5.17. Meet and Confer Program.
In accordance with Civil Code Section 5705(a) notwithstanding any law or provisions of the governing documents to the contrary, this section shall apply to debts for assessments that arise on and after January 1, 2006. (b) Prior to initiating a foreclosure on an owner’s separate interest, the Association shall offer the owner and, if so requested by the owner, participate in dispute resolution pursuant to the association’s “meet and confer” program required in Article 2 (commencing with Section 5900) of Chapter 10 or alternative dispute resolution as set forth in Article 3 (commencing with Section 5925) of Chapter 10. The decision to pursue dispute resolution or a particular type of alternative dispute resolution shall be the choice of the owner, except that binding arbitration shall not be available if the Association intends to initiate a judicial foreclosure. (c) The decision to initiate foreclosure of a lien for delinquent assessments that has been validly recorded shall be made only by the board and may not be delegated to an agent of the association. The board shall approve the decision by a majority vote of the directors in an executive session. The board shall record the vote in the minutes of the next meeting of the board open to all members. The board shall maintain the confidentiality of the owner or owners of the separate interest by identifying the matter in the minutes by the parcel number of the property, rather than the name of the owners or owners. A board vote to approve foreclosure of a lien shall take place at least 30 days prior to any public sale. (d) The board shall provide notice by personal service in accordance with the manner of service of summons in Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure to an owner of a separate interest who occupies the separate interest or to the owner’s legal representative, if the board votes to foreclose upon the separate interest. The board shall provide written notice to an owner of a separate interest who does not occupy the separate interest by first-class mail, postage prepaid, at the most current address shown on the books of the association. In the absence of written notification by the owner to the association, the address of the owner’s separate interest may be treated as the owner’s mailing address.
5.18. Sale by Trustee.
In accordance with Civil Code Section 5710(a), any sales by the trustee shall be conducted in accordance with Sections 2924, 2924b, and 2924c applicable to the exercise of powers of sale in mortgages and deeds of trust. (b) In addition to the requirements of Section 2924, the association shall serve a notice of any default on the person names as the owner of the separate interest in the association’s records or, if that person has designated a legal representative pursuant to this subdivision, on that legal representative. Service shall be in accordance with the manner of service of summons in Article 3 (commencing with Section 415.10) of Chapter 4 of Title 5 of Part 2 of the Code of Civil Procedure. An owner may designate a legal representative in writing that is mailed to the association in a manner that indicates that the association has received it. (c) The fees of a trustee may not exceed the amounts prescribed in Sections 2924c and 2924d, plus the cost of service for either of the following: (1) The notice of default pursuant to subdivision (b) or (2) The decision of the board to foreclose upon the separate interest of an owner as described in subdivision (d) of Section 5705.
5.19. Right of Redemption.
In accordance with Civil Code Section 5715(a), notwithstanding any law or any provisions of the governing documents to the contrary, this section shall apply to debts for assessments that arise on and after January 1, 2006. (b) A nonjudicial foreclosure by an association to collect upon a debt for delinquent assessments shall be subject to a right of redemption. The redemption period within which the separate interest may be redeemed from a foreclosure sale under this paragraph ends 90 days after the sale. In addition to the requirements of Section 2924f, a notice of sale in connection with an association’s foreclosure of a separate interest in a common interest development shall include a statement that the property is being sold subject to the right of redemption created in this section. 22 7/1/26
5.20. Collection of Debts less than $1,800.00.
In accordance with Civil Code Section 5720(a), notwithstanding any law or any provisions of the governing documents to the contrary, this section shall apply to debts for assessments that arise on and after January 1, 2006. (b) An Association that seeks to collect delinquent regular or special assessments of an amount less than one thousand eight hundred dollars ($1,800.00), not including any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, may not collect through judicial or nonjudicial foreclosure, but may attempt to collect or secure that debt in any of the following ways: (1) By a civil action in small claims court, pursuant to Chapter 5.5 (commencing with Section 116.110) of Title 1 of Part 1 of the Code of Civil Procedure. An association that chooses to proceed by an action in small claims court and prevails, may enforce the judgment as permitted under Article 8 (commencing with Section 116.810) of Chapter 5.5 of Title 1 of Part 1 of the Code of Civil Procedure.
The amount that may be recovered in small claims court to collect upon a debt for delinquent assessments may not exceed the jurisdictional limits of the small claims court and shall be the sum of the following:
(A) The amount owed as of the date of filing the complaint in small claims court proceeding. (B) In the discretion of the court, an additional amount to that described in subparagraph (A) equal to the amount of the delinquent assessments secured by the lien, exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, equals or exceeds one thousand eight hundred dollars ($1,800.00) or the assessments secured by the lien are more than 12 months delinquent. An association that chooses to record a lien under these provisions, prior to recording the lien, shall offer the owners and, if so requested by the owner, participate in dispute resolution as set forth in Article 2 (commencing with Section 5900) of Chapter 10.
(2) By recording a lien on the owner’s separate interest upon which the association may not foreclose until the amount of the delinquent assessments secured by the lien, exclusive of any accelerated assessments, late charges, fees and costs of collection, attorney’s fees, or interest, equals or exceeds one thousand eight hundred dollars ($1,800.00) or the assessments secured by the lien are more than 12 months delinquent.
An association that chooses to record a lien under these provisions, prior to recording the lien, shall offer the owner and, if so requested by the owner, participate in dispute resolution as set forth in Article 2 (commencing with Section 5900) of Chapter 10.
(3) Any other manner provided by law, except for judicial or nonjudicial foreclosure. (C) The limitation on foreclosure of assessment liens for amounts under the stated minimum in this section does not apply to any of the following:
(1) Assessments secured by a lien that are more than 12 months delinquent. (2) Assessments owned by owners of separate interests in time-share estates, as defined in subdivision (x) of Section 11212 of the Business and Professions Code. (3) Assessments owed by the developer.
5.21. Charge Imposed in the repair of damage to the Common Area.
In accordance with Civil Code Section 5725(a), a monetary charge imposed by the association as a means of reimbursing the association for costs incurred by the association in the repair of damage to common area and facilities by a member or the member’s guest or tenant may become a lien against the member’s separate interest enforceable by the sale of the interest under Sections 2924, 2924b, and 2924c, provided the authority to impose a lien is set forth in the governing documents. It is the intent of the legislature not to contravene Section 2792.26 of Title 10 of the California Code of Regulations , as that section appeared on January 1, 1996, for associations of subdivisions that are being sold under authority of a subdivision public report, pursuant to Part 2 (commencing with Section 11000) of Division 4 of the Business and Professions Code. (b) A monetary penalty imposed by the association as a disciplinary measure for failure of a member to comply with the governing documents, except for the late payment penalties for delinquent assessments and/or charges to reimburse the Association for the loss of interest and for costs reasonably incurred (including attorneys’ fees) in its efforts to collect delinquent assessments or as a means of reimbursing the Association for costs incurred by the Association in the repair of damage to the common areas and facilities for which the member was allegedly responsible or in bringing the member and his subdivision interest into compliance with the governing instruments may not be characterized nor treated in the governing documents as an assessment that may become a lien against the member’s subdivision interest enforceable by the sale of the interest under Sections 2924, 2924b, and 2924c. 23 7/1/26
5.22. Requirements for Annual Policy Statement.
In accordance with Civil Code Section 5730(a), the annual policy statement, prepared pursuant to Section 5310, shall include the following notice, in at least 12-point type:
“NOTICE AND FORECLOSURE”
This notice outlines some of the rights and responsibilities of owners of property in common interest developments and the associations that manage them. Please refer to sections of the Civil Code indicated for further information. A portion of the information in this notice applies only to liens recorded on or after January 1, 2003. You may wish to consult a lawyer if you dispute an assessment. Assessments become delinquent 15 days after they are due, unless the governing documents provide for a longer time. The failure to pay association assessments may result in the loss of an owner’s property through foreclosure. Foreclosure may occur either as a result of a court action, known as judicial foreclosure, or without court action, often referred to as nonjudicial foreclosure. For liens recorded on or after January 1, 2006, an association may not use judicial or nonjudicial foreclosure to enforce that if the amount of the delinquent assessments or dues, exclusive of any accelerated assessments, late charges, fees, attorney’s fees, interest, and costs of collection, is less than one thousand eight hundred dollars ($1,800.00). For delinquent assessments or dues in excess of one thousand eight hundred dollars ($1,800.00) or more than 12 months delinquent, an association may use judicial or nonjudicial foreclosure subject to the conditions set forth in Article 3 (commencing with Section 5700) of Chapter 8 of Part 5 of Division 4 of the Civil Code. When using judicial or nonjudicial foreclosure, the association records a lien on the owner’s property. The owner’s property may be sold to satisfy the lien if the amount secured by the lien are not paid (Sections 5700 through 5720 of the Civil Code, inclusive).
In a judicial or nonjudicial foreclosure, the association may recover assessments, reasonable costs of collection, reasonable attorney’s fees, later charges and interest. The association may not use nonjudicial foreclosure to collect fines or penalties, except for costs to repair common area damaged by a member or a member’s guests, if the governing documents provide for this (Section 5725 of the Civil Code).
The Association must comply with the requirements of Article 2 (commencing with Section 5650) of Chapter 8 of Part 5 of Division 4 of the Civil Code when collecting delinquent assessments. If the association fails to follow these requirements, it may not record a lien on the owner’s property until it has satisfied those requirements.
Any additional costs that may result from satisfying the requirements are the responsibility of the association. (Section 5675 of the Civil Code).
At least 30 days prior to recording a lien on an owner’s separate interest, the association must provide the owner of record with certain documents by certified mail, including a description of its collection and lien enforcement procedures and the method of calculating the amount. It must also provide an itemized statement of the charges owed by the owner. An owner has a right to review the association’s records to verify the debt. (Section 5660 of the Civil Code).
If a lien is recorded against an owner’s property in error, the person’s who recorded the lien is required to record a lien release within 21 days, and to provide an owner certain documents in this regard (Section 5685 of the Civil Code).
PAYMENTS
When an owner makes a payment, the owner may request a receipt, and the association is required to provide it. On the receipt, the association must indicate the date of payment and the person who received it.
The association must inform owners of a mailing address for overnight payments (Section 5655 of the Civil Code).
An owner may, but is not obligated to, pay under protest any disputed charge or sum levied by the association, including, but not limited to, an assessment, fine, penalty, late fee, collection cost, monetary penalty imposed as a disciplinary measure, and by so doing, specifically reserve the right to contest the disputed charge or sum in court or otherwise.
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An owner may dispute an assessment debt by submitting a written request for dispute resolution to the association as set forth in Article 2 (commencing with Section 5900) of Chapter 10 of Part 5 of Division 4 of the Civil Code. In addition, an association may not initiate a foreclosure without participating in alternative dispute resolution with a neutral third party as set forth in Article 3 (commencing with Section 5925) of Chapter 10 of Part 5 of Division 4 of the Civil Code, if so requested by the owner. Binding arbitration shall not be available if the association intends to initiate a judicial foreclosure.
An owner is not liable for charges, interest, and costs of collection, if it is established that the assessment was paid properly on time (Section 5685 of the Civil Code).
MEETINGS AND PAYMENT PLANS
An owner of a separate interest that is not a time-share may request the association to consider a payment plan to satisfy a delinquent assessment. The association must inform owners of the standards for payment plans, if any exists (Section 5665 of the Civil Code).
The board must meet with an owner who makes a proper written request for a meeting to discuss a payment plan when the owner has received a notice of delinquent assessment. These payment plans must conform with the payment plan standards of the association, if they exist (Section 5665 of the Civil Code). (b) An association distributing the notice required by this section to an owner of an interest that is described in Section 11212 of the Business and Professions Code that is not otherwise exempt from this section pursuant to subdivision (a) of Section 112.11.7 of the Business and Professions Code may delete from the notice described in subdivision (a) the portion regarding meetings and payment plans.
5.23. Association’s assignment and/or pledge.
In accordance with Civil Code Section 5735(a), an association may not voluntarily assign or pledge the association’s right to collect payments or assessments, or to enforce or foreclose a lien to a third party, except when the assignment or pledge is made to a financial institution or lender chartered or licensed under federal or state law, when acting within the scope of that charter or license, as security for a loan obtained by the association. (b) Nothing in subdivision (a) restricts the right or ability of an association to assign or collect any unpaid obligations of a former member to a third party for purposes of collection.
5.24. Priority of Assessment Lien.
The lien of the assessments provided for herein, including interest and costs (including attorneys' fees), shall be subordinate to the lien of any previously Recorded first Mortgage upon one or more Condominiums or other portion of the Property. Sale or transfer of any Condominium shall not affect the assessment lien. However, the sale or transfer of any Condominium pursuant to judicial or nonjudicial foreclosure of a first Mortgage shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer. No sale or transfer shall relieve such Condominium from liens for any assessments thereafter becoming due. When the Beneficiary of a first Mortgage of record or other purchaser of a Condominium or other portion of the Property obtains title pursuant to a judicial or nonjudicial foreclosure of the first Mortgage, such Person, his successors and assigns, shall not be liable for the share of the Common Expenses or assessments by the Association chargeable to such Condominium which became due prior to the acquisition of title to such Condominium by such Person. Such unpaid share of Common Expenses or assessments shall be deemed to be Common Expenses collectible from all of the Owners of the Condominiums including such Person, his successors and assigns.
5.25. Capital Contributions to the Association.
Upon acquisition of record title to a Condominium from Declarant, each Owner of a Condominium in the Project shall contribute to the capital of the Association an amount equal to two (2) months of the then Regular Assessment for that Condominium as determined by the Board. This amount shall be deposited by the buyer into the purchase and sale escrow and disbursed therefrom to the Association or to Declarant if Declarant has previously advanced such funds to the Association.
5.26. DRE Accepted Budget. The Association is responsible for the maintenance of the “Common Area” as defined herein and shown on the recorded Condominium Plan. The “Association Property Module” shall be maintained by the Association in accordance with the Budget submitted to and accepted by the DRE.
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ARTICLE VI
6. Internal Dispute Resolution.
6.1. Application of this Article.
In accordance with Civil Code Section 5900(a), this article applies to a dispute between an association and a member involving their rights, duties and liabilities under this act, under the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code), or under the governing documents of the common interest development or association. (b) This article supplements, and does not replace, Article 3 (commencing with Section 5925), relating to alternative dispute resolution as a prerequisite to an enforcement action.
6.2. Fair, Reasonable and Expeditious Procedure.
In accordance with Civil Code Section 5905(a), an association shall provide a fair, reasonable, and expeditious procedure for resolving a dispute within the scope of this article. (b) In developing a procedure pursuant to this article, an association shall make maximum, reasonable use of available local dispute resolution programs involving a neutral third party, including low-cost mediation programs such as those listed on the Internet Web sites of the Department of Consumer Affairs and the United States Department of Housing and Urban Development. (c) If an association does not provide a fair, reasonable, and expeditious procedure for resolving a dispute within the scope of this article, the procedure provided in Section 5915 applies and satisfies the requirement of subdivision (a).
6.3. Minimum Requirements.
In accordance with Civil Code Section 5910, a fair, reasonable and expeditious dispute resolution procedure shall at a minimum satisfy all of the following requirements:
(a) The procedure may be invoked by either party to the dispute. A request invoking the procedure shall be in writing.
(b) The procedure shall provide for prompt deadlines. The procedure shall state the maximum time for the association to act on a request invoking the procedure. (c) If the procedure is invoked by a member, the association shall participate in the procedure. (d) If the procedure is invoked by the association the member may elect not to participate in the procedure. If the member participates but the dispute is resolved other than by agreement of the member, the member shall have a right of appeal to the board. (e) A resolution of a dispute pursuant to the procedure, which is not in conflict with the law or the governing documents, binds the association.
(f) The procedure shall provide a means by which the member and the association may explain their positions.
(g) A member of the association shall not be charged a fee to participate in the process.
6.4. Fair, Reasonable, Expeditious Dispute Procedure.
In accordance with Civil Code Section 5915(a), this section applies to an association that does not otherwise provide for a fair, reasonable and expeditious dispute resolution procedure. The procedure provided in this section is fair, reasonable and expeditious, within the meaning of this article. (b) Either party to a dispute within the scope of this article may invoke the following procedure:
(1) The party may request the other party to meet and confer in an effort to resolve the dispute. The request shall be in writing.
(2) A member of an association may refuse to meet and confer. The association may not refuse a request to meet and confer.
(3) The board shall designate a director to meet and confer. (4) The parties shall meet promptly at a mutually convenient time and place, explain their positions to each other, and confer in good faith in an effort to resolve the dispute. 26 7/1/26
(5) A resolution of the dispute agreed to by the parties shall be memorialized in writing and signed by the parties, including the board designed on behalf of the association. (c) A written agreement reached under this section binds the parties and is judicially enforceable if both of the following conditions are satisfied:
(1) The agreement is not in conflict with law or the governing documents of the common interest development or association.
(2) The agreement is either consistent with the authority granted by the board to its designee or the agreement is ratified by the board.
(d) A member may not be charged a fee to participate in the process.
6.5. Minium Requirement Procedure.
In accordance with Civil Code Section 5910.1, the Association may not file a civil action regarding a dispute in which the member has requested dispute resolution unless the Association has complied with Section 5910 by engaging in good faith in the internal dispute resolution procedures after a member invokes these procedure.
6.6. Policy Statement Requirement.
In accordance with Civil Code Section 5920, the annual policy statement prepared pursuant to Section 5310 shall include a description of the internal dispute resolution process provided pursuant to this article.
6.7. Alternative Dispute Resolution Prerequisite to Civil Action.
In accordance with Civil Code Section 5925, as used in this article: (a) “Alternative dispute resolution” means mediation, arbitration, conciliation, or other nonjudicial procedure that involves a neutral third party in the decision making process. The form of alternative dispute resolution chosen pursuant to this article may be binding or non-binding, with the voluntary consent of the parties. (b) “Enforcement action” means a civil action or proceeding, other than a cross-complaint, for any of the following purposes:
(1) Enforcement of this act.
(2) Enforcement of the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations). (3) Enforcement of the governing documents.
6.8. Enforcement Action Requirements.
In accordance with Civil Code Section 5930(a), an association or a member may not file an enforcement action in the superior court unless the parties have endeavored to submit their dispute to alternative dispute resolution pursuant to this article, (b) This section applies only to an enforcement action that is solely for declaratory, injunctive, or writ relief, or for that relief in conjunction with a claim for monetary damages not in excess of the jurisdictional limits stated in Section 116.220 and 116.221 of the Code of Civil Procedure. (c) This section does not apply to a small claims action. Except as otherwise provided by law, this section does not apply to an assessment dispute.
6.9. Request for Resolution.
In accordance with Civil Code Section 5935(a), any party to a dispute may initiate the process required by Section 5930 by serving on all other parties to the dispute a Request for Resolution. The Request for Resolution shall include all of the following:
(1) A brief description of the dispute between the parties. (2) A request for alternative dispute resolution.
(3) A notice that the party receiving the Request for Resolution is required to respond within 30 days of receipt or the request will be deemed rejected. (4) If the party on whom the request is served is the member, a copy of this article. (b) Service of the Request for Resolution shall be served by personal delivery, first-class mail, express mail, facsimile transmission, or other means reasonably calculated to provide the party on whom the request is served actual notice of the request. (c) A party on whom a Request for Resolution is served has 30 days following service to accept or reject the request.
If a party does not accept the request within that period, the request is deemed rejected by the party. 27
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6.10. Completion of Alternative Dispute Resolution.
In accordance with Civil Code Section 5940(a), if the party on whom a Request for Resolution is served accepts the request, the parties shall complete the alternative dispute resolution within 90 days after the party initiating the request receives the acceptance, unless this period is extended by written stipulation signed by both parties. (b) Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code applies to any form of alternative dispute resolution initiated by a Request for Resolution under this article, other than arbitration. (c) The costs of the alternative dispute resolution shall be borne by the parties.
6.11. Tolling of Time Limitation.
In accordance with Civil Code Section 5945, if a Request for Resolution is served before the end of the applicable time limitation for commencing an enforcement action, the time limitation is tolled during the following periods:
(a) The period provided in Section 5935 for response to a Request for Resolution. (b) If the Request for Resolution is accepted, the period provided in Section 5940 for completion of alternative dispute resolution, including any extension of time stipulated to by the parties pursuant to Section 5940.
6.12. Requirements of Certificate.
In accordance with Civil Code Section 5950(a), at the time of commencement of an enforcement action, the party commencing the action shall file with the initial pleading a certificate stating that one or more of the following conditions are satisfied:
(1) Alternative dispute resolution has been completed in compliance with this article. (2) One of the other parties to the dispute did not accept the terms offered for alternative dispute resolution.
(3) Preliminary or temporary injunctive relief is necessary. (b) Failure to file a certificate pursuant to subdivision (a) is grounds for a demurrer or a motion to strike unless the court finds that dismissal of the action for failure to comply with this article would result in substantial prejudice to one of the parties.
6.13. Referral to Alternative Dispute Resolution.
In accordance with Civil Code Section 5955(a), after an enforcement action is commenced, on written stipulation of the parties, the matter may be referred to alternative dispute resolution. The referred action is stayed. During the stay, the action is not subject to the rules implementing subdivision (c) of Section 68603 of the Government Code. (b) The costs of alternative dispute resolution shall be borne the parties.
6.14. Amount of the Award.
In accordance with Civil Code Section 5960, in an enforcement action in which attorney’s fees and costs may be awarded, the court, in determining the amount of the award, may consider whether a party’s refusal to participate in alternative dispute resolution before commencement of the action was reasonable.
6.15. Summary of Provisions.
In accordance with Civil Code Section 5965(a), an association shall annually provide its members a summary of the provisions of this article that specifically references this article. The summary shall include the following language:
“Failure of a member of the association to comply with alternative dispute resolution requirements of Section 5930 of the Civil Code may result in the loss of the member’s right to sue the association or another member of the association regarding enforcement of the governing documents or the applicable law.” (b) The summary shall be included in the annual policy statement prepared pursuant to Section 5310. 28 7/1/26
ARTICLE VII
7. Property Easements and Rights of Entry.
7.1. Easements.
(a) Access. Nonexclusive easements for access, ingress, and egress over all of the Common Area, including any private streets or driveways currently existing in the Property or subsequently added to it, are hereby granted to the Owners subject to this Declaration. Subject to the provisions of this Declaration governing use and enjoyment thereof, the easements may be used by all Owners and their guests, tenants and invitees residing on or temporarily visiting the Property, for walkways, vehicular access and such other purposes reasonably necessary for use and enjoyment of a Condominium in the Project.
(b) Maintenance and Repair. The Board of Directors and all agents, officers and employees of the Association, are hereby reserved nonexclusive easements over the Common Area (including the Exclusive Use Common Area) as necessary to maintain and repair the Common Area, and to perform all other tasks in accordance with the provisions of this Declaration. Such easements over the Common Area shall be appurtenant to and binding upon, and s hall pass with the title to, every Condominium conveyed.
(c) Third Party Easements.
The Association or Declarant may grant to a third-party non-exclusive easements and/or licenses with regard to the Common Area so long as such easements do not interfere with an Owner’s rights as set forth herein. (d) Encroachments. The Association and Owners of contiguous Residences shall have a reciprocal easement appurtenant to each of the Residences over the Residences and the Common Area for the purpose of (l) accommodating any existing encroachment of any wall of any Improvement, and (2) maintaining the same and accommodating authorized construction, reconstruction, repair, shifting, movement or natural settling of the Improvements or any other portion of the Project housing their respective Units. Easements and reciprocal negative easements for utility services and repairs, replacement and maintenance of the same over all of the Association Property Module are specifically reserved for the benefit of the Owners. Declarant expressly reserves for the benefit of the Common Area, and for the benefit of the Owners and the Association, reciprocal nonexclusive easements for drainage of water over, across and upon the Common Area. The foregoing easements shall not unreasonably interfere with each Owner’s use and enjoyment of adjoining Residences. No portions of the Common Area are proposed to be leased by Declarant to the Owners or to the Association.
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ARTICLE VIII
8. Residence and Use Restrictions.
All of the Property shall be held, used and enjoyed subject to the following limitations and restrictions and the exemptions of Declarant set forth in this Declaration.
8.1. Leasing of Residences.
An Owner may rent his Unit provided that the Unit is rented pursuant to a lease or rental agreement which is (a) in writing (b) of a term of at least thirty (30) days and (c) subject to all of the provisions of this Declaration. Notwithstanding the foregoing, in accordance with Civil Code Section 4740 (a), an owner of a separate interest in a common interest development shall not be subject to a provision in the governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective prior to the date the owner acquired title to his or her separate interest. (b) Notwithstanding the provisions of this section, an owner of a separate interest in a common interest development may expressly consent to be subject to a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in the common interest development to a renter, lessee or tenant. (c) For purposes of this section, the right to rent or lease the separate interest of an owner shall not be deemed to have terminated if the transfer by the owner of all or part of the separate interest meets at least one of the following conditions: (1) Pursuant to Section 62 or 480.3 of the Revenue and Taxation Code, the transfer is exempt, for purposes of reassessment by the county tax assessor. (2) Pursuant to subdivision (b) of, solely with respect to probate transfer, or subdivision (e), (f) or (g) of Section 1102.2, the transfer is exempt from the requirements to prepare and deliver a Real Estate Transfer Disclosure Statement, as set forth in Section 1102.6. (d) Prior to renting or leasing his or her separate interest as provided in this section, an owner shall provide the association with verification of the date the owner acquired title to the separate interest and the name and contact information of the prospective tenant or lessee or the prospective tenant’s or lessee’s representative. (e) Nothing in this section shall be deemed to revise, alter, or otherwise affect the voting process by which a common interest development adopts or amends its governing documents.
8.2. Parking and Vehicular Restrictions.
(a) Parking Spaces. Open parking spaces, as approved by the City shall be continually maintained within the Project by the Association.
(b) Authorized Vehicles. The following vehicles are Authorized Vehicles: motorized land vehicles designed and used primarily for non-commercial passenger transport, such as automobiles, passenger vans designed to accommodate ten (10) or fewer people, two-wheel motorcycles, and pick-up trucks having a manufacturer's rating or payload capacity of one (1) ton or less.
Authorized Vehicles may be parked in any portion of the Properties intended for parking of motorized vehicles.
(c ) Prohibited Vehicles. The following vehicles are Prohibited Vehicles: recreational vehicles (e.g., motorhomes, travel trailers, camper vans, boats, etc.), commercial-type vehicles (e.g., stakebed trucks, tank trucks, dump trucks, step-vans, concrete trucks, etc.), buses or vans designed to accommodate more than ten (10) people, vehicles having more than two (2) axles, trailers, inoperable vehicles or parts of vehicles, aircraft, other similar vehicles or any vehicle or vehicular equipment deemed a nuisance by the Board.
(d) General Restrictions. Subject to the restriction on Prohibited Vehicles, all vehicles owned or operated by or within the control of an Owner or a resident of an Owner’s Unit and kept within the Property shall be parked in the Garage/Parking Space to the extent of the space available; provided that each Owner shall ensure that any Garage/Parking Space accommodates at least the number of Authorized Vehicles for which it was originally constructed. No repair, maintenance or restoration of any vehicle shall be conducted on the Property. 31 7/1/26
(e) Garages. Garages shall remain clear and available for the parking of vehicles. Garage conversions are prohibited. The foregoing shall be regulated by the Association. (f) Guest Parking Spaces. Guest parking spaces are to be used by guests only and are not for the use of residents. Long term parking, defined as more than seventy-two (72) hours in guest parking spaces is prohibited. Movement of vehicles from a guest parking space to another guest parking space shall not constitute a break in the foregoing seventy-two (72) hour regulation. (g) Overnight Parking/Storage of Recreational Vehicles. Overnight vehicular parking and/or storage of recreational vehicles within the Project is prohibited. (h) Fire Access Lane. Parking in and/or any other obstruction of the required fire access lanes is prohibited.
(I) Parking Regulations. The Board may establish additional regulations as it deems appropriate in its sole discretion with regard to any of the parking areas not assigned to individual Units, including without limitation designating "parking," "guest parking," and "no parking" areas thereon; and shall have the power to enforce all parking and vehicle use regulations applicable to the Property, including the power to remove violating vehicles from any of the Properties pursuant to California Vehicle Code Section 22658.2 or other applicable statute. If the Board fails to enforce any of the parking or vehicle use regulations, the City may, but need not, enforce such regulations in accordance with state and local laws and ordinances. (j) Electric Vehicle Charging Stations.
In accordance with Civil Code Section 4745 (a) any covenant, restriction, or condition contained in any deed, contract, security instrument or other instrument affecting the transfer or sale of any interest in a common interest development, and any provision of a governing document, as defined in Section 4150, that either effectively prohibits or unreasonably restricts the installation or use of an electric vehicle charging station in an owner’s designated parking space, including, but not limited to, a deeded parking space, a parking space in an owner’s exclusive use common area, or a parking space that is specifically designated for use by a particular owner, or is in conflict with the provisions of this section is void and unenforceable.
8.3. Nuisances.
No noxious or offensive activities shall be carried on upon the Property or on any public street abutting or visible from the Property. No horns, whistles, bells or other sound devices, except security devices used exclusively to protect the security of a Residence and its contents, shall be placed or used in any such Residence. Noisy or smoky vehicles, large power equipment and large power tools, off-road motor vehicles or items which may unreasonably interfere with television or radio reception of any Owner in the Project and objects which create or emit loud noises or noxious odors, shall not be located, used or placed on any portion of the Property or on any public street abutting or visible from the Property, or exposed to the view of other Owners without the prior written approval of the Architectural Committee.
The Board shall have the right to determine if any noise, odor, or activity producing such noise or odor constitutes a nuisance. No Owner shall permit or cause anything to be done or kept upon the Property or on any public street abutting or visible from the Property which may increase the rate of insurance on Units or on the Property, or result in the cancellation of such insurance, or which will obstruct or interfere with the rights of other Owners, nor commit or permit any nuisance thereon or violate any law on any public street abutting or visible from the Property.
Each Owner shall comply with all of the requirements of the local or state health authorities and with all other governmental authorities with respect to the occupancy and use of a Residence. Each Owner shall be accountable to the Association and other Owners for the conduct and behavior of children and other family members or persons residing in or visiting his Unit. Any damage to the Common Area personal property of the Association, or property of another Owner, caused by such children or other family members shall be repaired at the sole expense of the Owner of the Unit where such children or other family members or persons are residing or visiting. 32 7/1/26
8.4. Noncommerical Signs/Posters/Flags/Banners.
In accordance with Civil Code Section 4710, (a) the governing documents may not prohibit posting or displaying of noncommercial signs, posters, flags or banners on or in a member’s separate interest, except as required for the protection of public health or safety or if the posting or display would violate a local, state or federal law. (b) For purposes of this section, a noncommercial sign, poster, flag or banner may be made of paper, cardboard, cloth, plastic, or fabric, and may be posted or displayed from the yard, window, door, balcony or outside wall of the separate interest, but may not be made of lights, roofing, siding, paving materials, flora or balloons, or any other similar building, landscaping or decorative component or include the painting of architectural surfaces. (c ) An association may prohibit noncommercial signs and posters that are more than nine square feet in size and noncommercial flags or banners that are more than 15 square feet in size.
8.5. Flag of the United States.
In accordance with Civil Code Section 4705, (a) except as required for the protection of the public health or safety, no governing document shall limit or prohibit, or be construed to limit or prohibit, the display of the flag of the United States by a member on or in the member’s separate interest or within the member’s exclusive use common area. (b) For purposes of this section, “display of the flag of the United States” means a flag of the United States made of fabric, cloth or paper displayed from a staff or pole or in a window, and does not mean a depiction or emblem of the flag of the United States made of lights, paint, roofing, siding, paving materials, flora or balloons, or any other similar building, landscaping or decorative component. (c) In any action to enforce this section, the prevailing party shall be awarded reasonable attorney’s fees and costs.
8.6. Antennas/Satellite Dishes.
In accordance with Civil Code Section 4725, (a) Any covenant, condition or restriction contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, a common interest development that effectively prohibits or restricts the installation or use of a video or television antenna, including a satellite dish or that effectively prohibits or restricts the attachment of that antenna to a structure within that development where the antenna is not visible from any street or common area, except as otherwise prohibited or restricted by law, is void and unenforceable as to its application to the installation or use of a video or television antenna that has a diameter or diagonal measurement of 36 inches or less. (b) This section shall not apply to any covenant, condition or restriction, as described in subdivision (a), that imposes reasonable restrictions on the installation or use of a video or television antenna, including a satellite dish, that has a diameter or diagonal measurement of 36 inches or less. For purpose of this section, “reasonable restrictions” means those restrictions that do not significantly increase the cost of the video or television antenna system, including all related equipment, or significantly decrease its efficiency or performance and include all of the following:
(1) Requirements for application and notice to the association prior to the installation. (2) Requirement of a member to obtain the approval of the association for the installation of a video or television antenna that has a diameter or diagonal measurement of 36 inches or less on a separate interest owned by another.
(3) Provisions for the maintenance, repair or replacement of roofs or other building components. (4) Requirements for installers of a video or television antenna to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of a video or television antenna that has a diameter or diagonal measurement of 36 inches or less. (c) Whenever approval is required for the installation or use of a video or television antenna, including a satellite dish, the application for approval shall be processed by the appropriate approving entity for the common interest development in the same manner as an application for approval of an architectural modification to the property, and the decision on the application shall not be willfully delayed. (d) In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorney’s fees.
Notwithstanding the foregoing, neither the Architectural Committee nor the Board of Directors shall impose or enforce any restrictions on Antennas which are inconsistent with the requirements set forth in Section 207 of the Telecommunications Act of 1996 (47U.S.C. Section 303 et. seq.), any regulations issued pursuant thereto, and/or any successor statute.
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8.7. Prohibitions on Restrictions on Marketing.
In accordance with Civil Code Section 4730 (a) Any provision of a governing document that arbitrarily or unreasonably restricts an owner’s ability to market the owner’s interest in a common interest development is void. (b) No association may adopt, enforce or otherwise impose any governing document that does either of the following:
(1) Imposes an assessment or fee in connection with the marketing of an owner’s interest in an amount that exceeds the association’s actual or direct costs. That assessment or fee shall be deemed to violate the limitation set forth in subdivision (b) of Section 5600. (2) Establishes an exclusive relationship with a real estate broker through which the sale or marketing of interests in the development is required to occur. The limitation set forth in this paragraph does not apply to the sale or marketing of separate interests owned by the association or to the sale or marketing of common area by the association.
(c ) For purposes of this section, “market” or “marketing” mean listing, advertising, or obtaining or providing access to show the owner’s interest in the development. (d) This section does not apply to rules or regulations made pursuant to Section 712 or 713 regarding real estate signs.
8.8. Prohibitions on Restrictions on Water Usage.
In accordance with Civil Code Section 4735, (a) notwithstanding any other law, a provision in the governing documents shall be void and unenforceable if it does any of the following:
(1) Prohibits, or includes conditions that have the effect of prohibiting, the use of low water-using plants as a group.
(2) Has the effect of prohibiting or restricting compliance with either of the following:
(A) A water-efficient landscape ordinance adopted or in effect pursuant to subdivision (c ) of Section 65595 of the Government Code.
(B) Any regulation or restriction on the use of water adopted pursuant to Section 353 or 375 of the Water Code.
(b) This section shall not prohibit an association from applying landscape rules established in the governing documents, to the extent the rules fully conform with the requirements of subdivision (a).
8.9. Inside and Outside Installations.
No outside installation of any type, including but not limited to clotheslines, shall be constructed, erected or maintained on any Residence, excepting antennae installed by Declarant as a part of the initial construction of the Property and except as may be installed by, or with the prior consent of the Architectural Committee. The type and color of all exposed window coverings shall be subject to the prior written approval of the Architectural Committee. Notwithstanding the specificity of the foregoing, no exterior addition, change or alteration to any Residence shall be commenced without the prior written approval of the Architectural Committee. Nothing shall be done in any Unit or in, on or to the Common Area which will or may tend to impair the structural integrity of any building in the Property or which would structurally alter any such building except as otherwise expressly provided herein. Construction of additional entries and/or exits into individual residences is prohibited. There shall be no alteration, repair or replacement of wall or floor coverings within Units which may diminish the effectiveness of the sound control engineering within the buildings in the Project. 34 7/1/26
8.10. Liens against the Property.
In accordance with Civil Code Section 4615 (a), in a condominium project, no labor performed or services or materials furnished with the consent of, or at the request of, an owner in the condominium project or the owner’s agent or contractor shall be the basis for the filing of a lien against any other property of any other owner in the condominium project unless that other owner has expressly consented to or requested the performance of the labor or furnishing of the materials or services. However, express consent shall be deemed to have been given by the owner of any condominium in the case of emergency repairs thereto. (b) Labor performed or services or materials furnished for the common area, if duly authorized by the association, shall be deemed to be performed or furnished with the express consent of each condominium owner. (c ) The owner of any condominium may remove that owner’s condominium from a lien against two or more condominiums or any part thereof by payment to the holder of the lien of the fraction of the total sum secured by the lien that is attributable to the owner’s condominium.
No Owner shall cause or permit any mechanic's lien to be filed against any portion of the Project for labor or materials alleged to have been furnished or delivered to the Project or any Condominium Unit for such Owner and any Owner who does so shall immediately cause the lien to be discharged within five (5) days after notice to the Owner from the Board. If any Owner fails to remove such mechanic's lien, the Board may discharge the lien and charge the Owner a Special Assessment for such cost of discharge.
8.11. Animal Restrictions.
In accordance with Civil Code Section 4715, (a) No governing documents shall prohibit the owner of a separate interest within a common interest development from keeping at least one pet within the common interest development, subject to reasonable rules and regulations of the association. This section may not be construed to affect any other rights provided by law to an owner of a separate interest to keep a pet within the development. (b) For purposes of this section, “pet” means any domesticated bird, dog, aquatic animal kept within an aquarium, or other animal agreed to between the association and the homeowner. (c) If the association implements a rule or regulation restricting the number of pets an owner may keep, the new rule or regulation shall not apply to prohibit an owner from continuing to keep any pet that the owner currently keeps in the owner’s separate interest if the pet otherwise conforms with previous rules or regulations relating to pets. (d) For purposes of this section, “governing documents” shall include, but are not limited to, the conditions, covenants, and restrictions of the common interest development, and the bylaws, rule, and regulations fo the association.
8.12 Roof Restriction.
In accordance with Civil Code Section 4720, (a) no association may require a homeowner to install or repair a roof in a manner that is in violation of Section 13132.7 of the Health and Safety Code.
8.13. Business or Commercial Activity.
No part of the Property shall ever be used for any business, commercial (including auctions or similar events, manufacturing, mercantile, storage, vending or other nonresidential purposes, including without limitation any activity for which the provider is compensated in any way or receives any form of consideration, regardless of whether the activity is engaged in full or part-time, generates or does not generate a profit, or requires or does not require a license; except Declarant, its successors and assigns may use any portion of the Property for a model home site and display and sales offices in accordance with Article VII hereof. The provisions of this Section 7.8 shall not preclude any of the abovedescribed activities without external evidence thereof, provided that all of the following conditions are fulfilled: (a) such activities are conducted in conformance with all applicable governmental ordinances; (b) the patrons or clientele of such activities do not visit the Unit or park automobiles or other vehicles within the Property; (c) the existence or operation of such activities is not apparent or detectable by sight, sound or smell from the outside of the boundaries of the Unit; (d) no such activity increases the liability or casualty insurance obligation or premium of the Association; and (e) such activities are consistent with the residential character of the Property and conform with the provisions of this Declaration.
8.14. Rubbish Removal.
Trash, garbage, or other waste shall be disposed of by residents of the Project only by depositing the same into trash containers designated for such use by the Board of Directors. No portion of the Property shall be used for the storage of building materials, refuse or any other materials. There shall be no exterior fires. The cost of trash collection shall be borne by the Owner of each Condominium and/or the Association as provided in the Budget approved by the Board of Directors.
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8.15. Further Subdivision.
Except as otherwise provided herein, no Owner shall physically or legally further subdivide his Unit in any manner, including without limitation, the division of his Unit or his Condominium into time-share estates or time-share uses; provided, however, that this provision shall not be construed to limit the right of an Owner to (1) rent or lease all of his Unit by means of a written lease or rental agreement subject to the restrictions of this Declaration; (2) to sell his Condominium; or (3) to transfer or sell any Condominium to more than one Person to be held by them as tenants-incommon, joint tenants, tenants by the entirety or as community property. Any failure by the lessee of the Unit to comply with the terms of this Declaration or the Rules and Regulations shall constitute a default under the lease or rental agreement. Notwithstanding the foregoing, no Unit in the Projec t may be partitioned or subdivided without the prior written approval of the Beneficiary of any first Mortgage on that Unit. This Section may not be amended without the prior written approval of the Beneficiaries of at least seventy-five percent (75%) of the first Mortgages of Condominiums in the Project.
8.16. Drainage.
There shall be no interference with or alteration of the established drainage pattern over the Property, unless an adequate alternative provision is made for proper drainage with the prior written approval of the Architectural Committee. For the purpose hereof, "established" drainage is defined as the drainage which exists at the time of the first Close of Escrow for the sale of a Condominium, or that which is shown on any plans approved by the Architectural Committee.
8.17. Water Supply System.
No individual water supply or water softener system shall be permitted in any Unit unless such system is designed located, constructed and equipped in accordance with the requirements, standards, and recommendations of any applicable water district, the City, and all other applicable governmental authorities. Any sewage disposal system shall be installed only after approval by the Architectural Committee and any governmental health authority having jurisdiction.
8.18. Painting of Exterior.
Each Owner shall obtain the approval of the Architectural Control Committee prior to painting any portion of the exterior of the Building in which an Owner’s Condominium is located. 36 7/1/26
ARTICLE XIX
9. Insurance.
9.1 Right and Duty of Owners/Association to Insure.
The Project is a twenty (20) Unit Condominium Project. Each Owner (and/or the Association, in the event the Owners fails to secure) shall secure adequate coverage for all improvements within the boundaries of the Owner’s Unit as shown on the Condominium Plan.
9.2.. Duty to Obtain Insurance: Types.
(a) Public Liability. The Board shall cause to be obtained and maintained adequate blanket public liability insurance (including medical payments), with such limits as may be considered acceptable to Fannie Mae (not less than $2 million covering all claims for personal injury and property damage arising out of a single occurrence), insuring against liability for bodily injury, death and property damage arising from the activities of the Association and its Members, with respect to the Common Area. The insurance shall meet the requirements of Civil Code Section 5805. (b) Fire and Casualty Insurance. The Board shall also cause to be obtained and maintained fire and casualty insurance with extended coverage, without deduction for depreciation, in an amount as near as possible to the full replacement value of the Common Area. Each Owner shall provide insurance for those portions of the Unit which consist of all fixtures, installations or additions comprising a part of the buildings housing the Units and all built-in or set-in appliances, cabinets and initial basic floor coverings, as initially installed or replacements thereof in accordance with the original plans and specifications for the Project, or as installed by or at the expense of the Owners. (c) Fidelity Bonds. Fidelity bond coverage which names the Association as an obligee must be obtained by or on behalf of the Association for any person or entity handling funds of the Association, including, but not limited to, officers, directors, trustees, employees and agents of the Association and employees of the Manager of the Association, whether or not such Persons are compensated for their services, in an amount not less than the estimated maximum of funds, including reserve funds, in the custody of the Association or the Manager, as the case may be, at any given time during the term of each bond. However, in no event may the aggregate amount of such bonds be less than the sum equal to one-fourth (1/4) of the Regular Assessments on all Condominiums in the Project, plus reserve funds. (d) Insurance Required by Fannie Mae, GNMA ,FHLMC.
The Association shall continuously maintain in effect such casualty, flood and liability insurance and fidelity bond coverage meeting the insurance and fidelity bond requirements for condominium projects established by Fannie Mae, GNMA and FHLMC, so long as any of which is a Mortgagee or Owner of a Condominium within the Project, except to the extent such coverage is not available or has been waived in writing by Fannie Mae, GNMA, and FHLMC, as applicable.
(e) Other Insurance. The Board of Directors shall purchase such other insurance, as necessary, including but not limited to, errors and omissions, directors, officers and agents liability insurance, plate glass insurance, medical payments, malicious mischief, liquor liability and vandalism insurance, fidelity bonds and worker's compensation, and such other risks as shall customarily be covered with respect to condominium projects similar in construction, location and use. The Directors and Officers insurance shall insure the Association’s directors and officers with regard to their acts or omissions while serving as officers and directors of the association. The insurance shall be not less than $500,000.00 and comply with the requirements of Civil Code Section 5800.
(f) Beneficiaries. Such insurance shall be maintained for the benefit of the Association, the Owners, and the Mortgagees, as their interests may appear as named insured subject, however, to loss payment requirements as set forth herein.
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9.3. Waiver of Claims Against Association.
As to all policies of insurance maintained by or for the benefit of the Association and the Owners, the Association and the Owners hereby waive and release all claims against one another, the Board of Directors and Declarant, to the extent of the insurance proceeds available, whether or not the insurable damage or injury is caused by the negligence of or breach of any agreement by any of said Persons.
9.4. Right and Duty of Owners to Insure.
It is the responsibility of each Owner to provide insurance on all other property and improvements within the Unit.
Each Owner shall maintain a current Insurance Services Office, Inc. (“ISO”) Form HO-6 Policy (residential condominium homeowners insurance policy). This HO-6 Policy shall (1) insure all personal property located within the Owner’s Residential Unit and/or Exclusive Use Common Area, including, any property of others under the care, custody or control of the Owner (2) insure everything within a Residential Unit, such as drywall, wallpaper, paneling, floors, carpet, cabinetry, fixtures and appliances, (3) any upgrades, Improvements and betterments which are located within the Residential Unit or Exclusive Use Area for an amount equal to the maximum insurable replacement value thereof. In addition, each Owner shall maintain insurance for the exterior portions of the Owner’s Residence (roof and building) within the boundaries of the Owners Unit as shown on the Condominium Plan,
9.5. Notice of Expiration Requirements.
If available, each of the policies of insurance maintained by the Association shall contain a provision that said policy shall not be canceled, terminated, materially modified or allowed to expire by its terms, without ten (10) days' prior written notice to the Board and Declarant, and to each Owner and Beneficiary, insurer and guarantor of a first Mortgage who has filed a written request with the carrier for such notice, and every other Person in interest who requests such notice of the insurer. In addition, fidelity bonds shall provide that they may not be canceled or substantially modified without ten (10) days prior written notice to any insurance trustee named pursuant to Section 9.6 and to each Fannie Mae servicer who has filed a written request with the carrier for such notice.
9.6. Insurance Premiums.
Insurance premiums for any blanket insurance coverage obtained by the Association and any other insurance deemed necessary by the Board of Directors shall be a Common Expense to be included in the Regular Assessments levied by the Association and collected from the Owners. That portion of the Regular Assessments necessary for the required insurance premiums shall be separately accounted for by the Association in the Reserve Fund, to be used solely for the payment of premiums of required insurance as such premiums become due.
9.7. Trustee for Policies.
The Association, acting through its Board of Directors, is hereby appointed and shall be deemed trustee of the interests of all named insureds under policies of insurance purchased and maintained by the Association. Unless the applicable insurance policy provides for a different procedure for the filing of claims, all claims made under such policy shall be sent to the insurance carrier or agent, as applicable, by certified mail and be clearly identified as a claim.
A record of all claims made shall be kept by the Association. All insurance proceeds under any such policies as provided for in Section 9.1 of this Article shall be paid to the Board of Directors as trustees. The Board shall have full power to receive and to receipt for the proceeds and to deal therewith as provided herein. Insurance proceeds shall be used by the Association for the repair or replacement of the property for which the insurance was carried or otherwise disposed of as provided in Article X of this Declaration. The Board is hereby granted the authority to negotiate loss settlements with the appropriate insurance carriers, with participation, to the extent they desire, of first Mortgagees who have filed written requests within ten (10) days of receipt of notice of any damage or destruction as provided in Section 9.4 of this Declaration. Any two (2) officers of the Association may sign a loss claim form and release form in connection with the settlement of a loss claim, and such signatures shall be binding on all the named insureds. A representative chosen by the Board may be named as an insured, including a trustee with whom the Association may enter into an insurance trust agreement or any successor to such trustee, who shall have exclusive authority to negotiate losses under any policy providing property or liability insurance and to perform such other functions necessary to accomplish this purpose.
9.8. Actions as Trustee.
Except as otherwise specifically provided in this Declaration, the Board, acting on behalf of the Association and all Owners, shall have the exclusive right to bind such parties in respect to all matters affecting insurance carried by the Association, the settlement of a loss claim, and the surrender, cancellation, and modification of all such insurance, in a manner satisfactory to Beneficiaries of seventy-five percent (75%) of the first Mortgages held by first Mortgagees who have filed requests under Section 9.4. Duplicate originals or certificates of all policies of fire and casualty insurance maintained by the Association and of all renewals thereof, together with proof of payment of premiums, shall be delivered by the Association to all Owners and Mortgagees who have requested the same in writing. 38 7/1/26
9.9. Annual Insurance Review.
The Board shall review the insurance carried by or on behalf of the Association at least annually, for the purpose of determining the amount of the casualty and fire insurance referred to in Section 9.1 above. If economically feasible, the Board shall obtain a current appraisal of the full replacement value of the Improvements on the Property except for foundations and footings, without deduction for depreciation, from a qualified independent insurance appraiser, prior to each such annual review.
9.10. Required Waiver.
All policies of physical damage insurance shall provide, if reasonably possible, for waiver of the following rights, to the extent that the respective insurers would have the rights without such waivers:
(a) subrogation of claims against the Owners and tenants of the Owners; (b) any defense based upon coinsurance;
(c) any right of setoff, counterclaim apportionment, proration or contribution by reason of other insurance not carried by the Association;
(d) any invalidity, other adverse effect or defense on account of any breach of warranty or condition caused by the Association, any Owner or any tenant of any Owner, or arising from any act, neglect, or omission of any named insured or the respective agents, contractors and employees of any insured;
(e) any right of the insurer to repair, rebuild or replace, and, if the Improvement is not repaired, rebuilt or replaced following loss, any right to pay under the insurance an amount less than the replacement value of the Improvements insured; (f) notice of the assignment of any Owner of his interest in the insurance by virtue of a conveyance of any Condominium;
(g) any right to require any assignment of any Mortgage to the insurer; (h) any denial of an Owner's claim because of negligent acts by the Association or other Owners; and
(I) prejudice of the insurance by any acts or omissions of Owners that are not under the Association's control.
9.11. Notice of Change in Insurance Coverage.
In accordance with Civil Code Section 5810, the Association shall, as soon as reasonably practicable, provide individual notice pursuant to Section 4040 to all members if any of the policies described in the annual budget report pursuant to Section 5300 have lapsed, been cancelled, and are not immediately renewed, restored, or replaced or if there is a significant change, such as a reduction in coverage or limits or an increase in the deductible, as to any of these policies.
If the association receives any notice of nonrenewal of a policy described in the annual budget report pursuant to Section 5300, the association shall immediately notify its members if replacement coverage will not be in effect by the date the existing coverage will lapse.
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ARTICLE X
10. Destruction of Improvements.
10.1. Restoration of the Property.
In the event of any destruction of any portion of the Property it shall be the duty of the Association to restore and repair the same to its former condition, as promptly as practical. The proceeds of any insurance maintained pursuant to Article X hereof for reconstruction or repair of the Property shall be used for such purpose, unless otherwise provided herein.
The Board shall be authorized to have prepared the necessary documents to effect such reconstruction as promptly as practical. The Property shall be reconstructed or rebuilt substantially in accordance with the Condominium Plan and the original construction plans if they are available, unless changes recommended by the Architectural Committee have been approved in writing by sixty-seven percent (67%) of the Owners and by the Beneficiaries of fifty-one percent (51%) of first Mortgages upon the Condominiums. If the amount available from the proceeds of such insurance policies for such restoration and repair is at least eighty-five percent (85%) of the estimated cost of restoration and repair, a Reconstruction Assessment shall be levied by the Board of Directors to provide the necessary funds for such reconstruction, over and above the amount of any insurance proceeds available for such purpose. If the amount available from the proceeds of such insurance policies for such restoration and repair is less than eighty-five percent (85%) of the estimated cost of restoration and repair, the Board may levy a Reconstruction Assessment and proceed with the restoration and repair only if both of the following conditions ("Conditions to Reconstruction") have first been satisfied: (a) the levy of a Reconstruction Assessment to pay the costs of restoration and repair of the Property is approved by the affirmative vote or written consent of sixty-seven percent (67%) of the Owners and by the written consent of the Beneficiaries of fifty-one percent (51%) of the first Mortgages on the Condominiums in the Project; and (b) within six (6) months after the date on which the destruction occurred, the Board Records a certificate of the resolution authorizing the restoration and repair ("Reconstruction Certificate"). If either of the Conditions to Reconstruction does not occur following a destruction for which insurance proceeds available for restoration and repair are less than eighty-five percent (85%) of the estimated cost of restoration and repair, it shall be conclusively presumed that the Owners have determined not to proceed with restoration and repair and not to allow the Board to levy a Reconstruction Assessment, in which case the Owners may proceed as provided in Section 10.2 below.
10.2. Sale of Property and Right to Partition.
No Owner shall have the right to partition of his interest in the Condominium and there shall be no judicial partition of the Project, or any part thereof, except as provided in Section 4610 of the California Civil Code as amended or in any successor statute. For purposes of Subsection 4 of said Section 4610 partition may occur only if all of the following conditions are satisfied: (a) either or both of the Conditions to Reconstruction described in Section 10.1 above have failed to occur; and (b) within six (6) months after the date on which destruction occurred restoration or repair has not actually commenced; and (c) the Owners of sixty-seven percent (67%) of the Condominiums in the Project approve the partition by vote or written consent. In such event, the Association, acting through a majority of the Board, shall prepare, execute and Record, as promptly as practical, a certificate stating that a majority of the Board may properly exercise an irrevocable power of attorney to sell the Project for the benefit of the Owners, and such other documents and instruments as may be necessary for the Association to consummate the sale of the Property at the highest and best price obtainable, either in its damaged condition, or after damaged structures have been razed. Such certificate shall be conclusive evidence of such authority for any Person relying thereon in good faith. The net proceeds of such sale and the proceeds of any insurance carried by the Association shall be divided proportionately among the Owners, such proportions to be determined in accordance with the relative appraised fair market valuation of the Condominiums as of a date immediately prior to such destruction (or condemnation), expressed as percentages, and computed by dividing such appraised valuation of each Condominium by the total of such appraised valuations of all Condominiums in the Project. The Board is hereby authorized to hire one (1) or more appraisers for such purpose and the cost of such appraisals shall be a Common Expense of the Association. Notwithstanding the foregoing, the balance then due on any valid encumbrance of record shall be first paid in order of priority before the distribution of any proceeds to an Owner whose Condominium is so encumbered. Nothing herein shall be deemed to prevent partition of a cotenancy in any Condominium. Except as provided above, each Owner and the successors of each Owner whether by deed, gift, devise, or by operation of law, for their own benefit and for the Units and for the benefit of all other Owners, specifically waive and abandon all rights, interests and causes of action for a judicial partition of the tenancy in common ownership of the Project and do further covenant that no action for such judicial partition shall be instituted, prosecuted or reduced to judgment. 40 7/1/26
10.3. Interior Damage.
Restoration and repair of any damage to the interior of any individual Residence, including without limitation all fixtures, cabinets and improvements therein, together with restoration and repair of all interior paint, wall coverings and floor coverings, shall be made by and at the individual expense of the Owner of the Residence so damaged. In the event of a determination to rebuild the Property after partial or total destruction, as provided in this Article X, such interior repair and restoration shall be completed as promptly as practical and in a lawful and workmanlike manner, in accordance with plans approved by the Architectural Committee as provided herein.
10.4. Notice to Owners and Listed Mortgagees.
The Board, immediately upon having knowledge of any damage or destruction affecting a material portion of the Common Area, shall promptly notify all Owners and Beneficiaries, insurers and guarantors of first Mortgages on Condominiums in the Project who have filed a written request for such notice with the Board. The Board, immediately upon having knowledge of any damage or destruction affecting a Unit, shall promptly notify any Beneficiary, insurer or guarantor of any Mortgage encumbering such Unit who has filed a written request for such notice with the Board.
ARTICLE XI
11. Eminent Domain.
The term "taking" as used in this Article shall mean condemnation by exercise of the power of eminent domain or by sale under threat of the exercise of the power of eminent domain. The Board shall represent the Owners, in any proceedings, negotiations, settlements, or agreements regarding takings. All takings proceeds shall be payable to the Association for the benefit of the Unit Owners and their Mortgagees, and shall be distributed to such Owners and Mortgagees as provided in this Article X.
11.1. Project Condemnation.
If there is a taking of an interest in all or part of the Project such that the ownership, operation and use of the Project in accordance with the provisions of this Declaration is substantially and adversely affected, and within one hundred twenty (120) days after the effective date of the taking the Owners of Units (a) not taken, or (b) only partially taken but capable of being restored to at least ninety-five percent (95%) of their floor area and to substantially their condition prior to the taking (collectively, the "Remaining Units") do not by affirmative vote of at least one-third of their voting power approve the continuation of the Project and the repair, restoration and replacement to the extent feasible of the Common Area and the Remaining Units, then the Board shall proceed with the sale of that portion of the Project which was not taken and distribute the net proceeds of such sale after deducting any incidental fees and expenses, in the same proportion and manner as provided in Section 11.2.
11.2. Condemnation of Common Area.
If there is a taking of (a) all or any portion of the Common Area, or any interest therein, other than the taking of an undivided interest therein taken as a result of the taking of a Condominium or (b) all or any portion of the Common Area (other than Exclusive Use Common Area), or any interest therein, then the award in condemnation shall be paid to the Association and shall be deposited in the Operating Fund.
11.3. Condemnation of Exclusive Use Common Area.
If there is a taking of all or any portion of an Exclusive Use Common Area which is not taken in connection with the taking of all or any portion of the Unit to which it is appurtenant, the award in condemnation shall be paid to the Owner of the Unit to which the taken Exclusive Use Common Area was appurtenant; provided, however, that such award shall first be applied to the balance then due on any mortgages encumbering such Owner's Condominium, in order of priority.
11.4. Condemnation of Condominiums.
If there is a taking of a Condominium, the award in condemnation shall be paid to the Owner of the Condominium; provided, however, that such award shall first be applied to the balance then due on any Mortgages encumbering such Owner's Condominium, in order of priority.
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11.5. Condemnation of Portions of Units.
(a) Minor Takings Within Limits. If (i) there is a taking of a portion of one or more Units such that the intended use of the Units as residential dwellings is not substantially and adversely affected, and (ii) restoration of such Units can be accomplished at a cost less than or equal to the sum of (A) the amount of the condemnation awards for such takings plus (B) any amounts the Owners of the taken Units wish to contribute to restoration plus (C) an amount less than or equal to five percent (5%) of the Budgeted gross expenses of the Association for that Fiscal Year (collectively, the "Allowable Cost"), then the Board shall contract for such restoration and levy a Reconstruction Assessment in an amount equal to the Allowable Cost minus the amount of the condemnation awards and Owners' contributions, and the condemnation awards, Owners' contributions and Reconstruction Assessment shall be applied to such restoration. If the restoration is accomplished at a cost less than the amount of the condemnation awards, then that portion of the condemnation awards in excess of the restoration costs shall be paid to the Owners of the partially taken Units in proportion to the decreases in the fair market values of their Condominiums; provided, however, that such awards shall first be applied to the balance then due on any Mortgages encumbering such Owners’ Condominiums, in order of priority.
(b) Minor Takings Exceeding Limits. If (i) there is a taking of a portion of one or more Units such that the intended use of the Units as residential dwellings is not substantially and adversely affected, and (ii) restoration cannot be accomplished at a cost less than or equal to the Allowable Cost, then the Board shall call a Special Meeting of the Members. If more than fifty percent (50%) of the Members are represented at such Special Meeting, either in person or by proxy, and a majority of the votes cast at such Special Meeting are in favor of levying a Assessment in an amount equal to the restoration costs minus the sum of the amount of the condemnation awards and the amounts the Owners of the taken Units wish to contribute to such restoration, then the Board shall contract for such restoration and levy a Reconstruction Assessment, and the condemnation awards Owners' contributions and Reconstruction Assessment shall be applied to such restoration.
(c) Major Takings. If the requisite approval is not obtained at the Special Meeting referred to in Section 11.5(b), or if there is a taking of a portion of one or more Units such that the Units are not capable of being restored such that the intended use of the Units as residential dwellings is not substantially and adversely affected, then the award in condemnation shall be paid to the Owners of the taken Units; provided, however, that such award shall first be applied to the balance then due on any Mortgages encumbering such Owner's Condominium, in order of priority.
The Board shall have the remaining portions of the taken Units razed. The remaining portions of the taken Units and appurtenant Exclusive Use Common Areas shall become part of the Property, and the Owners of such taken Units, by acceptance of the award allotted to them in taking proceedings, hereby relinquish (i) to the Association such remaining portions of the taken Units and appurtenant Exclusive Use Common Area, and (ii) to the other Owners, on the basis of their relative ownership of the Common Area therein, such Owners' undivided interest in the Common Area. Each Owner relinquishing his interests pursuant to this Section shall, at the request of the Board and at the expense of the Association, execute and acknowledge such deeds and other instruments which the Board deems necessary or convenient to evidence such relinquishment. Each Owner of a taken Unit or Residence shall not be liable for assessments under this Declaration which accrue on or after the date such Owner accepts his condemnation award.
11.6. Portions of Awards in Condemnation Not Compensatory for Value of Real Property.
Those portions of awards in condemnation which do not directly compensate Owners for takings of real property (e.g., awards for takings of personal property, relocation expenses, moving expenses, or other allowances of a similar nature intended to facilitate relocation) shall be paid to the Owners whose personal property is taken, or whose relocation is intended to be facilitated.
11.7. Notice to Owners and Mortgagees.
The Board, upon learning of any taking affecting a material portion of the Property, or any threat thereof, shall promptly notify all Owners and those Beneficiaries, insurers and guarantors of Mortgages on Condominiums in the Project who have filed a written request for such notice with the Association. The Board, upon learning of any taking affecting a Unit, or any threat thereof, shall promptly notify any Beneficiary, insurer or guarantor of a Mortgage encumbering such Unit who has filed a written request for such notice with the Association. 42 7/1/26
ARTICLE XII
LENDER REQUIREMENTS
Section 12.1 Rights of Mortgagees and Rights of Guarantors of a Mortgage. Each Mortgagee and the guarantor of the mortgage on any Unit in the Condominium Project shall be given timely written notice of:
(a) Any condemnation or casualty loss that affects either a material portion of the Project or the Unit securing its mortgage;
(b) Any 60-day delinquency in the payment of assessments or charges owed by the owner of any Unit on which it holds the mortgage;
(c) A lapse, cancellation, or material modification of any insurance policy maintained by the homeowners’ association; and
(d) Any proposed action that requires the consent of a specified percentage of mortgages. (e) A first mortgagee who obtains title to a condominium unit pursuant to the remedies in the mortgage or through foreclosure will not be liable for any dues or charges accrued before the acquisition of title to the unit by the mortgagee. If the Association’s lien priority includes costs of collecting the unpaid dues, the lender will be liable for any fees or costs related to the collection of the unpaid dues.
(f) No provision in this Declaration shall give a Condominium Unit Owner or any other party priority over the rights of the first mortgagee of the condominium unit pursuant to its mortgage in the case of payment to the unit owner of insurance proceeds or condemnation awards for losses to or taking a condominium unit and/or common elements. (g) Any amendment to this Declaration of a material nature to mortgagees must be agreed to by mortgagees that represent at least 51% of the votes of unit estates that are subject to mortgages. (h) Any action to terminate the legal status of the project after substantial destruction or condemnation occurs or for other reasons must be agreed to by mortgagees that represent at least 51% of the votes of the Unit estates that are subject to mortgages. (i) Implied approval is assumed when a mortgagee fails to submit a response to any written proposal for an amendment within 60 days after it receives proper notice of the proposal, provided the notice was delivered by certified or registered mail, with a “return receipt” requested.
ARTICLE XIII
13. Duration and Amendment.
13.1. Duration.
This Declaration shall continue in full force for a term of fifty (50) years from the date of Recordation hereof, after which the term shall be automatically extended for successive periods of ten (10) years, unless a Declaration of Termination satisfying the requirements of an amendment to this Declaration as set forth in Section 13.2 is Recorded. There shall be no severance by sale, conveyance, encumbrance or hypothecation of an interest in any Unit from the concomitant Membership in the Association, as long as this Declaration shall continue in full force and effect.
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13.2. Termination and Amendment.
(a) Notice of the subject matter of a proposed amendment to this Declaration in reasonably detailed form shall be included in the notice of any meeting or election of the Association at which a proposed amendment is to be considered. In accordance with Regulation 2792.24, the resolution shall be adopted by the vote, in person or by proxy, or written consent of Members representing not less than (i) sixty-seven (67%) of the voting power of each Class of Members of the Association, and (ii) sixty-seven percent (67%) of the voting power of the Association residing in Members other than Declarant; provided that the specified percentage of the voting power of the Association necessary to amend a specified Section or provision of this Declaration shall not be less than the percentage of affirmative votes prescribed for action to be taken under that Section or provision. Where the two-class voting structure is still in effect as provided in the Condominium Project documents, at least fifty-one percent (51%) of each class of membership.
The vote on a proposed amendment shall be by secret written ballot in accordance with Civil Code Section 5100.
(b) In addition to the required notice and consent of Members provided above, the Beneficiaries of fifty-one percent (51%) of the first Mortgages on all the Condominiums in the Project who have requested the Association to notify them of proposed action requiring the consent of a specified percentage of first Mortgagees must approve any amendment to this Declaration which is of a material nature, as follows:
(1) Any amendment which affects or purports to affect the validity or priority of Mortgages or the rights or protection granted to Beneficiaries, insurers or guarantors of first Mortgages as provided herein.
(2) Any amendment which would necessitate a Mortgagee after it has acquired a Condominium through foreclosure, to pay more than its proportionate share of any unpaid assessment or assessments accruing after such foreclosure. (3) Any amendment which would or could result in a Mortgage being canceled by forfeiture, or in a Condominium not being separately assessed for tax purposes. (4) Any amendment relating to the insurance provisions as set out in Article VIII hereof, or to the application of insurance proceeds as set out in Article IX hereof, or to the disposition of any money received in any taking under condemnation proceedings. (5) Any amendment which would or could result in partition or subdivision of a Condominium Unit in any manner inconsistent with the provisions of this Declaration. (6) Any amendment which would subject any Owner to a right of first refusal or other such restriction, if such Condominium is proposed to be sold, transferred, or otherwise conveyed.
(7) Any amendment concerning:
(A) Voting rights;
(B) Rights to use the Common Area;
(C) Reserves and responsibility for maintenance, repair and replacement of the Common Area;
(D) Boundaries of any Units;
(E) Owners' interests in the Common Area;
(F) Convertibility of Common Area into Units or Units into Common Area; 44 7/1/26
(G) Leasing of Units;
(H) Establishment of self-management by the Association where professional management has been required by any Beneficiary, insurer or guarantor of a first Mortgage;
(I) Annexation or de-annexation of real property to or from the Property; or (J) Assessments, assessment liens, or the subordination of such liens. (c) Termination of this Declaration shall require approval by the Members as provided in subsection (a) of this Section 13.2. No such termination shall be effective unless it is also approved in advance either by fifty-one percent (51%) of the Beneficiaries of the first Mortgages on all of the Condominiums in the Project (if said termination is proposed by reason of the substantial destruction or condemnation of the Project) or by sixty-seven percent (67%) of such Beneficiaries (if said termination is for reasons other than such substantial destruction or condemnation). (d) A copy of each amendment shall be certified by at least two (2) officers of the Association, and the amendment shall be effective when a Certificate of Amendment is Recorded. The Certificate, signed and sworn to by two (2) officers of the Association that the requisite number of Owners and mortgagees have either voted for or consented in writing to any amendment adopted as provided above, when Recorded, shall be conclusive evidence of that fact. The Association shall maintain in its files the record of all such votes or written consents for a period of at least four (4) years. The certificate reflecting any termination or amendment which requires the written consent of any of the Beneficiaries of first Mortgages shall include a certification that the requisite approval of such first Mortgagees has been obtained.
(e) Notwithstanding any other provisions of this Section 13.2, at any time prior to the first Close of Escrow for the sale of a Condominium within the Project, Declarant may, subject to obtaining the prior written approval of any Mortgagee, unilaterally amend or terminate this Declaration by Recording a written instrument which effects the amendment or termination and is signed and acknowledged by Declarant.
(g) Notwithstanding any other provisions of this Section 13.2, for so long as Declarant owns any portion of the Property, Declarant may unilaterally amend this Declaration by Recording a written instrument signed by Declaration in order to conform this Declaration to the requirements of VA, FHA, Fannie Mae, GNMA or FHLMC then in effect.
13.3. Amendment of Developer Provisions.
(a) In accordance with Section 4230, notwithstanding any provision of the governing documents to the contrary, the board may, after the developer has completed construction of the development, has terminated construction activities, and has terminated marketing activities for the sale, lease or other disposition of separate interests within the development, adopt an amendment deleting from any of the governing documents any provision which is unequivocally designed or intended, or which by its nature can only have been designed or intended to facilitate the developer in completing the construction or marketing of the development. However, provisions of the governing documents relative to a particular construction or marketing phase of the development may not be deleted under the authorization of this subdivision until that construction or marketing phase has been completed. (b) The provisions which may be deleted by action of the board shall be limited to those which provide for access by the developer over or across the common area for the purpose of (1) completion of construction of the development and (2) the erection, construction or maintenance of structures or other facilities designed to facilitate the completion of construction or marketing of separate interests. (c) At least 30 days prior to taking action pursuant to subdivision (a), the board shall deliver to all members, by individual delivery, pursuant to Section 4040, (1) a copy of all amendments to the governing documents proposed to be adopted under subdivision (a), and (2) a notice of the time, date and place the board will consider adoption of the amendments. The board may consider adoption of amendments to the governing documents pursuant to subdivision (a) only at a meeting that is open to all members, who shall be given opportunity to make comments thereon. All deliberations of the board on any action proposed under subdivision (a) shall be conducted in an open meeting. 45 7/1/26
(d) The board may not amend the governing documents pursuant to this section without the approval of a majority of a quorum of members, pursuant to Section 4070. For purposes of this section, “quorum” means more than 50 percent of the members who own no more than two separate interests in the development.
ARTICLE XIV
14. General Provisions.
14.1. Enforcement of Restrictions.
(a) Violations Identified by the Association. If the Board determines that there is a violation of any provision of the Restrictions, or the Architectural Committee determines that an Improvement which is the maintenance responsibility of an Owner is in need of installation, maintenance, repair, restoration or painting, then the Board shall give written notice to the responsible Owner identifying (i) the condition or violation complained of, and (ii) the length of time the Owner has to remedy the violation including, if applicable the length of time the Owner has to submit plans to the Architectural Committee and the length of time the Owner has to complete the work proposed in the plans submitted to the Architectural Committee.
If an Owner does not perform such corrective action as is required by the Board and the Architectural Committee within the allotted time, the Board, after Notice and Hearing, may undertake to remedy such condition or violation complained of, and the cost thereof shall be charged to the Owner as a Special Assessment. Such Special Assessment shall be subject to enforcement and collection by the Board in accordance with the procedures provided for in this Declaration.
If the violation involves nonpayment of any type of Assessment, then the Board shall be entitled to collect such delinquent Assessment pursuant to the procedures set forth in Article V. (b) Violations Identified by an Owner. In the event that an Owner alleges that another Owner, his family, guests or tenants, is violating the Restrictions (other than nonpayment of any type of Assessment), the Owner must first submit the matter to the Board before the complaining Owner may resort o a court of law for relief with respect to the alleged violation. (c) Legal Proceedings. Failure to comply with any of the terms of the Restrictions by an Owner, his family, guests, employees, invitees or tenants, shall be grounds for relief, which may include, without limitation, an action to recover sums due for damages, injunctive relief, foreclosure of any lien, or any combination thereof; provided, however, that the procedures established in Sections
14.1 (a) and (b) above must first be followed, if they are applicable. In addition, the parties shall comply with the requirements of Civil Code Section 4000 et. seq.). (d) Limitation on Expenditures. The Association shall not incur litigation expenses, including without limitation attorneys' fees, where the Association initiates legal proceedings or is joined as a plaintiff in legal proceedings without the approval of a majority of the voting power of the Association, excluding the voting power of any Owner who would be a defendant in such proceedings. Such approval shall not be necessary if the legal proceedings are initiated to (ii) enforce the use restrictions contained in Article VIII hereof, (ii) enforce the architectural control provisions contained in Article IV hereof, or (iii) collect any unpaid assessments levied pursuant to this Declaration.
(e) Schedule of Fines. The Board may adopt a schedule of reasonable fines or penalties which, in its reasonable discretion, it may assess against an Owner for the failure of such Owner, or of a resident of or visitor to such Owner’s Unit, to comply with any provisions of the Restrictions. Such fines or penalties may only be assessed by the Board after Notice and Hearing. (f) No Waiver. Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce that provision, or any other provision hereof. 46 7/1/26
(g) Right to Enforce. The Board, any Owner (not at the time in default hereunder), or Declarant (so long as Declarant is an Owner) shall be entitled to enforce the Restrictions as described in this Article. Each Owner shall have a right of action against the Association for the Association's failure to comply with the Restrictions. Each remedy provided for in this Declaration shall be cumulative and not exclusive or exhaustive.
(h) City’s Right to Enforce. The City shall have the authority, but not the obligation, to enforce these Restrictions.
(h) Attorneys Fees. Any judgment rendered in any action or proceeding pursuant to this Declaration shall include a sum for attorneys' fees in such amount as the court may deem reasonable, in favor of the prevailing party, as well as the amount of any delinquent payment, interest thereon, costs of collection and costs of court.
14.2. Severability.
The provisions hereof shall be deemed independent and severable, and a determination of invalidity or partial invalidity or unenforceability of any one provision or portion hereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof.
14.3. Interpretation.
In accordance with Section 4215, any deed, declaration or condominium plan for a common interest development shall be liberally construed to facilitate the operation of the common interest development, and its provisions shall be presumed to be independent and severable. Nothing in Article 3 (commencing with Section 715) of Chapter 2 of Title 2 of Part I of Division 2 shall operate to invalidate any provisions of the governing documents. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. As used herein, the singular shall include the plural and the plural, the singular; and the masculine, feminine and neuter shall each include the other, unless the context dictates otherwise.
14.4. Mergers or Consolidations.
Upon a merger or consolidation of the Association with another association, its properties, rights and obligations may, by operation of law, be transferred to another surviving or consolidated association or, alternatively, the properties, rights and obligations of another association may, by operation of law, be added to the properties, rights and obligations of the Association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer and enforce the covenants, conditions and restrictions established by this Declaration governing the Property, together with the covenants and restrictions established upon any other property, as one plan.
14.5. No Public Right or Dedication.
Nothing contained in this Declaration shall be deemed to be a gift or dedication of all or any part of the Property to the public, or for any public use.
14.6. Nonliability and Indemnification.
(a) General Limitation. Except as specifically provided in the Restrictions or as required by law, no right, power, or responsibility conferred on the Board or the Architectural Committee by this Declaration, the Articles or the Bylaws shall be construed as a duty, obligation or disability charged upon the Board, the Architectural Committee, any member of the Board or of the Architectural Committee, or any other officer, employee or agent of the Association. No such Person shall be liable to any party (other than the Association or a party claiming in the name of the Association) for injuries or damage resulting from such Person's acts or omissions within what such Person reasonably believed to be the scope of his Association duties ("Official Acts"), except to the extent that such injuries or damage result from such Person's willful or malicious misconduct. No such Person shall be liable to the Association (or to any party claiming in the name of the Association) for injuries or damage resulting from such Person's Official Acts, except to the extent that such injuries or damage result from such Person's negligence or willful or malicious misconduct. 47 7/1/26
(b) Damages Limitation. In accordance with Civil Code Section 5800 (a), a volunteer officer or volunteer director of an association that manages a common interest development that is exclusively residential, shall not be personally liable in excess of the coverage of insurance specified in paragraph (4) to any person who suffers injury, including, but not limited to, bodily injury, emotional distress, wrongful death, or property damage or loss as a result of the tortious act or omission of the volunteer officer or volunteer director if all of the following criteria are met:
(1) The act or omission was performed within the scope of the officer’s or director’s association duties.
(2) The act or omission was performed in good faith.
(3) The act or omission was not willful, wanton, or grossly negligent. (4) The association maintained and had in effect at the time the act or omission occurred and at the time a claim is made one or more policies of insurance that shall include coverage for (A) general liability of the association and (B) individual liability of officers and directors of the association for negligent acts or omissions in that capacity; provided that both types of coverage are in the following minimum amounts:
(A) At least five hundred thousand dollars ($500,000.00) if the common interest development consists of 100 or fewer separate interest. (B) At least one million dollar ($1,000,000.00) if the common interest development consists of more than 100 separate interests.
(b) The payment of actual expenses incurred by a director or officer in the execution of the duties of that position does not affect the director’s or officer’s status as a volunteer within the meaning of this section. (c) An officer or director who at the time of the act or omission was a declarant, or who received either direct or indirect compensation as an employee from the declarant, or from a financial institution that purchased a separate interest in a judicial or nonjudicial foreclosure of a mortgage or deed of trust on real property, is not a volunteer for the purposes of this section. (d) Nothing in this section shall be construed to limit the liability of the association for its negligent act or omission or for any negligent act or omission of an officer or director of the Association. (e) This section shall only apply to a volunteer officer or director who is a tenant of a tenant of a separate interest in the common interest development or is an owner of no more than two separate interests in the common interest development.
(f) (1) For purposes of paragraph (1) of subdivision (a), the scope of the officer’s or director’s association duties shall include, but shall not be limited to, both of the following decisions:
(A) Whether to conduct an investigation of the common interest development for latent deficiencies prior to the expiration of the applicable statute of limitations. (B) Whether to commence a civil action against the builder for defects in design or construction.
(2) It is the intent of the Legislature that this section clarify the scope of Association duties to which the protections against personal liability in this section apply. It is not the intent of the Legislature that these clarifications be construed to expand, or limit, the fiduciary duties owed by the directors or officers. 48 7/1/26
14.7. Notices.
Except as otherwise provided in this Declaration, notice to be given to an Owner shall be in writing and may be delivered personally to the Owner. Personal delivery of such notice to one or more co-owners of a Condominium or to any general partner of a partnership owning a Condominium shall be deemed delivery to all co-owners or to the partnership, as the case may be. Personal delivery of such notice to any officer or agent for the service of process on a corporation shall be deemed delivery to the corporation. In lieu of the foregoing, such notice may be delivered by regular United States mail, postage prepaid, addressed to the Owner at the most recent address furnished by such Owner to the Association or, if no such address shall have been furnished, to the street address of such Owner’s Unit. Such notice shall be deemed delivered three (3) business days after the time of such mailing, except for notice of a meeting of Members or of the Board of Directors in which case the notice provisions of the Bylaws shall control.
Any notice to be given to the Association may be delivered personally to any member of the Board, or sent by United States mail, postage prepaid, addressed to the Association at such address as shall be fixed from time to time and circulated to all Owners.
14.8. Constructive Notice and Acceptance.
Every person who owns, occupies or acquires any right, title estate or interest in or to any Condominium or other portion of the Property does hereby consent and agree, and shall be conclusively deemed to have consented and agreed, to every limitation restriction, easement, reservation, condition and covenant contained herein, whether or not any reference to these restrictions is contained in the instrument by which such person acquired an interest in the Property, or any portion thereof.
ARTICLE XV
15. Managing Agent.
15.1. Written Disclosures of Prospective Managing Agent.
In accordance with Civil Code Section 5375, a prospective management agent of a common interest development shall provide a written statement to the Board of Directors of the Association of a common interest development as soon as practicable, but in no event more than ninety (90) days, before entering into a management agreement which shall contain all of the following information concerning the managing agent:
(1) The names and business addresses of the owners or general partners of the managing agent. If the managing agent is a corporation, the written statement shall include the names and business addresses of the directors and officers and shareholders holding greater than ten percent (10%) of the shares of the corporation.
(2) Whether or not any relevant licenses such as architectural design, construction, engineering, real estate, or accounting have been issued by the State of California and are currently held by the persons specified in paragraph (1). If a license is currently held by any of those persons, the statement shall contain the following information:
(A) What license is held.
(B) The date the license is valid.
(C) The name of the licensee appearing on that license. (c) Whether or not any relevant professional certifications or designations such as architectural design construction, engineering, real property management, or accounting are currently held by any of the persons specified in subdivision (a), including, but not limited to, a professional common interest development manager. If any certification or designation is held, the statement shall include the following information:
(1) What the certification or designation is and what entity issued it. (2) The dates the certification or designation is valid. (3) The names in which the certification or designation is held. 49 7/1/26
15.2. Handling of Association Funds by Managing Agent.
In accordance with Civil Code Section 5380 (a), a managing agent of a common interest development who accepts or receives funds belonging to the Association shall deposit all such funds that are not placed into an escrow account with a bank, savings association, or credit union or into an account under the control of the Association, into a trust fund account maintained by the managing agent in a bank, savings association, or credit union in California. All funds deposited by the managing agent in the trust fund account shall be kept in California in a financial institution, as defined in Section 31041 of the Financial Code which is issued by the federal government, and shall be maintained there until disbursed in accordance with written instructions from the Association entitled to the funds. (b) At the written request of the board, the funds the managing agent accepts or receives on behalf of the association shall be deposited into an interest-bearing account in a bank, savings association, or credit union in California, provided all of the following requirements are met:
(1) The account is in the name of the managing agent as trustee for the Association or in the name of the Association.
(2) All of the funds in the account are covered by insurance provided by an agency of the federal government.
(3) The funds in the account are kept separate, distinct, and apart from the funds belonging to the managing agent or to any other person or entity for whom the managing agent holds funds in trust except that the funds of various Associations may be commingled as pursuant to subdivision (d). (4) The managing agent discloses to the board, the nature of the account, how interest will be calculated and paid, whether service charges will be paid to the depository and by whom, and any notice requirements or penalties for withdrawal of funds from the account. (5) No interest earned on funds in the account shall inure directly or indirectly to the benefit of the managing agent or his or her employees.
(c) The managing agent shall maintain a separate record of the receipt and disposition of all funds described in this section, including any interest earned on the funds. (d) The managing agent shall not commingle the funds of the Association with his or her own money or with the money of others that he or she receives or accepts, unless all of the following requirements are met:
(1) The managing agent commingled the funds of various Associations on or before February 26, 1990, and has obtained a written agreement with the Board of Directors of each Association that he or she will maintain a fidelity and surety bond in an amount that provides adequate protection to the Associations as agreed upon by the managing agent and the Board of Directors of each Association.
(2) The managing agent discloses in the written agreement whether he or she is deriving benefits from the commingled account or the bank, credit union, or savings institution where the moneys will be on deposit.
(3) The written agreement provided for pursuant to this subdivision includes, but is not limited to, the name and address of the bonding companies, the amounts of the bonds, and the expiration dates of the bonds.
(4) If there are any changes in the bond coverage or the companies providing the coverage, the managing agent discloses the fact to the Board of Directors of each affected Association as soon as practical, but in no event more than ten (10) days after the change. (5) The bonds assure the protection of the Association and provide the Association at least ten (10) days notice prior to cancellation.
(6) Completed payments on behalf of the Association are deposited within twenty-four (24) hours or the next business day and do not remain commingled for more than 10 calendar days. 50 7/1/26
(e) The prevailing party in an action to enforce this Article shall be entitled to recover reasonable legal fees and court costs.
(f) As used in this Article, "completed payment" means funds received which clearly identify the account to which the funds are to be credited.
ARTICLE XVI
16. Causes of Action in Tort.
16.1. Lawsuits Against the Association.
In accordance with Civil Code Section 5805, any cause of action in tort against any owner of a separate interest arising solely by reason of an ownership interest as tenant-in-common in the common area of a common interest development shall be brought only against the association and not against the individual owners of the separate interests if both of the insurance requirements in paragraphs (1) and (2) are met:
(1) The association maintained and has in effect for this cause of action one or more policies of insurance which include coverage for general liability of the Association and (2) the coverage described in paragraph (1) is in the following minimum amounts:
(i) At least two million dollars ($2,000.000.00) if the common interest development consists of 100 or fewer separate interests; or
(ii) At least three million dollars ($3,000,000.00) if the common interest development consists of more than 100 separate interests.
ARTICLE XVII
17. Civil Code Section 4225.
17.1. Prohibition on Restrictive Covenants.
In accordance with Civil Code Section 4225 (a), no declaration or other governing document shall include a restrictive covenant in violation of Section 12955 of the Government Code.
17.2. Role of Board of Directors.
(b) Notwithstanding any other provision of law or provision of the governing documents, the board, without the approval of the members, shall amend this Declaration, or other governing document that includes a restrictive covenant prohibited by this section to delete the restrictive covenant, and shall restate this Declaration or other governing document without the restrictive covenant but with no other change to the Declaration or other governing document.
17.3. Amendment.
(c) If the declaration is amended under this section, the board shall record the restated declaration in each county in which the common interest development is located. If the articles of incorporation are amended under this section, the board shall file a certificate of amendment with the Secretary of State pursuant to Section 7814 of the Corporations Code.
17.4. Enforcement.
(d) If after providing written notice to the Association, pursuant to Section 4025, requesting that the Association delete a restrictive covenant that violates subdivision (a), and the Association fails to delete the restrictive covenant within thirty (30) days of receipt the notice, the Department of Fair Employment and Housing, a city or county in which a common interest development is located, or any person may bring an action against the Association for injunctive relief to enforce subdivision (a). The court may award attorney’s fees to the prevailing party. 51 7/1/26
ARTICLE XVIII
18. Internal Dispute Resolution.
18.1. Requirements of Civil Code Section 5900 et. seq.
In accordance with Civil Code Section 5900(a), this article applies to a dispute between an association and a member involving their rights, duties, or liabilities under this act, under the Nonprofit Mutual Benefit Corporation Law (Part 3 (commencing with Section 7110) of Division 2 of Title 1 of the Corporations Code), or under the governing documents of the common interest development or association. (b) This article supplements, and does not replace, Article 3 (commencing with Section 5925), relating to alternative dispute resolution as a prerequisite to an enforcement action.
18.2. Fair, Reasonable and Expeditious Procedure.
In accordance with Civil Code Section 5905(a), an association shall provide a fair, reasonable, and expeditious procedure for resolving a dispute within the scope of this article. (b) In developing a procedure pursuant to this article, an association shall make maximum, reasonable use of available local dispute resolution programs involving a neutral third party, including low-cost mediation programs such as those listed on the Internet Web sites of the Department of Consumer Affairs and the United States Department of Housing and Urban Development. (d) If an association does not provide a fair, reasonable, and expeditious procedure for resolving a dispute within the scope of this article, the procedure provided in Section 5915 applies and satisfies the requirements of subdivision (a).
ARTICLE XIX
19. Documentation to be provided Prospective Purchaser.
19.1. Owner Requirements of Section 4525.
The Owner of a separate interest shall provide the following documents to a prospective purchaser of the separate interest, as soon as practicable before the transfer of title or the execution of a real property sale contract, as defined in Section 2985:
(1) a copy of all governing documents. If the association is not incorporated, this shall include a statement in writing from an authorized representative of the association that the association is not incorporated.
(2) If there is a restriction in the governing documents limiting the occupancy, residency, or use of a separate interest on the basis of age in a manner different from that provided in Civil Code Section 51.3, a statement that the restriction is only enforceable to the extent permitted by Civil Code Section 51.3 and a statement specifying the applicable provision of Civil Code Section 51.3. (3) A copy of the most recent documents distributed pursuant to Article 7(commencing with Section 5300) of Chapter 6.
(4) A true statement in writing from an authorized representative of the Association as to the amount of the Association's current regular and special assessments and fees, any assessments levied upon an Owner's interest in the common interest development which are unpaid on the date of the statement, and any monetary fines or penalties levied upon the owner’s interest and unpaid on the date of the statement. The statement obtained from an authorized representative shall also include true information on late charges, interest, and costs of collection which, as of the date of the statement, are or may be a lien upon the owner’s interest in a common interest development pursuant to Article 2 (commencing with Section 5650) of Chapter 8. (5) A copy or a summary of any notice previously sent to the Owner pursuant to Section 5855 that sets forth any alleged violation of the governing documents that remains unresolved at the time of the request. The notice shall not be deemed a waiver of the Association’s right to enforce the governing documents against the Owner of the prospective purchaser of the separate interest with respect to any violation. This paragraph shall not be construed to require an Association to inspect an Owner’s separate interest. (6) A copy of the preliminary list of defects provided to each member pursuant to Section 6000, unless the Association and the builder subsequently enter into a settlement agreement or otherwise resolve the matter and the Association complies with Section 6100. Disclosure of the initial list of defects pursuant to this paragraph does not waive any privilege attached to the document. The initial list of defects shall also include a] statement that a final determination as to whether the list of defects is accurate and complete has not been made. 52 7/1/26
(7) A copy of the latest information provided for in Section 6100. (8) Any change in the Association's current regular and special assessments and fees which have been approved by the board, but have not become due and payable as of the date disclosure is provided pursuant to this subdivision.
(9) If there is a provision in the governing documents that prohibit the rental or leasing of any of the separate interest in the common interest development to a renter, lessee, or tenant, a statement describing the prohibition and its applicability.
(10) If requested by the prospective purchaser, a copy of the minutes of board meetings, excluding meetings held in executive session conducted over the previous 12 months, that were approved by the board.
19.2 Association Requirements of Section 4525.
In accordance with Civil Code Section 4530(a), upon written request, the association shall, within 10 days of the mailing or delivery of the request, provide the owner of a separate interest, or any other recipient authorized by the owner, with a copy of the requested documents specified in Section 4525. (b)(1) Upon receipt of a written request, the association shall provide, on the form described in Section 4528, a written or electronic estimate of the fees that will be assessed for providing the requested documents. The documents required to be made available pursuant to this section may be maintained in electronic form, and may be posted on the association’s Internet Web site.
Requesting parties shall have the option of receiving the documents by electronic transmission if the association maintains the documents in electronic form. The association may collect a reasonable fee based upon the association’s actual cost for the procurement, preparation, reproduction, and delivery of the documents requested pursuant to the provisions of this section. (2) No additional fees may be charged by the association for the electronic delivery of the documents requested. (3) Fees for any documents required by this section shall be distinguished from other fees, fines or assessments billed as part of the transfer or sales transaction. Delivery of the documents required by this section shall not be withheld for any reason nor subject to any condition except the payment of the fee allowed pursuant to paragraph (1). (4) An association may contact with any person or entity to facilitate compliance with the requirements of this subdivision on behalf of the association. (5) The association shall also provide a recipient authorized by the owner of a separate interest with a copy of the completed form specified in Section 4528 at the time the required documents are delivered.
ARTICLE XX
20. Requirements of Civil Code Section 4510.
20.1. Prohibitions on Restriction of Access.
In accordance with Civil Code Section 4510, except as otherwise provided in law, an order of the court, or an order pursuant to a final and binding arbitration decision, the Association may not deny an Owner or occupant physical access to his or her “separate interest”, as defined in Article I, Section 1.43 herein, either by restricting access through the common areas to the Owner’s separate interest or by restricting access solely to the Owner’s separate interest.
ARTICLE XXI
21. Requirements of Civil Code Section 4210
21.1. Recordation of Statement of Relevant Information.
In order to facilitate the collection of Regular Assessments, special assessments, transfer fees and similar charges as authorized by Sections 4530, 4575 and 4580 and similar charges, the board is authorized to record a statement or amended statement identifying relevant information for the association. This statement may include any or all of the following information:
(a) The name of the association as shown in the declaration or the current name of the association, if different.
(b) The name and address of a managing agent or treasurer of the Association or other individual or entity authorized to receive assessments and fees imposed by the Association. 53 7/1/26
(c) A daytime telephone number of the authorized party identified in subdivision (b) if a telephone number is available.
(d) A list of separate interests subject to assessment by the Association, showing the assessor’s parcel number or legal description, or both, of the separate interests. (e) The recording information identifying the declaration governing the Association. (f) If an amended statement is being recorded, the recording information identifying the prior statement or statements which the amendment is superceding.
ARTICLE XXII
22. Requirements of Civil Code Section 5405.
22.1. Statement by Common Interest Development Association to Secretary of State.
To assist with the identification of common interest developments, each Association, whether incorporated or incorporated, shall submit to the Secretary of State, on a form and for a fee not to exceed thirty dollars ($30.00) that the Secretary of State shall prescribe, the following information concerning the Association and the development that it manages:
(1) A statement that the Association is formed to manage a common interest development under the Davis-Stirling Common Interest Development Act.
(2) The name of the Association.
(3) The street address of the business or corporate office of the association, if any. (4) The street address of the Association’s onsite office, or, if different from the street address of the business or corporate office, or if there is no onsite office, the street address of the responsible officer or managing agent of the Association. (5) The name, address and either the daytime telephone number or e-mail address of the president of the association, other than the address, telephone number, or e-mail address of the association’s onsite office or managing agent of the association. (6) The name, street address, and daytime telephone number of the association’s managing agent, if any.
(7) The county, and if in an incorporated area, the city in which the development is physically located. If the boundaries of the development are physically located in more than one county, each of the counties in which it is located.
(8) If the development is in an unincorporated area, the city closest in proximity to the development.
(9) The front street and nearest cross street of the physical location of the development. (10) The type of common interest development managed by the association. (11) The number of separate interests in the development. (b) The association shall submit the information required by this section as follows:
(1) By incorporated associations, within 90 days after the filing of its original articles of incorporation, and thereafter at the time the association files its statement of principal business activity with the Secretary of State pursuant to Section 8210 of the Corporations Code. (2) By unincorporated associations, in July 2003, and in the same month biennially thereafter. Upon changing its status to that of a corporation, the association shall comply with the filing deadlines in paragraph (1).
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(c) The association shall notify the Secretary of State of any change in the street address of the association’s onsite office or of the responsible officer or managing agent of the Association in the form and for a fee prescribed by the Secretary of State, within 60 days of the change.
ARTICLE XXIII
23. Breach of a Provision of the Declaration.
23.1 Protection of the lien of any Mortgage.
No breach of any provision of this Declaration nor the enforcement of any of its lien provisions, nor the foreclosure of any lien created by or claimed under this Declaration, shall invalidate, affect or impair the lien of any Mortgage made in good faith and for value, but all of the covenants, conditions and restrictions shall be binding on any Owner whose title is derived through a foreclosure sale, trustee’s sale, or otherwise.
ARTICLE XXIV
24. Modification of Separate Interest.
In accordance with Civil Code Section 4760(a), subject to the governing documents and applicable law, a member may do the following:
(1) Make improvement or alteration within the boundaries of the member’s separate interest that does not impair the structural integrity or mechanical systems or lessen the support of any portions of the common interest development.
(2) Modify the member’s separate interest, at the member’s expense, to facilitate access for persons who are blind, visually handicapped, deaf, or physically disabled, or to alter conditions which could be hazardous to these persons. These modifications may also include modifications to the route from the public way to the door of the separate interest for the purposes of this paragraph if the separate interest is on the ground floor or already accessible by an existing ramp or elevator. The right granted by this paragraph is subject to the following conditions:
(A) The modifications shall be consistent with applicable building code requirements. (B) The modifications shall be consistent with the intent of otherwise applicable provisions of the governing documents pertaining to safety or aesthetics. (C) Modifications external to the dwelling shall not prevent reasonable passage by other residents, and shall be removed by the member when the separate interest is no longer occupied by persons requiring those modifications who are blind, visually handicapped, deaf or physically disabled.
(D) Any member who intends to modify a separate interest pursuant to this paragraph shall submit plans and specifications to the association for review to determine whether the modifications will comply with the provisions of this paragraph. The association shall not deny approval of the proposed modifications under this paragraph without good cause. (b) Any change in the exterior appearance of a separate interest shall be in accordance with the governing documents and applicable provisions of law.
ARTICLE XXV
25. Inconsistency between governing documents.
25.1 Control of the Law.
In accordance with Section 4205, to the extent of any inconsistency between the governing documents and the law, the law controls. To the extent of any inconsistency between the articles of incorporation and the declaration, the declaration controls. To the extent of any inconsistency between the bylaws and the articles of incorporation or declaration, the articles of incorporation or declaration control. To the extent of any inconsistency between the operating rules and the bylaws, articles of incorporation, or declaration, the bylaws, articles of incorporation or declaration control.
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ARTICLE XXVI
26. Statement of Relevant Information.
26.1 Items to be included in Statement.
In accordance with Section 4210, in order to facilitate the collection of regular assessments, special assessments, transfer fees as authorized by Sections 4530, 4575 and 4580 and similar charges, the board is authorized to record a statement or amended statement identifying relevant information for the association. The statement may include any or all of the following information:
(a) The name of the Association as shown in the declaration or the current name of the association, if different.
(b) the name and address of a managing agent or treasurer of the association or other individual or entity authorized to receive assessments and fees imposed by the association. (c) A daytime telephone number of the authorized party identified in subdivision (b) if a telephone number is available.
(d) A list of separate interest subject to assessment by the association, showing the assessor’s parcel number or legal description, or both, of the separate interests. (e) The recording information identifying the declaration governing the association. (f) If an amended statement is being recorded, the recording information identifying the prior statement or statements which the amendment is superceding.
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ARTICLE XXVII
ARBITRATION OF DISPUTES WITH DECLARANT
Section 27.1 Definitions. For purposes of this ARTICLE XXVII, the following terms shall have the following meanings:
(a) "Affiliated Contractor" shall mean and refer to each general contractor and contractor who, as of the time of sale of the portion of the Property that is the subject of a Dispute: (i) is in the business of building, developing or constructing the Property for public purchase; and (ii) is a partner, member of, subsidiary of, or otherwise similarly affiliated with Declarant.
(b) "Claimant shall mean and refer to any party (including any Owner or the Association) who initiates a claim against a Development Party.
(c) "Development Party" shall mean and refer to Declarant or any director, officer, partner, employee, subcontractor or agent of Declarant or any Affiliated Contractor. (d) "Dispute shall mean and refer to a dispute or disagreement between a Claimant and a Development Party concerning the Property.
Section 27.2 Agreement to Method of Resolving Disputes; Waiver of Right to Jury Trial. DECLARANT, THE ASSOCIATION AND EACH OWNER (COLLECTIVELY THE "PARTIES") AGREE TO USE THE PROCEDURES
ESTABLISHED IN THIS ARTICLE XVII TO RESOLVE ALL DISPUTES AND WAIVE THEIR RIGHTS TO RESOLVE DISPUTES COVERED IN THIS ARTICLE XXVII IN ANY OTHER MANNER. THE PARTIES ACKNOWLEDGE THAT BY
AGREEING TO RESOLVE ALL DISPUTES AS PROVIDED IN THIS ARTICLE XXVII, THEY ARE GIVING UP THEIR RIGHT TO HAVE DISPUTES TRIED BEFORE A JUDGE OR JURY, PURSUANT TO THE FEDERAL ARBITRATION ACT.
Section 27.3 Agreement to Arbitrate. The Parties agree to resolve all Disputes that may arise between a Claimant and a Development Party exclusively through binding arbitration in the county in which the Property is located.
This arbitration provision shall apply to Disputes of any kind or nature regardless of when the Dispute first arose or the nature of the relief sought; provided, however, the Parties may elect to resolve such Disputes through a small claims court proceeding.
Section 27.4 No Trial by Judge or Jury. By agreeing to resolve all Disputes through binding arbitration, the Parties each give up the right to have their respective claims and defenses decided by a judge or a jury. Instead all claims and disputes will be decided by the Arbitrator.
Section 27.5 Rules Applicable to All Cases. The arbitration will be conducted in accordance with the commercial arbitration rules of the American Arbitration Association ("AAA Rules") then applicable to the claims presented, as supplemented by this ARTICLE XVII. The following supplemental rules shall apply to all arbitration proceedings respecting Disputes and shall govern in the event of a conflict between the rules set forth below and the AAA Rules. (a) Qualifications of Arbitrators. The arbitrator shall be neutral and impartial and either a retired judge or a member or former member of the California State Bar with at least 15 years experience as a practicing lawyer.
(b) Appointment of Arbitrator. The arbitrator to preside over the Dispute shall be selected in accordance with the AAA Rules, but no later than sixty (60) days after a notice of claim is filed. (c) Expenses. All fees charged by the arbitrator shall be advanced by the Development Party. If the Development Party is the prevailing party in the arbitration, the arbitrator may, in his or her discretion and only to the extent permitted by law, direct the Claimant to reimburse the Development Party all or part of the arbitrator's fee advanced by such Development Party.
(d) Preliminary Procedures. If state or federal law requires the Parties to take steps or procedures before commencing an action in court, then the Parties must take such steps or follow such procedures, as the case may be, before commencing the arbitration.
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(e) Participation by Other Parties. A Claimant and a Development Party, to the extent any such party is defending a claim in the arbitration, may, if it chooses, have all necessary and appropriate parties included as parties to the arbitration.
(f) Rules of Law. The arbitrator must follow California substantive law (including statutes of limitations) but strict conformity with the rules of evidence is not required, except that the arbitrator shall apply applicable law relating to privilege and work product. The arbitrator shall be authorized to provide all recognized remedies available at law or equity for any cause of action. (g) Attorneys' Fees and Costs. Each party shall bear its own attorneys' fees and costs (including expert witness costs) in the arbitration.
Section 27.6 Additional Rules Applicable to Certain Cases. In any arbitration in which a claim of a Claimant or a Development Party exceeds $250,000 in value, the following additional rules will supplement the AAA Rules and govern in the event of a conflict between the following rules and the rules set forth above, the AAA Rules, or both. (a) Qualifications of Arbitrator. In addition to the requirements of Section 27.5(a), the arbitrator shall be a retired judge of the California Superior Court, a California Court of Appeal, or the California Supreme Court. (b) Rules of Law. The California Evidence Code shall apply. (c) Written Decision. Within thirty (30) days after the hearing is closed, the arbitrator must issue a written decision. If a party requests it, the arbitrator must issue a reasoned award.
Section 27.7 Federal Arbitration Act. The Parties acknowledge that because many of the materials and products incorporated into the home are manufactured in other states, the purchase of a Lot evidences a transaction involving interstate commerce and the Federal Arbitration Act (9 U.S.C. Sections 1, et seq.) now in effect and as it may be hereafter amended will govern the interpretation and enforcement of the arbitration provisions in this ARTICLE XXVII.
Section 27.8 AGREEMENT TO ARBITRATE DISPUTES AND WAIVER OF JURY TRIAL. THE PARTIES
AGREE TO HAVE ANY DISPUTES DECIDED BY NEUTRAL ARBITRATION IN ACCORDANCE WITH THE FEDERAL
ARBITRATION ACT AND THE CALIFORNIA ARBITRATION ACT, TO THE EXTENT THE CALIFORNIA ARBITRATION
ACT IS CONSISTENT WITH THE FEDERAL ARBITRATION ACT, AND THE PARTIES ARE GIVING UP ANY RIGHTS A PARTY MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. FURTHERMORE, THE
PARTIES ARE GIVING UP THEIR RESPECTIVE JUDICIAL RIGHTS TO DISCOVERY, UNLESS SUCH RIGHTS ARE SPECIFICALLY INCLUDED IN THIS ARTICLE XXVII. IF A PARTY REFUSES TO SUBMIT TO ARBITRATION, A PARTY
MAY BE COMPELLED TO ARBITRATE UNDER THE FEDERAL ARBITRATION ACT AND THE CALIFORNIA
ARBITRATION ACT, TO THE EXTENT THE CALIFORNIA ARBITRATION ACT IS CONSISTENT WITH THE FEDERAL ARBITRATION ACT.
Section 27.9 Final and Binding Award. The decision of the arbitrator shall be final and binding. A petition to confirm, vacate, modify or correct an award may be filed in any court of competent jurisdiction in the county in which the Property is located, but the award may be vacated, modified or corrected only as permitted by the Federal Arbitration Act.
Section 27.10 Severability. If the arbitrator or any court determines that any provision of this ARTICLE XXVII is unenforceable for any reason, that provision shall be severed, and proceedings agreed to in this ARTICLE XXVII shall be conducted under the remaining enforceable terms of this ARTICLE XXVII..
Section 27.11 Application; Conflicts. This ARTICLE XXVII shall apply only with respect to Disputes in which either: (a) Declarant or any director, officer, partner, employee, subcontractor or agent of Declarant or an Affiliated Contractor is a party, or (b) the Association or any director, officer, partner, employee, subcontractor or agent of the Association is a party. In the event of a conflict between this ARTICLE XXVII and any other alternative dispute resolution procedures, this ARTICLE XXVII shall prevail.
Section 27.12 Third-Party Beneficiary; Affiliated Contractor. The Parties intend and agree that any entity that falls within the definition of "Affiliated Contrac tor" is an intended third party beneficiary of the provisions of this ARTICLE XXVII.
Section 27.13 Limitation on Amendment. No amendment may be made to this ARTICLE XXVII without the written approval of each Development Party and Claimant attached to the instrument of amendment. 58
ARTICLE XXVIII
28. Requirements of Civil Code Section 4741.
28.1. Permissible Rental Prohibitions and Restrictions. (a) An owner of a separate interest in a common interest development shall not be subject to a prohibition in a governing document or an amendment to a governing document that prohibits, has the effect of prohibiting, or unreasonably restricts the rental or leasing or any of the separate interests, accessory dwelling units, or junior dwelling units in that common interest development to a renter, lessee, or tenant. (b) A common interest development shall not adopt or enforce a provision in a governing document or amendment to a governing document that restricts the rental or lease of separate interests within a common interest to less than 25 percent of the separate interests. Nothing in this subdivision prohibits a common interest development from adopting or enforcing a provision authorizing a higher percentage of separate interests to be rented or leased.
(c) This section does not prohibit a common interest development from adopting and enforcing a provision in a governing document that prohibits transient or short-term rental of a separate property interest for a period of 30 days or less.
(d) For purposes of this section, an accessory dwelling unit or junior accessory dwelling unit shall not be constructed as a separate interest.
(e) For purposes of this section, a separate interest shall not be counted as occupied by a renter if the separate interest , or accessory dwelling unit or junior accessory dwelling unit of the separate interest, is occupied by the owner.
(f) A common interest development shall comply with the prohibition on rental restrictions specified in this section on and after January 1, 2021, regardless of whether the common interest development has revised their governing documents to comply with this section. However, a common interest development shall amend their governing documents to conform to the requirements of this section no later than December 31, 2021. (g) A common interest development that willfully violates this section shall be liable to the applicant or other party for actual damages, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000.00).
(h) In accordance with Section 4740, this section does not change the right of an owner of a separate interest who acquired title to their separate interest before the effective date of this section to rent or lease their property.
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ARTICLE XXIX
CONDITIONS OF APPROVAL OF TRACT NO. 82962
Section 29.1 Conditions of Approval.
In accordance with the Conditions of Approval by the City of Duarte of TRACT NO. 82962, the following language is hereby added to this Declaration:
1. Resident garages shall be used for vehicle parking only. Excessive storage or any reduction of vehicle parking space within the garage shall be prohibited. Garages shall maintain a minimum clearance of20 feet wide and 20 feet deep for vehicle parking. Garages shall also maintain adequate space outside of the vehicle parking area for resident trash receptacle storage, as depicted on the approved plans.
2. Uncovered off-street parking within the property are hereby designated for guest and overflow only and not for the exclusive use of residents.
3. The storage of bikes, equipment, clothing, or other types of miscellaneous storage on balconies or within the private courtyards visible from .Santo Domingo is prohibited. The Association as required by the City of Duarte is authorized to enforce the foregoing restrictions.
4. An operation plan for trash pick-up service shall be approved by Burrtec Waste, and then provided to the Planning Division for review and approval prior to permit issuance. The operation plan shall include pick-up schedules, receptacle placement, receptacle size and type, trash circulation, among others.
The Association shall comply with the foregoing approved plan and advise all Owners of Condominiums of the approved trash pick-up service.
5. The Developer and/or Homeowners Association shall establish a Residential Parking Management Plan that regulates onsite parking to reduce any potential overflow parking onto the street and within adjacent properties. The parking management plan shall be incorporated into the recorded CC&R's and implemented/monitored by the established Homeowners Association. The management plan shall be provided to the Planning Division for review and approval prior to permit issuance.
6. The Residential Parking Management Plan is as follows. Each Owner of a Condominium is provided with a two (2) car Garage as shown on the Condominium Plan. Each Owner must park the Owners car(s) in the Owners Garage. There are ten (10) unassigned open parking spaces for use by the guests of the Owners while visiting the Project or for delivery purposes to the Owners in the Project.
Each Owner is strictly prohibited from use of these open unassigned parking spaces from storage of an Owner’s vehicle in excess of twenty-four (24) hours. The Association is authorized to enforce the foregoing requirements.
7. Responsible Party shall maintain, or cause to be maintained, those areas of the Project that are subject to public view, or use by the public, (including all existing and future exterior improvements, paving, striping, walkways, landscaping, exterior signage, and (ornamentation) in compliance with all of the maintenance standards in the Duarte Municipal Code. The Responsible Party shall arrange for provision of the utilities, including trash service, serving the Project.
Responsible Party shall promptly eliminate (or cause to be eliminated) all graffiti and replace (or cause to be replaced) dead and diseased plants and landscaping with materials from and according to the approved Project landscape plan. In the event particular plant materials are unavailable, the Responsible Party shall receive approval from the City for similar and comparable plant material substitutes.
This Declaration is dated July 1, 2026 for identification purposes.
SANTO DOMINGO LLC, a California limited liability company By: ____________________________
Its: Manager
“Declarant”
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ACKNOWLEDGMENT
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
On _________, before me, ______________________________________ (ins ert name and title of the officer) personally appeared __________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
NESS my hand and official seal.
Signature: _______________________________
61 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
SUBORDINATION
The undersigned, as Beneficiary of the beneficial interest in and under that certain Deed of Trust dated October 16, 2024 and recorded on October 25, 2024 as Instrument No. 20240733436 in the Official Records of Los Angeles County, California (the “Deed of Trust”) which Deed of Trust is by and between SANTO DOMINGO LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, as Trustor, PREMIUM ESCROW, A CALIFORNIA CORPORATION, as Trustee and BLUEWAVE SYNC LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, as Beneficiary, hereby expressly subordinates said Deed of Trust and its beneficial interest thereunder to the foregoing DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND RESERVATION OF EASEMENTS FOR SANTO DOMINGO CONDOMINIUMS (“Declaration”) and to maintenance and other easements to be conveyed to the Association in accordance with the Declaration. By executing this Subordination, the undersigned agrees that should the undersigned acquire title to all or any portion of the Property by foreclosure or any other remedy in or relating to the Deed of Trust, the undersigned will acquire title subject to the provisions of the Declaration, and any recorded amendments thereto, which shall remain in full force and effect.
Dated: _______________.
BLUEWAVE SYNC LLC, A CALIFORNIA LIMITED LIABILITY COMPANY:
By:____________________
Its: __________________
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ACKNOWLEDGMENT
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
On _________, before me, ______________________________________ (ins ert name and title of the officer) personally appeared __________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _______________________________
63 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
AGENDA REPORT
MEETING DATE: July 14, 2026
TO: Mayor and Members of the City Council
FROM: Larry Breceda, Director of Public Safety Services BY: Alexandra Almaguer-Negrete, Crime Prevention Specialist SUBJECT: National Night Out Proclamation
RECOMMENDATION: The Public Safety Department recommends that the City Council proclaim August 6, 2026, as National Night Out and adopt the theme of “Touch-A-Truck"
FISCAL IMPACT: This event was already included in the FY 2026/27 Budget STRATEGIC PLAN Goal C – C2.3 Community Safety
IMPACT: Goal F – F1.5 Community Vitality
BACKGROUND
National Night Out (NNO) is an annual community building campaign in which approximately 38 million residents across thousands of communities throughout the United States participate in activities that promote police community partnerships, neighborhood camaraderie, and public safety awareness.
DISCUSSION/ANALYSIS
The Public Safety Department is committed to enhancing community safety and quality of life through outreach, education, and community engagement programs. The Department works collaboratively with the Public Safety Commission, Neighborhood Watch Captains, community organizations, and City departments to develop programs and events that encourage civic participation and strengthen neighborhood connections.
One such event is National Night Out, which serves as an important opportunity to foster community engagement and promote public safety awareness. This annual event brings together residents, public safety personnel, local organizations, and community partners to strengthen relationships, encourage neighborhood involvement, and support crime prevention efforts.
Through educational displays, interactive activities, and direct engagement with public safety personnel, residents gain valuable information and resources that empower them to take an active role in maintaining safe and vibrant neighborhoods.
Although National Night Out is nationally observed on Tuesday, August 4, 2026, the National Association of Town Watch has granted the City of Duarte permission to hold its celebration on Thursday, August 6, 2026. This alternative date allows the City to maximize participation, Agenda Item: 13.I.
2 coordinate with the Parks and Recreation Department, and ensure the availability of public safety personnel and community partners.
The City of Duarte Public Safety Department proposes that the City Council proclaim August 6, 2026, as National Night Out and adopt the theme of "Touch-a-Truck." The event will provide residents and families with a unique opportunity to interact with public safety personnel and explore a variety of emergency response, transit, and service vehicles. Planned displays include vehicles and equipment from the Los Angeles County Sheriff's Department, Los Angeles County Fire Department, American Red Cross, Pasadena Human Society, City of Duarte Field Services Division and Foothill Transit. Through hands-on experiences and community engagement, the event will promote public safety awareness, emergency preparedness, community pride, and positive relationships between residents and the agencies that serve Duarte.
PUBLIC OUTREACH
The Public Safety Department actively promotes National Night Out through Neighborhood Watch meetings, community presentations, social media outreach, City communications, and public engagement efforts. Throughout the year, staff work closely with Neighborhood Watch Captains, residents, community organizations, and public safety partners to educate the community on the importance of neighborhood involvement, crime prevention, emergency preparedness, and public safety awareness.
CONCLUSION
National Night Out provides a valuable opportunity for residents, businesses, community organizations, and public safety personnel to come together in support of a safer and more connected Duarte. The event promotes neighborhood unity, strengthens relationships between the community and public safety agencies, enhances public safety awareness, and encourages residents to take an active role in crime prevention and emergency preparedness efforts.
RECOMMENDATION
The Public Safety Department recommends that the City Council proclaim August 6, 2026, as National Night Out and adopt the theme of “Touch-A-Truck."
FISCAL IMPACT
This event was already included in the FY 2026/27 Budget
ATTACHMENTS
A. National Night Out 2026 Event Flyer
B. National Night Out Proclamation
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
NATIONAL NIGHT OUT 2026
PROCLAMATION
ue, nationwide crime, drug, and violence prevention program on August 6, 2026, entitled “National Night Out”.
WHEREAS, the National Association of Town Watch is sponsoring a uniqrtunity for the City of Duarte to join forces with thousands of other communities across the country in promoting cooperative, law enforcement–community crime-prevention efforts;
WHEREAS, the 43rd Annual National Night Out provides a unique oppoassisting the L.A. County Sheriff’s Department through joint crime, drug, and violence prevention efforts in the City of Duarte and is supporting National Night Out locally;
WHEREAS, Duarte’s Neighborhood Watch program plays a vital role in of the importance of crime-prevention programs and the impact their participation can have on reducing crime, drugs, and violence in the City; WHEREAS, it is essential that all citizens of the City of Duarte be aware Community Service Council in recognition of the law enforcement– community cooperative efforts highlighted on National Night Out; WHEREAS, participants will be donating canned food to the Duarte the fostering of peaceful, united neighborhoods are important themes of National Night Out, with the City of Duarte recognizing this year’s local theme,“Touch-A-Truck,” to promote positive community engagement; WHEREAS, crime and drug prevention, awareness, cooperation, and proclaims Thursday, August 6, 2026, as National Night Out in the City of Duarte, and calls upon all citizens to join Neighborhood Watch volunteers and the millions of National Association of Town Watch participants in observing the 43rd Annual National Night Out and embracing this year’s Duarte theme,“Touch-A-Truck,”; as we strengthen partnerships between the community and public safety agencies in the ongoing effort to build a safer, stronger, and more united Duarte.
NOW, THEREFORE, BE IT RESOLVED that the City of Duarte hereby ATTEST:
_____________________________________
Frances Jimenez, City Clerk
_____________________________________
Tera Martin Del Campo, Mayor
4, 2026, but the National Association of Town Watch has granted the City of Duarte permission to hold its event on Thursday, August 6, 2026, allowing us to partner with the Parks & Recreation Department and to ensure full support from our contract services, which will be assisting other jurisdictions on the 6th; and
WHEREAS, National Night Out is officially observed on Tuesday, August
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Brian Villalobos, City Manager
BY: Andres Rangel, Assistant to the City Manager
SUBJECT: Approval of Memorandum of Understanding (MOU) with the San Gabriel Valley Council of Governments (SGVCOG) Regional Food Recovery Program
RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute the Memorandum of Understanding (MOU) with the San Gabriel Valley Council of Governments (SGVCOG) to continue participation in the Regional Food Recovery Program for a not to exceed amount of $25,195 for a two-year term
FISCAL IMPACT: The Fiscal Impact of the agreement will not exceed $25,195. The agreement amount has been budgeted in the FY 26-27 Budget (1010-7965)
STRATEGIC PLAN
IMPACT: Goal E – E1.3 Organizational Excellence
BACKGROUND
To comply with edible food recovery inspection and enforcement, as required by SB 1383, the City has worked with the SGVCOG since 2021 to administer a regional edible food recovery program. The SGVCOG contracts with ReCreate to provide food generator inspection services for all its participant cities. ReCreate provides inspections and recommends generator compliance/noncompliance status, and the City serves as the enforcement branch.
Edible Food Generators (EFG) are categorized in two tiers. Tier 1 generators include supermarkets, grocery stores greater than 10,000 square feet, and wholesale food vendors. Tier 2 generators include restaurants with 250 or more seats, health facilities, and school districts. The City works with ReCreate to update its Tier 1 and Tier 2 EFG list annually. Currently Duarte has 11 total EFGs.
Since 2021, the SGVCOG, in conjunction with ReCreate, have conducted five rounds of inspections to ensure that tier 1 and tier 2 generators maintain adequate recordkeeping and agreements to donate the maximum amount of edible food to food recovery organizations.
Agenda Item: 13.J.
2 The initial agreement that established a set number of inspections will expire in November.
Consequently, Duarte, as well as SGVCOG participant cities recognize the benefit in approaching edible food recovery compliance regionally and therefore recommend to opt-in to the program through June 30, 2028.
DISCUSSION/ANALYSIS
The proposed MOU allows the City to opt-in to the SGVCOG’s edible food recovery program through June 30, 2028. If approved, the City will continue to work with the SGVCOG’s consultant ReCreate, to conduct inspections for compliant and non-compliant tier 1 and tier 2 generators in Duarte.
The scope of work requires ReCreate to conduct an annual inspection to all compliant EFGs in Duarte, as well as inspect non-compliant EFGs twice a year.
The current budget breakdown considers the anticipated number of inspections Duarte needs to inspect its EFGs as it works toward full compliance.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to execute the Memorandum of Understanding (MOU) with the San Gabriel Valley Council of Governments (SGVCOG) to continue participation in the Regional Food Recovery Program for a not to exceed amount of $25,195 for a two-year term.
FISCAL IMPACT
The Fiscal Impact of the agreement will not exceed $25,195. The agreement amount has been budgeted in the FY 26-27 Budget (1010-7965).
ATTACHMENTS
A. Memorandum of Understanding Between the San Gabriel Valley Council of Governments and the City of Duarte
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
MEMORANDUM OF AGREEMENT
BETWEEN THE SAN GABRIEL VALLEY COUNCIL OF GOVERNMENTS AND
THE CITY OF DUARTE FOR PARTICIPATION IN THE SAN GABRIEL VALLEY
REGIONAL FOOD RECOVERY PROGRAM
This Memorandum of Agreement (“MOA”) is made and entered into to be effective as of the 1st day of November, 2026 (“Effective Date”) by and between the City of Duarte, a municipal corporation (“City”), and the San Gabriel Valley Council of Governments, a California joint powers authority (“SGVCOG”). City and SGVCOG may be referred to herein collectively as the “Parties” or individually as a “Party.”
RECITALS
A. The passage of SB 1383 (Lara, 2016) implemented statewide targets to reduce statewide disposal of organic waste and increase recovery of currently disposed edible food for human consumption. Specifically, SB 1383 aims to recover at least 20% of currently disposed edible food for human consumption by 2025. The California Department of Resources Recycling and Recovery (CalRecycle) has developed regulations entitled “Short-lived Climate Pollutants: Organic Waste Reductions” (hereafter “SLCP Regulations”), which regulations are codified at Chapter 12 of Division 7 of Title 14 of the California Code of Regulations, sections 18981.1 et seq.
B. To recover 20% of edible food that would otherwise be sent to landfills by 2025, SB 1383 requires local jurisdictions to establish food recovery programs and strengthen their existing food recovery networks.
C. The SGVCOG was established to have a unified voice to maximize resources and advocate for regional and member interests to improve the quality of life in the San Gabriel Valley by the member cities and other local governmental agencies and has established and is administering a Regional Food Recovery Program (the “Program”).
D. The CalRecycle 1383 Local Assistance Grant funding for the Program expires on November 2, 2026. The City desires to continue receiving Program services and agrees to provide the necessary funding to the SGVCOG for the ongoing implementation of the Program.
E. City and SGVCOG desire to set forth the terms of their ongoing collaboration with respect to this effort in this MOA and further agree as follows:
NOW, THEREFORE, the Parties agree to the following:
I. RECITALS
The above Recitals are made a substantive part of this MOA.
II. SCOPE OF SERVICES
The Scope of Services, attached hereto and incorporated herein by this reference is hereby made a part of the MOA as Exhibit “A”.
III. TERM
The term of this MOA shall commence on November 1, 2026, and shall continue through June 30, 2028. The term of this MOA may be extended by mutual written MOA of the Parties.
IV. RESPONSIBILITIES OF THE PARTIES
A. SGVCOG:
1. Designate a point-of-contact with name, title, and contact information who will serve as the SGVCOG’s Project Manager. If the point-of-contact is reassigned or no longer with the SGVCOG, a new point-of-contact will be promptly designated.
2. Oversee and implement Program Management, Inspections, and Edible Food Recovery Program Implementation, as defined in the Program’s Scope of Work (Exhibit A).
3. Undertake procurements, execute contracts, and manage contracts, including administration, project management, and invoicing, to complete the Program set forth in the Program’s Scope of Work (Exhibit A).
4. Respond to and address City questions regarding Program implementation.
5. Coordinate regional and City-specific conference calls, meetings, and other communication with City and consultant monthly or as necessary.
6. Provide Annual Inspection Reports and other materials to City to support the Electronic Annual Report (EAR) and other CalRecycle Reporting.
B. City:
1. Maintain membership in the SGVCOG during the entire term of the Program.
2. Designate a point-of-contact to serve as the City’s Project Manager to coordinate with the SGVCOG and consultants.
3. Respond to data and information requests from the SGVCOG and its consultant(s), in a timely manner to support the implementation of the Program.
4. Participate in scheduled monthly conference calls and/or meetings with the SGVCOG and consultants throughout the implementation of the Program.
5. Provide comments and feedback on Program implementation, Program materials, and other Program deliverables to consultant or the SGVCOG, on deliverables as necessary.
6. Implement the Inspection requirements, as defined in the Program’s Scope of Work (Exhibit A).
7. Comply with requirements of jurisdictions under SB 1383. SGVCOG will provide guidance and make recommendations to facilitate compliance with SB 1383 but the City is the party responsible to ensure compliance with the regulation.
8. Remit payment to the SGVCOG for the City’s share of Program costs within thirty (30) days of receipt of an invoice. If an invoice is not paid within ninety (90) days of receipt, SGVCOG reserves the right to not provide the services outlined in Exhibit A.
V. INVOICING:
A. SGVCOG shall invoice City upon the execution of this Agreement for FY2026-27 and by June 1, 2027, for FY 2027-2028.
B. City must remit payment to SGVCOG within thirty (30) days of receipt by City. If the invoice is not paid within sixty (60) calendar days of receipt by City, SGVCOG reserves the right to cease Program implementation on behalf of the City until payment is received.
C. SGVCOG shall reconcile the actual cost of services to the amount budgeted in Exhibit B. If the actual cost of the City’s Task 2 Estimated Inspection Implementation is less than the budgeted amount, SGVCOG shall credit these unspent funds to the City on the City’s next invoice. If there are no future City invoices, the SGVCOG will reimburse the City for that amount at the end of the Agreement. If the actual cost for Task 2 Estimated Inspection Implementation is more than the budgeted amount, SGVCOG shall invoice the City for the actual cost of Task 2 program implementation. SGVCOG shall inform the City of any changes and anticipated total costs prior to completing any activity beyond the budgeted amount. If the actual cost of Task 2 implementation is anticipated to be more than 10% of the budgeted cost, the City may elect to opt-out of Task 2 with no penalty.
VI. AMENDMENTS
A. Except as specifically provided herein, any change in any of the terms and conditions of this MOA shall not have any force and effect unless a written amendment has been prepared and executed by the Parties.
VII. PROGRAM MANAGEMENT
A. Program Managers.
i. For the purposes of this MOA, SGVCOG designates the following individual as its Program Manager:
Luis Garcia Chavez
Management Analyst
(626) 457-1800
[email protected]
ii. For the purposes of this MOA, the City designates the following individual as its Program Manager:
Andres Rangel
Assistant to the City Manager
626-357-7931
[email protected]
Either Party may change the designations set forth herein upon written notice to the other Party.
VIII. TERMINATION
A. This MOA may be terminated by either Party at any time, with or without cause, by providing written notice of termination to the other Party. Such termination will be effective thirty (30) days after such notice is received.
B. If either Party terminates this MOA prior to the completion of the MOA term, SGVCOG will reconcile the actual cost of services and program implementation incurred up to the effective date of termination against the advance payments made by the City:
i. If the actual costs are less than the amount paid by the City, SGVCOG shall reimburse the unspent funds to the City within thirty (30) days of the effective date of termination.
ii. If the actual costs incurred prior to termination exceed the amount paid, SGVCOG shall issue a final invoice to the City for the difference, which the City shall pay within thirty (30) days of receipt.
IX. INDEMNIFICATION
A. Neither the SGVCOG, its member agencies, or their respective officers, employees, consultants or volunteers (the “SGVCOG Indemnitees”), shall be responsible for any damage or liability occurring by reason of anything done or committed to be done by the City under or in connection with the performance of this MOA.
B. The City shall indemnify, defend and hold the SGVCOG Indemnitees harmless from and against any liability, claims, losses, actions, and expenses, including without limitation, defense costs, any costs or liability on account of bodily injury, death or personal injury of any person or for damage to or loss of use of property, any legal fees and any claims for damages of any nature whatsoever arising out of or resulting from the City’s obligations under this MOA, unless caused by the active negligence or willful misconduct of the SGVCOG Indemnitees.
C. SGVCOG agrees to defend, indemnify, and hold free and harmless the City, its employees, and volunteers, at SGVCOG’s sole expense, from and against any and all claims, actions, suits, or other legal proceedings brought against the City, its employees, and volunteers arising out of or relating to the acts or omissions of SGVCOG in connection with this MOA.
X. INSURANCE
A. City and SGVCOG shall maintain and keep in full force and effect during the term of this MOA insurance or a program of self-insurance against claims for injuries to persons or damages to property which may arise in connection with City’s or SGVCOG’s performance of its obligations hereunder.
XI. OTHER TERMS AND CONDITIONS
A. Notices. All notices required or permitted to be given under this MOA shall be in writing and shall be personally delivered, or sent by electronic mail or certified mail, postage prepaid and return receipt requested, addressed as follows:
To SGVCOG: Mackenzie Bolger
Acting Sustainability Manager
San Gabriel Valley Council of Governments
1333 S. Mayflower, Suite 360
Monrovia, CA 91016
(626) 214-1316
[email protected]
with a copy to: Marisa Creter
Executive Director
San Gabriel Valley Council of Governments
1333 S. Mayflower, Suite 360
Monrovia, CA 91016
(626) 457-1800
[email protected]
To City: Andres Rangel
Assistant to the City Manager
1600 Huntington Drive
626-357-7931
[email protected]
with a copy to: Brian Villalobos
City Manager
1600 Huntington Drive
626-357-7931
[email protected]
B. No Partnership. This MOA is not intended to be, and shall not be construed as, an agreement to form a partnership, agency relationship, or a joint venture between the Parties. Except as otherwise specifically provided in the MOA, neither Party shall be authorized to act as an agent of or otherwise to represent the other Party.
C. Entire MOA. This MOA and any exhibits attached hereto, constitute the entire understanding between the Parties with respect to the subject matter herein and supersedes any and all other prior writings and oral negotiations. This MOA may be modified only in writing and signed by the Parties in interest at the time of such modification.
D. Governing Law. This MOA shall be governed by and construed under California law and any applicable federal law without giving effect to that body of laws pertaining to conflict of laws. In the event of any legal action to enforce or interpret this MOA, the
Parties hereto agree that the sole and exclusive venue shall be a court of competent jurisdiction located in Los Angeles County, California.
E. Attorneys’ Fees. In the event that there is any litigation or other legal proceeding between the Parties in connection with this MOA, each Party shall bear its own costs and expenses, including attorneys’ fees.
F. Excusable Delays. Neither Party shall be considered in default in the performance of its obligations hereunder to the extent that the performance of any such obligation is prevented or delayed by unforeseen causes including acts of God, floods, earthquakes, fires, acts of a public enemy, pandemic, epidemic, and government acts beyond the control and without fault or negligence of the affected Party. Each Party hereto shall give notice promptly to the other of the nature and extent of any such circumstances claimed to delay, hinder, or prevent performance of any obligations under this MOA.
G. Waiver. Waiver by any Party to this MOA of any term, condition, or covenant of this MOA shall not constitute a waiver of any other term, condition, or covenant. No waiver of any provision of this MOA shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought.
H. Headings. The section headings contained in this MOA are for convenience and identification only and shall not be deemed to limit or define the contents to which they relate.
I. Assignment. Neither Party may assign its interest in this MOA, or any part thereof, without the prior written consent of the other Party. Any assignment without consent shall be void and unenforceable.
J. Severability. If any provision of this MOA is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
K. Authority to Execute. The person executing this MOA on behalf of a Party warrant that they are duly authorized to execute this MOA on behalf of said Party, and that by doing so said Party is formally bound to the provisions of this MOA.
L. Counterparts. This MOA may be executed in multiple counterparts, each of which shall be deemed original, but all of which taken together shall constitute one and the same instrument.
M. Electronic Signatures. This MOA may be executed with electronic signatures in accordance with Government Code Section 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
IN WITNESS WHEREOF, the Parties hereto have caused this MOA to be executed as of the day and year first above written.
“CITY” “SGVCOG”
City of Duarte San Gabriel Valley Council of Governments By: By:
Brian Villalobos Marisa Creter,
City Manager Executive Director
ATTEST:
_________________________
Frances Jimenez
City Clerk
Approved as to form:
By:
Thai Viet Phan
City Attorney
Approved as to form:
By:________________
Cassie Trapesonian,
General Counsel
Exhibit “A”
Scope of Services
Task 1: Program Management
SGVCOG will oversee Program implementation, including but not limited to managing consultants, facilitating the completing of inspections, managing the inspection contract (including the inspection, education, and enforcement process) and supporting compliance reporting with the City for its annual CalRecycle reporting.
Task 2: Inspections and Enforcement
Inspections: SGVCOG and its consultants will complete Inspections of Tier 1 and Tier 2 edible food generators (EFGs) and food recovery organizations (FROs) based on the schedule shown in Table 1.
• Compliance Inspections: Inspections of all Tier 1 and Tier 2 EFGs and FROs to determine compliance with SB 1383, as enumerated in Table 3 of Exhibit B. The following Tier and Tier 2 businesses are defined by CalRecycle:
o Tier 1: Businesses that may have more produce, fresh grocery, and shelf-stable food to donate, including: wholesale food vendors, food service providers, food distributors, and supermarkets & grocery store equal to or less than 10,000 sq. ft. o Tier 2: Businesses that may have prepared food to donate, which often require more careful handing to meet food safety requirements, including: hotels, restaurant facilities, health facilities, state agency cafeterias, local education agencies, and large venues & events.
• Non-Compliance Inspections: Inspections of non-compliant businesses at least 60 days following enforcement actions by the City (including letters of non-compliance and Notices of Violation). For the purposes of this MOA, SGVCOG assumes that 65% of Tier 1 and Tier 2 businesses will require 2 non-compliant inspections, which will be completed in alignment with Table 1. Should the actual percentage of non-compliant businesses be different, SGVCOG and its consultants will complete non-compliant inspections of the actual number of non-compliant businesses.
Enforcement: City staff will be responsible for completing enforcement actions in conjunction with the SGVCOG in accordance with the schedule in Table 1. SGVCOG and its consultants will provide all necessary documentation to City following inspections to facilitate City’s enforcement actions (e.g. notices of violation (NOVs), letters of non-compliance, or financial penalties). • Notice of Violation (NOV): Formal notice issued to a non-compliant EFG or FRO specifying SB 1383 violations, required corrective actions, and a timeline for compliance and financial penalties.
• Letter of Non-Compliance: Notice issued to a non-compliant EFG or FRO specifying SB 1383 violations and corrective actions needed to achieve compliance without issuing financial penalties.
• Financial Penalties: Monetary fines issued to EFGs or FROs that remain out of compliance after a non-compliance inspection following the issuance of an NOV.
Table 1. Inspection and Enforcement Timeline
Inspection Type and Enforcement Time Frame Responsible
Party
Non-Compliance Inspections Nov 2026 – Jan 2027 SGVCOG
Financial Penalties Dec 2026 – Feb 2027 City
Compliance Inspections Sept – Nov 2027 SGVCOG
NOVs or Letters of Non-Compliance Oct – Dec 2027 City
Non-Compliance Inspections Jan – Mar 2028 SGVCOG
Financial Penalties Feb – Apr 2028 City
Task 3: Edible Food Recovery Program Implementation
SGVCOG will implement projects that ensure and enhance the region’s capacity to recover edible food, as required by SB 1383. Activities may include but are not limited to supporting the food recovery capacity of FROs or piloting other innovative approaches to increasing edible food recovery capacity.
Exhibit “B”
Budget & Invoicing Schedule
Table 2. FRESH SGV Budget Breakdown
Fresh SGV Implementation Costs Nov 1, 2026 – June 30, 2028 Task Est.
Unit
Cost
Est.
Rounds of
Inspections
Est. # of
EFGs/FROs
FY 26-27 FY 27-28 Total
Task 1: Inspection Program Management* $422.50 $1,072.50 $1,495.00 Task 2: Estimated Inspection Implementation** $4,225.00 $10,725.00 $14,950.00 Task 2a:
Compliance
Inspections
$500 1 13 $0 $6,500.00 $6,500.00
Task 2b: NonCompliance
Inspections
$500 2 9*** $4,225.00 $4,225.00 $8,450.00
Task 3: Edible Food Recovery Program
Implementation****
$3,500.00 $5,250.00 $8,750.00
Total $8,147.50 $17,047.50 $25,195.00
*Program Management cost is calculated as 10% of the budgeted cost of the compliance and non-compliance inspections.
**Task 2 costs are estimated based on the anticipated unit cost of each inspection and the estimated number of non-compliance inspections that are required. If the actual cost for the implementation of Task 2 is less than the budgeted amount, SGVCOG shall credit any unspent funds to the City on the City’s next invoice. If the actual cost for the implementation of Task 2 is more than the budgeted amount, SGVCOG shall invoice the City for the actual cost of program implementation.
If the actual cost of implementation is anticipated to be more than 10% of the budgeted cost, the City may elect to opt-out of Task 2 with no penalty.
***Assumes that 65% of EFGs and FROs enumerated in Table 3 will require non-compliance inspections.
****Edible Food Recovery Program Implementation costs are based on the number of EFGs.
Table 3. Number of EFGs and FROs
Number of EFGs 11
Number of FROs 2
Total Sites 13
Invoice Schedule
The SGVCOG will invoice the City on the following schedule:
• Fiscal Year 26-27: Invoice will be issued upon MOA execution for services rendered from November 1, 2026, through June 30, 2027.
• Fiscal Year 27-28: Invoice will be issued by June 1, 2027, for services rendered from
July 1, 2027, through June 30, 2028.
At the end of each fiscal year, SGVCOG will reconcile the actual cost of the City’s inspections against the amount budgeted in Table 2.
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Craig Hensley, Community Development Director
SUBJECT: Purchase of Locking Security Electric Pull Box Lids from Skyline Safety and Supply
RECOMMENDATION: That the City Council authorize the purchase of 64 locking security electric pull box lids from Skyline Safety and Supply for $84,864 FISCAL IMPACT: There will be an impact of $84,864 to the General Fund for the purchase of these higher security lids, however this item was included in the FY 2026/27 budget and it is anticipated that this product will reduce future theft that may result in long term savings
STRATEGIC PLAN
IMPACT: Goal G – Infrastructure and Beautification
BACKGROUND
In the past several months, copper wiring has been stolen from the pedestrian and street lights along Evergreen Street and Highland Avenue. Many of these lights were installed as part of the pedestrian improvement project that was completed in 2025. This includes the decorative pedestrian lights on the north side of Evergreen Street from Highland Avenue to Buena Vista and on the west side of Highland Avenue from the freeway to the Metro A Line Station. There are also some street lights on Evergreen Street east of Highland Avenue where wiring has been stolen.
Also, on the north side of Duarte Road from Highland Avenue to Hope Drive. The impacted pull boxes will be replaced in two ways. The proposed Lock Lid Industries covers will be used in the most visible locations and for less visible locations the lids will be covered with concrete. In all there are a total of about 90 pull boxes impacted and 64 will be replaced with the Lock Lid cover.
For some of the lighting, the wiring has been stolen twice in less than 12 months. To address the initial theft, the City installed cameras and increased patrol. Even with this, the wiring was stolen a second time. Unfortunately, this type of theft has been a problem for many cities.
Staff evaluated a variety of options to address the theft problem in a more effective way. One of the options, for higher risk areas is to install higher security locking lids. The idea to use these lids in the area was addressed as part of the budget discussion and $80,000 was included in the 2026- 27 fiscal year general fund budget. This cost is slightly above the budgeted amount but there are adequate funds for the proposed $84,864.
Agenda Item: 13.K.
2 DISCUSSION/ANALYSIS
The proposed pull box cover is a high security cover specially designed to prevent copper wire theft. The cover replaces the existing concrete lid cover and is manufactured with high-strength heavy-gauge carbon steel.
Skyline Safety and Supply is the sole source distributor of this specific Lock-Lid Industries product.
RECOMMENDATION
That the City Council authorize the purchase of 64 locking security electric pull box lids from Skyline Safety and Supply for $84,864.
FISCAL IMPACT
There will be an impact of $84,864 to the General Fund for the purchase of these higher security lids, however, this item was included in the FY 2026/27 budget and it is anticipated that this product will reduce future theft that may result in long term savings.
ATTACHMENTS
A. Cost Estimate
B. Product Photos
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
Slryline Safety and Supply LLC
4513 Nipomo Ave
Lakewood, CA 90713
Phone # 714-925-0338
CA Small Bus# 1755773
sales@skylinesafetyandsupply. com
Name / Address
City of Duarte - Public Works
Accounts Payable
1600 Huntington Drive
Duarte, CA 91010
To Order Please Contact Sales ReP
Tricia Sontag
Cell# 714-925-0338
Estimate
Estimate # Date
12397 6/30/2026
Ship To
City of Duarte - Public Works
Gerard Batista - City Yard
1850 Highland Ave.
Duarte, CA 91010
Item Description UOM otv Rate Total
Misc
SHIP
TYl IO2X155LACO-SL
Type I County Pull Box Locking Lid
Shipping
64 r,200.00
0.00 76,800.007
0.00 Subtotal $76,800.00
Sales Tax (10.5%) ss,oo+.oo
Total $84,864.00
Lock Lid Industries Security Covers
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Craig Hensley, Community Development Director
BY: Marvin Carpio, Associate Civil Engineer
SUBJECT: Notice of Completion: Fiscal Year 25-26 Street Rehabilitation Project No. 26-2 for ONYX Paving Company Inc.
RECOMMENDATION: It is recommended that the City Council accept the project as complete in the amount of $969,802
FISCAL IMPACT: The Fiscal Year 25-26 Street Rehabilitation Project was included in the 25-26 Capital Improvement Program (CIP) budget and was funded by SB1 and Measure M allocations. City Council approved the contract with a 10% contingency for $970,200.00 and the final project cost was $969,802
STRATEGIC PLAN
IMPACT: Goal G – G1.1 Infrastructure and Beautification
BACKGROUND
On March 24, 2026, City Council awarded the contract for FY 25-26 Street Rehabilitation Project to ONYX Paving Company Inc. Construction activities began on April 2, 2026, and were completed on June 15, 2026.
DISCUSSION/ANALYSIS
The project included the rehabilitation of the existing asphalt roadway with rubberized asphalt and removal and reconstruction of localize failing pavement. All pavement markings and striping were replaced with reflective thermoplastic. Lastly, the project included the installation of 21 ADA ramps, reconstruction of cross gutters and removal and replacement of broken and off grade sidewalk.
The following street segments were included in this project:
1. Westvale Rd from northerly terminus to Sunnydale Dr
2. Westvale Ct from Westvale to easterly terminus
3. Starcrest Dr from Westvale Rd to Cedarwood Ave
4. Crestview St from northerly terminus to Starcrest Dr
5. Cedarwood Ave from northerly terminus to Willowglen Dr
6. Willowglen Dr from Westvale Rd to Las Lomas Rd
Agenda Item: 13.L.
2 7. Sunnydale Dr from westerly terminus to Las Lomas Rd
8. Las Lomas Rd from Willowglen Dr to Bernwood St
9. Bradbourne Ave from Maynard Dr to Central Ave
10. Elmhurst Ave from Huntington Dr to Central Ave
11. Random Ln from Maynard Dr to Central Ave
12. Maynard Dr from Bradbourne Ave to easterly terminus
FISCAL IMPACT
The Fiscal Year 25-26 Street Rehabilitation Project was included in the 25-26 Capital Improvement Program (CIP) budget and was funded by SB1 and Measure M allocations. City Council approved the contract with a 10% contingency for $970,200.00 and the final project cost was $969,802.
RECOMMENDATION
It is recommended that the City Council accept the project as complete in the amount of $969,802.
ATTACHMENTS
A. Before and After Photos
B. Notice of Completion
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
3 ATTACHMENT “A”
BEFORE AFTER
4 ATTACHMENT “B”
(Please see next page)
RECORDING REQUESTED BY:
CITY OF DUARTE
WHEN RECORDED MAIL TO THIS ADDRESS:
CITY CLERK
CITY OF DUARTE
1600 Huntington Dr.
Duarte, CA 91010
SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE
NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN THAT:
1. The undersigned is OWNER or AGENT of the OWNER of the interest or estate stated below in the property hereinafter described.
2. The full name of the OWNER is: CITY OF DUARTE
3. The full address of the OWNER is: 1600 Huntington Dr. Duarte, CA 91010
4. The nature of the interest or estate of the undersigned is: (i.e., In Fee.) Fee Interest.
5. A work of improvement on the property hereinafter described was COMPLETED on Monday, June 15, 2026
6. The work of improvement completed is described as follows: FY 25-26 Street Rehabilitation Project
7. The name of the original contractor, if any, for such work of improvement is: ONYX Paving Company Inc.
The street address of said property is: Complete streets of Westvale Ct, Starcrest Dr, Crestview St, Cedarwood Ave, Willowglen Dr, Sunnydale Dr and Elmhurst Ave; Segments of Las Lomas Rd from Willowglen Dr to Bernwood St, Bradbourne Ave from Maynard Dr to Central Ave, Random Ln from Maynard Dr to Central Ave, Maynard Dr from Bradbourne Ave to E’ly Terminus and Westvale Rd from N’ly Terminus to Sunnydale Dr.
8. The property on which said work of improvement was completed is in the City of Duarte, County of LOS ANGELES, State of CALIFORNIA, and is described as follows: The scope of the work includes cold milling of asphalt concrete and resurfacing using rubberized asphalt, adjustment of existing utility covers, installing pavement markings and striping, constructing ADA Ramps.
CITY OF DUARTE
July 28, 2026
Signature of Owner or agent: Brian Villalobos, City Manager
VERIFICATION
I, the undersigned, declare under penalty of perjury under the laws of the State of California, that I am the City Manager of the City of Duarte of the aforesaid interest or estate in the property described in the above Notice, that I have read the said Notice, that I know and understand the contents thereof, and that the facts stated therein are true and correct.
July 28, 2026, at Duarte, California
Brian Villalobos, City Manager
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Brian Villalobos, City Manager
BY: Andres Rangel, Assistant to the City Manager
SUBJECT: FY 26-27 Quarterly Chamber of Commerce Update Presentation RECOMMENDATION: It is recommended that the City Council receive and file the Duarte Chamber of Commerce Update Report
FISCAL IMPACT: There is no fiscal impact associated with approving this item
STRATEGIC PLAN
IMPACT: Goal F – F1.5 Community Vitality
BACKGROUND
On June 24, 2025, the City Council approved the FY 2025-26 Services agreement with the Duarte Chamber of Commerce (“Chamber”) in the amount of $73,600 through June 30, 2026. The agreement had an option to extend the agreement automatically by one fiscal year, through June 30, 2027. This report serves as the first quarterly report from the Chamber for FY 26-27.
The agreement requires the Chamber to present a progress report to Council, evaluating the following performance metrics:
a. Active membership update
b. Number of interactions and types of inquiries with businesses c. Number of Chamber members reserving available rooms and office space d. Number and types of businesses promoted, and type(s) of promotion provided e. Number and types of workshops/trainings hosted
f. Events hosted and member turnout
DISCUSSION/ANALYSIS
In addition to quarterly Chamber update presentations to City Council, the Chamber provides City staff with monthly progress reports. For the months of April through June, the Chamber has offered 18 webinars, received 235 inquiries from businesses, and hosted the SGV Women’s Summit, Chamber Member Mixer, as well as organized ribbon cuttings for Café de Olla, Morralitos, and Code & Bot. Chamber staff will provide a presentation with more detail regarding its work conducted.
Agenda Item: 17.A.
2 RECOMMENDATION
It is recommended that the City Council receive and file the Quarterly Duarte Chamber of Commerce Update Report.
FISCAL IMPACT
There is no fiscal impact associated with approving this item.
ATTACHMENTS
A. April through June Monthly Reports
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
Metrics Jan 2026 Feb 2026 March 2026 April 2026 May 2026 June 2026 July 2026 Membership
Count
153 153 154 153
Workshops and Education provided to businesses
In person 0 0 2 0
Webinar 12 11 5 1
Business inquiries
In person 12 47 50 70
By phone or
email
Phone: 2
Email: 14
Phone: 19
Email: 10
Phone:15
Email: 15
Phone: 20
Email: 15
Phone:
Email:
Phone:
Email:
Phone:
Email:
Type of inquiries See attached document
Businesses promoted
Via Social media
(Instagram,
Facebook &
Chamber
website)
5 posts
15 stories
10 mentions
7 posts
13 stories
10 mentions
16 posts
10 stories
10 mentions
20 posts
10 stories
22 business
mentions
feed posts/
stories
business
mentions
feed posts/
stories
business
mentions
feed posts/
stories
business
mentions
Traditional &
Digital
Promotions
(hard copy,
eBlasts, emails,
public events,
newsletter)
8-
member
eblasts
19-
member
flyers
5-events
5-member
eblasts
12-member
flyers
5-events
8-member
eblasts
-10 member
flyers
-5 events
4-member
eblasts
16 -member
flyers
10 -events
-member
eblasts
-member
flyers
-events
-member
eblasts
-member
flyers
-events
-member
eblasts
-member
flyers
-events
Events
New
Mayor
Breakfast
Acts Thrift
Store
RibbonCutting
Lunar New
Year
LA28
Partnerships
Job Fair
RibbonCutting for
YBBC
Chamber
Member
Mixer
Business inquiries-Walk-ins
1. Residents looking for news, coupon book, merch, etc.
2. Local business complaints, questions, comments
3. Resident looking for low-income housing
Workshops
1. Build an e_ective marketing plan
Events Promoted in April
1. Cal Poly Tax Assistance
2. Womans Club Plan Sale
3. Maryvale Fundraiser
4. Free paper shred day
5. Duarte Historical Museum speaker series
6. Burrtec event
7. Duarte Womans Club Installation Dinner
8. State of the city
9. Community Clean Up
10. Upper SGV Water District workshop
Metrics Jan 2026 Feb 2026 March 2026 April 2026 May 2026 June 2026 July 2026 Membership
Count
153 153 154 153 154
Workshops and Education provided to businesses
In person 0 0 2 0 0
Webinar 12 11 5 1 10
Business inquiries
In person 12 47 50 70 35
By phone or
email
Phone: 2
Email: 14
Phone: 19
Email: 10
Phone:15
Email: 15
Phone: 20
Email: 15
Phone: 10
Email:20
Phone:
Email:
Phone:
Email:
Type of inquiries See attached document
Businesses promoted
Via Social media
(Instagram,
Facebook &
Chamber
website)
5 posts
15 stories
10 mentions
7 posts
13 stories
10 mentions
16 posts
10 stories
10 mentions
20 posts
10 stories
22 business
mentions
6 feed
posts/ 5
stories
28 business
mentions
feed posts/
stories
business
mentions
feed posts/
stories
business
mentions
Traditional &
Digital
Promotions
(hard copy,
eBlasts, emails,
public events,
newsletter)
8-
member
eblasts
19-
member
flyers
5-events
5-member
eblasts
12-member
flyers
5-events
8-member
eblasts
-10 member
flyers
-5 events
4-member
eblasts
16 -member
flyers
10 -events
4 -member
eblasts
10 -member
flyers
6 -events
-member
eblasts
-member
flyers
-events
-member
eblasts
-member
flyers
-events
Events
New
Mayor
Breakfast
Acts Thrift
Store
RibbonCutting
Lunar New
Year
LA28
Partnerships
Job Fair
RibbonCutting for
YBBC
Chamber
Member
Mixer
SGV
Women’s
Summit
Business inquiries-Walk-ins
1. Residents looking for news, coupon book, merch, etc.
2. Local business complaints, questions, comments
3. Resident looking for low-income housing
Workshops
1. AI For The SGV: Smarter Government, Stronger Communities
2. E-mail Marketing Essentials for Business
3. Market Research and Idea Validation Workshop
4. AI 101 For Small Business: What it is, how it works, and how to use it to save time and make money
5. Google AI Tools for Growth and Scale: The Small Business AI Toolkit
6. Employee Recruitment, retention and culture
7. LA28 Opportunities
8. Economic Development – Work Smarter, Grow Stronger with AI
9. AI for Business – Make it work for you
10. Navigating Business Disputes w/ SGV Economic Partnerships Events Promoted in May
1. SGV Women’s Summit
2. Womens Club Installation Dinner
3. Duarte Historical Museum Rocktown Museum Pop-up
4. Women’s Club Flag Display
5. Church of the Foothills Memorial Day Service
6. Boys and Girls Club Carnival
Metrics Jan 2026 Feb 2026 March 2026 April 2026 May 2026 June 2026 July 2026 Membership
Count
153 153 154 153 154 157
Workshops and Education provided to businesses
In person 0 0 2 0 0 0
Webinar 12 11 5 1 10 7
Business inquiries
In person 12 47 50 70 35
By phone or
email
Phone: 2
Email: 14
Phone: 19
Email: 10
Phone:15
Email: 15
Phone: 20
Email: 15
Phone: 10
Email:20
Phone:
Email:
Phone:
Email:
Type of inquiries See attached document
Businesses promoted
Via Social media
(Instagram,
Facebook &
Chamber
website)
5 posts
15 stories
10 mentions
7 posts
13 stories
10 mentions
16 posts
10 stories
10 mentions
20 posts
10 stories
22 business
mentions
6 feed
posts/ 5
stories
28 business
mentions
9 feed posts/
28 stories
13 business
mentions
feed posts/
stories
business
mentions
Traditional &
Digital
Promotions
(hard copy,
eBlasts, emails,
public events,
newsletter)
8-
member
eblasts
19-
member
flyers
5-events
5-member
eblasts
12-member
flyers
5-events
8-member
eblasts
-10 member
flyers
-5 events
4-member
eblasts
16 -member
flyers
10 -events
4 -member
eblasts
10 -member
flyers
6 -events
4-member
eblasts
13-member
flyers
11-events
-member
eblasts
-member
flyers
-events
Events
New
Mayor
Breakfast
Acts Thrift
Store
RibbonCutting
Lunar New
Year
LA28
Partnerships
Job Fair
RibbonCutting for
YBBC
Chamber
Member
Mixer
SGV
Women’s
Summit
Cafe de Olla
Grand
Opening
Morralitos
Grand
Opening
Code & Bot
Grand
Opening
30 20
15
Business inquiries-Walk-ins
1. Residents looking for news, coupon book, merch, etc.
2. Local business complaints, questions, comments
3. Resident looking for low-income housing
4. Membership
5. Workshops
1. AI For The SGV: Smarter Government, Stronger Communities
2. Custom GPTs for Small Business Operations
3. Strategic Intelligence
4. AI for Revenue Systems and Offer Creation
5. AI Graphics and Video Creation
6. ChatGPT and Canva Workflow Automation
7. Customer Service: Results, Referrals, Rewards
Events Promoted in June
1. World Cup Viewing Party
2. Legacy Kenpo Parents Night Out
3. Maryvale 170th Anniversary
4. Womans Club Ice Cream Social
5. Code & Bot Grand Opening
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Craig Hensley, Community Development Director
SUBJECT: Replacement of holiday decorations by JK Property Services RECOMMENDATION: That the City Council approve the replacement of holiday garland and bows and electrical line for building lighting for a total cost of $7,255
FISCAL IMPACT: There will be a $7,255 impact to the general fund
STRATEGIC PLAN
IMPACT: There is no strategic plan impact associated with this item
BACKGROUND
During the holiday season the City has traditionally installed street and building decorations. This includes:
• building lighting for the civic center buildings
• snowflakes on streetlight poles on Huntington Drive and Buena Vista Street • ground mounted, lighted, snowflakes
• tree lighting at various locations
• garland and bows on pedestrian lights on Duarte Road and Highland Avenue The City contracts with JK Property Services that installs and removes the decorations and also stores the decorations when they are not in use. The annual installation, removal and storage cost for all holiday decorations is $30,075.
DISCUSSION/ANALYSIS
To maintain the current holiday decoration plan, damaged and missing decorations need to be replaced. Last year, 20 of the 48 garlands installed on pedestrian lights on Duarte Road and Highland Avenue were stolen. This was the first year that decorations were installed in this area.
There is also the need to replace 1400 feet of wire and light clips, to maintain the civic center building lighting. The total cost for the replacements will be $7,255.
RECOMMENDATION
That the City Council approve the replacement of holiday garland and bows and electrical line for building lighting for a total cost of $7,255.
Agenda Item: 17.B.
2 FISCAL IMPACT
There will be a $7,255 impact to the general fund.
ATTACHMENTS
A. Proposal
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
Phone: (562)347-9925
Ollice: (562)693-5058
i o h n(di k p ro tt e rtv se rvi c e. c o nt
Property Services, Inc.
5-ts-26
Gerard Batista
Field Services Manager
City of Duarte
1600 Huntington Dr.
Duarte, CA.91010
(626)3s7-7931
gbati [email protected]
Proposal
Holiday Ddcor
LOCATION: City of Duarte
1600 Huntington Dr
Duarte, CA.
SCOPB OF WORK: Purchase and Deliver Holiday D6cor
Purchase (20 ) 9' Green Carland 14" Thick / Unlit - $2500 Purchase (2 ) 24" Candy Cane Bows - $340
( replacement garland and bows to be installed decorative light poles ) Purchase NEW Light Line approximately 1400 LF - $3850
Purchase New Light Clips approximately 1400 clips - $565 NOTE: All ddcor will be purchased by City of Duarte and stored at JK warehouse.
TOTAL: $7255
Approval: Date:
The price quoted in this proposal will be valid for 30 days from the proposal date, JK PROPERTY SERVICES, INC. witl submit invoices fbr payment on agreed upon payment terms.
Thank you for the opportunity to subrnit this proposal. JK PROPERTY SERVICES, INC. looks forward to building a long-term working relationship with the City of Duarte. We are confident that you will be pleased with our high quality of work" We assurc you we will use all resources available to JK PROPERTY SERVICES, INC. to ensure ws will provide excellent service. If we can provide any additional inforrnation or assistance, please feel free to contact me at ( 562 ) 347 - 9925.
Respectf ul ly subm itted,
John Perez
7200 Greenleof Ave. Suite 170-8, Whittier, CA.906A2
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Brian Villalobos, City Manager
SUBJECT: Approval of a Joint Powers Agreement between the Cities of Azusa, Duarte, and Irwindale for the Formation of the North San Gabriel River Joint Powers Authority to Pursue the Leases, Management, Operation, and Revitalization of Lario Park
RECOMMENDATION: Staff Recommends that the City Council:
1. Approve participation in the formation of the North San Gabriel River Joint Powers Authority (JPA) between the Cities of Azusa, Duarte, and Irwindale;
2. Authorize the City Manager to negotiate and execute the Joint Powers Agreement, subject to approval as to form by the City Attorney; and
3. Authorize the City’s participation in pursuing a lease or other management agreement with the U.S. Army Corps of Engineers (USACE) for Lario Park and related recreational assets within the Santa Fe Dam Recreation Area
FISCAL IMPACT: There is no fiscal impact associated with this item
STRATEGIC PLAN
IMPACT: There is no strategic plan impact associated with this item
BACKGROUND
In September 2020, the Cities of Azusa, Duarte, and Irwindale established the North San Gabriel River Working Group (NSGRWG) to address growing public safety, environmental, and qualityof-life concerns associated with the North San Gabriel River corridor and surrounding federally owned properties.
The Working Group was formed in response to increasing homelessness, illegal encampments, wildfire risks, environmental degradation, public safety concerns, and emergency response challenges affecting all three communities. Since its formation, the NSGRWG has coordinated public safety operations, homeless outreach efforts, environmental cleanups, encampment abatement projects, emergency response activities, and grant funding opportunities in partnership with the U.S. Army Corps of Engineers, Los Angeles Homeless Services Authority, law enforcement agencies, and other regional stakeholders.
Agenda Item: 17.C.
2 In November 2023, the Cities formalized their partnership through a Memorandum of Understanding (MOU) establishing a framework for joint planning, resource sharing, public safety coordination, grant administration, environmental stewardship, wildfire mitigation, and restoration of recreational open space within the North San Gabriel River area.
A primary focus of the NSGRWG has been the property commonly known as Lario Park, a 26- acre portion of the Santa Fe Dam Recreation Area located within the Santa Fe Flood Control Basin and owned by the U.S. Army Corps of Engineers. For almost 50 years, the property was managed by Los Angeles County pursuant to a Lease between the Secretary of the Army and the County of Los Angeles for public park and recreational purposes.
During a recent Los Angeles County Board of Supervisors meeting, a motion was passed in support of having the cities of Azusa, Duarte and Irwindale pursue future lease opportunities associated with Lario Park. As a result, staff recommends formation of a Joint Powers Authority to serve as the governance and management entity for the property.
DISCUSSION/ANALYSIS
Given the regional nature of the North San Gabriel River corridor, the shared public safety impacts experienced by all three communities, the existing interagency partnership, and the opportunities for regional grant funding, staff believes a Joint Powers Authority provides the most effective and equitable governance structure.
The proposed JPA represents the next logical evolution of the successful collaboration established through the North San Gabriel River Working Group and the 2023 Memorandum of Understanding.
While the MOU provides a framework for cooperation among the participating cities, it does not create a separate legal entity capable of entering into lease agreements, obtaining insurance, administering funding, hiring consultants, entering into contracts, or implementing large-scale capital projects. Formation of a JPA will establish an independent public entity with the authority necessary to undertake those responsibilities.
The proposed JPA will be established as a separate legal entity responsible for maintaining its own budget, financial records, insurance coverage, contracts, and operational structure.
Initial organizational and planning activities are anticipated to be supported through State funding secured through the efforts of Senator Rubio. These funds are intended to assist with organizational development, lease negotiations, planning activities, and initial implementation efforts associated with the revitalization of Lario Park.
Following formation, the JPA will pursue additional grant funding opportunities to support longterm operations, capital improvements, ongoing maintenance and public safety initiatives.
Any future member agency contributions, if necessary, will be subject to approval by the JPA governing board and participating member agencies through future budget actions.
3 RECOMMENDATION
Staff recommends that the City Council:
1. Approve participation in the formation of the North San Gabriel River Joint Powers Authority (JPA) between the Cities of Azusa, Duarte, and Irwindale;
2. Authorize the City Manager to negotiate and execute the Joint Powers Agreement, subject to approval as to form by the City Attorney; and
3. Authorize the City’s participation in pursuing a lease or other management agreement with the U.S. Army Corps of Engineers (USACE) for Lario Park and related recreational assets within the Santa Fe Dam Recreation Area.
FISCAL IMPACT
There is no fiscal impact associated with this item.
ATTACHMENTS
A. North San Gabriel River Open Space and Recreation Authority Joint Exercise of Powers Agreement
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 1 of 17
NORTH SAN GABRIEL RIVER
OPEN SPACE AND RECREATION AUTHORITY
JOINT EXERCISE OF POWERS AGREEMENT
This Joint Exercise of Powers Agreement (“Agreement”) is made and entered into by and between the City of Azusa (“Azusa”), the City of Duarte (“Duarte”), and the City of Irwindale (“Irwindale”), each a municipal corporation organized under the laws of the State of California (collectively, the “Member Agencies” or the “Parties”). This Agreement is entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the Government Code relating to the joint exercise of powers.
RECITALS
WHEREAS, the Member Agencies share geographic boundaries and areas of mutual interest along and near the North San Gabriel River corridor from and including the Santa Fe Dam and then north to the Angeles National Forest boundary (“JPA Area”), including adjacent open space, flood control corridors, and public rights-of-way; and WHEREAS, the JPA Area presents significant opportunities for passive and active recreation, including trails, greenways, environmental education, and community programming; and
WHEREAS, coordinated public management of the JPA Area can enhance public safety, reduce nuisance and illegal activity, improve emergency access, and support environmental stewardship; and
WHEREAS, each of the Member Agencies has the authority to acquire, develop, maintain, and manage public lands for the public benefit and for public recreation use and enjoyment; and WHEREAS, per Title 1, Division 7, Chapter 5, Article 1 of the California Government Code, Government Code Sections 6500 et seq., commonly known as the Joint Exercise of Powers Act, two or more public agencies may by agreement jointly exercise any power common to the contracting parties; and
WHEREAS, the Member Agencies desire to jointly exercise their common powers per the Joint Exercise of Powers Act to efficiently lease, plan, program, operate, maintain, and improve the JPAArea for recreational and public purposes; and
WHEREAS, the formation of a Joint Powers Authority will promote regional cooperation, leverage funding opportunities, and provide a unified framework for long-term planning and public benefit; and
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 2 of 17 WHEREAS, the parties desire, by means of this Agreement, to establish an organization called the North San Gabriel River Open Space and Recreation Authority (“Authority”) for such joint exercise of power and authority, and to provide for the organization’s powers and procedures; NOW, THEREFORE, in consideration of the above Recitals and of the mutual promises and agreements contained herein, the Member Agencies agree as follows:
ARTICLE I: DEFINITIONS
1.1. “Act” or the “Joint Exercise of Powers Act” means Articles 1 through 4, Chapter 5, Division 7, Title 1 of the Government Code of the State of California (commencing with Section 6500) relating to the joint exercise of powers common to public agencies.
1.2. “Agreement” means this Joint Exercise of Powers Agreement.
1.3. “Annual Budget” means the budget adopted pursuant to Section 6.8 of this Agreement.
1.4. “Authority” or “JPA” means the North San Gabriel River Open Space and Recreation Authority, which is created by this Agreement.
1.5. “Board” or “Board of Directors” means the Board of Directors referred to in Article IV of this Agreement, which is the governing body of the Authority.
1.6. “Director” means a member of the Board appointed to the Board pursuant to Section 4.1 of this Agreement.
1.7. “Effective Date” means the last date on which all Parties to this Agreement executed the Agreement.
1.8. “JPAArea” means the reach and corridor of the northern San Gabriel River, including the Santa Fe Dam and extending northwards along the San Gabriel River and corridor and terminating at the boundary between the City of Azusa and the Angeles National Forest.
1.9. “Member Agency(ies)” means the City of Azusa, the City of Duarte, the City of Irwindale, and any other entity added to this Agreement by subsequent amendment.
1.10. “Member of the Board” or “Board Member” means a Director.
1.11. “Party(ies)” means those entities who have executed this Agreement or any Amendment to this Agreement and who have not withdrawn from the Authority.
ARTICLE II:FORMATION OF JOINT POWERS AUTHORITY
2.1. Creation. There is hereby created a Joint Powers Authority known as the North San Gabriel River Open Space and Recreation Authority (“Authority”).
2.2. Legal Status. The Authority shall be a public entity separate and distinct from the Member Agencies, as provided under Government Code Section 6507.
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 3 of 17
2.3. Term. The Authority shall commence upon the Effective Date. This Agreement shall be effective for as long as necessary to carry out the purpose and functions of Authority and may be terminated per Section 12.5 of this Agreement.
ARTICLE III: AUTHORITY PURPOSE AND POWERS
3.1. Purpose. The purpose of the Authority is to jointly plan, lease, program, operate, maintain, enhance, and protect open space and recreational areas located along and near the North San Gabriel River corridor within the JPA Area, in order to promote the following public purposes:
(a) Promote recreational access and community use.
(b) Enhance public safety and visibility.
(c) Improve environmental quality and stewardship.
(d) Coordinate regional recreational planning and funding. (e) Support equitable access to open space.
3.2. Powers. The Authority shall have the power to exercise any power common to the Member Agencies, and is hereby authorized, in its own name, to do all acts necessary, convenient and appropriate for the exercise of the foregoing powers for the purposes set forth in this Agreement, including the power to do any or all of the following:
(a) To enter into agreements, including for agents, officers, employees, consultants, services, goods, and property.
(b) To employ agents, officers, and employees, and to prescribe the duties, compensation and other terms and conditions of employment of such agents, officers, and employees.
(c) To acquire, lease, license, obtain, hold, or dispose of interests in real property. (d) To incur debts, liabilities, or obligations, which shall not constitute a debt, liability, or obligation of any Member Agency.
(e) To invest money in the treasury, per California Government Code section 6505.5, that is not required for the immediate necessities of the Authority, as the Authority determines advisable, in the same manner and on the same conditions as local agencies, per Section 53601 of the Government Code.
(f) To plan, design, construct, operate, and maintain recreational facilities and trails, including associated buildings, works, and improvements.
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 4 of 17 (g) To receive gifts, contributions and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and governmental entities, provided that the Authority consents to such gifts, contributions and donations. (h) To adopt reasonable policies, rules, and regulations for the conduct of the day-today operations of the Authority and to effectuate its purpose. (i) To apply for, receive, administer, and disburse grants and other aid from any agency of the United States of America or of the State of California. (j) To sue and be sued in its own name.
(k) To implement programming, events, and community activities. (l) To coordinate public safety efforts with law enforcement and emergency services. (m) To carry out and enforce all provisions of this Agreement. (n) To exercise any and all common powers which are provided for in the Joint Exercise of Powers Act and in Section 6588 of the Government Code, as they exist on the Effective Date of this Agreement or may hereafter be amended.
3.3. Limitation of Powers.
(a) The Authority shall have no power to impose or levy general or special taxes, special benefit assessments upon property, or property-related fees. However, the Authority may establish the following:
(i) A fee for a specific Authority benefit conferred or privilege granted directly to the payor that does not exceed the Authority’s reasonable costs of providing the benefit or privilege;
(ii) A fee for a specific Authority service or product provided directly to the payor that does not exceed the reasonable costs of providing the service or product;
(iii) A charge for the Authority’s reasonable regulatory costs for issuing licenses and permits; for performing investigations, inspections, and audits; and for administrative enforcement and adjudication thereof; and (iv) Acharge for entrance to or use of Authority property, or the purchase, rental, or lease of Authority property.
(b) For the purpose of Section 6509 of the Joint Exercise of Powers Act, the Authority’s power is subject to the restrictions upon the manner of exercising the powers as are imposed upon each City.
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 5 of 17 ARTICLE IV: BOARD OF DIRECTORS
4.1. Board of Directors. The Authority shall be governed by a Board of Directors that shall be known as the “Board of Directors of the North San Gabriel River Open Space and Recreation Authority.” The Board of Directors shall consist of seven (7) members, who shall be appointed as follows:
(a) One (1) appointed representative from each Member Agency’s City Council, resulting in three (3) Directors;
(b) One (1) appointed representative as designated by the City Manager of each Member Agency, resulting in three (3) additional Directors; and (c) One (1) additional representative from the City of Azusa, as the fiscal agent for the Authority, resulting in one (1) additional Director.
4.2. Membership Term. Each Director shall serve a two-year appointment and may be reappointed. Member agencies may designate alternates. Adding, removing or replacing appointees will require formal action from each member agency.
4.3. Compensation. Board members shall serve without compensation from the Authority.
4.4. Powers of the Board. All the power and authority of the Authority shall be exercised by the Board of Directors.
4.5. Officers.
(a) Chair. The Board of Directors shall elect one of its members as Chair of the Board.
The term of office for the Chair of the Board shall be one year. The Chair of the Board shall preside at all meetings and shall perform such other duties as are specified by the Board of Directors.
(b) Vice-Chair. The Board of Directors shall elect one of its members as Vice-Chair.
The term of office for the Vice-Chair shall be one year. The Vice-Chair shall perform all the duties of the Chair of the Board in the absence of the Chair of the Board, or in the event the Chair of the Board is unable to perform such duties, and shall perform such other duties as are specified by the Board of Directors. (c) Secretary. The Board of Directors shall elect a Secretary who shall serve at the pleasure of the Board. The Secretary may, but need not be, a Member of the Board of Directors. The Secretary shall be responsible for certifying the minutes and other records of the proceedings of the Board of Directors and shall perform such other duties as the Board of Directors specifies.
(d) Fiscal Agent. The City of Azusa is designated as the Fiscal Agent for the Authority.
The Fiscal Agent shall manage the Authority’s funds and provide financial and administrative services in accordance with California Government Code Sections
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 6 of 17 6505 and 6505.5. The duties of the Fiscal Agent are further described in Section 6.6 of this Agreement.
(e) Authority Attorney. The Board of Directors shall elect or appoint an Authority Attorney who shall serve at the pleasure of the Board, who shall not be a member of the Board or an elected official or employee of any Party. The Authority Attorney or a designated deputy may attend all meetings of the Board of Directors; provided, however, that the absence of the Authority Attorney shall not affect the validity of any meeting. The Authority Attorney shall perform such other duties the Board of Directors specifies.
(f) Additional Officers. The Board shall have the power to appoint additional officers as may be appropriate.
(g) Official Bond. Per Government Code section 6505.1, the public officer, officers or persons who have charge of, handle or have access to any property of the Authority shall file an official bond in an amount to be fixed by the Parties to this Agreement.
When deemed appropriate by the Authority, a master bond may be utilized as referred to in Government Code Section 1481, and the bond shall also comply with the requirements of Title 1, Division 4, Chapter 3 of the Government Code, with those sections being deemed applicable to the Authority to the extent the Parties deems appropriate. The premium shall be paid by the Authority.
4.6. Bylaws. The Board may cause to be developed and may adopt and amend, from time to time, such bylaws for the Authority to govern its day-to-day operations. Each Member Agency shall receive a copy of any bylaws developed and adopted under this Section.
4.7. Committees. The Board of Directors, by a majority vote, may form committees for any purpose. Such vote shall designate the method for appointing committee members, the scope of the duties and responsibility of the committee, whether the committee is a standing or ad hoc committee, and such other matters as the Board may deem appropriate. No compensation shall be payable to committee members unless approved by the Board.
4.8. Meetings of the Board and Voting.
(a) Regular Meetings. The Board shall conduct regular meetings; provided, however, that at least one regular meeting shall be held each fiscal quarter. The date, hour, and place of regular meetings shall be fixed by Resolution of the Board and filed with the governing body of each Member Agency. The Board may meet in joint session with other public agencies and advisory bodies in accordance with state law.
(b) Ralph M. Brown Act. All meetings of the Board, including without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the provisions of the Ralph M. Brown Act, commencing with section 54950 of the California Government Code.
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 7 of 17 (c) Voting. Except as otherwise provided by law or by this Agreement, all actions of the Board shall be approved on the affirmative vote of a majority of the Members of the Board. A supermajority approval will be required for approval of the budget, debt issuance, property acquisition and disposition, cost sharing changes, litigation authorization, Executive Officer hiring/termination.
(d) Quorum. A majority of the Members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time.
(e) Minutes. The Secretary of the Authority shall cause minutes of regular, adjourned regular, and special meetings to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each Member of the Board and to each Member Agency.
(f) Rules. The Board may adopt from time to time such rules and regulations for the conduct of its affairs as may be required.
ARTICLE V: AUTHORITY EMPLOYEES
5.1. Executive Officer. The Board shall appoint an Executive Officer for the Authority, who shall be responsible for the day-to-day operation and management of the Authority. The Executive Officer may not be a member of the Board or otherwise represent any Party to the Authority. The Executive Officer may exercise all powers of the Authority, except those powers reserved to the Board by this Agreement or the Authority's bylaws, or those powers which by law must be exercised by the Board. The Executive Officer may enter into and execute agreements and other contracts, in accordance with criteria, regulations, and policies established by the Board.
5.2. Additional Employees and Agents. The Board and the Executive Officer shall have the power to employ or retain additional employees, assistants, contractors, consultants and others as may be appropriate, and in accordance with all applicable laws and regulations.
5.3. Loan of Employees. To implement this Agreement the Parties may loan employees to the Authority on terms mutually agreed to between the Authority and the loaning Party. No Member Agency is obligated, however, to loan any employees to the Authority. Loaned employee remains an employee of that City for payroll, benefits, and workers’ compensation purposes.
5.4. Compliance with the Political Reform Act and Government Code Section 1090. The Authority and its officers and employees shall comply with the Political Reform Act (Government Code Section 81000 et seq.) and Government Code Section l 090 et seq. The Board shall adopt a Conflict of Interest Code pursuant to Government Code Section 87300.
The Board may adopt additional conflict of interest regulations as necessary.
5.5. Privileges and Immunities from Liability. All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers'
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 8 of 17 compensation and other benefits which apply to the activities of officers, agents, or employees of a public agency when performing their respective functions shall apply to the officers, agents, or employees of the Authority to the same degree and extent while engaged in the performance of any of the functions and other duties of such officers, agents, or employees under this Agreement. None of the officers, agents, or employees directly employed by the Board shall be deemed, by reason of their employment by the Authority to be employed by the Parties or by reason of their employment by the Authority, to be subject to any of the requirements of the Parties.
ARTICLE VI: FINANCIAL PROVISIONS
6.1. Fiscal Year. The Fiscal Year of the Authority shall be the period commencing on July 1 of each year and ending on and including the following June 30.
6.2. Sources of Funds. The sources of funds available to the Authority may include, but are not limited to, the following:
(a) Member Agency Contributions and Cost-Sharing. Annual contributions from each of the Member Agencies per a cost-sharing formula adopted by the Board and approved by each Party’s governing body. The cost-sharing formula shall consider factors including, but not limited to:
(i) Proximity to facilities.
(ii) Level of use.
(iii) Populations served.
(iv) Project-specific benefits.
(b) Grants, Donations, and Sponsorships. Grants, donations, and sponsorships received by the Authority from local, State, or Federal agencies, or from individuals or businesses.
(c) Disaster Relief Funding. Funds received from State and Federal disaster relief agencies.
(d) In-Kind Funding. “In kind” contributions from Member Agencies, individuals, and corporations. No Member Agency is obligated, however, to provide any “in-kind” contributions to the Authority
(e) Fees and Charges. Funds for lease revenues, program fees, and property rentals.
6.3. No Debt Without Approval. The Authority shall not incur debt payable by a Member Agency without that Agency’s express approval by a supermajority vote.
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6.4. Receipt of Funds. The Authority shall arrange for the receipt of such funds from the above sources as are available to the Authority and as are necessary for the conduct of the Authority’s activities.
6.5. Accounts. There shall be strict accountability of all funds and reporting of all receipts and disbursements. Revenues or funds received or made available to the Authority from any source whatsoever, shall be deposited into accounts that may be established by the Authority, and may be expended by the Authority in any legal manner, subject to such reservations as may be imposed by the Authority from time to time.
6.6. Fiscal Agent. The City of Azusa is designated as the Fiscal Agent for the Authority. The Fiscal Agent shall manage, serve as depository, and have custody of all funds and money of the Authority, from whatever source, and shall have all of the duties and obligations set forth in Government Code Sections 6505 and 6505.5.
(a) Fiscal Agent Responsibilities and Administrative Services. The Fiscal Agent shall perform the following financial responsibilities and administrative services on behalf of the Authority:
(i) Receive, hold, and disburse Authority funds as directed by the Board. (ii) Maintain accounting records and internal controls. (iii) Prepare all financial reports for the Board.
(iv) Ensure Authority compliance with applicable public finance and audit laws. (v) Arrange for audits of Authority funds as required per Section 6.9 of this Agreement or per other applicable regulations.
(vi) Budget preparation and financial management.
(vii) Processing payments and contracts.
(viii) Grant administration.
(ix) Financial recordkeeping and required filings.
(b) Administrative Retainer. The Authority shall pay the Fiscal Agent an annual administrative retainer equal to five percent (5%) of the Authority’s annual operating budget in consideration of the Fiscal Agent’s fiscal and administrative services.
(c) Fiscal Agent Liability. The Fiscal Agent’s role is administrative and fiduciary only.
The Fiscal Agent is not responsible or liable for Authority policy decisions, or obligations not approved by the Board.
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6.7. Annual Reports. The Fiscal Agent shall, within 90 days after the close of each Fiscal Year, give a complete written report of all financial activities for such fiscal year to the Board of Directors and to each Member Agency. The Authority’s books and records shall be open to inspection at all reasonable times by representatives of each Member Agency.
6.8. Annual Budget. The Board of Directors shall adopt interim and annual budgets as described below:
(a) Interim Budget. The Board shall, within sixty (60) days of the Effective Date of this Agreement, approve an interim budget, which shall constitute the operating budget until the Annual Budget is adopted.
(b) Annual Budget. Annually, prior to July 1 of each year, the Board shall adopt a budget for all expenses to be made by the Authority during the ensuing Fiscal Year and an allocation of contributions from the Member Agencies. The Authority shall conduct a public budget study session no later than April 30 of each year to review the proposed Annual Budget and projected Member Agency contributions for the ensuing Fiscal Year. The proposed contribution amountsshall be transmitted to each Member Agency no later than May 1 to allow incorporation into each Member Agency’s municipal budget process. Public funds may not be distributed by the Authority except pursuant to a budget adopted by the Board in accordance with this Agreement, compliance with procurement procedures and policies and all receipts and disbursements shall be in strict conformance with the adopted budget. (c) Budget Amendments and Revisions. No expenditures in excess of those budgeted shall be made without approval of a revised or amended budget, which may from time to time be submitted to and approved by the Board of Directors.
6.9. Audit. The Fiscal Agent shall cause an annual independent audit of the accounts and records of the Authority to be made and reported in accordance with Sections 6505 through 6505.6 of the Government Code. The audit shall conform to generally accepted auditing standards. The cost of the annual independent audit shall be considered an administrative expense of the Authority and shall be funded by the Member Agencies in accordance with the cost-sharing formula adopted pursuant to this Agreement. Such report shall be filed by December 31 following the close of the Fiscal Year under examination.
6.10. Procurement Methods. The purchasing regulations of the City of Azusa are hereby adopted as the policies relating to procurement of services, equipment, supplies, and other materials needed to accomplish the purposes of this Agreement.
ARTICLE VII: PROPERTY AND FACILITIES
7.1. Real Property Ownership. Nothing in this Agreement shall transfer ownership of real property unless expressly authorized by the affected Member Agency.
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7.2. Use of Open Space. The Authority may manage open space and facilities located within the JPAArea consistent with the purposes of this Agreement and subject to applicable laws, regulations, permits, and flood control requirements.
7.3. Property Maintenance Standards. Facilities and open space shall be maintained in a manner consistent with public safety, environmental regulations, and community standards.
ARTICLE VIII: PUBLIC SAFETY
8.1. Public Safety Coordination. The Authority shall work collaboratively with Member Agency police, fire, and public works departments to improve visibility and access, reduce illegal activity, and support emergency response efforts and personnel.
ARTICLE IX: INSURANCE
9.1. Insurance. The Authority shall maintain types and levels of insurance coverage for the Authority as the Board of Directors determines to be reasonably adequate and as is necessary to protect the interests of the Authority and the Parties. Notwithstanding the above, the Authority shall maintain comprehensive general liability limits of no less than $1,000,000 per occurrence for bodily injury (including death), personal injury, and property damage. If general liability insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit. The Authority may self-insure in order to satisfy this requirement. Each Member Agency shall be named as an additional insured on all liability insurance policies maintained by the Authority.
ARTICLE X: LIABILITY AND INDEMNIFICATION
10.1. Liability of Authority, Board, Officers, and Employees. Each Member Agency shall be responsible for its own acts and omissions. The debts, liabilities, and/or obligations of the Authority shall not be the debts, liabilities, and/or obligations of any of the Member Agencies or any of their respective members, officers, directors, employees, or agents. In no event shall any Member Agency be liable for any debts, liabilities, obligations, claims, or judgments of the Authority in excess of that Member Agency’s approved annual financial contribution to the Authority as adopted pursuant to this Agreement. The Authority, its Directors, officers, employees, staff, and agents shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No Member Agency, its officer, director, or employee shall be responsible for any action taken or omitted by any other Member Agency, or its officers, or employees.
10.2. Indemnification. The Authority shall indemnify, defend, and hold harmless a Director, the Board of Directors, the individual Member Agencies, their members, officers, directors, employees, and agents from and against any and all claims, losses, damages, deductibles or self-insured retentions, costs (including, without limitations, costs and fees of litigation
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 12 of 17 or arbitration), fines, penalties, injuries, and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, errors, omissions, or negligence of the Authority or its officers, employees, agents, contractors, licensees, or volunteers related to this Agreement, except such loss or damage which was caused by the gross negligence or willful misconduct of a Director, the Board of Directors, or any individual Member Agency. The obligations of the Authority under this Section shall be payable solely from the funds and insurance coverage of the Authority, and no Member Agency shall be jointly or severally liable for any claim, loss, or liability of the Authority if the Authority’s insurance or assets are insufficient to satisfy such obligation. The Authority’s duty to indemnify each Member Agency pursuant to this Agreement shall survive that Member Agency’s withdrawal from the Authority and termination of the Authority.
ARTICLE XI: AMENDMENTS TO AGREEMENT
11.1. Amendments to Agreement. This Agreement may be amended at any time by the written consent of the governing bodies of all the Member Agencies, including for the purpose of adding new Member Agencies to the Authority. The Executive Director shall provide a fully executed copy of the amended Agreement to the Board of Directors and to each Member Agency after each Member Agency has approved and executed the amendment.
ARTICLE XII: ADMISSION, WITHDRAWAL, AND TERMINATION
12.1. Admission of New Member Agencies. Additional public agencies may join the Authority upon approval of the Board and execution of an amendment to this Agreement per Article XI of this Agreement.
12.2. Withdrawal of Member Agencies.
(a) Notice of Withdrawal. Notwithstanding any other provision of this Agreement, any Member Agency may withdraw from the Authority by providing the Authority with written notice of its intent to withdraw at least twelve (12) months in advance of the withdrawal date. The Board, in its discretion, may approve a shorter notice period on a case-by-case basis.
(b) Governing Body Approval. Withdrawal of a Member Agency shall require an affirmative vote of the Member Agency’s Governing Body. (c) Withdrawal from Board of Directors. A withdrawal from the Authority constitutes a withdrawal of that Member Agency’s representatives from the Board of Directors. (d) Amendment to Agreement. Withdrawal of a Member Agency from the Authority shall be effected by an amendment to this Agreement per Article XI of this Agreement after the notice period in Section 12.2(a) has expired. (e) Withdrawing Party’s Obligations. The withdrawal of a Member Agency shall not terminate that Member Agency’s continuing obligations as described in Section
12.4, below.
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12.3. Involuntary Termination.
(a) Material Non-Compliance. A Party to this Agreement may be terminated from this Agreement and the Authority for material non-compliance with provisions of this Agreement or Authority policies and regulations upon a two-thirds vote of the entire Board, excluding the vote of the Party subject to possible termination. (b) Notice and Hearing. Prior to any vote to terminate this Agreement with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular provisions of this Agreement or Authority policies and regulations that the Party has allegedly violated. The Party subject to possible termination shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination.
(c) Terminated Party’s Obligations. A Party that has had its membership in the Authority terminated shall not be relieved of that Party’s continuing obligations as described in Section 12.4, below.
12.4. Continuing Obligations. Upon withdrawal or involuntary termination of a Party, the Party shall be responsible for continuing obligations as follows:
(a) Upon withdrawal or involuntary termination of a Party, the Party shall be responsible for any claims, demands, damages, or liabilities attributable to the Party through the effective date of its withdrawal or involuntary termination, including for its share of budgeted expenses for the Fiscal Year in which withdrawal or termination was effected, and for any damages, losses, or costs incurred by the Authority which result directly from the Party's withdrawal or termination. The liability of the withdrawing or terminated Party shall be based on actual costs or damages incurred by the Authority and shall not include any penalties or punitive charges imposed by the Authority.
(b) The withdrawing or involuntarily terminated Party shall not be responsible for any claims, demands, damages, or liabilities commencing or arising after the effective date of the Party's withdrawal or involuntary termination. (c) The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority, to cover the Party's liability for the costs described above. The withdrawing or terminated Party agrees to pay any such deposit determined by the Authority. Any amount of the Party'sfunds held on deposit with the Authority above that which is required to pay any liabilities or obligations shall be returned to the Party.
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 14 of 17 (d) From and after the date a Party provides notice of its withdrawal or is terminated, the Authority shall reasonably and in good faith seek to mitigate any costs and obligationsto be incurred by the withdrawing or terminated Party under this Section through measures reasonable under the circumstances, provided that this obligation to mitigate does not impose any obligation on the Authority to transfer any cost or obligation directly attributable to the membership and withdrawal or termination of the withdrawing or terminated Party to the remaining Parties.
12.5. Termination of Authority.
(a) Dissolution Agreement. This Agreement and the Authority may be terminated by the mutual written consent of the governing bodies of all the Member Agencies in the form of a dissolution agreement. However, this Agreement and the Authority shall continue to exist for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to conclude the affairs of the Authority. (b) Remaining Assets. Upon termination of this Agreement and the Authority by all Parties, and after payment of all obligations of the Authority, the Board may sell or liquidate Authority property and shall distribute any remaining assets to the Parties in proportion to the contributions made by the existing Parties. Any assets provided by a Party to the Authority shall remain the asset of that Party and shall not be subject to distribution under this section.
12.6. Five-Year Performance Review. Commencing five (5) years after the Effective Date of this Agreement, and every five (5) years thereafter, the Board shall conduct a formal review of the Authority’s performance, financial sustainability, governance structure, and continued public benefit. The results of such review shall be presented to the governing body of each Member Agency, and the Board may recommend amendments to this Agreement as appropriate based upon the findings of the review.
ARTICLE XIII: DISPUTE RESOLUTION
13.1. Dispute Resolution. The Parties and the Authority shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. (a) Mediation. Before exercising any remedy provided by law, a Party or the Parties and the Authority shall engage in non-binding mediation in the manner agreed upon by the Party or Parties and the Authority. The Parties agree that each Party may specifically enforce this section.
(b) Legal Remedies Preserved. In the event that non-binding mediation is not initiated or does not result in the settlement of a dispute within 60 days after the demand for mediation is made, any Party and the Authority may pursue any other remedies provided by law.
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 15 of 17 ARTICLE XIV: MISCELLANEOUS PROVISIONS
14.1. Severability. If any section, clause or phrase of this Agreement or the application thereof to any Party or any other person or circumstance is for any reason held to be invalid by a court of competent jurisdiction, it shall be deemed severable, and the remainder of the Agreement or the application of such provisions to the other Party or to other persons or circumstances shall not be affected thereby. Each Party hereby declares that it would have entered into this Agreement, and each subsection, sentence, clause and phrase thereof, irrespective that one or more sections, subsections sentences, clauses or phrases or the application thereof might be held invalid.
14.2. No Third-Party Beneficiaries. The provisions of this Agreement are for the sole benefit of the Parties and the Authority and not for the benefit of any other person or entity. No third party beneficiary shall be created by or arise from the provisions of this Agreement.
14.3. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the Parties hereto.
14.4. Assignment. The rights, titles and interests of any Party to this Agreement shall not be assignable or transferable without the consent of the governing bodies of the Member Agencies. This section does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party's contributions to the Authority, or the disposition of the proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Authority or the Parties under this Agreement.
14.5. Required Filings. Upon execution of this Agreement, the Authority shall cause a notice of this Agreement and any other filings required pursuant to Government Code Sections 6500 et seq., including Sections 6503.5 and 53051, to be filed with the office of the Secretary of State and the State Controller. The Authority shall be responsible for maintaining compliance with all reporting and filing requirements applicable to joint powers authorities under California law.
14.6. Notices. Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally or by registered or certified mail, postage prepaid to the respective Parties, as follows:
(a) City of Azusa
Attn: City Manager
213 E. Foothill Blvd.
Azusa, CA 91702
Rachel Richman, City Attorney
Burke, Williams & Sorensen, LLP
444 South Flower Street, 40th Floor,
Los Angeles, CA 90071
[email protected]
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 16 of 17 (b) City of Duarte
Attn: City Manager
1600 Huntington Dr.
Duarte, CA 91010
Thai Viet Phan, City Attorney
Rutan & Tucker, LLP
18575 Jamboree Road, 9th Floor
Irvine, CA 92612
[email protected]
(c) City of Irwindale
Attn: City Manager
5050 N. Irwindale Ave.
Irwindale, CA 91706
[INSERT COUNSEL]
[INSERT FIRM]
[INSERT ADDRESS]
[INSERT ADDRESS]
[INSERT EMAIL]
14.7. Governing Law. This Agreement is made in the State of California, under the Constitution and laws of such State, and shall be construed and enforced in accordance with the laws of such State.
14.8. Integration. This Agreement constitutes the full and complete Agreement of the Parties.
14.9. Counterparts/Electronic Signatures. This Agreement may be executed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement. This Agreement may be signed digitally/electronically with the same force and effect as original ink signatures.
SIGNATURES TO FOLLOW
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
_____________________________________________________________________________________________ North San Gabriel River JPA: Joint Exercise of Powers Agreement Page 17 of 17 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed and attested by their proper officers thereunto duly authorized on the day and year set forth below, making the same effective on the date signed by the last of all Parties hereto.
CITY OF AZUSA CITY OF DUARTE
City Manager City Manager
Dated: ____________________________ Dated: ____________________________ ATTEST: ATTEST:
City Clerk City Clerk
Dated: ____________________________ Dated: ____________________________ APPROVED AS TO FORM: APPROVED AS TO FORM:
City Attorney City Attorney
Dated: ____________________________ Dated: ____________________________
CITY OF IRWINDALE
City Manager
Dated: ____________________________
ATTEST:
City Clerk
Dated: ____________________________
APPROVED AS TO FORM:
City Attorney
Dated: ____________________________
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Kristen Petersen, Assistant City Manager/ Director of Administrative Services
BY: Angela Chiaromonte, Financial Services Manager
SUBJECT: Capital Asset and Lease and Subscription-Based IT Arrangements (SBITAs) Policies
RECOMMENDATION: It is recommended that the City Council approve the proposed Capital Asset and Lease and Subscription-Based IT Arrangements (SBITAs) Policies
FISCAL IMPACT: There is no fiscal impact associated with this item
STRATEGIC PLAN
IMPACT: Goal D – D2.1 Financial Sustainability
BACKGROUND
Capital assets are broadly defined as resources that are tangible or intangible in nature and have a useful life greater than two years. Examples of traditional capital asset categories include Land, Buildings, Improvements, Machinery & Equipment, Vehicles, and other Infrastructure. In accordance with financial reporting standards, the City also recognizes right-to-use assets acquired through Leases and Subscription-Based Information Technology Arrangements (SBITAs) within its broader capital framework.
The City’s Capital Asset Policy defines assets under each classification, addresses useful life ranges, sets minimum capitalization thresholds, and details the specific costs to include in an asset's initial value. Additionally, the policy discusses the treatment of unique items such as computer software, donated assets, construction in progress, and transfers of assets between funds or departments.
Capital assets, including qualified Leases and SBITAs, are accounted for at historical cost (or subscription/lease liability equivalent). If the historical cost is not practically determinable, assets are recorded at estimated fair market value at the time of acquisition or when placed into service.
Generally, the historical cost includes all expenses associated with the acquisition, shipment, construction, installation, or implementation of the asset to place it into its intended productive use.
Agenda Item: 17.D.
2 DISCUSSION/ANALYSIS
The purpose of these policies is to provide uniform criteria for identifying and properly classifying City expenditures for capitalization. These policies also provide guidelines for determining the economic useful lives of capital assets (also known as fixed assets) as well as capitalization thresholds.
To improve clarity and make our process more streamlined, staff recommends the adoption and implementation of the City’s own comprehensive policies and procedures for Capital Asset accounting, Lease accounting and Subscription-Based IT arrangements accounting, ensuring alignment with GAAP (Generally Accepted Accounting Principles), Government Finance Officers Association (GFOA), and relevant government standards (GASB 34, 87, and 96). Staff has drafted the attached policies to support the City’s compliance with GAAP, GFOA, and GASB to promote best practices.
RECOMMENDATION
It is recommended that the City Council approve the proposed Capital Asset and Lease and Subscription-Based IT Arrangements (SBITAs) Policies.
FISCAL IMPACT
There is no fiscal impact associated with this item.
ATTACHMENTS
A. Capital Assets Policy
B. Leases and Subscription-Based IT Arrangements Policy Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
CITY OF DUARTE
ADMINISTRATIVE SERVICES POLICY GUIDELINES
CAPITAL ASSETS Date Adopted: 07/28/26
1. PURPOSE
The purpose of this policy is: (1) to describe the policies and procedures utilized in the City's capital asset management system (excel), and (2) put guidelines in place to account for and depreciate the City's capital assets. The primary goals of this policy are:
• To ensure that the City's capital assets are accounted for in conformance with generally accepted accounting principles; and
• To establish a consistent and cost-effective way to account for the City's capital assets.
This Capital Asset Management policy is in accordance with generally accepted accounting principles and closely conforms to capital asset accounting practices as recommended by the Government Finance Officers Association (GFOA). The Government Finance Officers Association recommends that every state and local government consider the following applicable guidelines in establishing capitalization thresholds for capital assets:
• Capital assets should be capitalized only if they have an estimated useful life of at least two years following the date of acquisition. • Capitalization thresholds should be applied to individual assets rather than to groups of similar items (e.g., desks, computers). However, for assets that qualify for capitalization and depreciation under the "group method," see Section 3.1 for the appropriate threshold application.
• As a general rule, capitalization thresholds should be designed to encompass approximately 80% of a government's total non-infrastructure assets. • In no case should a government establish a capitalization threshold of less than $10,000 for any individual item.
• Governments should exercise control over their non-capitalized capital assets by establishing and maintaining adequate internal control procedures at the department level.
CAPITAL ASSETS
2. RESPONSIBILITY
2.1 Finance Department - The Administrative Services Director and/or designee shall be responsible for the implementation of this policy.
2.2 Department Directors - Department Directors shall be responsible for controlled equipment within their areas of responsibility which includes items such as computers, office equipment, and construction equipment.
3. POLICY
3.1 Threshold - Effective July 28, 2026, in addition to Buildings, Sewer System, Machinery & Equipment, Vehicles, Improvements and Other Infrastructure, the City will capitalize individual assets and Infrastructure that costs $10,000 or more and have an estimated useful life of at least two (2) years.
The capitalization threshold for Buildings and Building Improvements shall be $50,000, and for Land Improvements, the capitalization threshold shall be $25,000.
However, assets acquired with debt proceeds may be capitalized regardless of cost. In addition, assets acquired prior to July 28, 2026, and capitalized at a lower threshold may continue to be depreciated on the basis of past practice.
Effective July 28, 2026, infrastructure projects and improvements shall be capitalized so as to substantially account for the City's investment in infrastructure and consider related debt.
Individual- assets that cost less than $10,000 but operate as part of a network system may be capitalized in the aggregate using the "group method" if the estimated average useful life of the individual asset is at least two (2) years. A network, or group is determined to be where individual components may be below $10,000 but are independent, and the overriding value to the City is on the entire network and not the individual assets (e.g., computer systems and telephone systems). In this case, the entire network or group will be capitalized as one system with many components to the system.
3.2 Valuation - In accordance with generally accepted accounting principles, the City will value its capital assets at historical cost. Historical cost includes the cost or estimated cost at the time of acquisition, freight charges, installation, and site preparation charges, and the cost of any subsequent additions or improvements, excluding repairs. If a capital asset is donated to the City, the asset will be valued based on the fair market value at the time the asset is donated.
CAPITAL ASSETS
3.3 Capital Asset Inventory - As part of the financial audit, the Finance Department shall submit a capital asset report to the City's external auditor on an annual basis. This report will include the following information:
• Type of asset (i.e., land, building, infrastructure)
• Date of acquisition
• Acquisition cost
• Estimated useful life
• Annual depreciation
.• Accumulated depreciation
3.4 Depreciation - The City will use the Straight-Line Method as its standard approach to depreciate capital assets.
3.5 Estimated Useful Life - The following ranges are guidelines in setting estimated useful life for depreciating assets.
Buildings 60 Years
Sewer System 60 Years
Machinery & Equipment 5 - 35 Years
Improvements 10 - 20 Years
Other Infrastructure 10 - 50 Years
Vehicles 5 - 10 Years
Intangible assets are capitalized at cost while contributed assets are recorded at fair market value at the time received.
3.6 Capital vs. Repair and Maintenance Expenses - The following criteria are the basis for distinguishing costs as either capital or repair and maintenance expense:
3.6.1 With respect to improvements on non-infrastructure and infrastructure, costs should be capitalized if the useful life of the asset is substantially extended, or the cost results in a substantial increase in the capacity or efficiency of the assets. Otherwise, the cost should be expensed as repair and maintenance.
CAPITAL ASSETS
3.7 3.8
Inventory - For internal control purposes, the City will maintain an inventory listing of certain assets (controlled equipment) that do not meet the capitalization thresholds referenced above. The capital asset current threshold is $10,000. Items costing between $1,000 and less than $10,000 will be added as inventory for tracking purposes, only if the estimated useful life of the asset is at least two (2) years. Controlled equipment includes items that should be specifically accounted for and inventoried periodically due to the high resale value of the equipment and potential risk of theft.
Controlled equipment may include items such as computers, cell phones, construction equipment, and other office equipment.
The IT department is responsible for all network computers, printers, cell phones and wireless devices. Each Department Head is responsible for all other controlled equipment within their areas of responsibility.
Impairment of Fixed Assets - The Government Accounting Standards Board (GASB) has released Statement No. 42 Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries. The City is required to evaluate prominent events or changes in circumstances affecting fixed assets to determine whether impairment has occurred. "Impairment" may include physical damage, enactment or approval of laws or regulations, changes in environmental factors, technical changes, or evidence of obsolescence, changes in the manner or duration of use of an asset, and construction stoppages.
A fixed asset is impaired if both:
(a) The decline in the ability to use an asset is large in magnitude (> $100,000).
(b) The event is outside the normal life cycle of a capital asset.
Assets that are deemed impaired that will no longer be of service to the City, will need to have their value adjusted based on the lower of their fair market value or their "book" value after depreciation.
In the case of theft, fire, flood, obsolescence or other event regarding the usefulness of an asset, departments need to evaluate the usefulness or availability of that asset in the future. This may require outside assistance from an appraiser and/or the Finance Department to determine significance and applicability. Impairment must be conspicuous e.g., known to the City that a material event has occurred.
To measure the amount of impairment, the department will need to work
CAPITAL ASSETS
with the Finance Department to determine if the above factors exist. If so, the portion of the asset to be adjusted would depend on the usefulness after repair (if applicable.) Usefulness assessments will need to be known as soon as possible. Other items that will need to be known include:
1. What is the estimated cost to restore the asset to full utility?
2. What would be the current cost to replace the asset?
3. What is the salvage value, if any?
If there is impairment, these items will be used to measure impairment given the facts of the occurrence.
Once known, this information must be communicated to the Finance Department in writing so the asset value may be adjusted on the City's Capital Asset Management System (excel).
Additionally, impairment losses should be reported in financial statements in accordance with the guidance provided by GASB. If not otherwise apparent from the face of the financial statements, the description, amount, and financial statement classification of impairment losses should be disclosed in the notes to the financial statements. If evidence is available to demonstrate that the impairment will be temporary, the capital asset should not be written down.
Impaired capital assets that are idle should be disclosed, regardless of whether the impairment is considered permanent or temporary.
3.9 Disposal and Transfer of City's Assets – Disposition, Transfer or Sale of City assets will require the managing department to complete the Transfer, Disposal, or Sale of Fixed Asset form (Exhibit A) and submit to the Finance Department for prior approval.
4. GLOSSARY OF TERMS
Capital Assets: Capital assets include land, land improvements, buildings, building improvements, construction in progress, machinery and equipment, vehicles, infrastructure, irrigation, easements, intangible assets (such as computer software), and works of art and historical treasures.
Capitalization: Capitalization of an asset occurs when the cost of the asset meets the "threshold" and the "estimated useful life" set in the organizational guidelines.
Under capitalization, the cost of an item is initially recorded as an asset rather than an expense.
Depreciation: Depreciation is the process of allocating the cost of property over a period of time rather than recognizing the cost as an expense in the year of acquisition. Generally, at the end of an asset's life, the sum of the amounts
CAPITAL ASSETS
charged for depreciation in each accounting period (accumulated depreciation) will equal the original cost less salvage value.
Donated Capital Asset: Donated assets are those assets contributed to the City.
The donated assets are treated like a capital asset (using the fair market value).
Estimated Useful Life: Estimated useful life means the estimated number of months or years that an asset will be able to be used for the purpose for which it was purchased. In determining useful life, consideration is given to the asset's present condition, use of the asset, construction type, maintenance, and how long it is expected to meet service demands.
Fair Market Value: The amount that would be paid if the item were sold currently in a transaction between a willing buyer and a willing seller.
Historical Cost: The historical cost of a capital asset includes the cost or estimated cost at the time of acquisition, freight charges; installation and site preparation charges, and the cost of any subsequent additions or improvements, excluding repairs.
Infrastructure Assets: Infrastructure assets are long-lived capital assets that normally can be preserved for a significant greater number of years than most stationary in nature and are of value only to the government entity. Examples include the City storm drain system.
Salvage Value: The salvage value of an asset is the value it is expected to have when it is no longer useful for its intended purpose. In other words, the salvage value is the estimated amount for which the asset could be sold at the end of its useful life.
Straight-Line Method: The straight-line method is the simplest and most commonly used for calculating depreciation. It can be used for any depreciable property.
Under the straight-line method, the basis of the asset is written off evenly over the useful life of the asset. The same amount of depreciation is taken each year. In general, the amount of annual depreciation is determined by dividing an asset's depreciable cost by its estimated life.
Threshold: The threshold is the dollar amount that an asset must equal or exceed if that asset is to be capitalized. Otherwise, the item would be considered as an expense at the time of acquisition.
TRANSFER, DISPOSAL, OR SALE OF FIXED ASSETS FORM
Authorized by: _______________________ Date: ___________ *********************FOR FINANCE DEPT. USE ONLY********************* Approve Disapprove
Comments:______________________________________________________________ _______________________________________________________________________ Reviewed by: ____________________________ Title:__________________________ Date: ___________________
Item Description:________________________________________________________ Date of Acquisition:______________________________________________________ Serial Number (if applicable):______________________________________________ Condition:_______________________________________________________________ Original Cost or Fair Market Value:___________________________________________ Check appropriate box:
Transferring
Disposing
Selling
JUSTIFICATION:________________________________________________________ ________________________________________________________________________ Exhibit A
CITY OF DUARTE
ADMINISTRATIVE SERVICES POLICY GUIDELINES
LEASES AND SUBSCRIPTION BASED INFORMATION
TECHNOLOGY ARRAGEMENTS (SBITAs) Date Adopted: 07/28/26
1. PURPOSE
The purpose of this policy is to establish guidelines for the recognition, measurement, and disclosure of Leases and Subscription-Based IT Arrangements (SBITAs) in accordance with the requirements of Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, and GASB Statement No. 96, SBITAs.
2. RESPONSIBILITY
2.1 Finance Department - The Administrative Services Director and/or designee shall be responsible for the implementation of this policy.
2.2 Department Directors - Department Directors shall be responsible for controlled equipment leases /subscriptions within their areas of responsibility which includes items such as office equipment, and software’s.
3. POLICY
This policy applies to all leases and subscription-based information technology arrangements entered into by the City of Duarte (City), both as a lessee and as a lessor with the following general exceptions:
Transactions excluded from GASB 87
- Leases for intangibles (including computer software), except for sublease of intangible right-to- use leased asset
- Leases for biological assets
- Leases for inventory
- Leases where underlying asset financed with conduit debt, except for underlying asset and conduit debt reported by lessor
- Service concession agreements
- Supply contracts - electric power purchase agreements - Short-term leases (maximum term 12 months or less, including any options to extend, regardless of their probability of being exercised) - Contracts that transfer ownership of the underlying asset to the lessee
LEASES AND SUBSCRIPTION BASED INFORMATION
TECHNOLOGY ARRAGEMENTS (SBITAs)
Transactions excluded from GASB 96
- Purchases of hardware or software an entity acquires through conventional purchase methods, such as outright purchase, capitalization, or financing arrangements.
- The statement does not apply to internal labor costs incurred by the entity for developing, hosting, or maintaining the software.
- If the arrangement is solely for data storage and does not include software functionality, it is excluded from the scope of GASB 96.
Recognition and Measurement:
Leases
As a lessee, the City shall recognize a lease liability at the commencement of the lease term measured at the present value of payments expected to be made during the lease term. The City shall reduce the lease liability as payments are made and recognize an outflow of resources for interest on the liability. The lease asset shall be measured at the amount of the initial measurement of the lease liability, plus any payments made to the lessor at or before the commencement of the lease term and certain direct costs.
The City shall amortize the lease asset over the shorter of the lease term or the useful life of the underlying asset.
As a lessor, the City shall recognize a lease receivable and a deferred inflow of resources at the commencement on the lease term measured at the present value of lease payments expected to be received during the lease term. The deferred inflow of resources shall be measured at the value of the lease receivable plus any payments received at or before the commencement of the lease term that relate to future periods.
The City shall recognize interest revenue on the lease receivable and revenue from the deferred inflows of resources over the term of the lease.
Capitalization Threshold for Leases: The materiality threshold for GASB 87 leases has been established at $10,000 for both lessee and lessor activities.
SBITAs
The City shall recognize a right-of-use asset and a corresponding liability at the commencement of the subscription term for subscription-based information technology arrangements that meet the definition of a lease as per GASB Statement No. 96.
The subscription liability shall be initially measured at the present value of subscription payments expected to be made over the contract term. Future subscription payments shall be discounted using the interest rate the SBITA vendor charges the City, which
LEASES AND SUBSCRIPTION BASED INFORMATION
TECHNOLOGY ARRAGEMENTS (SBITAs)
may be implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. The City shall recognize amortization of the discount on the subscription liability as an outflow of resources.
The subscription asset shall be initially measured as the sum of the initial subscription liability amount, payments made to the SBITA vendor before the commencement of the subscription term, and capitalizable implementation costs less any incentives received from the SBITA vendor at or before the commencement of the subscription term. The City shall recognize amortization of the subscription asset as an outflow or resources over the subscription term.
Capitalization Threshold for SBITAs: The materiality threshold for GASB 96 SBITAs has been established at $10,000 or greater in total future subscription payments through the SBITA term.
Incremental Borrowing/Implicit Rate: This is an estimate of the interest rate that would be charged for borrowing the lease payment amounts during the lease term. In most cases, the borrowing rate is not stated in the lease; however, it is implied that there is a cost of borrowing the amounts. Due to the sensitivity of assumptions within the borrowing rate, the City will use the incremental borrowing rate for any new eligible GASB 87 leases and lease amendments and GASB 96 SBITAs.
4. Disclosure
The City shall ensure the proper presentation of leases and subscription-based information technology arrangements in its financial statements. In accordance with GASB 87, the notes to the financial statements shall include a description of leasing arrangements, the amount of lease assets recognized, a schedule of future lease payments to be made, and the total inflows of resources recognized from leases. In accordance with GASB 96, the notes to the financial statements shall disclose descriptive information about its SBITAs such as the amount of the subscription asset, accumulated amortization, other payments not included in the measurement of the subscription liability, principal and interest requirements for the subscription liability, and other essential information.
5. GLOSSARY OF TERMS
Lease: A contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. Any contracts that meets this definition should be accounted for under the leases guidance, unless specifically excluded in GASB Statement No. 87.
LEASES AND SUBSCRIPTION BASED INFORMATION
TECHNOLOGY ARRAGEMENTS (SBITAs)
Lease Term: The period during which a lessee has a noncancelable right to use an underlying asset.
Lessee: The entity that obtains the right to use the leased asset.
Lessor: The entity that owns the leased asset and grants the lessee the right to use the asset.
Lease Liability: The lessee's obligation to make lease payments arising from a lease.
Right-of-Use Asset: An asset that represents a lessee's right to use a leased asset during the lease term.
Subscription-Based Information Technology Arrangement (SBITA): a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.
Subscription Term: Includes the period during which a government has a noncancelable right to use the underlying IT asset.
AGENDA REPORT
MEETING DATE: July 28, 2026
TO: Mayor and Members of the City Council
FROM: Kristen Petersen, Assistant City Manager/Director of Administrative Services
SUBJECT: Reclassification of existing Human Resources Specialist position to Human Resources Analyst
RECOMMENDATION: Staff recommends that the City Council reclassify the existing Human Resources Specialist position to Human Resources Analyst; approve the attached Human Resources Analyst job description; and approve the attached revised City-Wide Salary Schedule, which includes a salary range of $6,400-$8,000 for the new Human Resource Analyst position
FISCAL IMPACT: The fiscal impact is approximately $10,000, however there is sufficient funds available in the FY 2026/27 Budget for this item
STRATEGIC PLAN
IMPACT: Goal E – E1.5 Organizational Excellence
BACKGROUND
Human Resources is part of the Administrative Services Department. Michelle Brown has held the position of Human Resources Specialist since 2010. In prior years, the Human Resources Division has had the positions of Personnel Assistant, Human Resources Analyst and Human Resources Manager, depending on the needs of the City at any one time.
The field of Human Resources has evolved over the years, requiring a higher level of technical understanding in areas such as disability, workers compensation, benefit administration and laws related to medical and other protected leaves of absence. In more recent years, Human Resources professionals spend extensive hours responding to public records requests, conducting investigations and coordinating with claims administration third parties, attorneys and medical providers.
DISCUSSION/ANALYSIS
In May staff began a review of the existing tasks of the Human Resources Specialist in comparison to the existing job description. While items on the task list fall under the job duties and are appropriate duties for a Human Resources Specialist, given that Michelle has held this position for more than 16 years, her level of understanding and expertise would allow her to perform tasks with more independence than a traditional Human Resources Specialist would. With Michelle’s Agenda Item: 17.E.
2 tenure there is the potential for less oversight or direction than someone newer to the role; consequently, this would enable the completion of certain tasks without the direct involvement of the Director of Administrative Services. By reclassifying the position to Human Resources Analyst, it would expand the scope, responsibility and independence.
The City Council’s Strategic Plan specifically notes that we should build upon our strong internal organization to encourage growth opportunities and advance City staff retention. More specifically, after assessing the City’s staffing structure in the Human Resources Division of the Administrative Services Department, reclassifying the existing position to an Analyst position would allow for internal advancement and provide efficiencies for the director and the department.
Based on a survey of surrounding cities and a review of our internal alignment, we have created a new job description and salary range for a Human Resources Analyst. The Analyst class differs from the Specialist due to the complexity of assignments, the level of Human Resources understanding required, and the independence with which assignments are regularly performed. This position would be in the General Employees Unit and has been reviewed and approved by the Union Board. We are recommending a salary range of $6,400-$8,000.
RECOMMENDATION
Staff recommends that the City Council reclassify the existing Human Resources Specialist position to Human Resources Analyst; approve the attached Human Resources Analyst job description; and approve the attached revised City-Wide Salary Schedule, which includes a salary range of $6,400-$8,000 for the new Human Resource Analyst position.
FISCAL IMPACT
The fiscal impact is approximately $10,000, however there is sufficient funds available in the FY 2026/27 Budget for this item.
ATTACHMENTS
A. Human Resources Analyst Job Description
B. Citywide Salary Schedule
Fiscal Review: Reviewed and Approved:
Kristen Petersen Brian Villalobos
Assistant City Manager/ City Manager
Director of Administrative Services
HUMAN RESOURCES ANALYST
Definition:
Under the general direction of the Director of Administrative Services, performs a wide variety of highly responsible and complex professional level administrative, technical and analytical duties in support of the City’s human resources functions including recruitment and selection, benefits administration, classification and compensation plan administration, employee relations and workers’ compensation and provides information and assistance to the City employees and the general public regarding overall human resource activities, policies and procedures.
This class differs from the Human Resources Specialist due to the complexity of assignments and level of understanding of human resources theories and principles.
Essential Job Duties:
The following tasks are essential for this position. Incumbents in this classification may not perform all of these tasks, or may perform similar related tasks not listed here.
1. Serves as a primary source of information and assistance on all human resources matters within the City.
2. Manages the recruitment process, including the preparation, placement, and dissemination of job announcements and advertisements; the acceptance of applications; communication with potential candidates and oral board members of exam dates and times, creating and maintaining the schedule, compiling packets for oral board and assisting interview panels in the assessment of candidates, preparing offer letters, fingerprinting and other related items.
3. Conducts new employee orientations, including enrolling employees in benefit plans and all HRIS systems and exit meetings.
4. Prepares and reconciles a variety of benefit-related reports and invoices, including retirement, medical, dental, vision, short and long term disability, life insurance, Flexible Spending Accounts, COBRA and Leave of Absence.
5. Maintains various confidential filing systems and personnel records, both in hard copy and electronic formats.
6. Coordinates 457 deferred compensation activity, including enrollment and termination transactions, payroll deduction transfers, and simple account reconciliations.
7. Provides assistance to the Director of Administrative Services during labor negotiation, litigation and internal investigations by researching, gathering, and providing a variety of necessary documentation and information. Responds to records requests.
8. Conducts salary and benefits surveys, analyzes results, and delivers recommendations to Director of Administrative Services.
Human Resources Analyst
9. Oversees the administration of the health benefit program including conducting open enrollment, coordinates information with third party benefit administrators, develops benefits data for disbursement to employees, manages the online benefit portal, analyzes benefits plans and make recommendations for changes and improvements to the Director of Administrative Services.
10. Recommends and coordinates employee city-wide training programs and maintains appropriate records. Plans and coordinates regularly scheduled employee meetings and special employee activities and events.
11. Processes employee requests for disability leave, FMLA, COBRA, dependent status changes, retirement, death and other qualifying events.
12. Coordinates transactions related to staff changes; including new hire, promotion, termination, personnel action, payroll, leaves, and benefits.
13. Assists with the development and implementation of policies and procedures.
14. Monitors and coordinates workers’ compensation activities, including coordinating with claims administration third party administrators and attorneys, assists with interactive process, assesses initial workers’ compensation claims, serves as liaison with injured workers, city departments, attorneys, medical providers, and investigators in the management of injured worker claims and works closely with employees, supervisors, and managers regarding return to work issues.
15. Coordinates with payroll staff for special payroll operations, including sick, vacation, and administrative leave buyback. Provides payroll expertise and processing support when needed.
16. Performs other related duties as required.
Minimum Knowledge, Skill and Ability:
Knowledge of:
Principles and practices of human resources management and payroll administration.
General personnel policies and procedures applicable to the City. Overall operations, services, and activities of a contract municipality. Management skills to analyze programs, policies, and operational needs. Principles and techniques of negotiation and bargaining. Principles and practices of program development and administration. Principles and practices of municipal budget preparation and administration. Principles of supervision, training, and performance evaluation. Methods and techniques of analysis related to a broad array of public administration issues, administrative research, and data analyses.
Current literature, information sources, and research techniques in the field of human resource management.
Record keeping principles and procedures.
Office procedures, methods, and equipment, including computers and applicable software applications, such as word processing, spreadsheets, and databases, and HRIS/payroll programs.
Functions, policies, and procedures of relevant departments and/or operations. English usage, spelling, grammar, and punctuation.
Skill and Ability to: