have the same meaning as ascribed to those terms in the Agreement.

Section 2. The development of that certain real property ("Property") described in Attachment No. 1 to this Certificate of Completion, which includes the construction of an one hundred fifteen (115) unit multifamily residential development on the Property and associated common areas to provide rental housing to low income households ("Project") as required in accordance with the Agreement has been completed in accordance with the provisions of the Agreement.

Section 3. Pursuant to Section 4.11 of the Agreement, on behalf of Authority, this Certificate of Completion is a conclusive determination of the satisfactory completion of Developer's obligation to complete the Project on the Property; provided, however, that Authority and City may enforce any covenants and obligations surviving this Certificate of Completion in accordance with the terms and conditions of the Agreement and the Regulatory Agreement.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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J-3
Exhibit “J”
Certificate of Completion
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

SIGNATURE PAGE
TO

CERTIFICATE OF COMPLETION
(Corona Second Street Family Apartments)
DATED AND ISSUED this ____ day of ________________.

Dated: _______________________ By:

Name: __________________________________
Executive Director
ATTEST:

Authority Secretary
[SIGNATURE MUST BE NOTARY ACKNOWLEDGED]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Attachment No. 1
-1-
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JAMIER\01200.20009\10270109.25
ATTACHMENT NO. 1
TO

CERTIFICATE OF COMPLETION
Legal Description of the Property

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

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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K-1
Exhibit “K”
Developer Official Action
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
EXHIBIT "K"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

DEVELOPER OFFICIAL ACTION
[SEE ATTACHED TWO (2) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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K-2
Exhibit “K”
Developer Official Action
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

DEVELOPER OFFICIAL ACTION
The undersigned do hereby certify that Second Street Family LP will serve as the Developer of the Second Street Family Apartments under the Agreement described below. No consent or approval of any other person is required for the undersigned to make the certifications set forth in this Certificate.

Each of us, only on behalf of the entity identified below, further certify that the following named person(s):

1. Eunice Bobert, as the Chief Executive Officer of Orange Housing Development Corporation, the sole member and manager of OHDC Second Street Family LLC, the managing general partner of the Developer; and

2. Todd R. Cottle, Trustee of the 2007 Todd R. Cottle and Jennifer N. Cottle Revocable Trust as a member of C & C Development Co., LLC, the sole member and manager of C&C Second Street Family LLC, the managing general partner of the Developer
are, without any additional or further consent of any person, authorized and empowered for and on behalf of and in the name of the respective entity set forth above to: (1) sign and deliver that certain Affordable Housing Disposition and Development Agreement (Corona Second Street Family Apartments), dated as of August 21, 2024 ("Agreement"), regarding the development of certain real property located in the City of Corona, California, and performance of other obligations of the "Developer" as set forth in the Agreement; (2) sign and deliver all other documents on behalf of the respective entity identified set forth above to be signed or executed in connection with the transactions contemplated in the Agreement; and (3) take all actions on behalf of the respective entity identified above that may be considered necessary to conclude the transactions and complete the development contemplated in the Agreement.

The authority conferred and certified to in this Certificate shall be considered retroactive and any and all acts authorized in this Certificate that were performed before the execution of this Certificate are approved and ratified by each entity identified above. The authority conferred and certified to in this Certificate shall continue in full force and effect until the Executive Director of the City of Corona Housing Authority receives written notice of the revocation of this Certificate.

We further certify that the activities covered by the authorities conferred and certified to in this Certificate and the foregoing certifications constitute duly authorized activities of each entity identified above; that these authorities and certifications are now in full force and effect; and that there is no provision in any document under which either of the entities identified above is organized and/or that governs such entity's continued existence or limits the power of the undersigned to confer the authorities or make the certifications set forth in this Certificate, and that the same are in conformity with the provisions of all such documents.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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K-3
Exhibit “K”
Developer Official Action
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
[Signatures on following page]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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K-4
Exhibit “K”
Developer Official Action
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

SIGNATURE PAGE
TO

DEVELOPER OFFICIAL ACTION
SECOND STREET FAMILY LP, a California limited partnership By: OHDC Second Street Family LLC,
a California limited liability company,
its managing general partner
By: Orange Housing Development Corporation,
a California nonprofit corporation,
its sole member and manager
By: ____________________________________
Eunice Bobert, Chief Executive Officer
By: C&C Second Street Family LLC,
a California limited liability company,
its developer general partner
By: C & C Development Co., LLC,
a California limited liability company,
its sole member and manager
By: __________________________________________
Todd R. Cottle, Trustee of the 2007 Todd R.

Cottle and Jennifer N. Cottle Revocable
Trust,
its member
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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L-1
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
EXHIBIT "L"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

PROJECT NOTE
[SEE ATTACHED SEVEN (7) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1002 of 1215 ends

L-2
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT

PROJECT PROMISSORY NOTE SECURED BY DEED OF TRUST
(Corona Second Street Family Apartments)
Principal Amount: $7,535,280 Date of Note: , 202__
Maker: SECOND STREET FAMILY
LP, a California limited partnership
Lender: CITY OF CORONA HOUSING
AUTHORITY, a public body, corporate and
politic, organized under the laws of the State of
California
Maturity Date: Interest Rate: One Percent (1.0%)

1. Housing Authority Project Loan.

FOR VALUE RECEIVED, the undersigned Second Street Family LP, a California limited partnership ("Maker"), with its principal place of business located at 414 E. Chapman Avenue, Orange, CA 92866, promises to pay to the CITY OF CORONA HOUSING AUTHORITY, a public body, corporate and politic, organized under the laws of the State of California, a municipal corporation (the "Authority" or "Holder") at 400 S. Vicentia Avenue, Corona, California, 92882, or such place as the Holder may, from time to time, designate by written notice to the Maker, the principal sum of Seven Million Five Hundred Thirty-Five Thousand Dollars ($7,535,000), (the "Project Loan"), together with any accrued interest, if applicable, as set forth in this Note. This Promissory Note (the "Note") is made and given pursuant to that certain Affordable Housing Disposition and Development Agreement among the Authority, the City of Corona, a California municipal corporation and Maker, dated August 21, 2024 (the "Affordable Housing Agreement"). The Affordable Housing Agreement is incorporated herein by this reference. All initially capitalized terms used but not defined herein shall have the meanings given to them in the Affordable Housing Agreement. Funds for the Project Loan consist of $7,535,280.00 in Authority funding from its low and moderate income housing asset fund. The Project Loan is made to finance the Project's predevelopment, development, and construction costs in accordance with the terms and conditions of the Affordable Housing Agreement.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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L-3
Exhibit “L”
Project Note
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JAMIER\01200.20009\10270109.25
b. Prepayment. This Note may be prepaid in whole or in part at any time and from time to time without penalty or premium.

3. Security for Note.

This Note is secured by a Deed of Trust executed by Maker which creates a lien on that certain real property as described therein and in the Affordable Housing Agreement.

4. Interest Calculation.

The principal outstanding under this Note shall accrue simple interest at the rate of one percent (1.0%) per annum, except in the case of Default as set forth in Section 9 of this Note.

Principal and interest shall be payable in lawful money of the United States of America. If applicable, interest shall be computed based on an actual day year and the actual number of days elapsed. Interest shall commence on amounts disbursed hereunder from the date of disbursement.

5. Annual Payment.

Following completion of the Project as evidenced by the issuance by the City of a Certificate of Occupancy as defined in Section 111.2 of the California Building Code, 2013 Municipal Code, and continuing each year thereafter until the Maturity Date, a portion of the Residual Receipts (as defined below) from the Project shall be paid to Holder and applied to pay down the amounts due and owing under this Note. The payments described below shall be paid to Holder no later than April 1 each year, with the first payment due on the April 1 following the issuance of a Certificate of Occupancy for the Project, and continuing each year thereafter. a. Annual Payments from Residual Receipts. After the Fee Deferral Note, the HOME-ARP Note and the Land Note have been paid in full, Maker shall make repayments of the outstanding principal and accrued interest of this Note, if any, equal to Fifty Percent (50%) of the Residual Receipts from the Project as repayment of amounts due and owing under this Note.

Such annual payments shall be accompanied by the Maker's report of Residual Receipts. The Maker shall provide the Holder with the audited financial statement provided for in Section 6, and any other documentation reasonably requested by Holder to substantiate the Maker's determination of Residual Receipts.

All payments made hereunder shall be credited first to any accrued but unpaid interest (if applicable), then to current interest due and owing and lastly to principal. Interest not paid current each year shall be added to and thereafter be considered additional principal due hereunder. Each payment shall be credited to each of the sources of funding for the Project Loan in the same proportion as the amount of principal funding that source provided to the Project Loan bears to the total principal amount of the Project Loan.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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L-4
Exhibit “L”
Project Note
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JAMIER\01200.20009\10270109.25
Notwithstanding the foregoing, the entire outstanding balance of principal and any interest owing under this Note shall be due and payable in full fifty-five (55) years from the date hereof.

Prior to any sale of all or any portion of the Project, or Refinancing of all or any portion of the outstanding debt from the Project, and so long as there is any outstanding amount due and owing under this Note, Maker shall notify Holder of any such proposed or intended sale or Refinancing. The Executive Director shall have the right to review all documents related to and to approve or disapprove any Refinancing or that will increase the interest rate or increase the outstanding principal amount of such outstanding debt or cause or require the release or withdrawal of cash or equity from any part of the Project. The Executive Director shall reasonably consider any such proposed Refinancing based on an economic evaluation conducted by City’s economic consultant that analyzes the effect of the proposed Refinancing (i) the availability of Residual Receipts to repay this Note (and any other subordinate loans), (ii) the availability of Cost Savings, and (iii) the ability of Maker to repay any outstanding debt or other liens, if any, against the Project or Property as such payment becomes due. In such event, Maker and Holder shall meet and confer, and shall use good faith efforts, to determine the feasibility of the payoff or restructuring of the remaining balance owing under this Note as part of any such sale or Refinancing to provide for repayment of this Note sooner than the fifty-five (55) year repayment period. Nothing herein shall be construed or interpreted to give the Executive Director with the authority to review and approve (or disapprove) a Refinancing that includes in any manner the Resyndication of the Project.
b. Residual Receipts. For the purposes of this Note, "Residual Receipts" shall mean the sum of money computed as follows:
(i) All rents, revenues, consideration or income (of any form) received by Maker in connection with or relating to the ownership or operation of the Project, including any Net Refinancing Proceeds and any revenue from contributions, loans or grants which is not required to meet future project obligations (but excluding tenants' security deposits, partner capital contributions and similar advances) ("Gross Revenue") less all of the following: all customary and reasonable costs and expenses reasonably and actually incurred in connection with the operation and maintenance of the Project, including but not limited to premiums for Property Insurance and Liability Insurance; utility services not paid directly by tenants; maintenance and repair; security services and payments for social/supportive services in an amount approved as part of the Annual Budget; payment of principal or interest on any indebtedness of Maker to any affiliate of Maker (individual or entity) or partner of Maker to repay completion and operating deficit loans relating to the Project in an amount approved as part of the Annual Budget; asset management fee payable to the limited partner of Maker and partnership management fee payable to Maker, which fees together shall not exceed Thirty Thousand Dollars ($30,000) per year during the first year after issuance of the Certificate of Completion with allowable annual escalations of up to two and one-half percent (2.5%) per year with any greater amount to be approved by the Authority in the Annual Budget; reasonable property management fees not to exceed Seventy Dollars ($70) per unit per month during the first year after issuance of the Certificate of Completion with allowable annual escalations of up Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1005 of 1215 ends

L-5
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
to three percent (3%) per year or greater amount as approved by the Authority in the Annual Budget; deferred Developer Fee in an amount approved as part of the Project Budget (as defined in the Affordable Housing Agreement); amounts (approved by Holder) expended to restore the Project after a casualty loss or condemnation; reasonable and customary cost for accounting and auditing the books and records of the Project; taxes; franchise tax filing fees; and any other reserves reasonably required by the investors or the lenders approved by the Authority for the Project (collectively "Operating Expenses").
(ii) Notwithstanding the generality of the foregoing, the following items are not expenses or deductible in computing Residual Receipts:
(A) Payment of any fees or expenses or of any portion of the Residual Receipts to Maker or any affiliate of Maker, except as specifically set forth herein; (B) Income taxes imposed upon Maker's income;
(C) Payment of principal or interest on any indebtedness of Maker to any Lender, including any affiliate of Maker (individual or entity) or partner of Maker, except as specifically approved by Holder in writing or otherwise set forth herein; and (D) Depreciation, cost recovery, amortization and similar items which do not involve the expenditure of cash.

6. Audited Financial Statement.

Maker shall annually provide Holder with an audited financial statement documenting the calculation of Residual Receipts for the previous calendar year ending December 31. The audited financial statement shall be provided on or before April 1, together with payment of the Residual Receipts payment due to Holder. Holder shall have the right to inspect and audit Maker's books and records concerning the calculation of the Residual Receipts Payment and to object within ninety (90) days from receipt of Maker's statement. Failure to timely object shall be deemed acceptance. If Holder does object, Holder shall specify the reasons for disapproval.

Maker shall have thirty (30) days to reconcile any disapproved item. If Maker and Holder cannot agree on the amount of the Residual Receipts payment, an independent auditor mutually selected by Maker and Holder shall resolve any disputed items. The cost of the auditor shall be shared equally by Maker and Holder.

7. Annual Budget.

Maker shall prepare and submit to Holder a proposed annual operating budget for the management and operation of the Project ("Annual Budget") no later than 60 days preceding the effective year of such budget. The Annual Budget shall include the projected Gross Revenue and Operating Expenses for the year and a line item showing the projected Residual Receipts from the Project for the year. Holder will review the Annual Budget and, if acceptable, approve it, which approval shall not be unreasonably withheld. If the Annual Budget is not acceptable, Holder shall specify the reasons for disapproval. The intent of this section is to provide Holder Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1006 of 1215 ends

L-6
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
an opportunity to disapprove any unreasonable expenses which would diminish the Residual Receipts from the Project. Once approved, any changes to the Annual Budget which exceed ten percent (10%) of the total budget shall require Holder's prior written consent, which consent shall not be unreasonably withheld.

8. Acceleration Upon Certain Events or Upon Default.

In the event of any Default under the terms of this Note, the Affordable Housing Agreement or the Regulatory Agreement, the Deed of Trust which is the security for this Note, or under any Senior loans, notes or deeds of trust, at the option of the Holder and after notice to the Maker, providing Maker with thirty (30) days in which to cure any Default, and such Default not having been cured within thirty (30) days (or if a greater amount of time is reasonably necessary to effect a cure, if actions to cure such Default are not undertaken within said thirty (30) day period and pursued with reasonable diligence thereafter), all principal and interest due under this Note shall immediately become due and payable, upon thirty (30) day written notice from the Holder to the Maker. Failure to exercise such option shall not constitute a waiver of the right to exercise it in the event of any subsequent Default.

Should the undersigned Maker agree to or sell, convey, transfer, or dispose of the real property described in the Deed of Trust securing this Note or any part thereof or interest therein, without first obtaining the prior written consent of the Holder (except for a Permitted Transfer, as defined in the Affordable Housing Agreement), then, at the option of the Holder, all principal and interest due hereunder shall immediately become due and payable upon thirty (30) days written notice from the Holder to the Maker. Consent to one transaction of this type will not constitute a waiver of the right to require consent to future or successive transactions.

Notwithstanding the generality of the foregoing, certain transfers permitted under the Affordable Housing Agreement shall not constitute a Default hereunder or under the Affordable Housing Agreement, and any such action shall not accelerate the maturity of this Promissory Note, provided that any transfer is either a Permitted Transfer as defined in the Affordable Housing Agreement or is reasonably acceptable to the Authority with reasonable promptness, and any transferee under such a transfer agrees to be bound by any and all instruments in favor of the Authority.

9. Interest on Default.

From and after a Default, the entire outstanding principal balance of this Note shall automatically bear an annual interest rate equal to the lesser of: (a) eight percent (8%) compounding annually; or (b) the maximum interest rate allowed by law.

10. Costs Paid by Maker.

Maker agrees to pay the following costs, expenses and attorneys fees paid or incurred by the Holder of this Note, or as adjudged by a court of competent jurisdiction: (a) reasonable costs of collection, costs and expenses and attorneys fees paid or incurred in connection with the Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1007 of 1215 ends

L-7
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
collection or enforcement of this Note, whether or not suit is filed; and (b) costs of suit in such sum as the court may adjudge reasonable as attorneys fees in any action to enforce payment of this instrument.

11. Waiver.

Maker hereby waives diligence, presentment, protest and demand, notice of protest, dishonor and nonpayment of this instrument, and expressly agrees that, without in any way affecting the liability of Maker hereunder, the Holder hereof may extend the Maturity Date or the time for payment of any installment due hereunder, accept additional security, release any party liable hereunder or release any security now or hereafter securing this Note. Maker hereby waives, to the fullest extent permitted by law, the right to plead any and all statutes of limitations as a defense to any demand on this instrument or any deed of trust, security agreement, guarantee or other agreement now or hereafter securing this Note.

12. Indemnification.

Maker shall indemnify, defend, protect and hold the Authority harmless from and against any and all loss, damage, liability, action, cause of action, cost or expense, including, without limitation, reasonable attorneys fees and expenses incurred by the Holder hereof, arising as a result of any (i) fraud or material misrepresentation by the Maker under or in connection with the Affordable Housing Agreement or related agreements; (ii) intentional bad faith waste of the real property encumbered by the deed of trust which secures this Note; and (iii) losses resulting from Maker's failure to maintain insurance as required under the provisions of the deed of trust securing this Note and the Affordable Housing Agreement.

13. Nonrecourse.

This Note shall become a nonrecourse obligation of Maker on the date that Maker files a valid and timely Notice of Completion for the Project and the Holder must resort only to the Project or the Property, or both, for repayment should the Maker fail to repay the sums evidenced hereby. At such time as this Note becomes nonrecourse, neither Maker nor any of its general and limited partner shall have any personal liability for repayment of the Project Loan and no deficiency judgment may be obtained against Maker or any of its general and limited partners except for actual or constructive fraud, material misrepresentation, intentional bad faith waste of or on the Project and such other matters as are referred to below. Notwithstanding the generality of the foregoing, however, Maker shall indemnify, defend, protect and hold Holder harmless from and against any and all loss, damage, liability, action, cause of action, cost or expense, including, without limitation, reasonable attorneys' fees and expenses incurred by the Holder arising as a result of any (i) fraud or material misrepresentation by the Maker under or in connection with the Affordable Housing Agreement or any other agreements or documents provided in connection therewith; (ii) intentional bad faith waste of the Property encumbered by the deed of trust which secures this Note; and (iii) losses resulting from Maker's failure to maintain insurance as required under the provisions of the deed of trust securing this Note.

Maker's obligation to indemnify the Holder hereof as aforesaid shall be recourse obligations of Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1008 of 1215 ends

L-8
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
the Maker, and in the event of any breach of such obligations, the Holder shall have the right to proceed directly against the Maker to recover any and all losses, damages, liability, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) and may bring any action and institute any proceeding to obtain a deficiency judgment in or following foreclosure for any and all such losses, damages, liabilities, costs and expenses resulting from such breach.

14. Severability.

If any provision of this Note is determined by a court of competent jurisdiction to be void or unenforceable, such determination shall not affect any other provision of this instrument, and all other provisions hereof shall remain valid and in full force and effect.

15. Non-Waiver.

No delay in demanding or failure to demand performance hereunder shall constitute a waiver by the Holder hereof of its right to subsequently demand such performance or to exercise any remedies for any Default hereunder. Further, in order to be effective, any waiver of any of the Holder's rights and remedies hereunder shall be expressed in a writing signed by a duly appointed representative of the Holder hereof. Further, waiver by the Holder hereof of any right hereunder shall not constitute a waiver of any other right, including, but not limited to, the right to exercise any and all remedies for a different or subsequent event of Default hereunder. [Signatures on Following Page]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1009 of 1215 ends

L-9
Exhibit “L”
Project Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
MAKER:

SECOND STREET FAMILY LP, a California limited partnership By: OHDC Second Street Family LLC,
a California limited liability company,
its managing general partner
By: Orange Housing Development Corporation,
a California nonprofit corporation,
its sole member and manager
By: ____________________________________
Eunice Bobert, Chief Executive Officer
By: C&C Second Street Family LLC,
a California limited liability company,
its developer general partner
By: C & C Development Co., LLC,
a California limited liability company,
its sole member and manager
By: _________________________________________
Todd R. Cottle, Trustee of the 2007 Todd R.

Page 1010 of 1215 ends

M-1
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
EXHIBIT "M"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

FEE DEFERRAL NOTE
[SEE ATTACHED EIGHT (8) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1011 of 1215 ends

M-2
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT

FEE DEFERRAL PROMISSORY NOTE SECURED BY DEED OF TRUST
(Corona Second Street Family Apartments)
Principal Amount: $[2,000,000] Date of Note: , 2024
Maker: SECOND STREET FAMILY LP,
a California limited partnership
Lender: CITY OF CORONA, a California
municipal corporation
Maturity Date: Interest Rate: One Percent (1.0%)

1. City Fee Deferral Loan.

For value received, SECOND STREET FAMILY LP, a California limited partnership (the "Maker"), with its principal place of business located at 414 E. Chapman Avenue, Orange, CA 92866, promises to pay the CITY OF CORONA, a California municipal corporation("Holder" or "City"), at 400 S. Vicentia Avenue, Corona, California, 92882, or such place as the Holder may, from time to time, designate by written notice to the Maker, the principal sum of [Two Million] Dollars ($[2,000,000]) or so much as may be deferred or advanced by the City (the "Fee Deferral Loan"), together with any accrued interest, if applicable. This Fee Deferral Promissory Note (the "Note") is made and given pursuant to that certain Affordable Housing Disposition and Development Agreement among the City of Corona Housing Authority, City and Maker, dated August 21, 2024, 2024 (the "Affordable Housing Agreement"). The Affordable Housing Agreement is incorporated herein by this reference. All initially capitalized terms used but not defined herein shall have the meanings given to them in the Affordable Housing Agreement. The Fee Deferral Loan is made to finance a portion of the costs of certain development impact fees levied against the Project, for which the City has deferred payment pursuant to City Council Resolution No. 2024-087 (the "Fee Deferral Loan").

2. Term of Loan and Right of Prepayment.
a. Maturity Date. All accrued interest, if any, and principal shall be due and payable in full without any further demand or notice fifty-five (55) years from the date on which the Certificate of Completion is issued ("Maturity Date"). b. Prepayment. This Note may be prepaid in whole or in part at any time and from time to time without penalty or premium.

3. Security for Note.

This Note is secured by a Deed of Trust executed by Maker which creates a lien on that certain real property as described therein and in the Affordable Housing Agreement.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1012 of 1215 ends

M-3
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

4. Interest Calculation.

The principal outstanding under this Note shall accrue simple interest at the rate of one percent (1.0%) per annum, except in the case of default as set forth in Section 9 of this Note.

5. Annual Payment.

Following completion of the Project as evidenced by the issuance by the City of a Certificate of Occupancy as defined in Section 111.2 of the California Building Code, 2013 Municipal Code, and continuing each year thereafter until the Maturity Date, a portion of the Residual Receipts (as defined below) from the Project shall be paid to Holder and applied to pay down the amounts due and owing under this Note. The payments described below shall be paid to Holder no later than April 1 each year, with the first payment due on the April 1 following the issuance of a Certificate of Occupancy for the Project, and continuing each year thereafter. a. Annual Payments from Residual Receipts. Maker shall make payments of the outstanding principal and accrued interest, if any, equal to Fifty Percent (50%) of the Residual Receipts from the Project as repayment of amounts due and owing under this Note.

Notwithstanding the foregoing, the entire outstanding balance of principal and any interest owing under this Note shall be due and payable in full fifty-five (55) years from the date hereof.

Page 1013 of 1215 ends

M-4
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
availability of Residual Receipts to repay this Note (and any other subordinate loans), (ii) the availability of Cost Savings, and (iii) the ability of Developer to repay any outstanding debt or other liens, if any, against the Project or Property as such payment becomes due. In such event, Maker and Holder shall meet and confer, and shall use good faith efforts, to determine the feasibility of the payoff or restructuring of the remaining balance owing under this Note as part of any such sale or Refinancing to provide for repayment of this Note sooner than the fifty-five (55) year repayment period. Nothing herein shall be construed or interpreted to give the Executive Director with the authority to review and approve (or disapprove) a Refinancing that includes in any manner the Resyndication of the Project.
b. Definition of Residual Receipts. For the purposes of this Note, "Residual Receipts" shall mean the sum of money computed as follows:
(i) All rents, revenues, consideration or income (of any form) received by Maker in connection with or relating to the ownership or operation of the Project, including any Net Refinancing Proceeds and any revenue from contributions, loans or grants which is not required to meet future project obligations (but excluding tenants' security deposits, partner capital contributions and similar advances) ("Gross Revenue") less all of the following: all customary and reasonable costs and expenses reasonably and actually incurred in connection with the operation and maintenance of the Project, including but not limited to premiums for Property Insurance and Liability Insurance; the normally amortized principal and interest payments due on mortgages that are Senior to this Note; utility services not paid directly by tenants; maintenance and repair; security services and payments for social/supportive services in an amount approved as part of the Annual Budget; payment of principal or interest on any indebtedness of Maker to any affiliate of Maker (individual or entity) or partner of Maker to repay completion and operating deficit loans relating to the Project in an amount approved as part of the Annual Budget; asset management fee payable to the limited partner of Maker and partnership management fee payable to Maker, which fees together shall not exceed Thirty Thousand Dollars ($30,0000) per year during the first year after issuance of the Certificate of Completion with allowable annual escalations of up to two and one-half percent (2.5%) per year with any greater amount to be approved by the Authority in the Annual Budget; reasonable property management fees not to exceed Seventy Dollars ($70) per unit per month during the first year after issuance of the Certificate of Completion with allowable annual escalations of up to three percent (3%) per year or greater amount as approved by the Authority in the Annual Budget; deferred Developer Fee in an amount approved as part of the Project Budget (as defined in the Affordable Housing Agreement); amounts (approved by Holder) expended to restore the Project after a casualty loss or condemnation; reasonable and customary cost for accounting and auditing the books and records of the Project; taxes; franchise tax filing fees; and any other reserves reasonably required by the investors or the lenders approved by the City for the Project (collectively, "Operating Expenses").
(ii) Notwithstanding the generality of the foregoing, the following items shall not be considered Operating Expenses for purposes of computing Residual Receipts:
(A) Payment of any fees or expenses or of any portion of the Residual Receipts to Maker or any affiliate of Maker, except as specifically set forth herein; Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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M-5
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
(B) Income taxes imposed upon Maker's income;
(C) Payment of principal or interest on any indebtedness of Maker to any Lender, including any affiliate of Maker (individual or entity) or partner of Maker, except as specifically approved by Holder in writing or otherwise set forth herein; and (D) Depreciation, cost recovery, amortization and similar items which do not involve the expenditure of cash.

6. Audited Financial Statement.

7. Annual Budget.

Maker shall prepare and submit to Holder a proposed annual operating budget for the management and operation of the Project ("Annual Budget") no later than 60 days preceding the effective year of such budget. The Annual Budget shall include the projected Gross Revenue and Operating Expenses for the year and a line item showing the projected Residual Receipts from the Project for the year. Holder will review the Annual Budget and, if acceptable, approve it, which approval shall not be unreasonably withheld. If the Annual Budget is not acceptable, Holder shall specify the reasons for disapproval. The intent of this section is to provide Holder an opportunity to disapprove any unreasonable expenses which would diminish the Residual Receipts from the Project. Once approved, any changes to the Annual Budget which exceed ten percent (10%) of the total Annual Budget shall require Holder's prior written consent, which consent shall not be unreasonably withheld.

8. Acceleration Upon Certain Events or Upon Default.

In the event of any Default under the terms of this Note, the Affordable Housing Agreement, the Regulatory Agreement, the Deed of Trust which is the security for this Note, or under any Senior loans, notes or deeds of trust, at the option of the Holder and after notice to the Maker, providing Maker with thirty (30) days in which to cure any Default, and such Default not having been cured within thirty (30) days (or if a greater amount of time is reasonably necessary to effect a cure, if actions to cure such Default are not undertaken within said thirty (30) day period and pursued with reasonable diligence thereafter), all principal and interest due under this Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1015 of 1215 ends

M-6
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
Note shall immediately become due and payable, upon thirty (30) day written notice from the Holder to the Maker. Failure to exercise such option shall not constitute a waiver of the right to exercise it in the event of any subsequent Default.

9. Interest on Default.

10. Costs Paid by Maker.

Maker agrees to pay the following costs, expenses and attorneys fees paid or incurred by the Holder of this Note, or as adjudged by a court of competent jurisdiction: (a) reasonable costs of collection, costs and expenses and attorneys fees paid or incurred in connection with the collection or enforcement of this Note, whether or not suit is filed; and (b) costs of suit in such sum as the court may adjudge reasonable as attorneys fees in any action to enforce payment of this instrument.

11. Waiver.

Maker hereby waives diligence, presentment, protest and demand, notice of protest, dishonor and nonpayment of this instrument, and expressly agrees that, without in any way affecting the liability of Maker hereunder, the Holder hereof may extend the Maturity Date or the time for payment of any installment due hereunder, accept additional security, release any party liable hereunder or release any security now or hereafter securing this Note. Maker hereby waives, to the fullest extent permitted by law, the right to plead any and all statutes of limitations Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1016 of 1215 ends

M-7
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
as a defense to any demand on this instrument or any deed of trust, security agreement, guarantee or other agreement now or hereafter securing this Note.

12. Indemnification.

Maker shall indemnify, defend, protect and hold the Authority harmless from and against any and all loss, damage, liability, action, cause of action, cost or expense, including, without limitation, reasonable attorneys fees and expenses incurred by the Holder hereof, arising as a result of any (i) fraud or material misrepresentation by the Maker under or in connection with the Affordable Housing Agreement or related agreements; (ii) intentional bad faith waste of the real property encumbered by the Deed of Trust which secures this Note; and (iii) losses resulting from Maker's failure to maintain insurance as required under the provisions of the Deed of Trust securing this Note and the Affordable Housing Agreement.

13. Nonrecourse.

This Note shall become a nonrecourse obligation of Maker on the date that Maker files a valid and timely Notice of Completion for the Project and the Holder must resort only to the Project or the Property, or both, for repayment should the Maker fail to repay the sums evidenced hereby. At such time as this Note becomes nonrecourse, neither Maker nor any of its general and limited partner shall have any personal liability for repayment of the Fee Deferral Loan and no deficiency judgment may be obtained against Maker or any of its general and limited partners except for actual or constructive fraud, material misrepresentation, intentional bad faith waste of or on the Project and such other matters as are referred to below. Notwithstanding the generality of the foregoing, however, Maker shall indemnify, defend, protect and hold Holder harmless from and against any and all loss, damage, liability, action, cause of action, cost or expense, including, without limitation, reasonable attorneys' fees and expenses incurred by the Holder arising as a result of any (i) fraud or material misrepresentation by the Maker under or in connection with the Affordable Housing Agreement or any other agreements or documents provided in connection therewith; (ii) intentional bad faith waste of the Property encumbered by the deed of trust which secures this Note; and (iii) losses resulting from Maker's failure to maintain insurance as required under the provisions of the deed of trust securing this Note.

Maker's obligation to indemnify the Holder hereof as aforesaid shall be recourse obligations of the Maker, and in the event of any breach of such obligations, the Holder shall have the right to proceed directly against the Maker to recover any and all losses, damages, liability, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) and may bring any action and institute any proceeding to obtain a deficiency judgment in or following foreclosure for any and all such losses, damages, liabilities, costs and expenses resulting from such breach.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1017 of 1215 ends

M-8
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25

14. Severability.

15. Non-Waiver.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1018 of 1215 ends

M-9
Exhibit “M”
Fee Deferral Note
1603\62\3812672.1
JAMIER\01200.20009\10270109.25
MAKER:

SECOND STREET FAMILY LP, a California limited partnership By: OHDC Second Street Family LLC,
a California limited liability company,
its managing general partner
By: Orange Housing Development Corporation,
a California nonprofit corporation,
its sole member and manager
By: ____________________________________
Eunice Bobert, Chief Executive Officer
By: C&C Second Street Family LLC,
a California limited liability company,
its developer general partner
By: C & C Development Co., LLC,
a California limited liability company,
its sole member and manager
By: ___________________________________
Todd R. Cottle, Trustee of the 2007 Todd R.

Page 1019 of 1215 ends

N1
Exhibit “N”
Schedule of Performance
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EXHIBIT "N"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

SCHEDULE OF PERFORMANCE
[SEE ATTACHED ONE (1) PAGE]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Schedule of Performance for Corona Second Street Family Apartments Schedule for the financing application to TCAC and possibly CDLAC.

Date Task
Concurrently with the date of this
Agreement
Developer shall have applied for and received all entitlement Approvals for the Project.

One year after the date of this
Agreement
Developer shall have applied for and received Lot Line
Adjustment Approval for the Project.

Last Round of 2024 and All
Rounds for 2025
Submittal to TCAC for a reservation of Tax Credits and to CDLAC for an allocation of tax-exempt bonds if also applying for 4% federal Tax Credits.
*Note –CDLAC and TCAC schedules for 2025 are not currently available.

Schedule for the construction following the receipt of the Tax Credit reservation from TCAC.

Date Task
Day 1 Receipt of TCAC Tax Credit Reservation and if applicable CDLAC Tax-Exempt Bond Allocation
Day 60 100% Working Drawings Complete. Submit to City.

Day 90 Comments Received from City.

Day 105 Submit Revised Working Drawings to City.

Day 120 Comments on Revised Working Drawings Received from City.

Day 135 Submit Re-revised Working Drawings to City.

Day 150 Comments on Re-revised Working Drawings Received from City.

Day 165 Final Plans.

Day 170 Obtain Signatures.

Day 175 Obtain Ready to Issue Permit Letter Pending Payment of Permit Fees.

Day 180 or 194 TCAC Deadline to Commence Construction and, if applicable, CDLAC Deadline to Issue Tax-Exempt Bonds as set forth in CDLAC Resolution Allocating Tax-Exempt Bonds to Project, as may be revised from time to time
30 months after
Commencement of
Construction
Completion of Construction.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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O-1
Exhibit “O”
Federal Requirements
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EXHIBIT "O"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

FEDERAL REQUIREMENTS
Developer shall comply with all applicable laws and regulations governing the use of the HOME-ARP funds as set forth in Notice CPD-21-10: Requirements for the Use of Funds in the HOME-ARP Program, and the use of the CDBG Funds as set forth in 24 C.F.R. Part 570, including, but not limited to, the requirements of the Regulatory Agreement for the period of time following the date of recordation of the Regulatory Agreement, and ending on the fifteenth (15th) anniversary of recordation of the Certificate of Completion, after which time the provisions set forth on this Exhibit "O" will not be applicable to the Project. In the event of any conflict between this Agreement and applicable laws and regulations governing the use of the HOME-ARP funds or CDBG Funds, the applicable laws and regulations shall govern.

The Federal Award Identification Number (FAIN) for HOME-ARP funds is M-21-MP-06-0559.

The Federal Award Identification Number (FAIN) for CDBG Funds is B-19-MC-06-0573.

The laws and regulations governing the use of the HOME-ARP, and CDBG funds include (but are not limited to) the following:
(1) Eligible Project Costs. Restrictions on funding only eligible project costs as defined under 24 C.F.R. 92.206, Section VI.B. of Notice CPD-21-10, and 24 C.F.R. 570.201.
(2) Affordability. The HOME-ARP Units shall meet the affordability requirements of Notice CPD-21-10. If the HOME-ARP Units do not meet the affordability requirements of the HOME-ARP program for the specified time period, Developer shall repay the HOME-ARP funds to City promptly upon demand by City. In such event, Developer shall not be released from the affordability and other covenants and restrictions set forth in this Agreement and the Regulatory Agreement, which shall continue to apply independent of the HOME-ARP Regulations.
(3) Environmental and Historic Preservation. 24 C.F.R. Part 58, which prescribes procedures for compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321-4361), and the additional laws and authorities listed at 24 C.F.R. 58.5. (4) Applicability of OMB Circulars. The policies, guidelines, and requirements of 2 C.F.R. Part 200 as applicable to Developer.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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(5) Debarred, Suspended or Ineligible Contractors. As required in 24 C.F.R. § 92.357, the prohibition on the use of debarred, suspended, or ineligible contractors set forth in 24 C.F.R. Part 24.
(6) Civil Rights, Housing and Community Development, and Age Discrimination Acts. The Fair Housing Act (42 U.S.C. 3601 et seq.) and implementing regulations at 24 C.F.R. Part 100; Title VI of the Civil Rights Act of 1964 as amended; Title VIII of the Civil Rights Act of 1968 as amended; Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended; Section 504 of the Rehabilitation Act of 1973 (29 USC 794, et seq.); the Age Discrimination Act of 1975 (42 USC 6101, et seq.); Executive Order 11063 as amended by Executive Order 12259 and implementing regulations at 24 C.F.R. Part 107; Executive Order 11246 as amended by Executive Orders 11375, 12086, 11478, 12107; Executive Order 11625 as amended by Executive Order 12007; Executive Order 12432; Executive Order 12138 as amended by Executive Order 12608; Executive Order 13672 concerning gender identity.
(7) Lead-Based Paint. The requirement of the Lead-Based Paint Poisoning Prevention Act, as amended (42 U.S.C. 4821 et seq.), the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. 4851 et seq.), and implementing regulations at 24 C.F.R.

Part 35.
(8) Relocation. The requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 USC 4601, et seq.) and implementing regulations at 49 C.F.R. Part 24; Section 104(d) of the Housing and Community Development Act of 1974 and implementing regulations at 24 C.F.R. Part 42; and 24 C.F.R. 574.630; and California Government Code Section 7260 et seq. and implementing regulations at 25 California Code of Regulations Sections 6000 et seq. (9) Discrimination against Persons with Disabilities. The requirements of Section 504 of the Construction Act of 1973 (29 U.S.C. 794), the Uniform Federal Accessibility Standards (24 C.F.R. 8.20 et seq.) and federal regulations issued pursuant thereto, which prohibit discrimination against the disabled in any federally assisted program, the requirements of the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) and the applicable requirements of Title II and/or Title III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et seq.), and federal regulations issued pursuant thereto. (10) Clean Air and Water Acts. The Clean Air Act, as amended, 42 U.S.C. 7401 et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., and the regulations of the Environmental Protection Agency with respect thereto, at 40 C.F.R. Part 1500, as amended from time to time.
(11) Property Standards. The property standards set forth in 24 C.F.R.

92.251(a).

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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(12) Section 3. The requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u and implementing Regulations at 24 C.F.R. 75 ("Section 3");
(a) Pursuant to Section 3, to the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, Developer shall ensure:
(i) that employment and training opportunities arising
in connection with the Project are provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the Project is located. Where feasible, priority for opportunities and training described above should be given to: (A) Section 3 workers residing within the service area or the neighborhood of the Project, and (B) participants in YouthBuild programs; and
(ii) that contracts for work awarded in connection with the Project are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the Project is located. Where feasible, priority for opportunities and training described above should be given to: (A) Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the Project, and (B) participants in YouthBuild programs.
(b) Developer will be considered to have complied with the Section 3 requirements, in the absence of evidence to the contrary, if it certifies that it has followed the prioritization of effort set forth in subsection (A) above, and meets or exceeds the applicable Section 3 benchmark as described in 24 C.F.R. 75.23(b). (c) Developer shall maintain records of its Section 3 activities and cause such records to be accurate and current and in a form that allows the Authority and the City to comply with the reporting requirements of 24 C.F.R. 75.25. (d) Developer shall require all contractors and subcontractors performing work on the Project to comply with the Section 3 requirements. (13) Labor Standards. The applicable labor requirements set forth in 24 C.F.R. 92.354 and 24 C.F.R. 574.655 which require compliance with the prevailing wage requirements of the Davis-Bacon Act and implementing rules and regulations (40 U.S.C. 3141- 3148); the Copeland "Anti-Kickback" Act (40 U.S.C. 276(c)) which requires that workers be paid at least once a week without any deductions or rebates except permissible deductions; the Contract Work Hours and Safety Standards Act – CWHSSA (40 U.S.C. 3701-3708) which requires that workers receive "overtime" compensation at a rate of 1-1/2 times their regular hourly wage after they have worked forty (40) hours in one (1) week; and Title 29, Code of Federal Regulations, Subtitle A, Parts 1, 3 and 5 are the regulations and procedures issued by the Secretary of Labor for the administration and enforcement of the Davis-Bacon Act, as amended.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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(14) Drug Free Workplace. The requirements of the Drug Free Workplace Act of 1988 (P.L. 100-690) and implementing regulations at 24 C.F.R. Part 24. (15) Anti-Lobbying; Disclosure Requirements. The disclosure requirements and prohibitions of 31 U.S.C. 1352 and implementing regulations at 24 C.F.R.

Part 87.
(16) Historic Preservation. Developer shall comply with the historic preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. Section 470) and the procedures set forth in 36 C.F.R. Part 800. (17) Faith Based Activities. The requirements of 24 C.F.R. 92.257 regarding eligible use of funds by organizations that are religious or faith-based. (18) Uniform Administrative Requirements. The requirements of 24 C.F.R. 92.505 regarding cost and auditing requirements. (19) Conflict of Interest. The conflict of interest provisions set forth in 24 C.F.R. 570.611 and 24 C.F.R. 92.356.
(20) Violence Against Women. The Violence Against Women Act (VAWA) requirements set forth in 24 C.F.R. Part 5, Subpart L, apply to all HOME assisted rental housing. For the HOME-ARP program, the “covered housing provider,” as this term is used in HUD’s regulations in 24 CFR part 5, subpart L, refers to: (i) the Developer for the purposes of 24 CFR 5.2005(d)(1), (d)(3), and (d)(4) and § 5.2009(a); and (ii) the Authority and the Developer for purposes of 24 CFR 5.2005(d)(2), 5.2005(e), and 5.2007, except as otherwise provided in paragraph (g) of this section. Developer shall cause to include appropriate VAWA lease term/addendum in its leases with tenants of HOME-ARP units. For HOME-funded projects, the following requirement shall apply in place of the requirements at 24 CFR 5.2009(b):

If a family living in a HOME or HOME-ARP unit separates under 24 CFR 5.2009(a), the remaining tenant(s) may remain in the HOME or HOME-ARP unit. (21) Flood Disaster Protection. The requirements of the 24 C.F.R. Part

58. (22) Affirmative Marketing. Developer shall establish for City’s review and approval a plan and procedures to affirmatively market the Qualifying Units as defined in the Regulatory Agreement. The objective of the plan shall be to provide information and attract eligible persons from all racial, ethnic and general groups in the housing market area to the available housing. In connection therewith, Developer shall perform those affirmative marketing responsibilities set forth in 24 C.F.R. § 92.351(a) and the marketing plan shall include the following:
(a) methods for informing the public, owners, and potential tenants about federal fair housing loans and the City’s affirmative marketing policy; Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Federal Requirements
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(b) requirements and practices Developer must adhere to in order to carry out the affirmative marketing procedures and requirements; (c) procedures to be used by Developer to inform and solicit applications from persons in the housing market area that are not likely to apply for the housing without special outreach;
(d) records that will be kept describing actions taken by Developer to affirmatively market units and records to assess the results of those actions; and (e) a description of how Developer will assess the success of affirmative marketing actions and what corrective actions will be taken where affirmative marketing requirements are not met.
(23) Monitoring. From time to time, City shall review Developer’s activities and operations under the Agreement and Developer’s compliance with the HOMEARP Regulations. Such reviews may include an on-site inspection of the HOME-ARP Units (including unit interiors). If such an on-site inspection of the HOME-ARP units is to be undertaken, City shall coordinate such inspection with Developer. The monitoring required pursuant to this paragraph shall be in compliance with the requirements of 24 C.F.R. § 92.504. (24) Tenant Participation Plan. Developer shall provide to City for approval the form of the lease agreement to be used for the rental units within the Project, which lease must be fair and provide for a grievance procedure. In addition, Developer shall provide to City for approval a plan that provides for tenant participation in management decisions. (24 C.F.R § 92.303.)
(25) Broadband Infrastructure. The construction of the Qualifying Units, as defined in the Regulatory Agreement, shall include installation of broadband infrastructure, as this term is also defined in 24 C.F.R. 5.100, except where the City determines and, in accordance with § 92.508(a)(3)(iv), documents the determination that:
(a) The location of the new construction makes installation of broadband infrastructure infeasible; or
(b) The cost of installing the infrastructure would result in a fundamental alteration in the nature of its program or activity or in an undue financial burden. (26) HOME-ARP Records and Reports. Records and Reports.

Developer shall provide to City all records and reports relating to the use of HOME-ARP funds that may be reasonably requested by City in order to enable it to perform its recordkeeping and reporting obligations pursuant to the HOME-ARP Regulations, including 24 C.F.R. §§ 92.508 and 92.509.
(27) HOME-ARP Project Requirements. Developer shall carry out each activity under the Agreement in accordance with all applicable federal laws and regulations described in Notice CPD-21-10: Requirements for the Use of Funds in the HOME-ARP Program Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Federal Requirements
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except for City’s responsibility for initiating the environmental review process under the provisions of 24 C.F.R. Part 58..
(28) HOME Project Completion Deadline. Pursuant to the HOME fouryear project completion deadline at 24 CFR 92.205(e)(2), the timeframe for Developer’s completion of construction of the Project may not be extended to a date that is more than four years following the Effective Date without first securing a one-year extension from HUD.

Notwithstanding anything to the contrary in this Agreement, if Developer fails to complete the Project within such four year period (or if such four year period is extended by HUD within such extended period) and such failure results in a requirement that all HOME funds must be repaid to HUD, Developer shall be solely responsible for such repayment with respect to all amounts of HOME funds that have been disbursed to Developer.
(29) HUD Regulations. Any other HUD regulations present or as may be amended, added, or waived in the future pertaining to the HOME-ARP, and CDBG funds.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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P-1
Exhibit “P”
Project Budget
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EXHIBIT "P"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

PROJECT BUDGET
(ProForma and Uses & Schedule of Uses)
(ON FOLLOWING THREE PAGES)
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Exhibit “P”
Project Budget
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Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Exhibit “P”
Project Budget
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Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Project Budget
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Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Exhibit “P”
Project Budget
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Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Q-1
Exhibit “Q”
HOME-ARP Note
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JAMIER\01200.20009\10270109.25
EXHIBIT "Q"
TO

AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT (Corona Second Street Family Apartments)

HOME-ARP NOTE
[SEE ATTACHED SEVEN (7) PAGES]
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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Exhibit “Q”
HOME-ARP Note
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AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT

HOME-ARP PROMISSORY NOTE SECURED BY DEED OF TRUST
(Corona Second Street Family Apartments)
Principal Amount: $529,875.00 Date of Note: , 202__
Maker: SECOND STREET FAMILY LP,
a California limited partnership
Lender: CITY OF CORONA, a municipal
corporation
Maturity Date: Interest Rate: One Percent (1.0%)

1. City HOME-ARP Loan.

FOR VALUE RECEIVED, the undersigned, SECOND STREET FAMILY LP, a California limited partnership ("Maker"), with its principal place of business located at 414 E.

Chapman Avenue, Orange, CA 92866, promises to pay to the CITY OF CORONA, a municipal corporation (the "City" or "Holder") at 400 S. Vicentia Avenue, Corona, California, 92882, or such place as the Holder may, from time to time, designate by written notice to the Maker, the principal sum of Five Hundred Twenty-Nine Thousand Eighty Hundred Seventy-Five Dollars ($529,875.00), (the "HOME-ARP Loan"), together with any accrued interest, if applicable, as set forth in this Note. This Promissory Note (the "Note") is made and given pursuant to that certain Affordable Housing Disposition and Development Agreement among the City, the City of Corona Housing Authority, a public body, corporate and politic, organized under the laws of the State of California, and Maker, dated August 21, 2024 (the "Affordable Housing Agreement"). The Affordable Housing Agreement is incorporated herein by this reference. All initially capitalized terms used but not defined herein shall have the meanings given to them in the Affordable Housing Agreement. Funds for the HOME-ARP Loan consist of $529,875.00 in HOME-ARP funds. The HOME-ARP Loan is made to finance the Project's predevelopment, development, and construction costs in accordance with the terms and conditions of the Affordable Housing Agreement.

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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3. Security for Note.

This Note is secured by a Deed of Trust executed by Maker which creates a lien on that certain real property as described therein and in the Affordable Housing Agreement.

4. Interest Calculation.

The principal outstanding under this Note shall accrue simple interest at the rate of one percent (1.0%) per annum, except in the case of Default as set forth in Section 9 of this Note.

5. Annual Payment.

Following completion of the Project as evidenced by the issuance by the City of a Certificate of Occupancy as defined in Section 111.2 of the California Building Code, 2013 Municipal Code, and continuing each year thereafter until the Maturity Date, a portion of the Residual Receipts (as defined below) from the Project shall be paid to Holder and applied to pay down the amounts due and owing under this Note. The payments described below shall be paid to Holder no later than April 1 each year, with the first payment due on the April 1 following the issuance of a Certificate of Occupancy for the Project, and continuing each year thereafter. a. Annual Payments from Residual Receipts. After the Fee Deferral Note, has been paid in full, Maker shall make repayments of the outstanding principal and accrued interest of this Note, if any, equal to Fifty Percent (50%) of the Residual Receipts from the Project as repayment of amounts due and owing under this Note.

Notwithstanding the foregoing, the entire outstanding balance of principal and any interest owing under this Note shall be due and payable in full fifty-five (55) years from the date hereof.

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HOME-ARP Note
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Refinancing. The City Manager shall have the right to review all documents related to and to approve or disapprove any Refinancing or that will increase the interest rate or increase the outstanding principal amount of such outstanding debt or cause or require the release or withdrawal of cash or equity from any part of the Project. The City Manager shall reasonably consider any such proposed Refinancing based on an economic evaluation conducted by City’s economic consultant that analyzes the effect of the proposed Refinancing (i) the availability of Residual Receipts to repay this Note (and any other subordinate loans), (ii) the availability of Cost Savings, and (iii) the ability of Maker to repay any outstanding debt or other liens, if any, against the Project or Property as such payment becomes due. In such event, Maker and Holder shall meet and confer, and shall use good faith efforts, to determine the feasibility of the payoff or restructuring of the remaining balance owing under this Note as part of any such sale or Refinancing to provide for repayment of this Note sooner than the fifty-five (55) year repayment period.

Nothing herein shall be construed or interpreted to give the City Manager with the authority to review and approve (or disapprove) a Refinancing that includes in any manner the Resyndication of the Project.
b. Residual Receipts. For the purposes of this Note, "Residual Receipts" shall mean the sum of money computed as follows:
(i) All rents, revenues, consideration or income (of any form) received by Maker in connection with or relating to the ownership or operation of the Project, including any Net Refinancing Proceeds and any revenue from contributions, loans or grants which is not required to meet future project obligations (but excluding tenants' security deposits, partner capital contributions and similar advances) ("Gross Revenue") less all of the following: all customary and reasonable costs and expenses reasonably and actually incurred in connection with the operation and maintenance of the Project, including but not limited to premiums for Property Insurance and Liability Insurance; utility services not paid directly by tenants; maintenance and repair; security services and payments for social/supportive services in an amount approved as part of the Annual Budget; payment of principal or interest on any indebtedness of Maker to any affiliate of Maker (individual or entity) or partner of Maker to repay completion and operating deficit loans relating to the Project in an amount approved as part of the Annual Budget; asset management fee payable to the limited partner of Maker and partnership management fee payable to Maker, which fees together shall not exceed Thirty Thousand Dollars ($30,000) per year during the first year after issuance of the Certificate of Completion with allowable annual escalations of up to two and one-half percent (2.5%) per year with any greater amount to be approved by the Authority in the Annual Budget; reasonable property management fees not to exceed Seventy Dollars ($70) per unit per month during the first year after issuance of the Certificate of Completion with allowable annual escalations of up to three percent (3%) per year or greater amount as approved by the Authority in the Annual Budget; deferred Developer Fee in an amount approved as part of the Project Budget (as defined in the Affordable Housing Agreement); amounts (approved by Holder) expended to restore the Project after a casualty loss or condemnation; reasonable and customary cost for accounting and auditing the books and records of the Project; taxes; franchise tax filing fees; and any other reserves reasonably required by the investors or the lenders approved by the Authority for the Project (collectively "Operating Expenses").

Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

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JAMIER\01200.20009\10270109.25
(ii) Notwithstanding the generality of the foregoing, the following items are not expenses or deductible in computing Residual Receipts:
(E) Payment of any fees or expenses or of any portion of the Residual Receipts to Maker or any affiliate of Maker, except as specifically set forth herein; (F) Income taxes imposed upon Maker's income;
(G) Payment of principal or interest on any indebtedness of Maker to any Lender, including any affiliate of Maker (individual or entity) or partner of Maker, except as specifically approved by Holder in writing or otherwise set forth herein; and (H) Depreciation, cost recovery, amortization and similar items which do not involve the expenditure of cash.
c. Special Repayment for Unleased HOME-ARP Units . As required under 24 C.F.R. 92.252, if Maker fails to lease any one of the HOME-ARP Units (as defined in the Regulatory Agreement) within eighteen (18) months after the recordation of the Certificate of Completion, Maker shall pay to the Authority a proportionate share of the HOME-ARP funds loaned to Maker by the Authority under the Affordable Housing Agreement attributable to each of the HOME-ARP Units that remain unleased for the entire eighteen (18) month period, together with any accrued interest thereon calculated pursuant to Section 4, which amount shall be immediately due and payable.

6. Audited Financial Statement.

7. Annual Budget.

Maker shall prepare and submit to Holder a proposed annual operating budget for the management and operation of the Project ("Annual Budget") no later than 60 days preceding the effective year of such budget. The Annual Budget shall include the projected Gross Revenue and Operating Expenses for the year and a line item showing the projected Residual Receipts from the Project for the year. Holder will review the Annual Budget and, if acceptable, approve it, which approval shall not be unreasonably withheld. If the Annual Budget is not acceptable, Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1037 of 1215 ends

Q-6
Exhibit “Q”
HOME-ARP Note
1603\62\3282234.14
JAMIER\01200.20009\10270109.25
Holder shall specify the reasons for disapproval. The intent of this section is to provide Holder an opportunity to disapprove any unreasonable expenses which would diminish the Residual Receipts from the Project. Once approved, any changes to the Annual Budget which exceed ten percent (10%) of the total budget shall require Holder's prior written consent, which consent shall not be unreasonably withheld.

8. Acceleration Upon Certain Events or Upon Default.

9. Interest on Default.

10. Costs Paid by Maker.

Page 1038 of 1215 ends

Q-7
Exhibit “Q”
HOME-ARP Note
1603\62\3282234.14
JAMIER\01200.20009\10270109.25
collection or enforcement of this Note, whether or not suit is filed; and (b) costs of suit in such sum as the court may adjudge reasonable as attorneys fees in any action to enforce payment of this instrument.

11. Waiver.

12. Indemnification.

13. Nonrecourse.

This Note shall become a nonrecourse obligation of Maker on the date that Maker files a valid and timely Notice of Completion for the Project and the Holder must resort only to the Project or the Property, or both, for repayment should the Maker fail to repay the sums evidenced hereby. At such time as this Note becomes nonrecourse, neither Maker nor any of its general and limited partner shall have any personal liability for repayment of the HOME-ARP Loan and no deficiency judgment may be obtained against Maker or any of its general and limited partners except for actual or constructive fraud, material misrepresentation, intentional bad faith waste of or on the Project and such other matters as are referred to below. Notwithstanding the generality of the foregoing, however, Maker shall indemnify, defend, protect and hold Holder harmless from and against any and all loss, damage, liability, action, cause of action, cost or expense, including, without limitation, reasonable attorneys' fees and expenses incurred by the Holder arising as a result of any (i) fraud or material misrepresentation by the Maker under or in connection with the Affordable Housing Agreement or any other agreements or documents provided in connection therewith; (ii) intentional bad faith waste of the Property encumbered by the deed of trust which secures this Note; and (iii) losses resulting from Maker's failure to maintain insurance as required under the provisions of the deed of trust securing this Note.

Maker's obligation to indemnify the Holder hereof as aforesaid shall be recourse obligations of the Maker, and in the event of any breach of such obligations, the Holder shall have the right to Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1039 of 1215 ends

Q-8
Exhibit “Q”
HOME-ARP Note
1603\62\3282234.14
JAMIER\01200.20009\10270109.25
proceed directly against the Maker to recover any and all losses, damages, liability, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) and may bring any action and institute any proceeding to obtain a deficiency judgment in or following foreclosure for any and all such losses, damages, liabilities, costs and expenses resulting from such breach.

14. Severability.

15. Non-Waiver.

Page 1040 of 1215 ends

Q-9
Exhibit “Q”
HOME-ARP Note
1603\62\3282234.14
JAMIER\01200.20009\10270109.25
MAKER:

SECOND STREET FAMILY LP, a California limited partnership By: OHDC Second Street Family LLC,
a California limited liability company,
its managing general partner
By: Orange Housing Development Corporation,
a California nonprofit corporation,
its sole member and manager
By: ____________________________________
Eunice Bobert, Chief Executive Officer
By: C&C Second Street Family LLC,
a California limited liability company,
its developer general partner
By: C & C Development Co., LLC,
a California limited liability company,
its sole member and manager
By: _________________________________________
Todd R. Cottle, Trustee of the 2007 Todd
R. Cottle and Jennifer N. Cottle Revocable
Trust,
its member
Docusign Envelope ID: 5D0EF862-DB82-42AD-AAAE-6D75961C9D3F Docusign Envelope ID: D01E67E6-2CAD-44A1-8085-B5556D1F8A1D Docusign Envelope ID: 7F9B164F-0EB4-47DA-B023-C643C3700391

Page 1041 of 1215 ends

Exhibit 2

LOCATION MAP
A portion approximating 4-acres of Assessor Parcel Number 118-270-055 & -053 and Assessor Parcel Number 118-302-030, Corona CA 92882
Affordable Housing Development Property Location: A lot line adjustment will be processed to create a separate legal lot, approximately 3.82 acres, as depicted below in black, for the development of 115 units of multifamily affordable housing units.

EXHIBIT 2 Page 1042 of 1215
Exhibit 3

PROJECT RENDERING
A portion approximating 4-acres of Assessor Parcel Number 118-270-055 & -053 and Assessor Parcel Number 118-302-030, Corona CA 92882
Affordable Housing Development Property Location: A lot line adjustment will be processed to create a separate legal lot, approximately 3.82 acres, as depicted below in black, for the development of 115 units of multifamily affordable housing units.

Page 1043 of 1215 ends

Page 1044 of 1215 ends

DATE: 08/20/2025
TO: Honorable Mayor and City Council Members
Honorable President and Board Members
FROM: Utilities Department
2025-338

REQUEST FOR CITY COUNCIL AND

CORONA UTILITY AUTHORITY ACTION
SUBJECT:

PUBLIC HEARING FOR THE REPORT ON WATER QUALITY RELATIVE TO PUBLIC HEALTH GOALS FOR CALENDAR YEARS 2022 THROUGH 2024
EXECUTIVE SUMMARY:

This staff report asks City Council to approve the triennial report on water quality relative to public health goals for the years 2022 through 2024. A Public Health goal is the level of a chemical contaminant in drinking water that does not pose a significant risk to health.

Public Health Goals are not regulatory standards and are not enforceable or required to be met. The drinking water quality for the City of Corona meets all drinking water standards set to protect public health. The next report will be done in 2028 for the period 2025 through 2027.

RECOMMENDED ACTION:

That the City Council:
a. Hold a public hearing regarding the Report on Water Quality relative to Public Health Goals for 2022 through 2024.
b. Approve the Report on Water Quality relative to Public Health Goals for 2022 through 2024.

Page 1045 of 1215 ends

That the Corona Utility Authority review, ratify, and to the extent necessary, direct that the City Council take the above actions.

BACKGROUND & HISTORY:

The City of Corona Utilities Department delivers safe and reliable drinking water and wastewater reclamation services to the community of Corona while complying with all federal, state and local regulations. The City owns and operates four potable water treatment plants and eight blend facilities with a distribution system consisting of more than 712 miles of piping, 20 pump stations, and 18 storage tanks. There are over 46,000 potable water service connections. The purpose of the Report on Public Health Goals (PHG Report) is to comply with the Calderon-Sher Safe Drinking Water Act of 1996, wherein public water systems in California serving greater than 10,000 connections must prepare a brief report every three years providing information on any constituents that exceed a Public Health Goal (PHG) in the preceding three years. PHGs are recommended goals that are determined by California’s Office of Environmental Health Hazard Assessment (OEHHA) and represent the concentration of a contaminant in drinking water below the enforceable mandatory maximum contaminant levels (MCLs) for which there is no significant health risk to the public if consumed for an entire lifetime.

ANALYSIS:

Attached for City Council approval is a report prepared by staff comparing the City’s drinking water quality from January 1, 2022, through December 31, 2024, with PHGs and with maximum contaminant level goals (MCLGs) adopted by the US Environmental Protection agency (USEPA). PHGs and MCLGs are not enforceable standards and no action to meet them is mandated.

SB 1307 (Calderone-Sher; effective 1-1-97) added new provisions to the California Health and Safety Code which mandate that a report be prepared by July 1, 1998, and every three years thereafter, on contaminants that were detected at a level that exceed the PHG or, where there is no PHG, the federal MCLG, and have an existing MCL. The attached report is intended to provide information to the public in addition to the required Annual Water Quality Reports, also known as Consumer Confident Reports (CCRs), provided to each customer every year on the water provider’s website or by mail. A PHG is not a regulatory requirement and does not consider the economic impact and/or the available technology to measure or attain those levels. A PHG is a goal for drinking water that California’s public suppliers and regulators should strive to meet if it is feasible to do so.

Our water system complies with all health-based drinking water standards and maximum contaminant levels required by the California Department of Public Health and the USEPA. Additionally, the Utilities Department has undertaken measures to reduce the concentration of contaminants to provide safe drinking water to its customers. Therefore, no specific actions to address any of the contaminants contained within the attached report are proposed at this time.

Page 1046 of 1215 ends

Staff recommends that the Triennial Report on Water Quality Relative to Public Health Goals be approved for the monitoring period from January 1, 2022, through December 31, 2024.

FINANCIAL IMPACT:

There is no financial impact associated with the recommended action.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Action (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action approves a report, and there is no possibility this action will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: AFTAB HUSSAIN, ASSISTANT UTILITIES DIRECTOR REVIEWED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENT:

1. Exhibit 1 – Public Health Goal Report

Page 1047 of 1215 ends

City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400 City of Corona Utilities Department
Report on Water Quality
Relative to Public Health Goals
For 2022-2024

1. IntroducƟon
Under the Calderon-Sher Safe Drinking Water Act of 1996 public water systems in California serving greater than 10,000 connecƟons must prepare a brief report every three years providing informaƟon on any consƟtuents that exceed a Public Health Goal (PHG) in the preceding three years.

The report must contain informaƟon on detecƟon of any contaminant in drinking water at a level exceeding a Public Health Goal, esƟmate of costs to remove detected contaminants to below the PHG using Best Available Technology (BAT), and the health risk for each contaminant exceeding a PHG. This report has been prepared to address the requirements set forth in SecƟon 116470 of the California Health and Safety Code. It is based on water quality analysis during calendar years 2022, 2023, and 2024. There are no regulaƟons detailing the requirements for the preparaƟon of Public Health Goal reports. The AssociaƟon of California Water Agencies Water Quality CommiƩee has prepared suggested guidelines for water uƟliƟes to use in preparing Public Health Goal Reports. These guidelines were used in the preparaƟon of this report.

2. California Drinking Water Regulatory Process
California Health and Safety Code SecƟon 116365 requires the State to develop a Public Health Goal for every contaminant with a primary drinking water standard or for any contaminant California is proposing to regulate with a primary drinking water standard. PHGs are set by the California Office of Environmental Health Hazard Assessment (OEHHA) and are based solely on public health risk consideraƟons. None of the pracƟcal risk-management factors that are considered by the United States Environmental ProtecƟon Agency (USEPA) or the California Division of Drinking Water (DDW) in seƫng drinking water standards are considered in seƫng the PHGs. These factors include analyƟcal detecƟon capability, available treatment technology, benefits, and costs. The PHGs are not enforceable and are not required to be met by any public water system. Maximum Contaminant Level Goal (MCLG) is the federal equivalent to PHG.

Page 1048 of 1215 ends

City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400

3. IdenƟficaƟon of Contaminants
SecƟon 116470(b)(1) of the Health and Safety Code requires public water systems serving more than 10,000 connecƟons to idenƟfy each contaminant present in drinking water that was above the Public Health Goal. The consƟtuents presented in this secƟon were detected at one or more locaƟons in our drinking water system at levels that exceeded the PHG or the MCLG.  Arsenic: It is a chemical naturally occurring in groundwater due to erosion; runoff from orchards; glass and electronics producƟon wastes. The PHG for arsenic is 0.004 parts per billion (ppb) and the Maximum Contaminant Level (MCL) is 10 ppb. Arsenic was detected above the PHG in the local groundwater: Wells 7A, 8A, 9A, 11A, 12A, 15, 17A, 19, 22, 25, 26, 28, 29, 31, and 33. Average Arsenic detected in groundwater was 2.06 ppb.
 Gross Alpha ParƟcle AcƟvity (gross alpha): It is a measure of the total amount of radioacƟvity in a water sample aƩributable to the radioacƟve decay of alpha-emiƫng elements. It naturally occurs in groundwater due to erosion. The MCLG is zero and the MCL is 15 picocuries per liter (pCi/L). Gross alpha was detected in the local groundwater: Wells 8A, 9A, 17A, 19, 22, 25, 26, 31, and 33. Average gross alpha detected in groundwater was 4.36 pCi/L.
 Coliform Bacteria: Coliform bacteria are a group of indicator organisms that are ubiquitous in nature and are not generally considered harmful. Coliform bacteria are oŌen referred to as “indicator organisms” because they indicate the potenƟal presence of disease-causing bacteria in water. They are used because of the ease in monitoring and analysis. The MCLG is zero and the MCL is 5% of the samples collected monthly. The City collects between 120 and 150 rouƟne coliform bacteria samples every month.

During 2022, no more than 1% of these samples were posiƟve in a month. During 2023, no more than 1% of these samples were posiƟve in a month. During 2024, no more than 0% of these samples were posiƟve in a month. The UƟliƟes Department maintains an effecƟve cross connecƟon control program, a disinfectant residual throughout the system, an effecƟve monitoring and surveillance program, and posiƟve pressure in all parts of the distribuƟon system.
 Hexavalent Chromium: Hexavalent chromium is a toxic form of the element chromium. Hexavalent chromium compounds are man-made and widely used in many different industries. The PHG for Hexavalent chromium is 0.02 ppb, there is currently no MCL set. Hexavalent Chromium was detected above the PHG in the local groundwater: Wells 7A, 8A, 9A, 11A, 12A, 15, 17A, 19, 22, 25, 28, 29, 31, and 33.

Average hexavalent chromium detected in groundwater was 0.885 ppb.  Perchlorate: Perchlorate is a chemical that can occur naturally in the environment and also may be released by fireworks, improper handling or disposal of rocket fuel, and various industrial processes. The PHG for Perchlorate is 1 ppb, the MCL is 6 ppb.

Perchlorate was detected above the PHG in the local groundwater: Wells 7A, 8A, 9A, 11A, 12A, 14, 17A, 19, 22, 25, 27, 28, 29, 31, 33. Average Perchlorate detected in groundwater was 5.12 ppb.

Page 1049 of 1215 ends

City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400  Uranium: Uranium is a radioacƟve compound that naturally occurs in varying amounts in the earth’s crust. The PHG for Uranium is 0.43pCi/L, the CA MCL is 20 pCi/L.

Uranium was detected above the PHG in the local groundwater: Wells 8A, 9A, 11A, 15, 17A, 19, 25, 26, 31, 33. Average Uranium detected in groundwater was 5.7 pCi/L.  1,2,3-Trichloropropane (1,2,3-TCP): 1,2,3-TCP is a manmade chemical found at industrial or hazardous waste sites. It has been used as a cleaning and degreasing solvent and is also associated with pesƟcide products. 1,2,3 TCP is likely to either leach from soil into groundwater or evaporate from soil surfaces. The PHG for 1,2,3-TCP is

0.0007 ppb, the CA MCL is 0.005 ppb. 1,2,3-TCP was detected above the PHG in the local groundwater: Wells 8A, 17A, 19, 33. Average 1,2,3-TCP detected in groundwater was 0.12 ppb.
 Fluoride: Fluoride is a naturally occurring element, dissolved into drinking water via erosion of natural deposits. The PHG for fluoride is 1,000 ppb, the CA MCL is 2,000 ppb. Fluoride was detected above the PHG in the local groundwater: Wells 26. Average Fluoride detected in groundwater was 2,000 ppb.
 Perfluorooctanoic Acid (PFOA): A type of compound that is part of the PFAS family, for many years PFOA were widely used in industrial applicaƟons and consumer products.

The PHG for PFOA is 0.000007 ppb, there is no CA MCL. PFOA was detected above the PHG in the local groundwater: Wells 7A, 8A, 9A, 11A, 15, 17A, 19, 22, 25, 26, 28, 29, 31, and 33. Average POFA detected in groundwater was 3.3 ppb.  Perfluorooctane Sulfonic Acid (PFOS): A type of compound that is part of the PFAS family, for many years PFOS were widely used in industrial applicaƟons and consumer products. The PHG for PFOS 0.001 ppb, there is no CA MCL. PFOS was detected above the PHG in the local groundwater: Wells 7A, 8A, 9A, 11A, 15, 17A, 19, 22, 25, 26, 28, 29, 31, and 33. Average PFOS detected in groundwater was 3.8 ppb.  Tetrachloroethylene (PCE):Tetrachloroethylene (PCE) is most oŌen used for dry cleaning and texƟle processing as a chemical intermediate, and for vapor degreasing in metal cleaning operaƟons. The PHG for PCE is 0.06 ppb, the CA MCL is 5 ppb. PCE was detected above the PHG in the local groundwater: Wells 19 and 25. Average PCE detected in groundwater was 0.69 ppb.
 Thallium: Thallium is a natural element found in ores deep underground. In the environment, thallium is found joined with other elements such as bromine, chlorine, fluorine and iodine. Thallium is used in the producƟon of electronics, glass, and pharmaceuƟcals. The PHG for Thallium is 0.1 ppb, the CA MCL is 2 ppb. Thallium was detected above the PHG in the local groundwater: Well 12A. Average Thallium detected in groundwater was 0.67 ppb.

4. Numerical Public Health Risks

Page 1050 of 1215 ends

City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400 SecƟon 116470(b)(2) of the Health and Safety Code requires disclosure of the numerical public health risk determined by the OEHHA associated with the maximum contaminant levels, acƟon levels, public health goals, and maximum contaminant level goals.  Arsenic: The OEHHA has determined that the health risk associated with the PHG is one excess case of cancer in a million people and the risk associated with the MCL is 2.5 excess cases of cancer in 1,000 people exposed for a 70-year lifeƟme.  Gross Alpha ParƟcle AcƟvity (gross alpha): The USEPA has determined that the health risk associated with the MCLG is zero and the risk associated with the MCL is one excess case of cancer in 1,000 people over a lifeƟme exposure.  Coliform Bacteria: Coliform is only a surrogate indicator of the potenƟal presence of pathogens; it is not possible to state a specific numerical health risk. While USEPA normally sets MCLGs “at a level where no known or anƟcipated adverse effects on persons would occur,” they indicate that they cannot do so with coliforms. The reason for the coliform drinking water standard is to minimize the possibility of the water containing pathogens which are organisms that cause waterborne disease.  Hexavalent Chromium: The California Department of Public Health and USEPA have determined that Chromium Six is a health concern at certain levels of exposure. The category of health risk associated with Chromium Six is that conƟnued exposure to Chromium Six could result in allergic dermaƟƟs (skin reacƟons) and has been found to cause gastrointesƟnal tumors in rats and mice. The numerical health risk for cancer aƩached to levels above the PHG is 1x10−6 which means one excess cancer case per million people exposed.
 Perchlorate: Perchlorate is a chemical that can occur naturally in the environment and also may be released by fireworks, improper handling or disposal of rocket fuel, and various industrial processes. Perchlorate is known to block the thyroid’s ability to take in and process iodide, which is a nutrient essenƟal to brain development, growth, heart funcƟon, and other systems.
 Uranium: Uranium is a radioacƟve compound that naturally occurs in varying amounts in the earth’s crust. People who drink water containing uranium in excess of the MCL over many years may have kidney problems or an increased risk of geƫng cancer. The cancer risk associated with drinking water with uranium greater than the MCL of 20 pCi/L is 5x10-5, or five surplus cancer cases per hundred thousand people who drink water in excess of the MCL over a lifeƟme. The cancer risk for uranium at the PHG of

0.43 pCi/L is 1x10-6, or one surplus cancer case per million people drinking water in excess of the PHG over a lifeƟme.
 1,2,3 – Trichloropropane (1,2,3-TCP): It is a manmade chemical, typically found at industrial or hazardous waste sites. The PHG developed is based on carcinogenic effects observed in animals, significant tumors have been observed in a number of Ɵssues in male and female mice and rates administered 1,2,3-TCP by the oral route.

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City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400  Fluoride: Fluoride can be disƟnguished from other chemicals for which PHGs are developed in that it can be present as an intenƟonal addiƟve rather than a “contaminant.” Fluoride is added to drinking water at levels close to 1 mg/L in order to protect children and adults against dental caries. When administered orally to laboratory animals, fluoride has adverse health effects on bones and teeth as well as the kidneys and stomach. Oral administraƟon of fluoride at high levels affects survival and body weight gain. Excess oral exposure to fluoride can lead to dental fluorosis.  Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonic Acid (PFOS): For more than a half-century, perfluorooctanoic acid (PFOA) and perfluorooctane sulfonic acid (PFOS) were widely used in industrial applicaƟons and consumer products, notably, PFOA in nonsƟck cookware and PFOS in stain and water-repellant fabrics and in firefighƟng foams. ScienƟfic studies show adverse health effects of PFOA and PFOS in people exposed at environmental levels, and similar effects in laboratory animals. There is evidence from epidemiologic studies that exposure to PFOA increases the risk of kidney cancer. PFOS is associated with immune system toxicity and increased total cholesterol in humans, with suggesƟve evidence of an associaƟon with risk of preeclampsia and pregnancy-related hypertension. The effects seen in humans are supported by studies in laboratory animals, which show that PFOA and PFOS can cause liver toxicity, immunotoxicity, thyroid toxicity, developmental/reproducƟve toxicity, and cancer.
 Tetrachloroethylene (PCE): A public health goal (PHG) was established for tetrachloroethylene (PCE, also known as perchloroethylene) in drinking water. The PHG is based on carcinogenic effects observed in experimental animals. Exposure to PCE is carcinogenic for rodents, inducing liver cancer in mice by inhalaƟon or ingesƟon, and leukemia in rats by inhalaƟon.
 Thallium: The PHG is based on a noncancer health endpoint observed in female rats administered thallium daily by gavage for 90 days. In the study, alopecia, or hair loss, was observed in both male and female rats which is a classic sign of thallium poisoning.

5. IdenƟficaƟon of Risk Categories
SecƟon 116470(b)(3) of the Health and Safety Code requires idenƟficaƟon of the category of risk to public health associated with exposure to the contaminant in drinking water.

6. DescripƟon and Cost of Best Available Technology.

SecƟon 116470(b)(4) of the Health and Safety Code requires a descripƟon of the best available technology to remove or reduce the concentraƟons of the contaminants idenƟfied in this report as exceeding the set parameters. SecƟon 116470(b)(5) of the Health and Safety Code requires an esƟmate of the addiƟonal cost and addiƟonal cost per customer if uƟlizing the best available technology to reduce the concentraƟon of a contaminant to a level at or below the PHG or the MCLG. Both the USEPA and DDW adopt best available technologies, BATs, which are the

Page 1052 of 1215 ends

City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400 best-known methods for reducing contaminant levels to the MCL. Many MCLGs and PHGs are set to a numerical value far below the respecƟve DetecƟon Limit for Purposes of ReporƟng (DLRs).

This makes it difficult to know if a consƟtuent was actually lowered to zero.

The Best Available Technology (BAT) to lower the level of arsenic, gross alpha, hexavalent chromium, uranium, and Fluoride below the PHG is reverse osmosis (RO). Current levels are already below the MCL; reverse osmosis is one opƟon in trying to lower the levels even further to below the PHG. Cost esƟmaƟng guides from the AssociaƟon of California Water Agencies (ACWA) guidance report were used in determining the esƟmated cost to implement addiƟonal RO. Please note cost esƟmates are theoreƟcal. According to the cost esƟmates, provided by ACWA, to install and operate an RO system it would cost anywhere between $2.28 - $8.99 per 1,000 gallons of water treated. The esƟmated annualized capital, operaƟon, and maintenance costs for the City to install, run, and maintain would range from $23 million/year to $90 million/year. The cost per customer connecƟon would range from $511 to $2,016 per year.

The Best Available Technology (BAT) to lower the level of Perchlorate, PFOA, PFOS, and Thallium below the PHG is Ion Exchange (IE). Cost esƟmaƟng guides from the AssociaƟon of California Water Agencies (ACWA) guidance report were used in determining the esƟmated cost to implement addiƟonal IE. Please note cost esƟmates are theoreƟcal. According to the cost esƟmates, provided by ACWA, to install and operate an IE system it would cost anywhere between $0.98- $2.68 per 1,000 gallons of water treated. The esƟmated annualized capital, operaƟon, and maintenance costs for the City to install, run, and maintain would range from $9.8 million/year to $27 million/year. The cost per customer connecƟon would range from $220 to $601 per year.

The Best Available Technology (BAT) to lower the level of 1,2,3 TCP and PCE below the PHG is AcƟvated Carbon (AA). Cost esƟmaƟng guides from the AssociaƟon of California Water Agencies (ACWA) guidance report were used in determining the esƟmated cost to implement addiƟonal AA. Please note cost esƟmates are theoreƟcal. According to the cost esƟmates, provided by ACWA, to install and operate an AA system it would cost anywhere between $0.36 - $3.03 per 1,000 gallons of water treated. The esƟmated annualized capital, operaƟon, and maintenance costs for the City to install, run, and maintain would range from $3.6 million/year to $31 million/year. The cost per customer connecƟon would range from $80 to $680 per year.

The BAT for inacƟvaƟng coliform bacteria in drinking water as determined by the State is the protecƟon of wells from coliform contaminaƟon, maintenance of a disinfectant residual throughout the distribuƟon system, proper maintenance of the distribuƟon system, and filtraƟon and/or disinfecƟon of surface and groundwater. The City already disinfects all water served to the public. The City adds chloramines, and maintains a chloramine residual, to the distribuƟon system used to deliver drinking water to ensure the water is microbiologically safe. The chloramine residual levels are carefully controlled to provide the best health protecƟon without causing the water to have undesirable taste and odor or increasing the DisinfecƟon By Product (DBPs) levels.

Other equally important measures that have been implemented include: an effecƟve crossconnecƟon control program, an effecƟve monitoring program, a successful tank cycling program, rouƟne dead-end flushing program, and maintaining posiƟve pressure in our distribuƟon system.

Page 1053 of 1215 ends

City of Corona • 400 S. Vicentia Ave. Corona, CA 92882 • (951) 736-2400

7. RecommendaƟons for Further AcƟon:

SecƟon 116470(b)(6) of the Health and Safety Code requires a brief descripƟon of any acƟons the water purveyor intends to take to reduce the concentraƟon of the contaminant and the basis for that decision. The drinking water quality for the City of Corona meets all drinking water standards set to protect public health. To further reduce the levels of the consƟtuents idenƟfied in this report that are already significantly below the health-based Maximum Contaminant Levels established to provide "safe drinking water", addiƟonal costly treatment processes would be required. The effecƟveness of the treatment processes to provide any significant reducƟons in consƟtuent levels at these already low values is uncertain. The health protecƟon benefits of these further hypotheƟcal reducƟons are not at all clear and may not be quanƟfiable. Therefore, no acƟon is proposed.

Page 1054 of 1215 ends

Table 1
Average Range
Arsenic ppb 0.004 10 1.86 ND – 4.3 C one per million 2.5 per thousand AA,C/F,IE,LS,RO
Gross Alpha
Particle Activity pCi/L 0 15 11.6 3.1 - 19.3 C zero one per thousand RO Total Coliform % samples
positive 0 5 0 0 NA NA NA RO
Hexavalent
Chromium μg/L 0.02 none 0.75 .029 - 3.35 C one per million NA C/F, IE, RO Perchlorate ug/L 1 6 5.50 1.9 - 9.1 NA NA NA IE
Uranium pCi/L 0.43 20 9.7 0.84 - 20.5 C one per million one per
hundred
thousand

C/F, IE, RO, LS
1,2,3-TCP ppb 0.0007 0.005 0.012 ND - 0.01 C one per million seven per million AA
Fluoride ppm 1 2 2.000 0.1 - 2.3 NA NA NA RO
PFOA ppb 0.000007 NA 3.30 ND - .243 NA NA NA AA,IE
PFOS ppb 0.001 NA 3.80 ND - .285 NA NA NA AA,IE
PCE ppb 0.06 5 0.69 N - 1 C one per million
eight per
hundred
thousand
AA
Thallium ppb 0.1 2 0.67 ND - 0.67 NA NA NA IE
Table 2
Arsenic RO $23,003,449 $90,702,196 $511 $2,016
Gross Alpha
Particle Activity RO $23,003,449 $90,702,196 $511 $2,016 Hexavalent
Chromium RO $23,003,449 $90,702,196 $511 $2,016
Perchlorate IE $9,887,447 $27,039,142 $220 $601
Uranium RO $23,003,449 $90,702,196 $511 $1,144
1,2,3-TCP AA $3,632,124 $30,570,373 $80 $680
Fluoride RO $23,003,449 $90,702,196 $511 $2,016
PFOA IE $9,887,447 $27,039,142 $220 $601
PFOS IE $9,887,447 $27,039,142 $220 $601
PCE AA $3,632,124 $30,570,373 $80 $680
Thallium IE $9,887,447 $27,039,142 $220 $601

RISK CATEGORIES TREATMENT TECHNOLOGIES
AA: Activated Carbon
C/F: Coagulation/Filtration
ABBREVIATION IE: Ion Exchange
PHG: Public Health Goal LS: Lime Softening
MCL: Maximum Contaminant Level RO: Reverse Osmosis
MCLG: Maximum Contaminant Level Goal
μg/L: Micrograms per liter
pCi/L: picoCuries per liter
ND: No Detection
PARAMETER Annualized Capital and O&M Costs
Ranges

TREATMENT

TECHNOLOGY
*Results shown are from raw groundwater samples. The Utilities Department (UD) treats and blends groundwater before it is delivered to customers. The UD has five blending facilities that blend treated groundwater sources with raw groundwater sources and treated surface water to deliver safe, reliable drinking water to customer’s tap.

C (Carcinogen): A substance that is capable of producing cancer
Ranges
Additional Costs per Connection per Year
2025 PUBLIC HEALTH GOAL REPORT
City of Corona Utilities Department

PARAMETER

CONCENTRATION

CATEGORY OF RISK

CANCER RISK
AT PHG or
MCLG

CANCER RISK
AT MCL

BEST AVAILABLE

TECHNOLOGIES

UNITS OF

MEASUREMENT
PHG OR
(MCLG) MCL

Page 1055 of 1215 ends

DATE: 08/20/2025
TO: Honorable Mayor and City Council Members
FROM: City Manager’s Office – City Clerk
2025-326

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

DESIGNATION OF VOTING DELEGATE FOR THE 2025 LEAGUE OF CALIFORNIA

CITIES ANNUAL CONFERENCE
EXECUTIVE SUMMARY:

This staff report asks the Council to consider appointing the voting delegate for the upcoming League of California Cities Annual Conference. Designating a voting delegate will be consistent with the League of California Cities’ bylaws and will allow the delegates to vote at the Annual Business Meeting.

RECOMMENDED ACTION:

That the City Council designates a voting delegate and up to two alternates to represent the City of Corona at the 2025 League of California Cities Annual Conference.

BACKGROUND & HISTORY:

The League of California Cities Annual Conference is a valued tradition attended by Council and staff members from many California cities. The conference provides networking, advocacy, and educational programs that bring together elected and appointed officials, as well as city staff from all departmental areas to serve the grassroots interests of local municipalities.

The conference concludes with the General Assembly voting at the Annual Business Meeting. Member cities participate in this process by registering their voting delegate to attend the annual conference and actively engage in the voting process. The voting

Page 1056 of 1215 ends

delegate for the 2024 General Assembly was Vice Mayor Jacque Casillas and the alternate was Council Member Wes Speake.

ANALYSIS:

The League of California Cities Annual Conference will be held from October 8, 2025, through October 10, 2025. The conference location generally alternates between northern and southern California, with the 2025 conference being held in Long Beach. The conference will include the Annual Business Meeting, where members take action on conference resolutions. Participation in the business meeting allows the City to engage in the League’s policy development process. The League bylaws provide that each City is entitled to one vote in matters affecting municipal or League policy.

To ensure the integrity of the voting process at the Annual Business Meeting, the designation of the voting delegate and alternates must be ratified by the City Council.

Specific voting procedures will be used at the conference, and a copy of the 2025 Annual Conference Voting Procedures is attached to this report. The Voting Delegate/Alternate Form, designating the City Council’s representation, will be completed and returned to the League office no later than September 24, 2025.

FINANCIAL IMPACT:

There is no financial impact associated with this recommended action. Adequate funds for our City Officials’ attendance at the League Annual Conference are available in the Fiscal Year 2026 Budget.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action for the designation of voting delegates and alternates during the League of California Cities Annual Conference, and there is no possibility that approving the recommended action will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: SYLVIA EDWARDS, CITY CLERK
REVIEWED BY: JUSTIN TUCKER, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – 2025 Annual Conference Voting Procedures

Page 1057 of 1215 ends

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org

DATE: Wednesday, July 16, 2025
TO: Mayors, Council Members, City Clerks, and City Managers RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES
League of California Cities Annual Conference and Expo, Oct. 8-10, 2025 Long Beach Convention Center
Every year, the League of California Cities convenes a member-driven General Assembly at the Cal Cities Annual Conference and Expo. The General Assembly is an important opportunity where city officials can directly participate in the development of Cal Cities policy.

Taking place on Oct. 10, the General Assembly is comprised of voting delegates appointed by each member city; every city has one voting delegate. Your appointed voting delegate plays an important role during the General Assembly by representing your city and voting on resolutions.

To cast a vote during the General Assembly, your city must designate a voting delegate and up to two alternate voting delegates, one of whom may vote if the designated voting delegate is unable to serve in that capacity. Voting delegates may either be an elected or appointed official.

Action by Council Required. Consistent with Cal Cities bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone.

Following council action, please submit your city’s delegates through the online submission portal by Wed., Sept. 24. When completing the Voting Delegate submission form, you will be asked to attest that council action was taken. You will need to be signed in to your My Cal Cities account when submitting the form.

Submitting your voting delegate form by the deadline will allow us time to establish voting delegate/alternate records prior to the conference and provide pre-conference communications with voting delegates.

Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. Conference registration is open on the Cal Cities website.

Council Action Advised by September 24, 2025

Page 1058 of 1215 ends

For a city to cast a vote, one voter must be present at the General Assembly and in possession of the voting delegate card and voting tool. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the voting delegate desk. This will enable them to receive the special sticker on their name badges that will admit the voting delegate into the voting area during the General Assembly.

Please view Cal Cities’ event and meeting policy in advance of the conference.

Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the General Assembly, they may not transfer the voting card to another city official.

Seating Protocol during General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

The voting delegate desk, located in the conference registration area of the Long Beach Convention Center in Long Beach, will be open at the following times: Wednesday, Oct. 16, 8:00 a.m.-6:00 p.m. and Thursday, Oct. 17, 7:30 a.m.-4:00 p.m. On Friday, Oct. 18, the voting delegate desk will be open at the General Assembly, starting at 7:30 a.m., but will be closed during roll calls and voting.

The voting procedures that will be used at the conference are attached to this memo.

Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates.

Once again, thank you for submitting your voting delegate and alternates by Wednesday, Sept. 24. If you have questions, please contact Zach Seals at [email protected].

Attachments:
• General Assembly Voting Guidelines
• Information Sheet: Cal Cities Resolutions and the General Assembly

Page 1059 of 1215 ends

1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designating a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting. To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Area at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disputes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

Page 1060 of 1215 ends

Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). Page 1061 of 1215 DATE: 08/20/2025
TO: Honorable Mayor and City Council Members
FROM: Planning and Development Department
2025-327

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

REQUEST BY COUNCILMEMBER SPEAKE TO DISCUSS AMENDING THE CRITERIA IN SECTIONS 17.63.120(D)(6) AND 17.63.120(E)(4) OF THE CORONA MUNICIPAL

CODE FOR DEMOLISHING OR RELOCATING A HISTORIC STRUCTURE EXECUTIVE SUMMARY:

At the City Council meeting on March 19, 2025, Councilmember Speake introduced a future agenda request to discuss the possibility of amending the criteria listed in Corona Municipal Code (CMC) Chapter 17.63, Historic Resources Ordinance, for demolishing historic resources. The City Council agreed to have additional discussion on this topic.

This staff report is asking the City Council to provide direction to staff on amending the demolition criteria listed in CMC Chapter 17.63 for historic resources.

RECOMMENDED ACTION:

That the City Council provide direction to staff on amending the relocation and demolition criteria listed in CMC Chapter 17.63, Historic Resources Ordinance, for historic resources.

BACKGROUND & HISTORY:

CMC Chapter 17.63 governs the preservation of historic resources in the City. In October 2024, the City Council adopted an ordinance amending CMC Chapter 17.63 to establish a Structure of Merit listing criteria and to assign duties for the newly created Historic Preservation Board established by CMC Chapter 2.38.

Page 1062 of 1215 ends

Concern
The concerns raised by Councilmember Speake include the following:

1. Certain historic resources can be granted approval for demolition by the Planning and Development Director for properties listed on the Heritage Inventory without additional review and analysis under the California Environmental Quality Act (CEQA) for potential impacts to historic resources, and

2. The criteria listed in CMC Section 17.63.120(D)(6) and Section 17.63.120(E)(4), for the relocation or demolition of historic resources on the Corona Register and Heritage Inventory, respectively, include the criterion under subsection (c) that not relocating or demolishing the historic resource would deprive the property owner of all economically viable use of the site.

Item 1
Heritage Inventory Properties
The first concern raised by Councilmember Speake has been addressed with the ordinance that was adopted in October 2024, amending CMC Chapter 17.63. The proposed relocation or demolition of a historic resource on the Heritage Inventory is now reviewed by the newly created Historic Preservation Board instead of the Planning and Development Director. Since the review by the Historic Preservation Board is discretionary, the relocation and demolition of a historic resource on the Heritage Inventory are subject to review under CEQA.

Corona Register Properties
The relocation or demolition of a historic resource on the Corona Register, which includes landmarks, was previously reviewed by the Planning Commission and City Council. Per the amendment that was adopted in October 2024, the review is done by the Historic Preservation Board instead of the Planning Commission. The review of the relocation or demolition of a historic resource on the Corona Register was always discretionary and subject to review under CEQA.

Therefore, the concern expressed in item 1 has been addressed because the previous amendment to CMC Chapter 17.63 became effective on November 16, 2024.

Item 2
Relocation and Demolition Criteria for Historic Resources The second concern is to replace the one criterion in CMC Section 17.63.120(D)(6)(c) and CMC Section 17.63.120 (E)(4)(c) that would allow a historic resource listed on the Heritage Inventory and/or Corona Register to be relocated or demolished if the denial of the request would deprive the owner of all economically viable use of the site with a new criterion that would require review under CEQA for impacts to historic resources and review by the Historic Preservation Board and City Council.

Existing CMC Section 17.63.120(D)(6)(c) and CMC Section 17.63.120 (E)(4)(c):

Page 1063 of 1215 ends

(c) Denial of the requested relocation or demolition of the historic resource will deprive the owner of all economically viable use of the site;…
Proposed request changing CMC Section 17.63.120(D)(6)(c) and CMC Section

17.63.120 (E)(4)(c):
(c) The relocation or demolition of any historic resource that is listed as High or High with Rehab on the Heritage Inventory and/or Corona Register was reviewed under CEQA for potential impacts to historic resources and reviewed by the Historic Preservation Board and City Council;…
As mentioned under item 1, the review of relocation and demolition requests for historic resources on the Heritage Inventory and/or Corona Register is discretionary because the review is done by the Historic Preservation Board (with a recommendation made to the City Council for properties on the Corona Register), which would require an analysis under CEQA for potential impacts to historic resources. Therefore, a portion of this concern has been satisfied.

However, the criterion listed in CMC Sections 17.63.120(D)(6)(c) and 17.63.120(E)(4)(c) that the denial of the request would deprive the owner of all economically viable use of the site would remain, unless an ordinance is adopted to remove this criterion from the CMC.

ANALYSIS:

To delete or amend the regulations in CMC Chapter 17.63, staff would need to process a Zone Text Amendment to Title 17, Zoning Code. The amendment to the Historic Resources ordinance is a public hearing and requires the Planning and Housing Commission to make a recommendation to the City Council. The amendment would require the adoption of an ordinance by the City Council.

After taking into consideration the recent changes to the Historic Resources ordinance, which require the discretionary review by the Historic Preservation Board, and decision by the City Council for properties on the Corona Register, and an automatic analysis under CEQA, the concern pending as outlined by Councilmember Speake includes the following:

1. The criterion in CMC Sections 17.63.120(D)(6) and 17.63.120(E)(4) that would allow a historic resource listed on the Heritage Inventory and/or Corona Register to be relocated or demolished if the finding is made that the denial of the request will deprive the owner of all economically viable use of the site.

It should be noted that although the discretionary review by the Historic Preservation Board would automatically require an analysis under CEQA, Section 17.63.120(B) only lists the environmental review for any plan that may cause a potentially adverse change to a historic resource listed on the Corona Register, but not on the Heritage Inventory.

This section existed before the changes were made to the ordinance in October 2024,

Page 1064 of 1215 ends

which limited the discretionary review to historic resources on the Corona Register.

Therefore, this section could be amended to reflect that an environmental review under CEQA is required for requests subject to discretionary review by an administrator, board, commission, council, or the like.

FINANCIAL IMPACT:

A text amendment to the Zoning Code is $6,273 according to the City’s adopted fee schedule. The fee is based on the number of hours used by staff to process the amendment. However, no application fee will be associated with this amendment since the amendment is initiated by the City.

ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from the CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This request is for staff to receive policy direction from the City Council and will not have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: JOANNE COLETTA, PLANNING AND DEVELOPMENT DIRECTOR ATTACHMENTS:

1. Exhibit 1 – PowerPoint presentation

2. Exhibit 2 – Future Agenda Item Request from Councilmember Speake

Page 1065 of 1215 ends

Request by Councilmember Speake
Joanne Coletta
Planning and Development Director
August 20, 2025 Page 1066 of 1215
That the City Council provide
direction on amending the criteria
for the relocation and demolition of
historic resources.

Page 1067 of 1215 ends

Background
• Established definitions and criteria for the preservation of historic resources.
• Planning Director review of certain modifications to Heritage Inventory properties, including requests for demolitions and relocations.
• Planning Commission and City Council review of relocation and demolition requests for Corona Register properties. (Effective Nov. 16, 2024)
• Established Structure of Merit criteria.
• Established duties for the newly created Historic
Preservation Board.
• Historic Preservation Board replaced the Planning Director on the review of relocation and demolition requests of
historic resources. Page 1068 of 1215
Concern Concern Addressed
1 Planning and Development Director reviews demolition
requests for properties listed on the Heritage Inventory. • No public review process.
• No review under CEQA for potential impacts to
historic resources.
• Review should be done by the Historic Preservation
Board and City Council.

Yes.

Amendment to Historic Resources Ordinance in 2024:
✓ Historic Preservation Board reviews relocation and
demolition requests for Heritage Inventory
properties.
✓ Discretionary review requires CEQA.
✓ City Council and HPB still review relocation and
demolition requests for Corona Register
properties, which include Landmarks, Districts,
and Structure of Merit properties.
2 Relocation and demolition criteria listed in CMC Sections

17.63.120(D)(6) and 17.63.120(E)(4), for historic resources on the Corona Register and Heritage Inventory,
respectively, include the criterion:
(c) not relocating or demolishing the historic resource would deprive the property owner of all economically
viable use of the site.

No.

Relocation and demolition criterion listed in CMC
Sections 17.63.120(D)(6)(c) and 17.63.120(E)(4)(c) still exists in the amended ordinance.

Page 1069 of 1215 ends

Properties on Corona Register
CMC Section 17.63.120 (D)(6)
Properties on Heritage Inventory
CMC Section 17.63.120 (E)(4)
One of the following findings shall be made:
(a) The criteria required to delete the historic
resource from the Corona Register set forth in
§ 17.63.110(E) are satisfied;
(b) The historic resource has deteriorated or been
modified to the extent that it is no longer representative as an historic resource to be preserved;
c) Denial of the requested relocation or demolition
of the historic resource will deprive the owner of all
economically viable use of the site;
(d) Relocation or demolition of the historic resource
will not have a significant effect on the achievement of the purposes of this chapter and appropriate mitigation measures will be undertaken to substantially reduce or
eliminate the loss or diminishment of the historic
resource;
(e) The historic resource is determined to be unsafe
or dangerous by the Building Official and reasonable
efforts to correct the situation are economically or
physically infeasible.

One of the following findings shall be made:
(a) The heritage property is not a good example of an
historic period or architectural style;
(b) The heritage property has deteriorated or been
modified to the extent that it is no longer representative as an historic resource to be preserved;
(c) Denial of the requested relocation or demolition of the heritage property will deprive the owner of all
economically viable use of the site;
(d) Relocation or demolition or removal will not have a significant effect on the achievement of the purposes of this chapter;
(e) The heritage property is determined to be unsafe or dangerous by the Building Official and reasonable efforts to correct the situation are infeasible;
(f) The heritage property is inconsistent with the zoning designation for the site and adaptive re-use of the heritage property to achieve consistency is not economically viable.

Page 1070 of 1215 ends

Zone Text Amendment to Zoning Code:
• Revise the relocation and demolition criteria
listed in CMC Chapter 17.63.
• Public Hearing by Planning and Housing
Commission.
• Public Hearing by City Council to consider an
ordinance amending the Zoning Code.

Timeline:
• Approximately 3 to 6 months depending on
department workload.

Process to address Concern #2

Page 1071 of 1215 ends

That the City Council provide
direction on amending the criteria
for the relocation and demolition of
historic resources.

Page 1072 of 1215 ends

Future Agenda Item Request Form
Future agenda items should be limited to new issues that emerge during the course of the year that are urgent and cannot wait until the next priority setting session of Council before requiring action.

Name: Wes Speake
Date: 3/12/2025
Title Name/Topic: Review/amend section 17.63.120 Alteration, relocation or demolition of historic resources, specifically (D) (6)
Background

1. What is the purpose for the request i.e. what you are trying to achieve or do? The way the section is currently written no building is off limits to demolition. Meaning that iconic buildings like the Corona Theater could be demo ’ed without comment except the planning director.

Here is the scenario- Theater owner decide to sell to a housing developer, he wants to build a Mixed-Use apartment project. Current zoning is Commercial, the site is listed as a Downtown Mixed Use in the General plan. The developer’s intent is adaptive reuse of the building. Leave the exterior and theatre and covert the old offices to apartments and ground floor into a shops. Zone change is granted. 6months later. The developer comes back as says it’s not penciling; costs have increased and he will not get “all economically viable use of the site” files for a demo permit and because the sentence below they would legally have to be issued the demo permit. Not initiating any project that would trigger CEQA. Yes, we move to buy it, he would not have to sell, we could use imminent domain but it could only be a pubic project and forever…
(6) Any plan involving the relocation or demolition of an historic resource listed on the Corona Register shall not be approved unless one of the following findings is made:
(a) The criteria required to delete the historic resource from the Corona Register set forth in § 17.63.110(E) are satisfied;
(b) The historic resource has deteriorated or been modified to the extent that it is no longer representative as an historic resource to be preserved; (c) Denial of the requested relocation or demolition of the historic resource will deprive the owner of all economically viable use of the site; (d) Relocation or demolition of the historic resource will not have a significant effect on the achievement of the purposes of this chapter and appropriate mitigation measures will be undertaken to substantially reduce or eliminate the loss or diminishment of the historic resource;
I don’t think the city needs to be savior for all things and always swoop in to save the day or let a historic resource be destroyed. We regulate private property now; i.e AirBnB use and others why shouldn’t this be as important.

2. What is the scope of the work you wish to see done?

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Delete 6 (c) and replace with (c) relocation or demolition of any building that is listed as High or High with Rehab on the city list of Historic properties be subject to CEQA review for Historic resources and approval by the Historic Commission and City Council
Many cities require the same level of review for demolition of historic properties including Oceanside,

3. Does this request align with the City’s Strategic Plan? How? #5 Sense of Place- Connecting with our past

4. What is the desired timeline to have the issue considered by Council? Within reason as one of the ten 5 buildings is in the queue to be demo’ed not expecting them to be lined up.

5. Is the issue urgent requiring action before the next priority setting session of Council (Spring Workshop)?
Yes
Staff Section (To be completed by staff)
Approximate Staff Time Required: 27 Hours
Approximate Cost: $ 6,273

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DATE: 08/20/2025
TO: Honorable Mayor and City Council Members
FROM: Utilities Department
2025-339

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

CONTINUED PARTICIPATION IN CALRECYCLE’S RECYCLE FROM HOME PILOT

PROGRAM
EXECUTIVE SUMMARY:

On June 15, 2022, the City Council authorized participation in a CalRecycle Pilot Program and designated Recycle From Home, LLC as the pilot program provider for mobile recycling services. Recycle From Home, LLC has requested the City’s concurrence on proposed changes to the program for its mobile recycling services.

RECOMMENDED ACTION:

That the City Council provide direction on:

PROPOSED OPTIONS:

Option 1: Continue participation in CalRecycle’s Recycle From Home Pilot Program  Approve the Written Concurrence for Operational Changes for services provided by Recycle From Home, LLC.
 Authorize the City Manager, or his designee, to execute the Written Concurrence for Operational Changes and any other documents necessary in support of CalRecycle’s Recycle From Home Pilot Program.

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Option 2: Discontinue participation in CalRecycle’s Recycle From Home Pilot Program
BACKGROUND & HISTORY:

In recent years, the State of California has adopted legislation regarding solid waste and recycling to further reduce unnecessary waste in landfills and encourage the recycling of organic waste and beverage-container materials. In response, the City of Corona and other local jurisdictions have adopted and implemented plans to reduce solid waste by maximizing reuse and recycling.

In June of 2022, the City Council approved the City’s participation in a CalRecycle Pilot Program and designated Recycle From Home, LLC to be the pilot program provider to provide mobile recycling services at the customer’s residence. CalRecycle’s Recycle From Home Pilot Program is an effort to provide a convenient option for City residents to respond to California’s call to dispose of beverage-container material in a responsible manner and receive reimbursement for returning beverage containers that have California Redemption Value (CRV).

ANALYSIS:

Over the past several years, Recycle From Home, LLC has had over 1,800 Corona residents sign up for their services. In just this year alone, Recycle From Home, LLC has picked up over 30,000 lbs. of materials from residents, including scrap, aluminum, glass, and other items. Since launching their services, Recycle From Home, LLC has not increased their service fees and has absorbed rising costs. However, in order to continue providing quality and reliable service, they are recommending the following program changes:

Service Fee Adjustment: Increase the standard fee deducted from CRV refunds from 10% to 30%.

New Premium User Option: Customers can subscribe to a Premium Membership for $5.99/month, which results in the customer receiving 100% of the CRV refund with no service fee deducted.

Welcome Delivery Kit Change: Branded recycling bags will continue to be provided at no cost. However, first-time customers will use their own bags for the initial pickup, at which time the company’s welcome kit will be delivered. The change is intended to reduce unnecessary shipping and inventory waste.

Should the City Council approve continued participation in CalRecycle’s Pilot Program and the mobile recycling services provided by Recycle From Home, LLC, the Written Concurrence for the above operational changes would need to be approved.

FINANCIAL IMPACT:

There is no financial impact to the City for participating in this service through the CalRecycle Pilot Program.

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ENVIRONMENTAL ANALYSIS:

This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action involves the City’s participation in CalRecycle’s Recycle From Home Pilot Program. There is no possibility that approving the continued use of this program will have a significant effect on the environment. Therefore, the item is exempt from CEQA.

PREPARED BY: TOM MOODY, UTILITIES DIRECTOR
ATTACHMENT:

1. Exhibit 1 – Recycle From Home, LLC. Written Concurrence

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[City Letterhead or City Contact Information]
[Date]
To Whom It May Concern,
Re: Written Concurrence for Operational Changes
This letter serves as the City of [City Name]’s formal written concurrence with the proposed operational changes submitted by Recycle From Home.

We acknowledge and approve the following updates as described:

1. New Premium User Option
Customers will have the option to subscribe to a Premium membership at $5.99/month (billed through the Apple and Android app stores). Premium Users will receive 100% of the CRV refund with no service fee deducted.

2. Service Fee Adjustment
The standard service fee deducted from CRV refunds will increase from 10% to 30%.

3. Welcome Kit Delivery Change
Branded recycling bags will continue to be provided at no cost. First-time customers will use their own bags for the initial pickup, at which time the company’s welcome kit will be delivered. This adjustment is intended to reduce unnecessary shipping and inventory waste.

The City of [City Name] agrees that these modifications align with the objectives of providing efficient and sustainable recycling services to our community.

Please feel free to contact us with any further questions or if additional documentation is required.

Sincerely,

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Tom Moody
Utilities Director

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That the City Council provide direction on the participation in CalRecycle’s Recycle From Home Pilot Program

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₁ CalRecycle. (2023). Beverage container recycling in California. Retrieved from https://www.2calrecycle.ca.gov ₂ Orange County Grand Jury. (2022, June 28). Where have all the CRVs gone? 2021–2022 Orange County Grand Jury Report. https://www.ocgrandjury.org/pdfs/Where_Have_All_the_CRVs_Gone.pdf As of 2022, less than 1,000 redemption centers remain in operation in California compared to over 2,600 centers in 2013₂.

The Beverage Container Recycling Program (BCRP) recycling rate goal is 80% ₁.

Most residents no longer have a redemption center that is close to home or work.

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Recycle from Home
A State Pilot Program was created to improve consumer
access to CRV recycling, offering a convenient option to recycle CRV bottles and cans curbside.

The City of Corona has participated in Recycle from Home since December 2022. There is no cost to the city to
participate in the program.

Submitted a letter of authorization to
CalRecycle naming Recycle From Home, as
the City’s Pilot program provider.

Filled out a simple application with
CalRecycle to be part of the pilot program

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46,310
72,991
50,731
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2023 2024 2025*
2023 2024 2025*
*Jan-Aug
As of August 2025: • Over 160,000 lbs of CRV
recycling diverted from
landfills
• Nearly 2,000 Corona
households signed up
• Over 7,000 pickups • Over 24,000 bags collected • $166,155.47 has been paid out to Corona residents

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• Recycle from home retains 10%
CRV
• Mails starter packet to residents
when they sign up
• Picks up your recycling from your
doorstep
• Recycle from home retains 30%
of CRV value
• Optional monthly subscription
service of $5.99
• Customers get paid via Venmo /
PayPal / or by check in the mail --
all the same day
• Delivers the starter packet after
first pick up
• Picks up your recycling from your
doorstep
• Customers get paid through Zelle
or direct deposit, no check
payment option

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• Approve the Written Concurrence for Operational Changes for services provided by Recycle From Home, LLC.
• Corona will not sign the Written Concurrence.

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That the City Council provide direction on the participation in CalRecycle’s Recycle From Home Pilot Program

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DATE: 08/20/2025
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2025-281

REQUEST FOR CITY COUNCIL ACTION
SUBJECT:

ORDINANCE AMENDING CHAPTER 3.08 OF THE CORONA MUNICIPAL CODE TO UPDATE THE CITY’S PURCHASING REGULATIONS
EXECUTIVE SUMMARY:

The staff report recommends that the City Council approve an ordinance amending Chapter 3.08 of the Corona Municipal Code to update the City’s purchasing regulations.

RECOMMENDED ACTION:

That the City Council:
a. Adopt Ordinance No. 3419 (Option A), as presented on June 18, 2025, as a second reading of an ordinance of the City of Corona;
or
b. Introduce, by title only, and waive full reading of consideration of Ordinance No. 3419 (Option B), first reading of an ordinance amending Chapter 3.08 of the Corona Municipal Code to update the City’s purchasing regulations.

BACKGROUND & HISTORY:

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Chapter 3.08 of the Corona Municipal Code (CMC) governs the City’s purchasing process. The current authorization limits were previously approved in 2018.

Since 1988, the City of Corona has participated in the California Uniform Public Construction Cost Accounting Act, Public Contracts Code 22000 et seq. (Act, also known as CUPCCAA). The Act is legislation enacted in 1983 to help streamline bidding procedures for public construction projects and to promote “uniformity of the cost accounting standards and bidding procedures on construction work performed or contracted by public entities in the state” (Section 22001). The Act is a voluntary program available to all public entities statewide. However, it only applies to those public agencies that have formally approved participation. The Act establishes various thresholds and guidelines for public construction-related projects. The State of California has made amendments to the Act, effective January 2025, that increase the formal bidding thresholds to $220,000 and allow for public agencies to perform public constructionrelated projects using their employees for projects up to $75,000.

This item was originally presented at the May 21, 2025, meeting. The City Council requested additional information regarding limits with other agencies and some clarification on the language in Section 3.08.040 (B). At that time, staff understood the direction as the Council was accepting the $220,000 City Manager approval level for Public Projects and Materials, Supplies, and Equipment, based on how those items are awarded to the lowest responsive and responsible bidder. Staff returned to City Council on June 4, 2025, with additional information and options for the City Manager approval levels for the Non-Public Projects. The Ordinance was updated during the meeting, based on the City Council’s discussion, and that was approved as the first reading. At the second reading on June 18, 2025, there were questions about the limits included in the Ordinance, and the item was not approved. This staff report provides updated information as well as two Ordinance options for the City Council’s consideration.

ANALYSIS:

With the discussion that occurred at the June 18th meeting, Council is now presented with two Ordinance options for consideration. The attached Ordinance (both Options A and B) amends various sections of Chapter 3.08 of the CMC pertaining to the City’s purchasing process.

Option A – Ordinance No. 3419 (Version A)
Version A of Ordinance No. 3419 is the same Ordinance presented at the June 18, 2025, Council meeting. Below is an explanation of the amounts included based on staff’s understanding of the direction from the May 21st and June 4th meetings:

1. Non-Public Projects (Any type of purchase not classified as “Public Project” or “Materials, Supplies, and Equipment”. Generally, maintenance and professional services.) City Manager authorization up to $125,000 based on the direction provided by the City Council at the June 4th meeting. These items are awarded based on the best interests of the City, taking into consideration demonstrated competence, qualifications, suitability for the project, and cost.

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2. Public projects (Construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation, and repair work involving any publicly owned, leased, or operated facility. Painting or repainting of any publicly owned, leased, or operated facility.) City Manager authorization up to $220,000, aligning with the Act. This amount was based on the staff’s understanding of the direction from the May 21st Council meeting. This purchasing activity is awarded to the lowest responsive and responsible bidder.

3. Materials, supplies, and equipment (Articles, components, apparatus, and/or machinery required to complete a project or facilitate day-to-day operations.) City Manager authorization up to $220,000 for consistency with the public projects. This amount was based on the staff’s understanding of the direction from the May 21st Council meeting. This purchasing activity is awarded to the lowest responsive and responsible bidder.

With staff’s understanding of the City Council’s direction from the May 21st and June 4th meetings, the following table outlines the proposed authorization limit changes in Ordinance No. 3419 (Option A):

Position Current
Limits
Proposed
Non-Public
Projects
Proposed
Public
Projects
Proposed
Materials,
Supplies, and
Equipment
Department Directors $60,000 $75,000 $75,000 $75,000
Public Works Director,
Utilities Director, and
Assistant City Manager
$75,000 Same as
Department
Directors
Same as
Department
Directors
Same as
Department
Directors
City Manager $100,000 $125,000 $220,000 $220,000
City Council >$100,000 >$125,000 >$220,000 >$220,000
How Awarded? Best interests of
the City (see
item #1 above)
Lowest
responsive and
responsible
bidder
Lowest
responsive and
responsible
bidder
In addition to the above changes, Option A updates the maximum total of a change order to be equal to the lesser of $220,000 or 10% of the original contract amount, to align with the Act, for Public Projects and Materials, Supplies, and Equipment. The maximum total of a change order for Non-Public Projects is updated to $125,000 or 10% of the original contract amount.

If Option A is approved this evening, this will be considered a second reading and will become effective 30 days thereafter. Once approved, staff will complete revisions to the updated purchasing manual to be used in the administration of contracts and purchasing procedures for all City departments.

Option B – Ordinance No. 3419 (Version B)

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Version B of Ordinance No. 3419 is presented as an alternative option for consideration as a result of the Council conversation at the June 18th meeting. At that meeting, staff understood the direction to have consistent City Manager approval levels for all types of purchases, regardless of how the items are awarded. At that meeting, there was not any discussion about the Department Director approval levels. The information presented in this version is consistent with what is included in Version A.

Version B of Ordinance No. 3419 makes the following changes to the purchasing limits:

1. Non-Public Projects (Any type of purchase not classified as “Public Project” or “Materials, Supplies, and Equipment”. Generally, maintenance and professional services.) City Manager authorization up to $125,000. These items are awarded based on the best interests of the City, taking into consideration demonstrated competence, qualifications, suitability for the project, and cost.

2. Public projects (Construction, reconstruction, erection, alteration, renovation, improvement, demolition, installation, and repair work involving any publicly owned, leased, or operated facility. Painting or repainting of any publicly owned, leased, or operated facility.) City Manager authorization up to $125,000. This purchasing activity is awarded to the lowest responsive and responsible bidder.

With staff’s understanding of the City Council’s discussion at the June 18th meeting, the following table outlines the proposed authorization limit changes in Ordinance No. 3419 (Option B):

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In addition to the above changes, Option B updates the maximum total of a change order to be equal to the lesser of $125,000 or 10% of the original contract amount.

If Option B is approved this evening, this will be considered a first reading of the Ordinance. The item will return to City Council on September 3, 2025, as a second reading and will become effective 30 days thereafter. Once approved, staff will complete revisions to the updated purchasing manual to be used in the administration of contracts and purchasing procedures for all City departments.

Additional Information for both Options A and B
Updating the purchasing limits will align the CMC with the Act for certain purchasing types.

Additionally, the Ordinance updates multiple items throughout CMC Chapter 3.08, to be reflective of current state laws, removes outdated information, and adds clarity. The changes include:
 Defines a Non-Public Project
 Clarifies the role of the Purchasing Agent
 Allows for approval limits to be applied independently, not cumulatively, when vendors are used by multiple departments
 Increases the authorization for public project emergency purchasing, up to $500,000
 Moves the alternative competitive bidding process (cooperative purchasing agreements) for non-public projects
 References the Purchasing Policy and Procedures Manual to provide specific administrative rules surrounding the purchasing process  Several non-substantive updates to various sections
Process Changes, based on Council direction, to be included in the Purchasing Manual:
 Reporting on the use of the City Manager’s authority. While this item is not included in the CMC, it will be noted in the purchasing manual. The City Council directed staff to provide the Council with a quarterly report that notes when the City Manager's authority is exercised. Staff’s understanding is that the report will be based on the difference between current authorization limits and the new proposed limits.
 Delegation of Department Director Authority. The purchasing manual will define the delegation procedures, including a limit of thirty (30) days, per the City Council’s direction.

FINANCIAL IMPACT:

There is no financial impact associated with the recommended action.

ENVIRONMENTAL ANALYSIS:

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it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action seeks the of City Council approval of an Ordinance increasing purchasing thresholds and making other modifications to Chapter 3.08 of the CMC, and there is no possibility that approving the recommended action will have a significant effect on the environment. Therefore, no environmental analysis is required.

PREPARED BY: KIM SITTON, FINANCE DIRECTOR
REVIEWED BY: BRETT CHANNING, ASSISTANT CITY MANAGER
ATTACHMENTS:

1. Exhibit 1 – Ordinance No. 3419 (Option A-Staff Understanding-Redline)

2. Exhibit 2 – Ordinance No. 3419 (Option A-Staff Understanding-Clean)

3. Exhibit 3 – Ordinance No. 3419 (Option B-Council Understanding-Redline)

4. Exhibit 4 – Ordinance No. 3419 (Option B-Council Understanding-Clean)

5. Exhibit 5 - Presentation

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ORDINANCE NO. 3419

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF CORONA AMENDING CHAPTER 3.08 OF THE

CORONA MUNICIPAL CODE TO UPDATE AND
STREAMLINE THE CITY’S PURCHASING REGULATIONS
WHEREAS, Chapter 3.08 of the Corona Municipal Code (“CMC”) sets forth the purchasing regulations for all City purchases; and
WHEREAS, the City Council of the City of Corona (“City Council”) desires to make certain changes to such regulations as provided for herein.

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

SECTION 1. Chapter 3.08 (Purchasing Regulations) of Title 3 (Revenue and Finance) of the Corona Municipal Code is hereby amended in its entirety to read as provided for in Exhibit “A” attached hereto and incorporated herein by reference.

SECTION 2. CEQA Findings. The City Council finds that this Ordinance is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This Ordinance merely amends the Corona Municipal Code to update the City’s purchasing regulations. Thus, there is no possibility that adopting this Ordinance will have a significant effect on the environment and no further environmental analysis is required.

SECTION 3. Invalidity; Severability. If any sentence, cause or phrase of this Ordinance is for any reason held to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remaining provisions of this Ordinance.

OPTION "A"

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SECTION 4. Effective Date of Ordinance. The Mayor shall sign this Ordinance and the City Clerk shall attest thereto and shall within fifteen (15) days of its adoption cause it, or a summary of it, to be published in a newspaper of general circulation in the City of Corona. This Ordinance shall take effect and be in force on the 30th day after its adoption.

PASSED, APPROVED AND ADOPTED this 18th day of June, 2025. _________________________________________
Mayor of the City of Corona, California
ATTEST:
____________________________________
City Clerk of the City of Corona, California
OPTION "A"

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CERTIFICATION
I, Sylvia Edwards, City Clerk of the City of Corona, California, do hereby certify that the foregoing Ordinance was regularly introduced at a regular meeting of the City Council of the City of Corona, California duly held on the 4th day of June, 2025 and thereafter at a regular meeting held on 18th day of June, 2025, it was duly passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Corona, California, this 18th day of June, 2025. _________________________________________
City Clerk of the City of Corona, California
[SEAL]
OPTION "A"

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EXHIBIT “A”
CMC CHAPTER 3.08
(PURCHASING REGULATIONS)
[SEE ATTACHED TWENTY-TWO (22) PAGES]
OPTION "A"

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5 DEAND\07000.25001\10309001.6
CHAPTER 3.08

PURCHASING REGULATIONS
Sections

3.08.0103.08.010 Definitions.

3.08.0203.08.020 Centralized purchasing division and purchasing system.

3.08.0303.08.030 Purchasing agent.

3.08.0403.08.040 General purchasing regulations, policies, and procedures.

3.08.0503.08.050 Bidding requirements - public projects.

3.08.0603.08.060 Bidding requirements - maintenance and general services.

3.08.0703.08.070 Bidding requirements - professional services.

3.08.0803.08.080 Bidding requirements - materials, supplies, and equipment.

3.08.0903.08.090 Public projects - formal bidding procedure.

3.08.1003.08.100 Public projects - informal bidding procedure.

3.08.1103.08.110 Non-public projects - formal bidding procedure.

3.08.1203.08.120 Non-public projects - informal bidding procedure.

3.08.1303.08.125 Non-public projects - public agency alternative competitive bidding procedure.

3.08.130 Exceptions to competitive bidding - public projects

3.08.1403.08.140 Exceptions to competitive bidding - non-public projects.

3.08.1603.08.150 Surplus materials, supplies, and equipment.

3.08.010 Definitions.

Unless otherwise indicated, the following definitions shall apply to all provisions of this chapter:
(A) “Act” means the Uniform Public Construction Cost Accounting Act found at Cal.

Public Contract Code, §§ 22000 et seq.
(B) “Alternative procedure” means purchasing materials, supplies, services, (professional, consulting, public works, maintenance, and other general services) or equipment by negotiated contract, purchase order or any other procedure outlined in the city’s purchasing policiesPurchasing Policies and procedures manualProcedures Manual approved by the City Manager and consistent with this chapter. A type of alternative procedure may include, but is not limited to, what will be referred to as a "simplified pricing procedure" wherein the authorized contracting party, or his or her designee, obtains oral price quotes from one or more potential contractors or suppliers, and accepts the quote which is determined to be in the best interests of the city.
(C) "Authorized contracting party" means the city official or body provided with authority under this chapter to approve or award a contract or to make a purchase, as well as to reject all bids when appropriate. Unless otherwise stated, the party authorized to approve or award a contract or to make a purchase shall have the authority to execute the associated purchase order, contract, and/or agreement.

OPTION "A"

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(D) "City Engineer" means either the City Engineer or the person delegated by the City EengineerEngineer to perform all or some of the duties prescribed in this chapter. (E) "City Manager" means the City Manager or person designated by the City Manager to perform all or some of the duties prescribed in this chapter. (F) "Commission" means the California Uniform Construction Cost Accounting Commission created by Division 2, Part 3, Chapter 2, Article 2, of the Cal. Public Contract Code (commencing at § 22010).
(G) "Corona formal bidding procedure" means a procedure which meets the requirements of state and local law, including the Act, this chapter, and any policies and procedures approved by the City Manager consistent with this chapterthe city’s Purchasing Policies and Procedures Manual.
(H) "Emergency" for purposes of public projects shall have that meaning provided in Cal. Public Contract Code §§ 1102, 22035 and 22050. "Emergency" for all other purchasing or contracting purposes means a situation which makes competitive bidding, either formal or informal, impractical or not in the best interests of the city. (I) "Facility" means any plant, building, structure, ground facility, utility system (subject to the limitation found in Cal. Public Contract Code § 22002, subdivision (c)(3)), real property, streets and highways, or other public work improvement. (J(J) “Force account” means the city’s performing of a project using its own employees. (K) "General services" means all services performed by persons not in a professional occupation including, but not limited to, contract services for park, electrical, and computer repair, building, facility, and vehicle maintenance, recreation programs, and other similar services which are not typical of professional services.
(KL) "Maintenance work" shall have that meaning provided in § 22002(d) of the Act, as that section may be amended from time to time. In addition and to the extent not inconsistent with § 22002(d), "maintenance work" shall include, but shall not be limited to, the following:
(1) Routine, recurring, and usual work for the preservation or protection of any publicly-owned or publicly-operated facility for its intended purposes. (2) Minor repainting.
(3) Street and highway maintenance including utility patching, skin patching, crack filling, filling of pot holes, slurry sealing, edge grading, street striping, resurfacing of streets and highways at less than one-inch, sign replacement, sidewalk repair and replacement, curb and gutter repair and replacement, and street and traffic light repair and replacement. "Maintenance OPTION "A"

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7 DEAND\07000.25001\10309001.6
work" shall not include striping of a new street or highway. (4) Sewer maintenance including foaming, video taping, cleaning, and manhole restoration.
(5) Traffic signal maintenance. Maintenance work shall not include installation of new traffic signals.
(6) Storm drain related maintenance.
(7) Landscape maintenance, including mowing, watering, trimming, pruning, planting, tree and plant replacement, irrigation and sprinkler system servicing, retrofit and repair, and landscape rehabilitation.
(8) Maintenance of facilities including roof repairs or replacements, heating and air conditioning repairs, and electric repairs.
(9) Vehicle and equipment maintenance and repairs.
(10) Work performed to keep, operate, and maintain publicly-owned water, power, or waste disposal systems including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher. (L(M) "Non-public project" shall mean any type of purchase other than for a “public project” as defined in Section 3.08.010 (Q) below. For instance, a “non-public project” includes maintenance work (Section 3.08.010 (L)), general services (Section 3.08.010(K)), professional services (Section 3.08.010 (P)), and materials, supplies, and equipment. (N) "Non-public project formal bidding procedure" means a procedure which meets the requirements of state and local law, including this chapter and the Purchasing Policies and Procedures Manual.
(O) "Non-public project informal bidding procedure" means a procedure which meets the requirements of state and local law, including this chapter and the Purchasing Policies and Procedures Manual.
(P) "Professional services" means all services performed by persons in a professional occupation including, but not limited to, consulting and performance services for accounting, auditing, computer hardware and software support, engineering, architectural, planning, environmental, redevelopment, financial, economic, personnel, social services, animal control, legal, management, cable television, communication, and other similar professional functions which may be necessary for the operation of the city.
(MQ) "Public project" shall have that meaning provided in § 22002(c) of the Act, as that section may be amended from time to time. A "public project" shall not include maintenance OPTION "A"

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work. In addition and to the extent not inconsistent with § 22002(c), "public project" shall include, but shall not be limited to, the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly-owned, leased, or operated facility;. (2) Painting or repainting of any publicly-owned, leased, or operated facility; and
(3) In the case of a publicly-owned “electric” utility system, "public project" shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher. (NR) "Public project formal bidding procedure" means a procedure which meets the requirements of state and local law, including § 22037 of the Act, this chapter, and any policies and procedures approved by the City Manager consistent with this chapterthe Purchasing Policies and Procedures Manual.
(OS) "Public project informal bidding procedure" means a procedure which meets the requirements of state and local law, including § 22034 of the Act, this chapter, and any policies and procedures approved by the City Manager consistent with this chapterthe Purchasing Policies and Procedures Manual.
(PT) "Purchasing agent" means the City Manager or his or her designee(s) as provided in § 3.08.030 3.08.030.. Pursuant to § 3.08.030 3.08.030,, the City Manager may change his or her designation at any time.
(QU) “Department Director” means the person in charge of a particular department of the city, and shall include the Assistant City Manager, the General Manager of Utilities Director, the Department of Water and Power, the Chief of Police Chief, and the Fire Chief. (RV) “On-call maintenance work or general services” means maintenance work or general services to be provided on an on-call or as-needed basis pursuant to a master agreement or contract.

3.08.020 Centralized purchasing division and purchasing system.

The purpose of this chapter is to establish efficient procedures for the purchase of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function, and to assure the quality of purchases. In addition, this chapter and the purchasing system it establishes are designed to provide appropriate procedures to implement the city's participation in the Uniform Public Construction Cost Accounting Act pursuant to Cal. Public Contract Code, §§ 22000 et seq.

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A centralized purchasing division and purchasing system are hereby adopted and vested with the authority to govern the purchase of all city materials, supplies, services (professional, consulting, public works, maintenance and other general services), and equipment.

3.08.030 Purchasing agent.

There is created the position of purchasing agent. The purchasing agent shall be the City Manager or his or her designee. Initially, the City Manager designates the Finance Director to act as the purchasing agent. The City Manager may change his or her designation at any time. The duties of the purchasing agent may be combined with those of any other city office or position. The purchasing agent may delegate the duties of that position to one or more employees with the consent of the City Manager.

The purchasing agent shall be the head, and have the general supervision of all purchasing functions of the city. The purchasing agent shall direct and supervise the city's purchasing program.

The purchasing agent shall endeavor to obtain full and open competition on all purchases to the extent possible.as provided herein and in the Purchasing Policies and Procedures Manual. The purchasing agent shall establish methods and procedures for the efficient and economical functioning of the purchasing division.

Subject to the supervision of the City Manager, the purchasing agent shall have the authority to:
(A) Purchase and contract. Purchase or contract for materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment required by the city.
(B) Negotiate and recommend. Negotiate and recommend to the City Council execution of contracts for the purchase of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment. (C) Purchasing Policies and Procedures Manual. Prepare and implement policies and procedures governing the bidding, contracting, purchasing, storing, distribution, and disposal of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment for the city. To this end, the purchasing agent shall be responsible for developing and obtaining City Manager approval of a Purchasing Policies and Procedures Manual, which shall outline the policies and procedures necessary to implement the regulations of this Chapter 3.08 Chapter 3.08.. Upon approval by the City Manager, the Purchasing Policies and Procedures Manual shall have the same force and effect as the provisions of this Chapter 3.08 Chapter 3.08..
(D) Forms. Prescribe and maintain such forms as may be reasonably necessary to the implementation of this chapter and any other policies and procedures approved by the City Manager consistent with this chapterthe city’s Purchasing Policies and Procedures Manual. (E) Review plans and specifications. Review, or provide for the review of, the OPTION "A"

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working details, drawings, plans, and specifications for any projects or purchases requiring such review in this chapter.
(F) Inspections and testing. Inspect, supervise, or provide for the inspection and supervision of, purchased materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment to ensure conformity with any specifications established or required by the city. The purchasing agent or his or her designee shall have authority to require appropriate testing of items delivered or samples to determine their quality and conformance with the specifications. Samples of items, when required, shall be furnished free of expense to the city and, if not destroyed by test, will be returned upon request at the bidder's expense.
(G) Surplus materials, supplies, and equipment.: As provided for in § 3.08.150 3.08.150 below, transfer, sell, exchange, or trade any materials, supplies, or equipment deemed to be surplus.
(H) Bidder, contractor, and vendor lists and catalogs. Develop and maintain, or provide for the development and maintenance of, any bidder's list, contractor's list, or vendor's list and catalog file necessary to the operation of this chapter and any other policiesthe city’s Purchasing Policies and procedures approved by the City Manager consistent with this chapter.Procedures Manual. Each city department may have its own lists or catalogs. If the purchasing agent delegates the obligation to develop and maintain any list to another city employee, the purchasing agent shall retain final oversight authority and approval regarding how the list is developed and maintained.
(I) Delegation of purchasing agent authority. Provide written authorization to any department director to conduct a bidding process outside of the centralized purchasing system; provided, however, that such bidding process and the resulting contract or purchase shall otherwise comply with the requirements of this chapter. The purchasing agent may rescind such authorization in writing at any time and for any or no reason.

3.08.040 General purchasing regulations, policies, and procedures. (A) Applicability of chapter. The purchasing regulations contained in this Chapter

3.08 Chapter 3.08 shall apply to the purchase of materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment. (B) Basis of Awards. The city shall secure materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment at the lowest total costgreatest overall value to the city, commensurate with the quality and scope needed, and subject to any limitations imposed by state law, and through awards to the lowest responsive and responsible bidder where required by this chapter. Notwithstanding the foregoing, although the city is not adopting the formal procedures outlined in Cal. Gov’t Code §§ 4525 et seq., the city shall secure professional services based upon demonstrated competence, professional qualifications, and suitability for the project in general. The city may consider cost of professional OPTION "A"

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services if the authorized contracting party determines it to be a relevant factor under the circumstances. When an award pursuant to this chapter is to be made in the best interests of the city, staff shall take into account cost, demonstrated competence, qualifications, suitability for the project in general, and other factors that the authorized contracting party determines to be a relevant factor under the circumstances.
(C) Purchasing Policies and Procedures Manual. The purchasing agent shall develop, for approval by the City Manager, such policies and procedures as are necessary to implement the provisions of this chapter. The policies and procedures a Purchasing Policies and Procedures Manual, as provided for in Section 3.08.030(C) above. The Purchasing Policies and Procedures Manual shall be written and implemented in such a way to encourage open and competitive bidding, where appropriate, provide equal opportunity based on merit, make each selection process free of invidious discrimination, provide for efficient and timely acquisition of needed materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment, and provide effective fiscal controls. (D) Competitive bidding. In purchasing, materials, supplies, services (professional, consulting, public works, maintenance, and other general services), and equipment, the city shall make use of competitive bidding, both formal and informal, whenever required by law, this chapter, or any policies and procedures approved by the City Manager consistent with this chapter.the city’s Purchasing Policies and Procedures Manual. Formal and informal competitive bidding is not required, for instance, when an "emergency" is declared pursuant to this chapter. (E) Unencumbered funds. The purchasing agent shall not issue a purchase order for materials, supplies, services (professional, consulting, public works, maintenance, and other general services), or equipment involving any project or purchase without an unencumbered appropriation in the fund account against which such purchase is to be charged except for the following:

(1) In cases of emergency;
(2) When specifically authorized by resolution or minute order of the City Council;
(3) When the purchasing department acquires inventory for the warehouse that is not yet assigned to any department or fund; and
(4) When using limited purchase orders, yearly purchase orders, or blanket purchase orders, as those terms are defined in the Purchasing Policies and Procedures Manual. (F) Requisition forms. The department responsible for a purchase shall submit requests for materials, supplies, services (professional, consulting, public works, maintenance, and other general services), or equipment to the purchasing agent by standard requisition forms, or by other means as may be established by the Purchasing Policies and Procedures Manual. (G) Applicable state and federal law.: The city shall comply with all applicable OPTION "A"

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federal and state laws for the particular purchase at issue including, but not limited to, bidder's security and bonding requirements, as well as prevailing wage requirements. (H) Delegation of purchasing agent authority. The purchasing agent, with approval of the City Manager, may provide written authorization to any department director to conduct a bidding process outside of the centralized purchasing system; provided, however, that such bidding process and the resulting contract or purchase shall otherwise comply with the requirements of this chapter. The purchasing agent, with approval of the City Manager, may rescind such authorization in writing at any time and for any or no reason.
(I(H) Purchase orders; contract and agreement forms. The purchasing agent shall require all purchases for materials, supplies, services (professional, consulting, public works, maintenance, and other general services), or equipment to be made with an appropriate purchase order and on an appropriate contract or agreement, the form of which shall be approved by the City Attorney. The City Attorney shall not need to review and approve as to form each executed contract or agreement; provided a city model approved as to form by the City Attorney is used without substantive modification. In addition, when the purchasing agent determines that issues under the responsibility of the city's risk manager are involved, the relevant contract or agreement provisions shall also be reviewed and approved by the city's risk manager. (JI) Unlawful purchasing activities and conflicts. The Purchasing Policies and Procedures Manual shall specifically prohibit practices which might result in unlawful activity including, but not limited to, rebates, kickbacks, or other unlawful consideration, and shall specifically prohibit city officials, officers, and employees from participating in the bidding or selection process when they have a relationship with a person or business entity seeking a contract under this Chapter 3.08 which would subject the officials, officers, or employees to the prohibitions of Cal. Gov’t Code §§ 1090 and 87100 et seq. (KJ) Records retention. The purchasing agent shall keep a written record of all bids for a period of two years followingcomply with the award ofRecords Retention Schedule duly adopted by the purchase. If no purchase is awarded pursuant to a particular bid process, City Council for the purchasing agent shall keep a written record of the bid information for a period of six months following the city's decision not to award the purchaseFinance Department. (LK) State or federal funding. Any purchases made with state or federal funds shall comply with all laws, rules, and regulations made applicable by the funding source. (M
(L) Delegation of department director authority. The department directors, with approval of the City Manager, may provide written authorization to any subordinate employees to exercise the director’s purchasing authority; provided, however, that such delegation shall be pursuant to an authorized written signature authorization form/procedure approved by the purchasing agent, and the bidding process and the resulting contract or purchase shall otherwise comply with the requirements of this chapter.the process provided for in the city’s Purchasing Policies and Procedures Manual. The department directors, with approval of the City Manager, may rescind such delegation in writing at any time and for any or no reason. As used herein and OPTION "A"

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as provided for in § 3.08.010 3.08.010,, the term department director shall include the Assistant City Manager and the General Manager of Utilities Director, the Department of Water and Power, the Chief of Police Chief, and the Fire Chief.

3.08.050 Bidding requirements - public projects.
(A) $6075,000 or less. Public projects of $60,000which are equal to or less than the amount provided for in Section 22032(a) of the Act (currently $75,000) may be awarded by the director of the department responsible for the project, or his or her designee, pursuant to § 3.08.040, by any alternative procedure.
(B) $6075,001 - $75220,000. Public projects of morewhich are greater than $60,000,the amount provided for in Section 22032(a) of the Act (currently $75,000), but less than or equal to $75,000 may, except as otherwise provided in this chapter or the Act, be awarded by the Assistant City Manager, the Director of Public Works or the Director of Utilities pursuant to the public project informal bidding procedure.
(C) $75,001 - $100,000. Public projects of more than $75,000, but less than or equal to $100,000 shall, except as otherwiseamount provided for in this chapter or Section 22032(b) of the Act, be awarded by the City Manager pursuant to the public project informal bidding procedure. (D) More than $100,000. Public projects of more than $100,000, but less than or equal to $200,000 (currently $220,000) may, except as otherwise provided in this chapter or the Act, be awarded by the City CouncilManager, or his or her designee, pursuant to the public project informal bidding procedure. Public projects of more than $200,000 shall, except as otherwise provided in this chapter or the Act, be awarded by the City Council pursuant to the public project formal bidding procedure. If all bids received are over $200,000,the amount provided for in Section 22032(b) of the Act (currently $220,000), the City Council may, with the approval of a four-fifths vote of those members present and without following the public project formal bidding procedure, award the contract in an amount not exceeding $212,500the amount provided for in Section 22034(d) of the Act (currently $235,000) to the lowest responsive and responsible bidder, so long as the City Council also determines that the city’s cost estimate for the project was reasonable.
(E(C) More than $220,000. Public projects which are greater than the amount provided for in Section 22032(b) of the Act (currently $220,000), may, except as otherwise provided in this chapter or the Act, be awarded by the City Council pursuant to the public project formal bidding procedure.
(D) City Engineer review of plans and specifications. The City Engineer shall review and approve the working details, drawings, plans, and specifications prepared for every public project which may affect the design or operation of public improvements and which may bring into question the city’s liability for dangerous conditions of public property. (FE) City Council review of plans and specifications. The City Council shall review OPTION "A"

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and approve the working details, drawings, plans, and specifications prepared for every public project of more than $100,000approved by the City Council pursuant Section 3.08.050 (C) above. (G
(F) Award. Contracts for public projects of $60,000 which are equal to or less, than the amount provided for in Section 22032(a) of the Act (currently $75,000), if awarded, may be awarded in the best interests of the city. Contracts for public projects which are greater than the amount provided for in Section 22032(a) of more than $60the Act (currently $75,000,), if awarded, shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the authorized contracting party may accept the one it chooses. (HG) Dollar limits and change orders or amendments. The dollar limits indicated herein shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless Unless an exception provided in § 3.08.130 3.08.130 below applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable to the increased contractthe amount provided for in Section 22032(b) of the Act (currently $220,000), shall be approved by the City Council.

For public projects awarded by the City Council, unless a lower or higher amount is stated in the City Council staff report for the project or directed by the City Council, the City Manager or his or her designees shall have authority to approve contract amendments or change orders up to the lesser of either $100220,000 or 10% of the original contract amount. (IH) No bid splitting. The city shall not split a project, work, service, or purchase into smaller projects, works, services, or purchases for the purpose of avoiding any bidding or contracting requirements of this code.

3.08.060 Bidding requirements - maintenance and general services. (A) $6075,000 or less. Maintenance work and other general services projects of $6075,000 or less, including those involving on-call maintenance work or general services, may be awarded by the director of the department responsible for the project, or his or her designee, pursuant to § 3.08.040, by any alternative procedure.
(B) $6075,001 - $75125,000. Maintenance work and other general services projects of more than $6075,000, but less than or equal to $75125,000, including those involving on-call maintenance work or general services, may, except as otherwise provided in this chapter or the Act, be awarded by the Assistant City Manager, the Director of Public Works or the Director of Utilitieshis or her designee, pursuant to the non-public project informal bidding procedure. (C) $75,001 - $100More than $125,000. Maintenance work and other general services projects of more than $75,000, but less than or equal to $100,000, including those involving oncall maintenance work or general services, shall, except as otherwise provided in this chapter, be awarded by the City Manager pursuant to the non-public project informal bidding procedure. (D) More than $100,000. Maintenance work and other general services projects of more than $100125,000, including those involving on-call maintenance work or general services, OPTION "A"

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shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure.
(ED) City Engineer review of plans and specifications. The City Engineer shall review and approve the working details, drawings, plans, and specifications prepared for every maintenance work and other general services project which may affect the design or operation of public improvements and which may bring into question the city’s liability for dangerous conditions of public property.
(FE) Purchasing agent review of plans and specifications. The purchasing agent, or his or her designee, shall review and approve the form of the working details, drawings, plans, and specifications prepared for every maintenance work and other general services project. (GF) City Council review of plans and specifications. The City Council shall review and approve the working details, drawings, plans, and specifications prepared for every maintenance work and other general services project of more than $100,000approved by the City Council pursuant Section 3.08.060 (C) above.
(HG) Award. Contracts for maintenance work and other general services projects of $6075,000 or less, including those involving on-call maintenance work or general services, if awarded, may be awarded in the best interests of the city. Contracts for maintenance work and other general services projects of more than $6075,000, if awarded, shall be awarded to the contractor who will best serve the interests of the city, taking into account, in addition to cost, their demonstrated competence, qualifications and suitability for the project in general. (I) Subsequent contract awards, amendments, extensions, or renewals.

Notwithstanding anything herein to the contrary, the department director and City Manager shall not award a subsequent contract to the same individual or entity for the same or similar services on the same project, or amend, extend, or renew such a contract, without obtaining the next highest approval authority (e.g. the City Manager for the department director and the City Council for the City Manager), when the award, amendment, extension, or renewal will result in the city paying an aggregate amount in excess of the approval authority of the department director or City Manager to the individual or entity in any given fiscal year. For purposes of this section, the phrase “same project” shall include an on-call or as-needed contract. (J(H) Dollar limits and change orders or amendments. The dollar limits indicated herein shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless Unless an exception provided in § 3.08.140 3.08.140 below applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable toamount provided for in Section 3.08.060 (C) above, plus 10% of the increasedoriginal contract amount., shall be approved by the City Council. For maintenance and other general service projects contracts awarded by the City Council, unless a lower or higher amount is stated in the City Council staff report for the project or directed by the City Council, the City Manager or his or her designees shall have authority to approve contract amendments or change orders up to the lesser of either $100220,000 or 10% of OPTION "A"

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the original contract amount.
(K) SixI) 6-year term limitation. No maintenance work or other general services contract shall extend for a period of more than six6 years, including any authorized extensions, unless specifically approved by City Council action.
(LJ) No bid splitting. The city shall not split a project, work, service, or purchase into smaller projects, works, services, or purchases for the purpose of avoiding any bidding or contracting requirements of this code.
(M
(K) Local preference; maintenance and general services. As set forth in further detail in § 3.08.080 3.08.080((J) below, the City Council has made findings and adopted a local bidder preference program (“local program”) applicable to certain purchases of materials, supplies, and equipment, as well as contracts for maintenance work and other general services projects described in this section. Accordingly, contracts for maintenance work and other general services projects that are competitively bid and involve an expenditure of $200220,000 or less, shall be subject to the local program set forth in § 3.08.080 3.08.080((J). For recurring procurements/contracts, the local program shall be applicable only to the city’s first $200220,000 worth of such procurements/contracts for any fiscal year, as determined by city staff in its sole discretion. For such recurring procurements/contracts, the bidding documents shall indicate whether or not the local program is in effect for the applicable procurement. Properly certified local businesses (as defined in § 3.08.080 3.08.080((J)) shall be entitled to the specified reduction of 5% in the tabulation of their bid for purposes of determining the lowest responsible bidder, unless otherwise prohibited by law (such as special state or federal grant programs). If the local program is applicable to a bid offering, it shall be noted in the applicable bid solicitation.

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3.08.070 Bidding requirements - professional services.
(A) $6075,000 or less. Professional services contracts of $6075,000 or less may be awarded by the director of the department responsible for the project, or his or her designee, pursuant to § 3.08.040, by any alternative procedure.
(B) $6075,001 - $75125,000. Professional services contracts of more than $6075,000, but less than or equal to $75125,000 may, except as otherwise provided in this chapter or the Act, be awarded by the Assistant City Manager, the Director of Public Works or the Director of Utilitieshis or her designee, pursuant to the non-public project informal bidding procedure. (C) $75,001- $100More than $125,000. Professional services contracts of more than $75,000, but less than or equal to $100,000 shall, except as otherwise provided in this chapter, be awarded by the City Manager pursuant to the non-public project informal bidding procedure. (D) More than $100,000. Professional services contracts of more than $100125,000 shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure.
(ED) Purchasing agent review of scope of services. The purchasing agent shall review and approve, or provide for the review and approval of, the scope of services prepared for every professional services contract.
(FE) City Council review of scope of services. The City Council shall review and approve the scope of services prepared for every professional services contract of more than $100,000approved by the City Council pursuant Section 3.08.070 (C) above. (GF) Award. Contracts for professional services shall be awarded to the contractor who will best serve the interests of the city, taking into account the demonstrated competence, professional qualifications, and suitability for the project in general. The city may consider cost of professional services if the authorized contracting party determines it to be a relevant factor under the circumstances.
(H) Subsequent contract awards, amendments, extensions, or renewals.

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therefore, unless Unless an exception provided in § 3.08.140 3.08.140 below applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable toamount provided for in Section 3.08.070 (C) above, plus 10% of the increasedoriginal contract amount., shall be approved by the City Council. For professional service agreementscontracts awarded by the City Council, unless a lower or higher amount is stated in the City Council staff report for the project or directed by the City Council, the City Manager or his or her designees shall have authority to approve contract amendments or change orders up to the lesser of either $100220,000 or 10% of the original contract amount.
(JH) No bid splitting. The city shall not split a project, work, service, or purchase into smaller projects, works, services, or purchases for the purpose of avoiding any bidding or contracting requirements of this code.

3.08.080 Bidding requirements - materials, supplies, and equipment.

(A) $6075,000 or less. Purchases of materials, supplies, and equipment of $6075,000 or less may be awarded by the purchasing agent or the director of the department responsible for the purchase, or his or her designee, pursuant to § 3.08.040, by any alternative procedure. (B) $6075,001 - $75220,000. Purchases of materials, supplies, and equipment of more than $6075,000, but less than or equal to $75220,000 may, except as otherwise provided in this chapter or the Act, be awarded by the Assistant City Manager, the Director of Public Works or the Director of Utilitieshis or her designee, pursuant to the non-public project informal bidding procedure.
(C) $75,001 - $100More than $220,000. Purchases of materials, supplies, and equipment of more than $75,000, but less than or equal to $100,000 shall, except as otherwise provided in this chapter, be awarded by the City Manager pursuant to the non-public project informal bidding procedure.
(D) More than $100,000. Purchases of materials, supplies, and equipment of more than $100220,000 shall, except as otherwise provided in this chapter, be awarded by the City Council pursuant to the non-public project formal bidding procedure. (D) Fleet replacement vehicles and equipment. Notwithstanding anything to the contrary contained herein, purchases, in any amount, of vehicles or other equipment on the city’s annual vehicle/equipment replacement list, as approved through the budget process each year, shall be awarded by the purchasing agent. Unless an exception provided in § 3.08.140 below applies or unless the purchasing agent uses the public agency alternative competitive bidding process provided in §3.08.125 below, the purchasing agent shall use the non-public project informal bidding procedure for purchases of more than $75,000, but less than or equal to $220,000, and the non-public project formal bidding procedure for purchases of more than $220,000, (E) Department director review of specifications. The director of the using OPTION "A"

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department shall review and approve, or provide for the review and approval of, the specifications prepared for every purchase of materials, supplies, and equipment. (F) Purchasing agent review of specifications. The purchasing agent, or his or her designee, shall review and approve the form of all contracts for the purchase of materials, supplies, and equipment.
(G) City Council review of specifications. The City Council shall review and approve the specifications prepared for every purchase of materials, supplies, and equipment of more than $100,000approved by the City Council pursuant Section 3.08.080 (C) above. (H) Award. Contracts for the purchase of materials, supplies, and equipment of $6075,000 or less, if awarded, may be awarded in the best interests of the city. Contracts for the purchase of materials, supplies, and equipment of more than $6075,000, if awarded, shall be awarded to the lowest responsive and responsible bidder. If two or more bids are the same and the lowest, the authorized contracting party may accept the one it chooses. (I) Dollar limits and change orders or amendments. The dollar limits indicated herein shall apply to the original contract and to any amendments or change orders. To this end, therefore, unless Unless an exception provided in § 3.08.140 3.08.140 below applies, any contract amendment or change order which would increase the contract amount above any threshold stated herein shall comply with the requirements applicable toamount provided for in Section 3.08.080 (C) above, plus 10% of the increasedoriginal contract amount., shall be approved by the City Council. For materials, supplies, and equipment contracts awarded by the City Council, unless a lower or higher amount is stated in the City Council staff report for the project or directed by the City Council, the City Manager, or his or her designees shall have authority to approve contract amendments or change orders up to the lesser of either $100220,000 or 10% of the original contract amount.
(J) Local bidder preference program; purchases of materials, supplies, and equipment; maintenance and general services.
(1) Based upon the findings provided for in the recitals of the ordinance adding this § 3.08.080( 3.08.080(J), the City Council has determined that it is in the best interests of the city to give a minimal preference to local businesses when the city is making certain purchases of materials, supplies, and equipment, as well as when it is entering into contracts for certain maintenance work and other general services projects, as set forth in this local bidder preference program (“local program”).
(2) The local program shall consist of the following general requirements, which shall be implemented by the purchasing agent within the city’s Purchasing Policies and Procedures Manual:
(a) 1. A “local business” for purposes of this local program shall mean the vendor:

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a. Has (1) has fixed facilities with one or more employees, which may include a sole proprietor, located at an address within city limits (a post office box alone is insufficient); and (2) has an appropriate city business license/permit. b. Has an appropriate city business license/permit.

2.(b) A vendor seeking to qualify for this local program shall provide supporting information and certify in writing that it meets the above requirements as part of its bid.
(b
(c) In applying the local program to bids on a city purchase subject to the local program, a qualifying local business shall be entitled to a reduction of 5% in the tabulation of its bid for purposes of determining the lowest responsible bidder, unless otherwise prohibited by law (i.e. special state or federal grant programs).
(cd) The local program shall only be applicable to purchases of materials, supplies, and equipment which are competitively bid and which involve an expenditure of $100220,000 or less. If the local program is applicable to a bid offering, it shall be noted in the applicable bid solicitation.
(3) The local program preference described in division (J)(2) above shall be applicable only to purchases of materials, supplies, and equipment, as well as contracts for maintenance work and other general services, which are competitively bid and which involve an expenditure of $200220,000 or less. For recurring purchases, the local program shall be applicable only to the city’s first $200220,000 worth of such purchases for any fiscal year, as determined by city staff in its sole discretion. For such recurring purchases, the bidding documents shall indicate whether or not the local program is in effect for the applicable procurement. If the local program is applicable to a bid offering, it shall be noted in the applicable bid solicitation. (4) The local program may also establish a preference for purchases of materials, supplies, and equipment, as well as contracts for maintenance work and other general services, which are competitively bid and which involve an expenditure of more than $200220,000.

Such preference shall allow the city to take into consideration the net sales tax to be returned to the city as a result of an award to a qualifying local business in determining the lowest responsive and responsible bidder. The net sales tax shall be calculated based on the applicable bid price provided by the bidder in accordance with the city’s purchasing policyPurchasing Policies and Procedures Manual.
(K) Recycled products preference. In order to promote the use of products containing recycled material, including post consumer material and secondary material, the city may take into consideration the percentage of recycled product in the materials, supplies, or equipment being provided in determining the lowest responsive and responsible bidder. This section shall not be effective unless and until the purchasing agent adopts a written policy to implement its provisions, which policy shall be included in the city’s Purchasing Policies and Procedures Manual. In addition, fitness and quality being equal, the city shall endeavor to purchase products containing OPTION "A"

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recycled material instead of virgin products, whenever available at no more than the total cost of the virgin materials.
(L) No bid splitting. The city shall not split a project, work, service, or purchase into smaller projects, works, services, or purchases for the purpose of avoiding any bidding or contracting requirements of this code.
(M) Fleet replacement vehicles and equipment. Notwithstanding anything to the contrary contained herein, the purchasing agent shall be the authorized contracting party for the replacement of a vehicle or other equipment on the city’s annual vehicle/equipment replacement list, as approved through the budget process each year. The purchasing agent shall not make an award or approve such a purchase unless and until the applicable alternative procedure, non-public project informal bidding procedure or non-public project formal bidding procedure is followed.

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3.08.090 Public projects - formal bidding procedure.
(A) Uses of formal bidding procedure. This formal bidding procedure shall be used whenever formal bidding is required for a public project. (B) Required process. The formal competitive bidding procedure shall comply with all aspects of state and local law governing formal competitive bidding including, but not limited to, the California Public Contract Code, California Government Code, California Labor Code, resolutions of the City Council as may be adopted from time to time, and policies and procedures as the City Manager may approve from time to timethe city’s Purchasing Policies and Procedures Manual.
(C) Notice inviting formal bids. NoticeA notice inviting formal bids shall be provided.

The notice inviting formal bids shall comply with § 22037 of the Act, as such section may be amended from time to time. Notices shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. At a The Purchasing Policies and Procedures Manual shall describe the minimum, list of information required to be included in the notice inviting formal bids shall:.

(1) Describe the project;
(2) State how to obtain more detailed information about the project; (3) State the date, time, and place for the submission of sealed bids; and (4) Include any other information required by state or local law, as determined by the City Attorney.
(D) Published notice. The notice shall be published within the time frame required by the Act (currently at least 14 calendar days before the date of opening the bids) in a newspaper of general circulation printed and published in the city, or, if there is no such newspaper, in a newspaper of general circulation which is circulated in the city. (E) Distribution of notice inviting formal bids. The notice inviting formal bids shall also be sent to those construction trade journals specified in § 22036 of the Act in the manner and within the time frame required by the Act (currently at least 15 calendar days before the date of bid opening. Notice shall be sent by either facsimile or electronic mail, if available, in addition to by mail.).
(F) Additional notice. The city shallmay also provide any additional notice as it deems proper.
(G) Contents of remaining bid and contract documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using OPTION "A"

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department, as well as the City Attorney.
(H) Bidder's security. When required by applicable law or determined necessary by the purchasing agent or his or her designee, each bidder shall be required to provide appropriate security to guarantee its bid. Upon refusal or failure to execute the required contract or agreement and provide all required information and documentation, the full amount of the bid security shall be forfeited, except to the extent limited by applicable law. (I) City's authority. The city may reject any or all bids received, and may waive any minor irregularities in each bid received.
(J) No bids received. If no bids are received, the authorized contracting party may award the contract by any alternative procedure.
(K) Award of contract. The contract shall be awarded in accordance with § 3.08.050

3.08.050(G(F). If two or more bids are the same and the lowest, the city may accept the one it chooses.
(L) Rejection of bids. The city may, in its sole and absolute discretion, reject any bids presented. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates for the project, the city shall have the option of any of the following:
(1) Abandon the project;
(2) Readvertise for bids in the manner described in this chapter; or (3) By passage of a resolution by a four-fifths vote of the City Council, declare that the project can be performed more economically by the employees of the city and have the project done by force account.

3.08.100 Public projects - informal bidding procedure.
(A) Uses of public project informal bidding procedure. This informal bidding procedure shall be used when a public project is involved and informal bidding is permitted by this chapter.
(B) Contractor list. The purchasing agent shall develop and maintain, or provide for the development and maintenance of, a list of qualified contractors, identified according to categories of work, as described in § 22034(a) of the Act. The list shall be developed and maintained in accordance with criteria established by the Commission. In developing the list, the purchasing agent or his or her designee shall obtain from the Contractor's State License Board and from the contractor's trade associations in the county, the names and addresses of qualified contractors located in the county.
(C) Distribution of notice inviting informal bids. The purchasing agent shall provide a notice inviting informal bids. The notice inviting informal bids shall be mailed to either or both OPTION "A"

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ofor otherwise distributed in the following: manner required by the Act. The notice inviting informal bids must be mailed or otherwise distributed within the time frame required by the Act (currently not less than 10 calendar days before the bids are due). (1) All contractors on the qualified contractors list maintained pursuant to division (B) above; and/or
(2) All construction trade journals specified in § 22036 of the Act.

The notice inviting informal bids must be mailed not less than ten calendar days before the bids are due.
(D) Contents of notice inviting informal bids. At a The Purchasing Policies and Procedures Manual shall describe the minimum, the notice inviting informal bids shall:
(1) Describe the project in general terms;
(2) State how to obtain more detailed information about the project; (3) State the date, time, and place for the submission of sealed bids; and (4) Include any other list of information required by state or local law, as determined by the City Attorneyto be included in the notice inviting informal bids. (E) Proprietary projects or products. If the director of the using department certifies that, to the best of his or her knowledge, the project, product, or service is proprietary in nature and can be obtained only from one contractor, and that no equivalent projects, products or services are available, the notice inviting informal bids may be sent exclusively to such contractor. (F) Contents of bid and contract documents. The contents and form of the bid and contract documents shall he approved by the director of the using department, as well as the City Attorney; provided, however, that the City Attorney need not review or approve the contents of the technical specifications, drawings, and other technical documents. (G) Bidder's security. When required by applicable law or determined necessary by the City Manager or purchasing agent or his or her designee, each bidder shall be required to provide appropriate security to guarantee its bid. Upon refusal or failure to execute the required contract or agreement and provide all required information and documentation, the full amount of the bid security shall be forfeited, except to the extent limited by applicable law. (H) City's authority. The city may reject any or all bids received, and may waive any minor irregularities in each bid received.
(I) No bids received. If no bids are received, the authorized contracting party may award the contract by any alternative procedure.

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(J) Award of contract. The contract shall be awarded in accordance with § 3.08.050

3.08.050(G(F). If two or more bids are the same and the lowest, the city may accept the one it chooses.

3.08.110 Non-public projects - formal bidding procedure. (A) Uses of the non-public project formal bidding procedure. A formal bidding procedure shall be used whenever formal bidding is required by this chapter and the project does not involve a public project.
(B) Distribution of notice inviting formal bids or request for proposals. A notice inviting formal bids or a request for proposals, as appropriate, shall be posted at least ten calendar days beforein the date of openingmanner and within the bids or proposals ontimeframe provided for in the city's public bulletin board or electronic public bidding site andPurchasing Policies and Procedures Manual and provided directly to bidders, vendors, or contractors on the city's approved list for the type of purchase at issue. The city shall endeavor to receive formal bids or proposals from at least three vendors or contractors. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder. If the purchasing agent and the director of the using department certify that, to the best of their knowledge, there is no local source or local provider available for the project, the notice inviting bids or the request for proposals, as appropriate, may be distributed to a list of qualified vendors maintained by the purchasing agent and/or published in a trade journal appropriate to the project.
(C) Contents of notice inviting formal bids or request for proposals. At a The Purchasing Policies and Procedures Manual shall describe the minimum, list of information required to be included in the notice inviting formal bids or request for proposals shall:. (1) Describe the project or purchase in general terms;
(2) State how to obtain more detailed information about the project or purchase; (3) State the date, time, and place for the submission of bids or proposals; and (4) Include any other information required by state or local law, as determined by the City Attorney.

Bids for purchases of more than $100,000 shall be sealed bids. (D) Proprietary projects or sole source products. If the director of the using department certifies that, to the best of his or her knowledge, the project, product, or service is proprietary in nature and can be obtained only from one vendor or contractor, and that no equivalent products or services are available, the notice inviting formal bids or request for proposals may be sent exclusively to such vendor or contractor.

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(E) Contents of remaining bid and contract documents. The contents and form of the remaining bid and contract documents shall be approved by the director of the using department, as well as the City Attorney; provided, however, that the City Attorney need not review or approve the contents of the technical specifications, drawings, and other technical documents.
(F) Bidder’s security. When required by applicable law or determined necessary by the City Manager or purchasing agent or his or her designee, each bidder shall be required to provide appropriate security to guarantee its bid. Upon refusal or failure to execute the required contract or agreement and provide all required information and documentation, the full amount of the bid security shall be forfeited, except to the extent limited by applicable law. (G) City’s authority. The city may reject any or all bids or proposals received, and may waive any minor irregularities in each bid or proposal received. (H) No bids received. If no bids are received, the authorized contracting party may award the contract by any alternative procedure.
(I) Award of contract. The contract shall be awarded in accordance with §§ 3.08.060

3.08.060(H), 3.08.070((G), 3.08.070(F), or 3.08.080 3.08.080((H) as applicable. If two or more bids are the same and the lowest, the city may accept the one it chooses.

3.08.120 Non-public projects - informal bidding procedure. (A) Uses of non-public project informal bidding procedure. This informal bidding procedure shall be used whenever informal bidding is allowed for a purchase which does not involve a public project.
(B) Distribution of notice inviting informal bids or request for proposals. A notice inviting informal bids or request for proposals, as appropriate, shall be provided. The notice inviting informal bids or requests for proposals shall be provided to at least threethe number of vendors or contractors, provided for in the Purchasing Policies and the city shall endeavor to receive informal bids or proposals from at least three vendors or contractorsProcedures Manual. A notice inviting bids shall be used whenever the project or purchase must be awarded to the lowest responsible and responsive bidder. A request for proposals may be used whenever the project or purchase is not required to be awarded to the lowest responsible and responsive bidder. (C) Contents of notice inviting informal bids or request for proposals. At a The Purchasing Policies and Procedures Manual shall describe the minimum, list of information required to be included in the notice inviting informal bids or request for proposals shall:. (1) Describe the project or purchase in general terms;
(2) State how to obtain more detailed information about the project or purchase; OPTION "A"

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Corona City CouncilAugust 20, 2025

Corona City Council
August 20, 2025